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ECARX Announces First Quarter 2024 Unaudited Financial Results

Exhibit 99.1

SHANGHAI, China, May 20, 2024 (GLOBE NEWSWIRE) — ECARX Holdings Inc. (Nasdaq: ECX) (“ECARX” or the “Company”), a global mobility tech provider, today announced unaudited financial results for the quarter ended March 31, 2024.

“The strong growth momentum that we picked up last year continued into the first quarter with revenues increasing 21% year-over-year,” commented ECARX Chairman and CEO Ziyu Shen. “The development of software-defined vehicles and their underpinning technologies will determine the winners in this next stage of the auto revolution. Continued product innovation and a strong ecosystem of partnerships are key to capitalizing on this opportunity. The multiple ground-breaking automotive intelligence solutions that we unveiled during the quarter, and the synergies being created by our growing number of partnerships with the likes of Microsoft, form part of our strategy to reshape the global automotive technology value chain for a broader range of automakers and brands globally.”

“With our global customer base steadily expanding beyond Geely Group, including wins from FAW Group and a well-known European automaker during the quarter, we view this as an exciting opportunity to showcase our unique strengths, build stronger connections with automakers through cost-effective solutions, and lay a sustainable path towards profitability as our business grows to scale.”

First Quarter 2024 Financial Results:

First Quarter 2024 and Recent Business Development Highlights:

Conference Call and Webcast Details
ECARX will host a webcast of its earnings conference call today, Monday, May 20, 2024, at 8:00 a.m. EST. To access the webcast, visit the News and Events section of the ECARX Investor Relations website, or visit the following link – https://edge.media-server.com/mmc/p/ji9r3h9b

To join the earnings call by telephone, participants must preregister at https://register.vevent.com/register/BIeacb8a83827e45b4a0aa74556624b2c5 to receive dial-in information.

A replay of the webcast and presentation materials will be available on the Company’s Investor Relations website under the results and reports section following the event.

About ECARX

ECARX (Nasdaq: ECX) is a global automotive technology provider with capabilities to deliver turnkey solutions for next-generation smart vehicles, from the system on a chip (SoC), to central computing platforms, and software. As automakers develop new electric vehicle architectures from the ground up, ECARX is developing full-stack solutions to enhance the user experience, while reducing complexity and cost.

Founded in 2017 and listed on the Nasdaq in 2022, ECARX now has over 2,000 employees based in 12 major locations in China, UK, USA, Sweden, Germany and Malaysia. The co-founders are two automotive entrepreneurs — Chairman and CEO Ziyu Shen, and Eric Li (Li Shufu), who is also the founder and chairman of Zhejiang Geely Holding Group, with ownership interests in global brands, including Lotus, Lynk&Co, Polestar, Smart, and Volvo Cars. ECARX also works with other well-known automakers, including FAW and Dongfeng Peugeot-Citroën. To date, ECARX products can be found in over 6.4 million vehicles worldwide.

Forward-Looking Statements

This release contains statements that are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management’s beliefs and expectations as well as on assumptions made by and data currently available to management, appear in a number of places throughout this document and include statements regarding, amongst other things, results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate. The use of words “expects”, “intends”, “anticipates”, “estimates”, “predicts”, “believes”, “should”, “potential”, “may”, “preliminary”, “forecast”, “objective”, “plan”, or “target”, and other similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including, but not limited to statements regarding our intentions, beliefs or current expectations concerning, among other things, results of operations, financial condition, liquidity, prospects, growth, strategies, future market conditions or economic performance and developments in the capital and credit markets and expected future financial performance, and the markets in which we operate.

For a discussion of these and other risks and uncertainties that could cause actual results to differ materially from those expressed in any forward-looking statement, see ECARX’s filings with the U.S. Securities and Exchange Commission. ECARX undertakes no obligation to update or revise forward-looking statements to reflect subsequent events or circumstances, except as required by applicable law.

