ECARX Q4 2024 Earnings Call Transcript

Quartr
Provided by Quartr
March 11, 2025

Key Takeaways

  • Q4 EBITDA breakeven achieved as Q4 revenue rose 4% YoY and 36% sequentially, with full-year revenue up 18%; the company is targeting positive full-year EBITDA in 2025.
  • Secured a milestone project win with Volkswagen Group to deploy its Antora 1000 computing platform across EMEA and the Americas, expanding its global automaker base to 18 OEMs and 28 brands.
  • Set shipment records with 3 million units in 2024 (up 33% YoY) and 700,000 units in Q4 (up 10% QoQ), bringing the total vehicles on the road using its technology to over 8.1 million.
  • Gross margin fell to 21.2% in Q4 (down 4% YoY) amid industrywide hardware price erosion; management plans to lower costs via scale, supply-chain optimization, and improved operational efficiency.
  • Expanded its product and IP portfolio with the launch of an in-vehicle AutoGPT AI platform, ISO 26262 ASIL D–certified CloudPeak hypervisor, growing ADAS wins for Skyland Pro, and 692 patents granted globally.
AI Generated. May Contain Errors.
Earnings Conference Call
ECARX Q4 2024
00:00 / 00:00

Transcript Sections

Skip to Participants
Operator

Good day and thank you for joining us. Welcome to e CarX's Fourth Quarter and Full Year twenty twenty four Earnings Conference Call. At this time, all participants are in 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.

Operator

I would now like to turn the call over to your host for today's call, Renee Zhu, Head of Investor Relations at Icarex. Please proceed, Renee.

Rene Du
Rene Du
Head of IR at ECARX Holdings

Thank you, operator. Good morning and welcome to EtaX fourth quarter and full year twenty twenty four earnings conference call. With me today from EtaX are our Chairman and Chief Executive Officer, Ziyu Shen Chief Operating Officer, Peter Sereno and Chief Financial Officer, Zao 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 the future.

Rene Du
Rene Du
Head of IR at ECARX Holdings

Specifically, we will discuss certain forecasts and projections, which represent the current and preliminary view of our management team and is therefore subject to change and uncertainties as well as these forward looking statements. 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 Ziyi. Please go ahead.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

Thank you, Renee. Hello, everyone, and thank you for joining our fourth quarter and full year earnings call today. 2024 was a remarkable year for e Car X, marked by significant milestones and progress across our business. We continued to execute on our strategic vision, further strengthening our position as a leading provider of intelligent solutions for automakers on a global scale. With market momentum continuing to build towards software defined vehicles, we remain at the forefront with a clear focus on strengthening and expanding our portfolio of cutting edge cost effective solutions.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

The global automotive market continues to grow, although at a slow pace in an increasingly challenging environment. Global vehicle sales grew by approximately 2% in 2024 to 91,000,000, including 64,000,000 passenger vehicles. China continued to outpace the rest of the war in 2019 with passenger vehicle sales increasing 6% to 28,000,000. This was primarily driven by NEVs, where sales surged to an impressive 13,000,000, up 36% and accounting for over 40% of sales. Chinese investment into advanced high quality and high-tech production is powering a new economic future.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

As growth slows and remains uneven globally, it becomes ever more important for companies to stand out from competition and define themselves. We are capitalizing on this growing demand and helping our makers distinguish themselves with our innovative product portfolio, diverse custom base and strategic global partnerships. This is already having an impact, which is clear, reflected in our performance last quarter and throughout the year. Revenue during the quarter and the year was up 418%, respectively, with gross margin of 21.220.8%, respectively. Notably, our opening lows consistently narrowed throughout the year, while our business kept growing with the partial sale of an equity investment.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

