Q4 2023 Lotus Technology Inc Earnings Call

Participants

Demi Zhang; IR; Lotus Technology Inc.

Alexious Lee; CFO & Director; Lotus Technology Inc.

Qingfeng Feng; CEO & Director; Lotus Technology Inc.

Edison Yu; Analyst; Deutsche Bank AG

Ming Yang Lin; Analyst; Zhong De Securities

Daniel Lau; Analyst; UE Capital Pte. Ltd.

Presentation

Operator

Good day, and thank you for standing by. Welcome to Lotus Technology Inc. fourth-quarter and full-year 2023 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
It is now my pleasure to hand you over to the Head of Investor Relations, Ms. Demi Zhang. Please go ahead.

Demi Zhang

Thank you, Amber. Good morning, good afternoon, good evening, everyone. Welcome to Lotus Tech's fourth-quarter and fiscal year 2023 earnings conference call. This is Demi Zhang, the Head of IR at Lotus. Joining me today is our CEO, Mr. Qingfeng Feng; and CFO, Alexious Lee. On today's call, we will have CFO, Alexious, begin with prepared remarks, while CEO, Mr. Feng, will join for the Q&A.
Before we continue, please be reminded that today's discussion will contain forward-looking statements pursuant to the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today.
Further information regarding risks and uncertainties is included in the relevant filings of Lotus Tech with the US Securities and Exchange Commission. The company undertakes no obligation to update any forward-looking statement except as required under applicable law.
Please also note that Lotus Tech's earnings press release and this conference call will include the disclosure of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Please refer to our press release, which contains a reconciliation of unaudited and non-GAAP measures to comparable GAAP measures.
Lotus Tech is a pioneering luxury BEV maker under the iconic British brand, Lotus, with 76 years of racing heritage, world-class R&D capabilities, unique asset-light model, and a well-balanced global distribution network. We are delivering high-performance, environmental-friendly product portfolio and strong growth with healthy margin financial performance to all.
This is the first earnings call since we become a public company. We are very grateful for the attention and support from everyone during the past. In today's call, CFO, Alexious, will take us to review Lotus Tech's financial and operational results in the past year and forward looking in 2024 and onwards.
I will now turn over to our CFO, Alexious. Please go ahead.

