Wei Huang

Wei Huang from Deutsche Bank inquired about ECARX's 2026 guidance, specifically regarding average selling price (ASP) and margin outlook, considering the impact of weakening government support policies and rising memory costs. He also sought an update on foreign OEM order wins and global expansion progress.

Answer

CFO Phil Zhou detailed the 2026 revenue guidance of $1 billion-$1.1 billion, representing a 20%-30% year-over-year increase, acknowledging Q1 seasonality and macroeconomic challenges. He addressed rising memory costs, projecting a 15%-18% gross margin for 2026, supported by cost optimization and pricing strategies. COO Peter Cirino updated on foreign OEM wins, highlighting the expanded partnership with Volkswagen Group in Latin America for the Antora platform and Google collaboration, and noted significant emerging opportunities with European partners, targeting 50% of total revenue from overseas markets by 2030.

Wei Huang from Deutsche Bank inquired about ECARX's 2026 financial guidance, seeking more color on average selling price (ASP) and margin outlook amidst weakening government support policies. He also asked about the impact of rising memory costs on 2026 margins and requested an update on foreign OEM order wins.

Answer

CFO Phil Zhou reiterated the 2026 revenue guidance of $1 billion to $1.1 billion (20-30% YoY growth), acknowledging Q1 seasonality and policy impacts but expressing confidence in the full-year outlook. He projected a 2026 gross margin of 15%-18%, driven by cost optimization and customer collaboration on inflation. COO Peter Cirino updated on foreign OEM wins, highlighting the extended partnership with Volkswagen Group in Latin America for the Antora platform and optimism for new opportunities in Europe.

Wei Huang of Deutsche Bank asked for volume guidance for the second half of 2025, clarification on pricing pressures versus improving content per vehicle, and an update on the ADCU business, including plans for zone-based computing and Qualcomm's flex SoCs.

Answer

CFO Phil Zhou provided volume guidance, projecting 1.4 to 1.5 million units for the second half, leading to a full-year total of 2.5 to 2.6 million units, representing approximately 30% year-over-year growth. Zhou also addressed pricing, stating that while the market remains competitive, the company is mitigating pressure through significant cost optimization, a focus on high-margin software, and global expansion. COO Peter Cirino added that for the ADCU business, Qualcomm's 8775 flex SoC is on their roadmap and that ECARX is already developing its own fusion platform, the Antora 1000 SPP, set to launch in 2026.

Wei Huang of Deutsche Bank asked for Geely's share of total revenue in 2024, the business impact of the Lynk & Co merger into Zeekr, and whether the Geely Galaxy E8's Qualcomm 8295 chip uses an ECARX computing platform.

Answer

CFO Phil Zhou stated that in 2024, nearly 80% of revenue came from Geely and its ecosystem. Chairman and CEO Ziyu Shen clarified there is minimal impact from the Lynk & Co merger, as ECARX remains a key supplier. He also confirmed that while ECARX provides the Skyland ADAS system and Flyme Auto software for the Galaxy E8, the Qualcomm 8295 hardware platform is from another supplier.