This allowed us to hit breakeven at the EBITDA level during the quarter, strengthening our confidence in reaching full year breakeven in 2025. Total shipments reached a record high of $3,000,000 last year, up 33% year over year, with over 700,000 ships during the fourth quarter alone, up 10% from last quarter by the end of twenty twenty four. There were over 8,100,000 vehicles on the road incorporating eCARS technology. This strong performance was driven by robust demand for GD models deploying E cars technology such as Glassify, Star Wish and Starships seven. The success of these models helped GD exceed its annual sales target last year with momentum tailoring into January 2025, where GD sales volumes for the month hit a record high.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

We secured a new project with Volkswagen Group during the quarter, expanding our global customer base to 18 automakers across 28 brands. This project win is a milestone for us and our solutions, which will be deployed in vehicle across EMEA and Americas, expanding our global reach and demonstrating to a broader audience how our force stack solutions can be seamlessly customized for deployment. Regardless of market, we also won a number of new projects from existing customers as our solutions are expanded to cover even more of their vehicles. We released our auto GPG in vehicle AI large language modeling application last quarter and quickly integrated multi LMS large modelings, including OpenAI and most recent D2C. This underscores the unique value proposition we offer to global automakers with cutting edge technology supported by our growing ecosystem of strategic partnerships.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

Before I hand the call over to Peter, I would like to reiterate the optimize and the confidence we have in our future growth prospects. Having achieved breakeven during the quarter, we are targeting positive EBITDA for full year 2025. The US20 million dollars share repurchase program we announced in December further underscores these optimism. The growing prominence of software defined vehicles continues to create tremendous opportunities for us as we replicate and scale our solutions globally, enabling us to drive sustainable growth and value for our shareholders. I will now pass the call over to Peter, who will go through the operating results of the quarter in more detail.

Peter Cirino
Peter Cirino
COO at ECARX Holdings

Thank you, Ziyu, and good day to everyone. I'll start with our growing customer base. Wazuhu mentioned we secured a milestone project win with the Volkswagen Group during the quarter. This project will deploy our Antora 1,000 computing platform and e CarX Cloud Peak integrated with Google Automotive Services in multiple vehicles through Volkswagen's Global Entry Infotainment Initiative, which is set to launch across EMEA and The Americas towards the end of this decade. We also won three new design wins from our existing customers with two deploying our Galena computing platforms and one deploying Makalu.

Peter Cirino
Peter Cirino
COO at ECARX Holdings

On the product front, we had several exciting new vehicles launched this quarter. Following the strong launch in China of the Geely Galaxy E5 last August, an overseas version known as the Geely Galaxy EX5 entered start of production during the quarter and began deliveries in early twenty twenty five. The EX5 will be the first vehicle overseas to deploy the Antora 1,000 computing platform, demonstrating our technological strength and ability to deliver this solution for both the PRC and international markets. We cumulatively shipped approximately 500,000 Antorus Series units by the end of last year, with shipments expected to surpass 1,000,000 in 2025. This provides automakers with a cost effective way to integrate digital cockpit and driving capabilities into a single board using the Antora 1,000, which will be deployed as Geely's mainstream entry level solution on future models.

Peter Cirino
Peter Cirino
COO at ECARX Holdings

The Hangchi Tiangong five started production late last year and was launched in January 2025, deploying the first intelligent cockpit jointly developed under our strategic partnership with FAW. Powered by the Antora 1,000 Pro and integrated with a customized Hongqi FAW OS built on top of the eCARx Cloud Peak and auto GPT, the Tiangong five will set new industry benchmarks with an immersive and AI driven intelligent cockpit experience. A similar solution will be deployed on another Hengqi model, which is expected to launch in the first quarter of twenty twenty five. We are also working on an ADAS solution for five Hengqi vehicles with startup production scheduled for the third quarter, further deepening our relationship. We continue to drive innovation in other areas as well, ensuring that our automaker partners have access to cutting edge solutions.