Translation of results into U.S. dollars

This announcement contains translations of certain Renminbi (RMB) amounts into U.S dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.2203 to US$1.00, the noon buying rate in effect on March 29, 2024 as set forth in the H.10 Statistical Release of The Board of Governors of the Federal Reserve System. We make no representation that any Renminbi or U.S. dollar amounts could have been, or could be, converted into U.S. dollars or Renminbi, as the case may be, at any particular rate, or at all.

Non-GAAP Financial Measure

The Company uses adjusted EBITDA (non-GAAP) in evaluating its operating results and for financial and operational decision-making purposes. Adjusted EBITDA is defined as net loss excluding interest income, interest expense, income tax expense, depreciation of property and equipment, amortization of intangible assets, and share-based compensation expenses.

The Company presents this non-GAAP financial measure because it is used by the management to evaluate the Company’s operating performance and formulate business plans. The Company believes that the non-GAAP measure helps identify underlying trends in its business that could otherwise be distorted by the effects of certain expenses that are included in net loss. The Company also believes that the use of the non-GAAP measure facilitates investors’ assessment of its operating performance.

Adjusted EBITDA (non-GAAP) should not be considered in isolation or construed as alternatives to net loss or any other measures of performance or as indicators of the Company’s operating performance. Investors are encouraged to compare the Company’s historical adjusted EBITDA (non-GAAP) to the most directly comparable GAAP measure, net loss. Adjusted EBITDA (non-GAAP) presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. The Company encourages investors and others to review the financial information in its entirety and not rely on a single financial measure.

For more information on the non-GAAP financial measure, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.

Investor Contacts:
Rene Du
ir@ecarxgroup.com

Media Contacts:
ecarx@christensencomms.com

  As of
December 31,
2023
  As of
March 31, 2024
(Unaudited)
Millions, otherwise noted RMB   RMB   USD
ASSETS          
Current assets          
Cash 561.1   358.4   49.6
Restricted cash 27.1    
Short-term investments 137.9   173.8   24.1
Accounts receivable – third parties, net 285.8   176.0   24.4
Accounts receivable – related parties, net 1,545.8   1,300.5   180.1
Notes receivable 54.6   21.7   3.0
Inventories 160.8   192.3   26.6
Amounts due from related parties 74.1   101.4   14.0
Prepayments and other current assets 441.7   409.9   56.9
Total current assets 3,288.9   2,734.0   378.7
           
Non-current assets          
Long-term investments 301.0   268.7   37.2
Operating lease right-of-use assets 125.2   115.5   16.0
Property and equipment, net 120.8   120.1   16.6
Intangible assets, net 179.3   304.2   42.1
Other non-current assets – third parties 28.2   35.7   4.9
Other non-current assets – related parties 224.3   271.2   37.6
Total non-current assets 978.8   1,115.4   154.4
Total assets 4,267.7   3,849.4   533.1
           
LIABILITIES          
Current liabilities          
Short-term borrowings 1,200.0   1,200.0   166.2
Accounts payable – third parties 1,818.0   1,408.7   195.1
Accounts payable – related parties 278.8   344.5   47.7
Notes payable 10.0   2.6   0.4
Amounts due to related parties 35.7   439.3   60.8
Contract liabilities, current – third parties 0.6   1.2   0.2
Contract liabilities, current – related parties 207.0   221.5   30.7
Current operating lease liabilities 35.1   33.6   4.7
Accrued expenses and other current liabilities 614.5   429.1   59.5
Income tax payable 15.8   13.8   1.9
Total current liabilities 4,215.5   4,094.3   567.2
Non-current liabilities          
Contract liabilities, non-current – related parties 134.0   104.7   14.5
Convertible notes payable, non-current 455.7   464.0   64.3
Operating lease liabilities, non-current 107.6   104.1   14.4
Warrant liabilities, non-current 5.1   5.3   0.7
Provisions 90.9   94.2   13.0
Other non-current liabilities 93.3   94.3   13.1
Deferred tax liabilities   31.9   4.4
Total non-current liabilities 886.6   898.5   124.4
Total liabilities 5,102.1   4,992.8   691.6
           