Alexious Lee

Thank you, Demi. Good morning, good afternoon, good evening to everyone online. My name is Alexious Lee. I'm the CFO of the company. Let me go the slide, please. Thank you.
Yes, so I want to begin with sharing our financial year 2023, which was the first year that Lotus Tech had the BEV, battery electric vehicle, and got it delivered. Lotus Tech delivered approximately 7,000 units and generated nearly $680 million in revenue, followed by record numbers in the 76 years of the Lotus history.
Quarter-on-quarter and peak half-on-half growth momentum was strong. And most notably, fourth-quarter '23 will contribute more than 40% of both revenue and volume. Gross profit margin was 15% in the first year, much better than most EV startups' first year of delivery and comparable traditional marketing for mass-market peers. Next slide, please.
The chart to your left will show that in FY23, Lifestyle BEV model contributes 63% of total volume, while the sportscar sales contributes about 37% of volume. The electric SUV luxury model is a result of our product portfolio expansion to tap into the broader luxury branding. The brand got a positive impact, and traditional sportscar sales also grew significantly. All of these are pointing to Lotus evolving from a niche sportscar supplier to a luxury performance mobility brand.
The chart in the middle and the right shows the vehicle delivery and the retail network distribution across the world. China market takes up 30% of total vehicle stores, while more than 40% of total vehicle delivery.
The China market contribution is artificially inflated because other market delivery was slower given two to three months for international treatment and clearance. Lotus brand was well established globally, and our regional distribution mix was normalized gradually with China contributing around 35% to 40% of total demand.
Lotus Tech, the company that's listed in Nasdaq, is responsible for the global distribution of Lotus-branded vehicles and will capture all the financial returns from the Lotus development. Over the last 12 to 15 months, effort was spent by our commercial department to achieve five major deliverables. Number one, we put together the global distribution network, which includes 100-plus traditional sportscar retailers.
The work of these network partners to expand their product portfolios to include lifestyle models such as Eletre E-class SUV and the Emeya electric E-class sedan and others. Number three, we help them upgrade their retail stores to house more vehicles, integrate into the new Lotus identity, and plan their customer events.
Number four, we increased expertise and investments in charging infrastructures, digital ecosystems and areas, and these are potential new revenue streams for both the network partners and Lotus. Number five, we identified pockets of synergies in logistics, warehousing, marketing, branding, and realized OpEx reduction, CapEx optimizations to share costs and boost efficiencies.
This slide shows our award-winning e-car electric SUV, the Eletre model, which was launched in 2022 and began delivery in 2023 early. The image shows the traditional Lotus Yellow on our Eletre, which has a single eyelid-like headlight design. The Eletre model will begin delivery in the US market from the second half of 2024.
This slide shows our four-door E-class electric sedan model, which was launched in New York City in September 2023. The number of awards and positive feedback are piling up as we speak. Besides the superior performance and interior luxury concoction, the Emeya model is most known for is double-eyelid headlight design versus the single-eyelid Eletre.
This model just began its China delivery, and EU and UK customers will start receiving their orders for the second half of this year. Next slide.
Lotus has always been an award winner, known for innovations and F1 tradition and excellence. While we are previously known for our market-leading engineering services, aerodynamic design, and material science, Lotus is also known for its relentless pursuit for next generation of mobilities technologies.
Now let's point to the middle row, if everyone can take a look. These are the display of our awards in electric charging, digital OS systems, and also smart application AIs. These are next-generation technologies which Lotus pioneering in. Next slide.
We value our brand mission for the drivers and put them into action. During the Lotus Day 2023, we invited more than 600 Lotus drivers and VIPs to not only celebrate the new product launch in China Formula One circuit, but we also used the test-driving session of our smart BEVs, engaged with their customers to capture their ideas, contributions that can potentially be accepted in our next upgrades, our next-generation innovations, and designs.
As a pioneer among traditional luxury brands to spearhead into the full transformation towards electrification model, Lotus is also way ahead in terms of establishing our charging infrastructure. More than 300,000 charging stations across Europe and China are now accessible for Lotus BEV drivers. We expect to outperform.
We also look to potentially double this number when the full roll-out of the US and the rest of the world market infrastructures are well established to keep up. Among them, some of the Lotus-owned charging stations would offer fully robotic charging arm to provide a world-class experience and a seamless charging field. Next slide.
As the Chair of the ESG Committee, I will emphasize that sustainability is at the core of our Vision 80 strategy, and Lotus Tech joined several organizations such as the UNGC and others on the bottom left corner to commit to our -- to support our commitments.
Some of the recognitions and achievements in 2023 include 100% renewable energy usage in our Germany and London office. The Lotus Smart Factory in Wuhan was awarded as the National Green Factory, which is a very exclusive award.
We have solar power charging infrastructures to achieve decarbonization. More importantly, many joint research were conducted to protect customer data privacy, drive supply chain decarbonization, and become part of the first ESG report that was published by the company in 2023.
Now coming back to the financials, the first column shows our 4Q '23 financials, which was the very strong quarter-over-quarter growth versus the third quarter. Fourth-quarter '23 was a strong quarter with more than 110% quarter-over-quarter growth in units driven by delivery into the US market. The second column to the right shows our FY23 financials, which is the big jump versus 2022.
Nearly 7,000 units were delivered, a huge jump over 7 units in 2022, which is also a testament of the company's ability to operate globally as the business scales up before unprecedented times in 2020 and before. The management team will continue to build on this strength and improve operational excellence to support overall growth.
Revenue generation of USD680 million means an ASP of nearly USD100,000 per unit for the year, in line with management expectation and guidance. Gross profit margin of 15%, despite rising costs, uncertainties from global shipping, and insurances. Adjusted EBITDA was a loss of $693 million was in line with 2022, similar to the EBIT and net loss categories. Next slide, please.