Peter Cirino
Peter Cirino
COO at ECARX Holdings

Our Cloud Peak hypervisor, a core component of the Cloud Peak software stack received ISO 26,262 ASIL D certification in January, the highest level of certification and a reflection of our focus on functional safety throughout the product lifecycle. CloudPeak was integrated into the MacLeo computing platform and deployed on the Lincoln Co Z10 StarBuff, which was launched in November of last year. This customized eSports version of the Z10 allows users to play AAA games on the go with an immersive gaming experience. Momentum for the Skyland Pro ADAS solution is building as automakers are increasingly seeking cost effective solutions that they can rapidly bring to market. Skyland Pro has been integrated into Geely's G pilot unified intelligent driving system, powering the recently launched Galaxy E8 all electric sedan.

Peter Cirino
Peter Cirino
COO at ECARX Holdings

The solution can be easily replicated and scaled across various brands and models, offering users a unique driving experience with advanced features such as automatic parking, assistance and highway NOA. The Skyland Pro already powers vehicles including the Lincoln Co eight and Lincoln Co seven launched in 2023. The eight model received a high CN cap rating and remains in strong demand. With the battleground for automakers to differentiate themselves, now expanding to ADAS and Vehicle Intelligence, Intelligent Driving Solutions will be crucial to drive the long term sustainable development of our business and the global automotive industry. With a clear roadmap for future ADAS solutions, we are already capitalized on this opportunity and will continue to drive innovation going forward.

Peter Cirino
Peter Cirino
COO at ECARX Holdings

Our robust intellectual property portfolio keeps growing with six ninety two registered patents and seven twenty three patent pending applications globally as of 12/31/2024. To demonstrate our robust portfolio of technologies, we attended numerous industry events during the quarter. In November, we showcased the Skyland Pro ADAS solution at AutoSense China, demonstrating how it can empower automakers with high performance, cost effective, intelligent driving solutions. That same month, we also represented the automotive sector at the Saudi Arabia National Quality Conference, where we received the SASO award for contributions to generative AI quality assurance, reflecting the impact that auto GPT is having on the industry. We carried this momentum into 2025 at CES in January, where one of the dominant themes was AI.

Peter Cirino
Peter Cirino
COO at ECARX Holdings

Interest in automotive applications of AI was extremely high this year, making AutoGPT a real point of interest. Over four days at CES, our management team packed in more than 50 meetings, including 17 with automakers from across the world. We also showcased the power and versatility of our solutions at our booth, including the Galena, Antora and MacLU platforms, solutions that all have been validated and deployed in vehicles currently in production along with our ADAS technologies. A key point of our message and conversations was the power of AutoGPT, specifically its core auto agent, auto flow, auto scene and auto eco capabilities built on top of several of the world's leading LLMs to enhance the in vehicle experience. Automakers and ecosystem partners were captivated by the auto agents adaptability to unique driver preferences, Auto Scene's monitoring of in vehicle behavior, AutoFlow's interaction with mobile apps and Auto Eco's seamless connectivity with in vehicle applications across devices, creating a comprehensive range of AI enhanced solutions.

Peter Cirino
Peter Cirino
COO at ECARX Holdings

Our presentation at CES helped us set the agenda for the year to come with a focus on expanding our global business by empowering automakers with cost and power efficient high quality solutions. I'd like to end with a quick update on our Fuyong smart facility and our strategy to integrate manufacturing and supply chain processes. Production continues to ramp up with more than 60,000 Pantoro units produced in December alone and further capacity expansions planned throughout this year. In conclusion, 2024 was a remarkable year for us and I remain highly optimistic that this will continue into 2025, especially as we lean into technological innovation and continue to diversify our customer base globally. I will now turn the call over to Phil, who will go through our financial results.

