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| Statement |
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| So, to be able to operate at that speed with the number of launches in our pipeline with the strong capability, I think is very impressive |
| We’re quite excited about the potential there |
| Global auto sales topped at 74 million as EVs continue to gain significant market share with their global penetration hitting another record high of 23% in December |
| We have had this very significant growth in the top line revenue |
| According to PCG, software platforms for vehicles are forecast to grow at a 12% CAGR by 2030 with a market value of $13 billion, creating normal market opportunity that we are uniquely positioned to benefit from, with our innovative product portfolio |
| So, again, with our software service and hardware portfolio play, at the same time, driving effective customer activity from our hardware, we have full confidence in delivering a balanced profitability in the coming year |
| Computing hardware goods revenue was RMB1.31 billion, up 26% year-over-year, driven by volume increases in digital cockpit sales for new vehicle programs |
| In conclusion, we are pleased with the strong finish to 2023 and easily look forward to the enormous opportunities ahead of us |
| We closed out the year with strong momentum as our business continues to grow and our financials improve |
| The Makalu platform is one of the most powerful intelligent cockpits available on the market with its ultra high-performance digital cockpit computing platform with unparalleled 3D graphics, security and entertainment features |
| I think we also see fairly significant opportunities internally to improve our capability to deliver great software in the vehicle by using AI and our internal development processes and even rapidly accelerate our capabilities to deliver solutions very quickly in the automotive market and we see that as a strong capability of the company, our ability to operate very effectively in tight development time lines |
| In conclusion, our growing commercial momentum, leading technology and rich partner ecosystem ideally positions us to seize the tremendous opportunities created by the growth of the EV and software-defined vehicles in China and globally |
| And you see that we can add a lot of value in our ability to deliver great solutions at automotive grade quality at a very, very fast and rapid pace |
| Our international portfolio and the brand awareness continues to strengthen alongside our expanding customer base |
| And as I have said earlier, I think ECARX is executed extremely well in that tight launch window environment |
| There is a lot of pressure on competition here, but ECARX has been very successful competing in that environment in our 6 years, 7 years of existence, I think we will continue to do very well in that environment |
| And at the same time, our consistent strategy is to embrace the software-defined EV evolution in a big way, okay? And as a result, the share of wallet in the bond structure keeps increasing and the content of vehicle keeps improving as strong |
| We will ensure our business will be in a healthier and more sustainable position over the long-term |
| Our recent progress underscores the significant market opportunity for our innovative product portfolio and the strength of our technology |
| I am extremely pleased with the progress we have made throughout the year with our profile growing internationally, strong partnerships and cutting-edge solution |
| And ECARX is a company over our 7 years has done a fantastic job executing in that market, and we continue to do that |
| We gained significant momentum in diversifying our business and partners during the quarter |
| So most dedicated focuses enable us to diversify our business portfolios, and we are able to drive sustainable profit growth |
| We have lots of synergies with Black Sesame and are incorporating their cutting-edge intelligent driver technologies into our products, and this will enable us to offer a compelling full stack solution to automotive OEMs |
| And I think this is something very unique that we can demonstrate that capability and do it with a high quality and at a global quality level certification, and this is something very special for ECARX |
| Big congratulations for the team for having a very strong revenue for the year 2022 |
| I think ECARX, we have continued to execute quite well in an ever competitive environment, but we have done that for many years and continue to anticipate that we are actually well and have the right focus on the growth mindset, but also making the right investments in the business to drive the right behavior in terms of profitability expansion |
| The successful launch of the Volvo EX30 will significantly boost our brand recognition in the industry |
| This mass produced one box solution is a strong testament to our ability to put advanced technologies from our partner ecosystem onto the road |
| We are able to deliver systems that drive safety, operate at an automotive capability into vehicles at a very rapid pace |
| Statement |
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| Software license revenue came in at RMB93 million, a decrease of 62% year-over-year and 32% sequentially, primarily due to the timing of booking intellectual property license revenues and the decrease in volume of software sales |
| As discussed on the last earnings call, we expected margin pressure on our hardware products continue over the medium term, driven by enhanced industry-wide pricing competition, customer EE architecture evolution and transition, acquisitions and strategic progress we have in the pipeline |
| We will face headwinds in the upcoming quarters as we see a continued high competition of pricing pressure through our customers |
| Yes, since the second half of 2023, we observed the fierce pricing competition throughout the entire industry and the value chain profits are compressed |
| So we had communicated earlier that we foresee our pricing competition in the entire industry, right? I mean we serve that many Tier 1 players are having profit decrease due to the faster pricing erosion, while the cost optimization is behind the pricing erosion |
| And from a year-over-year perspective, it’s a 17% decrease |
| That is our basically our approach to drive the mitigation about our margin erosion, and we will continue to fight for the margin improvement or margin stabilization in 2024 |
| For sure, there is a lot of pressure on cost |
| But the willingness of the customers to pay for this kind of smart hardware or software is not that strong |
| Our net loss for the year narrowed significantly to RMB1 billion compared to RMB1.6 billion in 2022 |
| I noticed that from this year in Europe and the U.S., the trend of the EV transition seems to start slow, there are plans of demand – the deadline of transitioning? And also like Mercedes Benz has been announcing the delay in plan |
| And we are also experiencing that there’s fierce competition going on in China and the trend is definitely going to be more fierce for the year 2024 |
| Obviously, we note that the computation environment is very fierce this year, and you touched on this in previous questions |
| Loss per share was minus RMB0.87 compared to minus RMB3.26 due in the same period last year |
| Operating expense during the quarter increased 28% sequentially and decreased 37% year-over-year |
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