ECARX (ECX) Registration Filing summary

Company overview and business model

• Focuses on transforming vehicles into integrated information, communications, and transportation devices, with core products including infotainment head units, digital cockpits, vehicle chip-set solutions, operating systems, and integrated software stacks.

• Serves 26 vehicle brands globally, with over 7.3 million vehicles equipped with its products as of September 30, 2024.

• Operates as a Cayman Islands holding company, conducting business primarily through PRC subsidiaries, and recently terminated its VIE structure in China.

• Maintains a strong R&D focus, with 70% of its 1,800+ employees engaged in research and development across 12 global locations.

• Strategic partnerships with major automotive OEMs, including Geely ecosystem brands, Volvo, smart, Lotus, and Polestar.

Financial performance and metrics

• Total revenue for Q3 2024 was RMB1,425.3 million (US$203.1 million), up 31% year-over-year.

• Sales of goods revenue rose 61% year-over-year, driven by growth in Antora series and Makalu platform digital cockpits and ADCUs.

• Gross profit for Q3 2024 was RMB247.5 million (US$35.3 million), down 25% year-over-year, with a gross margin of 17%.

• Net loss for Q3 2024 was RMB340.0 million (US$48.4 million), compared to RMB283.1 million in Q3 2023.

• Total cash as of September 30, 2024 was RMB688.4 million (US$98.1 million), including RMB43.4 million of restricted cash.

Use of proceeds and capital allocation

• Net proceeds from securities sales will be used as set forth in applicable prospectus supplements.

• Recent capital allocation includes acquisition of full control of Hubei Dongjun Automotive Electronic Technology Co., Ltd. and investment in vertical integration of production and supply chain capabilities.