Yang's questions to Lotus Technology Inc (LOT) leadership • Q4 2024
Question
Yang from MSIM China asked about the factors behind the significant decline in gross profit in Q4 2024 and the contribution of intelligent driving and bespoke services to revenue. He also requested guidance for the intelligent driving business's revenue and profit margin for 2025 and the mid-term.
Answer
CFO Daxue Wang attributed the Q4 gross profit decline to stock clearing and a change in accounting policy for intelligent driving revenue from a cash to an accrual basis. He noted the benchmark margin for the intelligent driving business is about 30%. CEO Feng Qingfeng added that overall gross margin is expected to improve in 2025, aided by new model launches in Europe, which accounts for over 40% of sales.