Phil Zhou
Phil Zhou
Chief Financial Officer at ECARX Holdings

Thank you, Peter, and hello, everyone. We closed out the year with a strong growth momentum despite intense market competition, hitting breakeven at the EBITDA level during the fourth quarter. Total revenue for the quarter was RMB1.9 billion, an increase of 4% year over year and 36% sequentially. Sales of goods revenue was RMB 1,500,000,000.0, up 16% year over year, driven by robust demand for our computing platforms, especially the Entola series and Makalu, which accounted for approximately 29% of sales of goods revenue. Software license revenue came in at RMB90 million, a decrease of 3% year over year and an increase of 7% sequentially.

Phil Zhou
Phil Zhou
Chief Financial Officer at ECARX Holdings

The year over year decrease was due to a decrease in the volume of legacy project software sales, while the sequential increase was driven by the ramp up of eCAG's operating system in line with the increase in shipments of the Antola platform. Service revenue was RMB326 million, a decrease of 31% year over year and a substantial increase of 102% sequentially, primarily impacted by engineering planning schedules and the timing of booking design and development contracts revenue. Gross profit for the quarter was RMB411 million, down 4% year over year, resulting in a gross margin of 21.2%. Total cost of revenue increased 6% year over year during the quarter, mainly driven by an increase in sales volumes for digital carpets. The decrease in gross margin was primarily the result of our pricing strategy to deepen penetration and drive computing hardware growth as well as a shift in the overall revenue mix compared to prior quarters.

Phil Zhou
Phil Zhou
Chief Financial Officer at ECARX Holdings

As the industry wide pricing pressure for automakers have deepened, we expect margins on hardware products to remain challenging over the mid term. To address this challenge, we will focus on optimizing product costs through economics of scale, our supply chain and the manufacturing strategy and improving overall operational efficiency. Furthermore, we will continue to strive a careful balance between top line growth, profitability and the capital investment. Operating expenses during the quarter decreased 32% year over year, primarily driven by the continuous expansion of our global operations and R and D efficiency improvements, as well as synergies created by reallocation and integration of R and D resources. Adjusted EBITDA gain were RMB74 million during the quarter, a significant improvement compared to a loss of RMB236 million during the same period last year, primarily attributable to the decrease in total operating expenses as well as gains from the partial sales of an equity investment.

Phil Zhou
Phil Zhou
Chief Financial Officer at ECARX Holdings

Loss per share was RMB0.11 compared to the same period last year RMB0.89. We closed out the year with a robust performance with a full year total revenue of RMB5.6 billion, up 18% year over year. Gross profit of RMB1.2 billion, down 9% year over year and the gross margins of 20.8%. During the year, we further improved operating and R and D efficiency by consolidating and reallocating resources and prioritizing investments in our international business and R and D expansion. Full year operating expenses decreased 7% year over year with an adjusted EBITDA loss of $592,000,000 an improvement of RMB119 million from last year.

Phil Zhou
Phil Zhou
Chief Financial Officer at ECARX Holdings

Moving on to our balance sheet. As of the end of the year, we had RMB367 million of cash and restricted cash. As we continue to optimize working capital and enhance profitability, we are proactively exploring options for a capital raise, including equity or debt financing to support our strategic objectives. As part of this effort, we recently filed an F3 registration statement allowing us to rapidly capitalize on favorable market conditions as they arise. Looking forward, we will further improve operating expenses and the product costs with a particular focus on procurement, supply chain and the manufacturing strategy and efficiency.

Phil Zhou
Phil Zhou
Chief Financial Officer at ECARX Holdings

We will continue to drive growth and expand the addressable market for our solutions by penetrating deeper into the Geely and the Geely ecosystems and growing our global automaker customer base further. For product offerings, we will continue to invest in R and D to capitalize on mid to long term growth opportunities. Additionally, we will accelerate the build out of two closed loop systems, one for China and the other for global markets, each spanning the entire process from R and D to delivery. In summary, we will focus on the unique value proposition we offer to automakers, further diversify our global customer base, proactively mitigate the impact of an increasingly challenging geopolitical environment and improve our cost structure to ensure the long term sustainability of our business model and the financial performance. That concludes our prepared remarks today.