A key point here is that we have currently four Lotus models available in 2024. To your right, you'll note the progressive volume available in 2024. In 2023, only 90% and 60% of markets will have access to the Emira sportscar and the Eletre SUV. This will change very quickly as 100% of the total retail market will have access to these models in 2024, especially in the second half.
More importantly that 30% of the market will have access to the newly launched Emeya, the E-class electric sedan model that was launched into Europe last fall. To your left, you will note the progressive plan we have to expand the number of Lotus retail stores in 2024 and 2025.
More importantly, existing stores will also be upgraded and expanded to house more models and provide space for better customer engagement. In short, our FY24, '25 growth will be powered by more models into more markets through more stores. Next slide, please.
Lotus also looked at growing out our exclusive bespoke services in 2024 to offer exclusivity luxury specifications to Lotus friends and owners. Many of these designs are limited edition and tailor made. Higher adoption of the bespoke service will not only drive ASP but also GPM improvement.
This is a quick look at our Evija, the [hypercar], which is the electric type of sportscar with (inaudible) 2,000 horsepower and priced at $2.2 million per unit. This model is a symbol of the great bespoke opportunity, with lots of positive customization for superior luxury customer segments.
Evija will begin delivery in 2024, and its first racetrack debut in China was two weeks ago. Jenson Button, Formula One gold champion, track drove the Evija during China Lotus Day and generated great traction with high-net-worth Chinese car owners.
Lotus Day is a valuable opportunity for the brand to engage with the customers by the debuts and track driving of the limited edition Evija and the launch of the new Emeya E-class electric sedan model. (inaudible) of the F1 category was reelected with thousands of customers getting together to know the brand and see the history and pass both the sportscar and Lifestyle models.
One important notice here under all is the (inaudible) that was actually in China for customers to take photos and to engage with. Other marquee events in 2024 to help build our iconic brand includes the Monterey Carweek, Goodwood Festival of Speed, and other exclusive racetrack events.
Our commitment to ESG will continue. We will publish our second Lotus ESG report and engage stakeholders' communications through a variety of channels such as public survey, roadshows, and even seminars. Evaluation and training internally with our employees and externally with our suppliers will become the focus in 2024. Next slide, please.
Coming back to our 2024 outlook, to your left, it is important to note that before that the BEV was delivered, only an average of 1,200 units Lotus-branded vehicles were sold annually between 2018 and 2022. We achieved nearly 7,000 units of sales in 2023, and we are targeting 46,000 units in 2024.
Expansion into the lifestyle model of SUV, sedan open up opportunities for much bigger luxury automakers, auto brands in this segment. Getting listed in Nasdaq allows access to capital and better strategic partners. The Lotus franchise is definitely becoming stronger with more models in more markets through bigger and better stores.
Given the bright evolution, we also expect sales of the sportscar to continue to ride on the opportunity and grow continuously. In the middle segment, we expect the sales revenue of USD2.5 billion to USD2.7 billion in financial year 2024. ASP already expanded versus the 2018 to 2022 average, but we continue to see upside opportunity potentially from higher adoption of high-spec auto models and bespoke services.
To the right, you will see the gross profit margin evolution at Lotus. Company continues to see positive GPM improvement to 17% to 19% as compared to 15% in 2023 This will be mainly driven by positive scale effects and operating leverage. This set, focusing on identifying the synergies and cost-saving opportunities, coupled with the execution on cost-down measures in both sourcing and operation, will continue to boost bottom line. Next slide.
As mentioned previously, four models of Lotus-branded vehicles will be available for sale in different markets this year. By 2025, all of these models would be available in 100% of our retail stores. The next model of Type 134, a D-class electric SUV, will be launched in FY25 with a stable cycle volume of 70,000 to 80,000 units per year. That next mode of the BEV sportscar, our Type 135, will be launched in FY26. This would imply that we have six models in our hand to support our future growth trajectory. Next slide.
Strong British heritage, historical F1 pedigree, and well-known quality engineering and service excellence is what sets Lotus apart from EV start-ups. Our full commitment to transformation to smart BEV and pioneer in advanced automobility technology development also puts us ahead of our traditional luxury peers, especially during these disruptive times.
Geely is a strategic shareholder and mean to empower Lotus in global manufacturing, supply chain procurement, talent incubation, R&D, and other opportunities for growth. Lotus Tech also has a strategic partner with L Catterton that offers brand-unique consumer insights and access to other (inaudible) sources. Next slide.
On the ESG front, every new model since '23 are fully electric BEVs, and all new models or all new car sales by 2028 will be fully electric. The company aims to achieve carbon neutral from supply chain and operational facilities, business operations, distribution network, and customer engagement activities. The aim is to secure top ESG ratings with our stakeholders and aim for long-term sustainability for the industry and the company. Next slide.
Besides our long-term ESG commitment, we also have a mid-term business plan. Vision 80 strategy was formed in 2018 and will end in 2028, which is the 80th anniversary for the Lotus brand. The objectives are portfolio expansion through lifestyle models such as SUVs, sedan, and others; and number two, a full transformation towards BEVs and an early mover in smart technology production.
By 2028, management's view is for 4% market share in the luxury segment that is twice above USD8,000 per unit and 80% CAGR delivery volume growth. More importantly, more than 30% gross profit margin. Revenue profile will expand from traditional car sales, whether new or used, racing, and aftermarket to include high-margin revenue streams such as technology IP licensing to both Geely family and friends and other luxury peers; number two, ADAS, both L2 and L3 plus software subscription; number three, charging services; number four, in-car purchases, part of purely digital operating system. The growth is enormous.
We appreciate your attendance today, and we look forward to continuing delivering our cars to Lotus drivers and cash your shareholders. I'll thank you for the session today. I'll pass it over the Demi Zhang. Thank you.

