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Gain: RMB1.4 billion, up 31% year-on-year.
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Computer hardware revenue: RMB1.2 billion, up 61% year-on-year.
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Software license revenue: RMB84 million, down 39% year-on-year.
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Services revenue: RMB161 million, down 26% year-on-year.
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Gross profit: RMB248 million, down 25% year-on-year.
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Gross margin: 17%.
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Operating costs (OpEx): Down 2% year over year.
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Loss per share: RMB 0.97.
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Adjusted EBITDA loss: RMB233 million, compared to RMB181 million last year.
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Cash and limited cash: RMB688 million.
Release date: November 7, 2024
For the full earnings call transcript, please refer to the full earnings call transcript.
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ECARX Holdings Inc (NASDAQ:ECX) reported a 31% year-on-year revenue increase to RMB1.4 billion for the third quarter.
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The company added 442,000 vehicles equipped with ECARX technology this quarter, an increase of 31% year over year.
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ECARX achieved two new design wins from existing customers, demonstrating their ability to deliver customized technology solutions.
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The company is expanding its global footprint, including a new office in Stuttgart to increase customer engagement with German OEMs.
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ECARX’s Antora 1000 platform has been successfully integrated into new vehicle models, demonstrating strong competitiveness and scalability in the market.
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Gross margins decreased to approximately 17% due to continued price pressure and intense market competition.
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Software license revenue fell 39% year-on-year, mainly due to a decline in sales of navigation and operating software.
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The company reported a loss per share of RMB0.97, compared to RMB0.84 in the previous quarter.
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Adjusted EBITDA loss increased to RMB233 million, attributed to lower gross margins and lower foreign exchange gains.
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ECARX faces challenges in maintaining hardware gross margins due to aggressive pricing strategies in the competitive automotive market.
Q: Can you explain the factors contributing to the decline in sales margin on goods, and how should we think about them in the future? A: Zhou Phil, CFO, explained that the fierce competition in the market led to a deterioration in margins, with a decline from 14% to 8.9%. The product mix also had an impact on margins, with a decline in services and software sales. In the fourth quarter, they plan to rebalance the sales portfolio and optimize costs to restore margin performance.
Q: Does ECARX supply hardware for the Geely Star Wish sedan, similar to the Galaxy E5? A: Peter Cirino, COO, confirmed that the Galaxy E5 uses the Antora 1000 platform and Flyme Auto software, while the Star Wish sedan uses the Venado platform, both supplied by ECARX.