Phil Zhou
Phil Zhou
Chief Financial Officer at ECARX Holdings

I would now like to hand the call back to the operator to begin the Q and A session.

Operator

Thank you. Our first question comes from the line of Dan Lin Ren from CICC. Please go ahead. Your line is open.

Wei Huang
Wei Huang
Analyst at Deutsche Bank

Hi, good evening, everyone. This is Dan Lin from CICC Auto team. Congratulations on your strong results last year. And I have three quick questions to check with you. The first one is, could you share the company's global production capacity layout and how you expect to pace the implementation of global orders in the coming years?

Wei Huang
Wei Huang
Analyst at Deutsche Bank

The second one is, what's your current plan for ADAS or AD products? Which clients are you working with? And where do you see growth opportunities in your collaboration with Geely? The last one is, what's your overall strategic roadmap and development goals for over the next three to five years? That's all my questions.

Peter Cirino
Peter Cirino
COO at ECARX Holdings

Hi, Devin. This is Peter. I'll take your first question. Just talk a little bit about our manufacturing strategy. 2024 was a big milestone year for us in terms of manufacturing, because we've ramped up our capabilities in China quite extensively.

Peter Cirino
Peter Cirino
COO at ECARX Holdings

If you remember, we took the control of a joint venture we had established quite early in E Car Access life and also opened our new Puyang facility. We're today very close to that site where we're holding a big supplier day. So the Fuyong facility continues to ramp up very aggressively to serve our needs in China and will continue to be our premier site where we're investing heavily in technology there to have a leading manufacturing facility in the China region. Globally, as we expand, as we mentioned earlier in our remarks, we had a big milestone win with Volkswagen. And as we continue to expand with opportunities in South America, India and in Europe, I would expect that we would probably use some EMS or contract manufacturing partners that will help us expand our production capacity while we're continuing to expand engineering services or engineering capabilities to serve the global OEMs.

Peter Cirino
Peter Cirino
COO at ECARX Holdings

So I think we'll use very similar strategy that we utilized in China as we continue our growth over the last seven years that we have started with some partnership relationships and then we'll continue to expand as it makes sense as we grow our business.

Operator

Okay.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

So, yes, okay. So, Digit, Digit speaking. So, I would take the second question about ADAS. We have already made Skyline Pro product operating on Linking KUKA eight and seven last year, yes, I think two years ago, yes. So, that's a 10 camera solution with five radar and also can support highway NLP function.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

Also, we are following their urban feature as well. And this product already be a part of the GD ADAS roadmap they just announced. Also, we are keep working on these platforms, Guideline Pro and Guideline. Also, we just announced 81,000 SoC with five gs company together. That is a very high performance AI computing SoC platform from a five gs IT design company we invested.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

So very similar like to FT-one thousand from Antola platform, we four digit copyed them. It's what we will get data, compute units, computer units for very high performance feature on this platform. We are starting investments on development and we have made production next two years with ongoing still. Also, I think we are investing the ADAS roadmap to strengthen our portfolio and to earn more growth next three years. That's our expectation here.

Wei Huang
Wei Huang
Analyst at Deutsche Bank

Okay. Thank you. It's very clear. Thank you.

Operator

Thank you. We'll now move on to our next question. Our next question comes from the line of Dai Shen from SDBI. Please go ahead. Your line is open.

Tony Shen
Technology Analyst at SPDB International Securities

Dear management, this is Tony from SDDB International. First of all, congratulations on the EBITDA breakeven in the first quarter of twenty twenty four. This is perfect. And so I've got two questions here. The first question is about the guidance or the outlook of 2025.