Demi Zhang

Thank you, Alexious, and thank everyone. Operator, Amber, we're ready for Q&A.

Question and Answer Session

Operator

(Operator Instructions) Edison Yu, Deutsche Bank.

Edison Yu

Hi, thank you for taking our questions. First one is on the guidance for this year. How should we think about the mix of models and also the quarterly cadence of achieving that?

Demi Zhang

Thank you, Edison, for your question. And I will take -- I will invite CFO, Alexious, to answer your question. Alexious, please.

Alexious Lee

So the first question is on the mix in 2024?

Demi Zhang

Yes, the mix of models in '24.

Alexious Lee

So thank you for asking the question, and thanks for the participation today. In 2024, lifestyle vehicles, which is a composite of both the Eletre E-class electric SUV and also the Emeya, the E-class electric sedan, will contribute more than 80% of total volume. And the remaining. 20% is coming from the sportscar. So at that end, the mix is showing growth in both the. BEV segment and also the sportscar segment.

Demi Zhang

Edison also asked about the quarterly outlook during the year if there is any comment on the quarterly performance this year.

Alexious Lee

So based on the first quarter, we are already in line with our outlook and forecast. We think that definitely, as a brand that is going through more stores, offering more models at the same time into more markets, the growth of the quarter is going to be growing on a quarter-over-quarter basis, similar to what we experienced in 2023.
As I mentioned just now, 2024 second half is a pivotal period where we will not only have entrance into the US market but also indicate entering into other world markets. So that way, we think that we are in a good position on targets for this year. Thank you.

Edison Yu

Understood. Second question, can we get updates on the on the order book? I think you last disclosed it exiting the third quarter. Do we have an updated number for the -- either exiting the fourth quarter or as of -- even end of March?

Demi Zhang

Yes. Thank you, Edison. I will invite the CEO, Mr. Feng, to answer your question. Mr. Feng, please.

Qingfeng Feng

(interpreted) Like, Alexious, our CFO, previously mentioned, we are pretty much in line with our targets for this year, quarter one.
In addition to that, our company is currently expanding towards the sportscar. We have already started now delivering in the US markets for our E-segment SUV, Eletre. It is going to open its order channel in the US in quarter two this year. And our E-segment electric GT, Emeya, has already opened the order channel in the EU this March.
In the US, we have been expanding our retail channels and we have already prepared the testing vehicle of Eletre for our consumers to try. And getting into the quarter two, we will be clearer about our performance.
This year, our most important indicator would be the delivery numbers, particularly in the regions that we have already started ourselves instead of orders. As of today, we are pretty confident and happy about the current performance.
In the second half of this year, we are going to start delivery in North America region, Japan, and South Korea. So order book is not only our indicator, and we are -- will pivot on the delivery of those orders that we have already acquired.

Edison Yu

Yes, thank you.

Operator

[Ming Yang Lin, Zhong De Securities].

Ming Yang Lin

Thank you. My question is what is the market strategy of overseas market in 2024? And what is the market plan in US?

Qingfeng Feng

(interpreted) For the delivery numbers and the sales numbers, non-China market is going to account for 60% of our total sales.
And for the US market, it is absolutely important for us that sportscar has already acquired a good performance on its delivery numbers, and it can deliver our annual targets this year. For lifestyle vehicle, we have already acquired the US manufacturer registration. And in the later phases, we will progress based on the certification plan.
This April, when we opened the order channel, we are going to take a look at the order performance and follow it closely. And in the second half of this year, we will commence the deliveries in the US markets. Although at this moment, we haven't opened the order channel. However, we have already received the positive feedback through the test-driving activities arranged in the market.
I am confident that once we open the order channel in the US market, performance is going to be excellent. Please feel free to stay tuned. Thank you.