SHAREHOLDERS’ DEFICIT          
Ordinary Shares    
Additional paid-in capital 6,093.7   6,118.8   847.4
Accumulated deficit (6,670.4)   (6,955.1)   (963.3)
Accumulated other comprehensive loss (344.7)   (362.2)   (50.2)
Total deficit attributable to ordinary shareholders (921.4)   (1,198.5)   (166.1)
Non-redeemable non-controlling interests 87.0   55.1   7.6
Total shareholders’ deficit (834.4)   (1,143.4)   (158.5)
Liabilities and shareholders’ deficit 4,267.7   3,849.4   533.1
           
  Three Months Ended
March 31
(Unaudited)
  2023   2024   2024
Millions, otherwise noted RMB   RMB   USD
Revenue          
Sales of goods revenue 593.9   757.1   104.9
Software license revenue 102.3   75.3   10.4
Service revenue 68.9   95.5   13.2
Total revenue 765.1   927.9   128.5
Cost of goods sold (471.0)   (622.2)   (86.2)
Cost of software licenses (30.2)   (22.2)   (3.1)
Cost of services (54.0)   (78.2)   (10.8)
Total cost of revenue (555.2)   (722.6)   (100.1)
Gross profit 209.9   205.3   28.4
           
Research and development expenses (237.9)   (269.4)   (37.3)
Selling, general and administrative expenses and others, net (186.0)   (190.5)   (26.4)
Total operating expenses (423.9)   (459.9)   (63.7)
Loss from operation (214.0)   (254.6)   (35.3)
           
Interest income 8.4   6.1   0.8
Interest expense (18.1)   (21.3)   (3.0)
Share of results of equity method investments (11.9)   (19.2)   (2.7)
Foreign currency exchange gains/(losses) 2.2   (0.1)  
Others, net 14.2   (13.7)   (1.9)
Loss before income taxes (219.2)   (302.8)   (42.1)
Income tax (expense)/benefit (0.2)   0.6   0.1
Net loss (219.4)   (302.2)   (42.0)
Net loss attributable to non-controlling interests  14.8   17.5   2.4
           
           
Net loss attributable to ECARX Holdings Inc. ordinary shareholders (204.6)   (284.7)   (39.6)
Net loss (219.4)   (302.2)   (42.0)
Other comprehensive loss:          
Foreign currency translation adjustments, net of nil income taxes (1.6)   (17.5)   (2.4)
Comprehensive loss (221.0)   (319.7)   (44.4)
Comprehensive loss attributable to non-redeemable non-controlling interests 14.8   17.5   2.4
Comprehensive loss attributable to ECARX Holdings Inc. (206.2)   (302.2)   (42.0)
           
Loss per ordinary share          
  • Basic and diluted loss per share, ordinary shares
(0.61)   (0.84)   (0.12)
Weighted average number of ordinary shares used in computing loss per ordinary share          
  • Weighted average number of ordinary shares
337,395,390   337,897,291   337,897,291
           

Adjusted EBITDA

We use adjusted EBITDA in evaluating our operating results and for financial and operational decision-making purposes. Adjusted EBITDA is defined as net loss excluding interest income, interest expense, income tax expense, depreciation of property and equipment, amortization of intangible assets, and share-based compensation expenses.

Adjusted EBITDA should not be considered in isolation or construed as alternatives to net loss or any other measures of performance or as indicators of our operating performance. Investors are encouraged to compare our historical adjusted EBITDA to the most directly comparable GAAP measure, net loss. Adjusted EBITDA presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.

   
  Three Months Ended
March 31
  2023   2024   2024
Millions, otherwise noted RMB   RMB   USD
Net Loss (219.4)   (302.2)   (42.0)
Interest income (8.4)   (6.1)   (0.8)
Interest expense 18.1   21.3   3.0
Income tax expense/(benefit) 0.2   (0.6)   (0.1)
Depreciation of property and equipment 14.1   15.2   2.1
Amortization of intangible assets 6.3   25.3   3.5
EBITDA (189.1)   (247.1)   (34.3)
Share-based compensation expenses 47.8   25.1   3.5
Adjusted EBITDA (141.3)   (222.0)   (30.8)

 


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