Tony Shen
Technology Analyst at SPDB International Securities

Can the management share some color or guidance for revenue, gross margin and also the breakeven point of 2025? This is my first question. And the second question may be also related to the ADAS penetration rate increasing significantly, especially powered by BYD in February. How do we see the opportunities for e Car X for e Car X PAM opportunity and the customers demand and for both the cockpit and the driving solutions? These are my two questions. Thank you.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

Hello. Hi. So this is Du speaking. Okay. So thank you for questions.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

The first question, I think the monster is very clear. I think in 2025, we are very, very focused on breakeven. That's very main priority for us. So, of course, we still will have a growth for revenue, but that will be the second priority for from the breakeven. So, the breakeven is top priority for us because we believe the health of the cash flow and the finance and balance sheet is the most important for the company, the global journey, because we already win the global OEM and we have to go very high finance balance sheet to support our global expansion.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

So that's why breakeven is my main priority for the company. Also your first question. Okay. And second question about the ADAS opportunity and also did you copy the opportunity, even, yes, we already know BYD announcement. So, we believe that ADAS growth is very significant in China market And most of OEM is following the journey BYD are doing.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

So that's why I think it's a good opportunity. I just answered the question to CICT before that we invested in Skyline and Skyline Pro already. Also, we are fast moving with the sidechain chipset, SoC81000. Also, we will go NVIDIA PEMFOL as well for Soy. So, that's why I think ADAS portfolio will be very important to be part of the e Car X, that's three years growth.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

So that's why we believe ADAS feature and ADAS software development will be very key for the company and we will continue to invest in this area.

Tony Shen
Technology Analyst at SPDB International Securities

Okay, perfect. That is very clear. May I have a quick follow-up? Can we have any color on the gross margin maybe for 2025, especially how do we see the price trend related to gross margin fee? Okay, this is my last question. Thank you.

Phil Zhou
Phil Zhou
Chief Financial Officer at ECARX Holdings

Hey, Sundal, this is Phil. I'm happy to address your question. So regarding the margin performance, as I can see that in Q4, last year, we just recovered our gross margin performance back to 20% and above. And that affects our ability to manage the portfolio selling. So in Q4, we sold our balance software and the services.

Phil Zhou
Phil Zhou
Chief Financial Officer at ECARX Holdings

At the same time, we also drove a very effective cost down activities. So that's why in the end, we are able to recover the margin back to 20%. So coming by moving into 2025, this strategy will continue. For sure, we foresee the headwinds ahead regarding the pricing erosion pricing pressure, but at the same time, the company is ready to drive the upstream supply chain management. So we will keep optimizing cost and as well as the scope, the economics of scope.

Phil Zhou
Phil Zhou
Chief Financial Officer at ECARX Holdings

So at the same time, right, back to you then as I mentioned to your first question regarding our breakeven, right? Our breakeven, the path to breakeven in '25 is good on the data driven strategy, right? And with measurable progress and we focus on multi financial dimensions as well, right. First of all, we will for sure we will accelerate the top line growth with the volume scaling. You may observe that our entire acceleration rate and the continuing rate keep increasing.

Phil Zhou
Phil Zhou
Chief Financial Officer at ECARX Holdings

Last year, we shipped in total nearly 500,000 units in our customers. At the same time, right, we foresee such kind of mix will keep climbing, which was definitely contributed to our revenue growth as well as our margin performance. Second, we will drive the operational efficiency improvement as well. So we already systematically reduced our OpEx versus revenue ratio from 20% to 53% to 34% in 2024 percent. And in 2025, we perceive the percentage will further optimize to 20% plus and which is really helpful for our breakeven achievement.

Phil Zhou
Phil Zhou
Chief Financial Officer at ECARX Holdings

And, yes, as I mentioned earlier, the effective cost of software optimization definitely will help us to achieve that goal as well. So hopefully I can address the question and by adding more meat with Zuri.

Tony Shen
Technology Analyst at SPDB International Securities

Okay, perfect. Thank you, Zuri. Thank you, Phil. Thank you, management.

Operator

Thank you. We'll now move on to our next question. Our next question comes from the line of Jenny Huang from UBS. Please go ahead. Your line is open.