Ming Yang Lin

(Spoken in foreign language)

Operator

Daniel Lau, UE Capital.

Daniel Lau

Hello, can you hear me?

Demi Zhang

Yes, Daniel.

Daniel Lau

Thanks, management for taking the questions. I'm Daniel from UE Capital. I have two questions for management, and the first one is in regard to the breakdown of -- geographic breakdown of the volumes, especially considering the company has achieved extraordinary results in 2023. So how do you see the evolvement or evolution of oversea market as a percent of the total deliveries in 2024 or ahead into your Vision 80, 2028?

Demi Zhang

Yes, thank you. We will invite CFO, Alexious, to take this question. Alexious?

Alexious Lee

Thank you, Daniel. So you asked a very good question. Like it was mentioned during my presentation, 2023, the Chinese market contribution was about 30% of volume and about -- more than [40%] of volume and (inaudible)
Now this number is slightly distorted mainly because the other markets in the world will take more time to actually distribute the products through global international shipping. In 2024, China will represent about 40% of (inaudible) models, like the Emeya (inaudible).
The UK and Europe will represent about 30% of the total volume; the US market, about 20%; and the rest of the world, which is [increasing impact] and also the Middle East, will present the remaining 10%. This will be in favor of [ex-prime] market into 2025, so China will probably be looking at about 20%, 25% in about 2025, with US and Europe taking up the chunk.
Our internal revenue mix, we definitely have the highest ASP contribution in the likes of Middle East and others. Generally, ASP is managed very well through global commercial.

Demi Zhang

Thank you.

Daniel Lau

Thank you. My second question is about infrastructure because I noticed that company has mentioned that you have already partnered with some charging stations across Europe and in China. And also, can we have more details on the infrastructure or company's future plan on the charging stations? Because we know that the infrastructure right now in Europe, US seem to be like the bottleneck for the penetration increase of EV market. Thank you.

Demi Zhang

Thank you, Daniel. I will invite the CEO, Mr. Feng, to answer your question.

Qingfeng Feng

(interpreted) It is very true that charging is applicable to electric vehicle as it is very important for such a convenience to customers. In China, we have ourselves going to a lot of faster charging stations with 480 kilowatts. So if you charge your vehicle (technical difficulty)
Meanwhile, we have also (inaudible) with many public charging infrastructures and companies to further bring convenience to consumers in need. In the US market, we have already collaborated with Tesla and other potential public charging infrastructure players to bring convenience to our consumers. In the EU markets, our strategic partner is Bosch, who operates more than 30,000 charging stations, which can further bring convenience to our consumers. Thank you.

Daniel Lau

Thank you. Okay, and congrats completing the FY23 results.

Demi Zhang

Thank you, Daniel.

Operator

(Operator Instructions) Edson Yu, Deutsche Bank.

Edison Yu

Hi. I want to also ask on the OpEx and CapEx for this year. Can you provide us maybe any direction on where those are trending or where you think those will trend?

Demi Zhang

Thank you, Edison. I will invite our CFO, Alexious, to give you an answer on that question. Alexious, please.

Alexious Lee

Yes. Thank you, Edison. In 2020 -- the best way to understand this is still -- numbers is that -- in 2023, a lot of investment has been put in place to actually expand the stores, build the net growth, and others. Now we will think that our marketing budget in terms of OpEx for the burn and marketing in the spectrum of distribution-level expansion was really at the peak in 2023.
So on an overall perspective, the whole budget and SG&A or both the OpEx and the CapEx side of things will remain probably flattish as compared to 2023 as we ramp up in terms of enjoying from the positive operating leverage and also the scale effect.
Now we definitely would have in place the necessary infrastructure, both in shipping, warehousing, logistics to support growth trajectory all the way to 2025. So on that basis, we expect that 2024 OpEx and CapEx to remain probably the same level as in 2023.

Edison Yu

Thank you. And if I could just sneak in a bit of a longer-term question, do we have any intention or any -- have we thought about trying to somehow return to F1 in any way? Obviously, the heritage in F1 is there, but some I'm not sure if we're sort of contemplating taking a more active role.