Jenny Wang
Jenny Wang
Financial Advisor at UBS Group

Hi. This is Jenny Huang from UBS Auto team. Congratulations on Fukushima and EBITDA and thanks for taking my questions. I have two questions. First, could you please provide a revenue breakdown for clients for 2019 and maybe share us your outlook for your current mix for the next five to ten years?

Jenny Wang
Jenny Wang
Financial Advisor at UBS Group

And the second question is that as the largest smart cockpit supplier for Geely brand, do you expect EtaX to benefit from Geely's supply chain consolidation and increase the share at Geely brands further where was the ceiling of your share at Geely?

Peter Cirino
Peter Cirino
COO at ECARX Holdings

Okay. Jenny, maybe I'll take your questions. I think as we look across our customer base, as the EU has highlighted many times, continuing to diversify our revenue from additional customers is very critical for our strategic path forward. And we are very selective as we do that. In 2024, at the end of the year, we launched the two HONGQI models, but that will happen I think between December and January. And then as we go through 2025, we'll see additional launches with Hengxi and with FAW as we continue to expand our relationship and deepening our partnership with them. Additionally, we'll certainly see some expansion of our products at Hengxi as well beyond the digital copper, which is where we've started that relationship. We're continuing to focus in China on selective expansion as we see customers that align with our winning strategy. We're very excited to engage with them and develop similar relationships that we have with our existing customers.

Peter Cirino
Peter Cirino
COO at ECARX Holdings

From a global perspective, as we mentioned, the activity with Volkswagen is certainly a very important milestone for the company. That product will launch, as we mentioned, a few years from now, which is the normal development cycle in the international market. And we're already engaged on already a number of mature RFQs that we would expect to be able to continue to gain traction in the global market and capitalize on the capabilities that we've built up. Our largest vehicle in the global market that we launched was the EX30 and we're continuing to expand our relationship with Volvo Cars. And then lastly, you talked about Geely.

Peter Cirino
Peter Cirino
COO at ECARX Holdings

I mean, we've definitely seen growth with the Geely brands. The Antora platform is a key element of Geely's current architecture and we'll continue to deploy across additional models as we go through the next few design cycles. Ziyu, I believe, had mentioned earlier around the growth of the Antohar shipments expected in 2025 and beyond. So we expect that product continues to gain good share throughout the market and deliver a very fantastic user experience to the consumers of the vehicle. So we're quite excited about the deep partnership that we have built with the Geely brands and we expect to continue to build off that both in developing hero products like our Antorus series as well as deepening our relationship with them.

Phil Zhou
Phil Zhou
Chief Financial Officer at ECARX Holdings

Yes. And regarding the revenue mix from different customer base, And as Peter mentioned, in 2025, we will actively support FAW Huongxi, Leila Multi program launch. At the same time, starting from '26, FOMCi FAW FOMCi volume will climb up. And by moving to the 2728 timeframe, the Volkswagen business, we will start to do the massive supply stock. So let's in the end, by 2027, '20 '20 '8 timeframe, the revenue mix business mix from Geely and Nanjing will eventually achieve a 50% versus 50%.

Phil Zhou
Phil Zhou
Chief Financial Officer at ECARX Holdings

That is our goal and that we are on the right trajectory to achieve that.

Jenny Wang
Jenny Wang
Financial Advisor at UBS Group

Thank you so much. That's all for me.

Peter Cirino
Peter Cirino
COO at ECARX Holdings

Okay. Thanks, Jenny.

Operator

Thank you. We'll now move on to our next question. Our next question comes from the line of Wei Huang from Deutsche Bank. Please go ahead. Your line is open.

Wei Huang
Wei Huang
Analyst at Deutsche Bank

Hi. Thanks for taking my question. Congratulations on the very strong set of results. I have three quick questions. The first one is, can you maybe give us the Geely share of your total revenue in 2024?

Wei Huang
Wei Huang
Analyst at Deutsche Bank

The second is, the Lincoln co brand is a significant customer for ETRX. And do we see an impact on our business with them given their merger into ZEAKER? And the third is, Geely recently announced the Galaxy E8 with the Qualcomm A295 chip. Is this using our Pykes computing platform? Thank you.

Phil Zhou
Phil Zhou
Chief Financial Officer at ECARX Holdings

Thank you. I'm sorry, the first question is regarding the Geely revenue contribution to channel four performance, right?

Wei Huang
Wei Huang
Analyst at Deutsche Bank

Yes.

Phil Zhou
Phil Zhou
Chief Financial Officer at ECARX Holdings

Okay. So in 2024, I would say that majority of the revenue still came from Geely, but we significantly shift our focus to non Geely expansion. So far, nearly 80% of the revenue still came from Geely and the Geely related Geely ecosystem business and 20% is from non Geely business. So that is a general answer general summary about our revenue performance.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

Yes, that's in 2024. And also you are regarding information from public, we just launched the FAW vehicle and also 2025, we will have the significant revenue from FAW, which has the NAND GD revenue. Also, we just won the Volkswagen Global deal in 2027. So that's why we have super confidence in coming three years, we will strongly strengthen non GD revenue in the company. Okay. The first question is okay?

Wei Huang
Wei Huang
Analyst at Deutsche Bank

Yes, that is very clear. Thank you.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

Okay. So the second question about the leading coal and the bigger, right? So, I think we don't have too much impact on that because we are still very strong Tier one supplier for Linkingco, the current demand portfolio. Actually, everybody know as you know, so the Linking Code eight and seven successful, we contributed the Antoine Alpha and with the Flymi Auto software together in Linking Code Core. Also, we are keep working with them very closely.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

And also every end user very, very, very enjoy the UX guidance from Blameyaro in the system. So that's why I think in near future, in the coming years, we're still very important to partner with the Ingo brand. There's no doubt about that, I think. And also you mentioned the Glax E8, right? So Glax E8, I think, is still using the brady oral.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

We are a software partner with Geely for the brand new aural adaption. But this hardware, 08/1995, is not from us. That's from others prior. But in Graph E8, also we provide a Skyline ADAS system directly to E8 and also we provided a four feature for including highway NLK feature under Grakke E8.

Wei Huang
Wei Huang
Analyst at Deutsche Bank

Understood. That is very clear. That's all for me. Thank you.

Ziyu Shen
Ziyu Shen
CEO & Chairman at ECARX Holdings

Thank you.

Operator

Thank you. Thank you. There are no further questions at this time. So I'll hand the call back to COO, Peter for closing remarks.

Peter Cirino
Peter Cirino
COO at ECARX Holdings

Okay. Well, first of all, I just wanted to thank all the members who joined the call. We appreciate the questions. E Car Racks really had a milestone quarter and a great end of the year of 2024. Achieving positive EBITDA was a big effort that the organization was extremely focused on.

Peter Cirino
Peter Cirino
COO at ECARX Holdings

As you mentioned, we're continuing to focus on repeating those results throughout full year 2025. We had a robust launch pipeline that we discussed as we continue to deepen our relationship with new customers such as FAW and our announcement for Volvo Cars excuse me, for Volkswagen was a big impact for the organization that we're excited to continue to deepen our global relationships with key customers. So thank you everyone for the call today and appreciate everyone's engagement.

Operator

This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers please stand by.

Executives
    • Rene Du
      Rene Du
      Head of IR
    • Ziyu Shen
      Ziyu Shen
      CEO & Chairman
    • Peter Cirino
      Peter Cirino
      COO
    • Phil Zhou
      Phil Zhou
      Chief Financial Officer
Analysts
    • Wei Huang
      Analyst at Deutsche Bank
    • Tony Shen
      Technology Analyst at SPDB International Securities
    • Jenny Wang
      Financial Advisor at UBS Group
Powered by Quartr