Demi Zhang

Yes. Thank you, Edison. We are surely very proud of our racing heritage and the passion for speed. I will invite the CEO, Mr. Feng, to answer your question. Mr. Feng, please.

Qingfeng Feng

(interpreted) At this moment, we do not have a plan when we will go back to the F1 racetrack, but we are closely monitoring these spots. In 2023 and 2024, we're going to working to answer the GP4 [release]. I think last year in the Macau Grand Prix, we have acquired the first and the second place. And this year, we're going to participate in more GP4 races. And at the same time, we will also pull up closely with the F1 race. Thank you.

Alexious Lee

Thank you. [See you at the final].

Operator

(Operator Instructions)

Demi Zhang

Thanks, Amber. As we are waiting for more questions to come in, I also received the two retailer questions. So I may raise it to the management instead of our curious guests.
So the first question I received is that the gross margin -- as management indicated, the gross margin in 2023 was already very strong and in 2024 is expected to increase to 17% to 19%. What do you think is the strong gross margin growth driver? I will stop here for answers. I will invite CEO, Mr. Feng, to first address this question. Mr. Feng, please.

Qingfeng Feng

(interpreted) As we previously mentioned, in 2023, we have already acquired a good performance with the 16% gross margin. In 2024, we are expecting to see the gross margin increasing. Particularly, the increase is attributed from our lifestyle vehicle.
And in China market, as we adopt a direct-to-customer model, the gross margin is going to be high. In addition to that, in 2024, we will launch the Chapman Bespoke service globally, which can further increase our gross margin.
Another good news is that as we have two different models for our Eletre, S-model and R-model, the take rate of the R-model is higher than our expectation. And the R model also provides us with greater profits. So long-term view, we -- in the era of electrification and intelligence driven, we have already developed cutting-edge technologies, which can help us to offer IP licensing that can further boost our gross margins.
For example, our advanced autonomous driving technology, we have already provided engineering services and licensing to external parties. We have already signed an agreement with a couple of our partners, and we are still negotiating with some potential cooperatives in the EU.
To continuously improve our gross margins is that our ultimate target, in 2028, we're expecting to achieve the gross margin of 30%. Thank you.

Demi Zhang

Thank you, Mr. Feng. And the second question I received is on the price. Considering that we see the price reduce over the past few months, do you expect to do any price cut or introduce lower-priced products? Thank you. I will invite the CEO, Mr. Feng, to answer this question, please.

Qingfeng Feng

(interpreted) I think it's an unfortunate thing that we are in the segment of not relying on the price score. The most important thing is to offer the value to our consumers and sort of emotional connection to our consumers so that -- to boost our sales volume and to boost our margins. And we are not going to enter the price war, and we are not going to lower our price and introduce any lower-priced models. Thank you.

Alexious Lee

I will add on to this a little bit. Lotus is an early mover in the electrification given our full commitment to BEVs. We are --we have very great opportunities to go to the market with the right products having the advantage that they don't have much from the competitive peers. Well, that would give a gap in a way that was mentioned. We are going to more markets, more of those, and at the same time, to more stores.
The general market outlook remains positive while there's pockets of slowdown globally. Lotus is a small brand. Volume growth is not -- pricing is not the most important determining factor in this particular luxury segment, as what our CEO, Mr. Feng, has mentioned. We need to continue to improve and maintain our execution so that we are on time to deliver our cars to the customers and excel in this customer experience. Thank you.

Demi Zhang

Thank you, Mr. Feng and Alexious. Amber, back to you.

Operator

Thank you. I am showing no further questions. Thank you very much for all of your questions. I'll now turn the conference back to Ms. Demi Zhang for any additional closing comments.

Demi Zhang

Thank you, Amber, and thank you, everyone, for joining us today again. And now, we will conclude the call very soon. If you have any further questions, please feel free to contact Lotus Tech's IR team by e-mail, by call, or online request, which you can find all listed on our website, which is ir.group-lotus.com.
Now, I wish everybody have a great day. And this concludes the conference call. Thank you, management, and thank you, everybody.

Alexious Lee

Thank you.

Qingfeng Feng

Thank you.

Operator

Thank you. That concludes today's conference call. Thank you for participating. You may now disconnect.