Thank you very much. We'll kick off the next session with ECARX. It's an absolute pleasure to be here with you today. My name is Jose Asumendi, and I head up the auto team at JP Morgan. I'm based in London. ECARX is always a company that I've been following now for the last years. One of the things that always strikes me is how they have been developing the products, the portfolio, the partnerships, broadening the technology expertise, as well as the customer portfolio, which has also been expanding in the last years. I don't want to just go through all those topics now. We will let the gentlemen speak about it, and let's make this also interactive. We've got about 30 minutes, so feel free to ask any questions if anything comes up to your mind, and I'll kick it off. Ziyu and Peter, thank you very much for your time. Maybe you can do just a quick introduction, role, and how many years you've been at the firm, obviously, and founding the firm, and Peter, same for you, and then we'll go through the Q&A. Good. Okay. Nice to meet you, and good morning, everyone here. My name is Ziyu Shen. I'm founder and CEO of ECARX. ECARX, I founded in 2017, with Eric Li, owner of Geely, a very famous entrepreneur in China. ECARX is an automotive intelligent technology provider. That's our position in the market. We already spent 10 years in industry, so very quickly start up in China market. We ended up right now scalable in worldwide. In 2022, we successfully listed in Nasdaq exchange, and also I built a headquarter in London. All our executive leadership right now in Europe for five years. Also we got successful in Euro market, with European OEMs in past three years. Last year particularly, we announced two times with Volkswagen Group for a technology product partnership. That's a quickly introduction, myself and my company. Okay. Peter? Good morning, everyone. My name's Peter Cirino. I'm the Chief Operating Officer of ECARX. Ziyu invited me to join the firm in 2022, about four or five months before we listed the company. Also based in London, and I've been in the automotive industry and various technology firms for more than 25 years and been helping Ziyu scale the organization, grow with our European customer base, and expand the organization to become a true global technology provider. Thank you. We look at many technology companies, and it's always, I think, not easy for investors to understand what are the key products you are producing, how does the platform-based strategy work, then we can get into how you differentiate versus peers. But if you think about your core IPs, what are the core products you do? Why is ECARX different to peers? Yeah. ECARX is providing full stack, the computing system to the car, so including the hardware, silicon, SoC, and middleware, and the software. That's our very unique know-how. SDV is very long-term discussion, so we are providing one-stop solution to accelerate and simplify OEM R&D on SDV. That's our very important and critical task now. Yeah. Yeah. I would just add to that, Ziyu has built a fantastic organization, I would say, over the last almost 10 years. For sure, ECARX has been delivering systems into vehicles. We have more than 12 million cars on the road, so we have deep automotive vehicle knowledge, know exactly how to deliver these very complex systems into the automotive environment. In 2018, Ziyu, along with Arm China, founded a company focused on automotive silicon, so we have deep expertise on the silicon side. Then recently we acquired a company that we had a strategic alignment with, that's building Flyme OS. Flyme OS is an operating system and ecosystem in China for both mobile devices and cars. That company has more than 20 years working in that software system. We brought together in ECARX, this company that has deep technology in silicon, amazing software capability, and then this automotive expertise to be able to deliver these systems in the vehicle. Interesting. And who are your key customers? We don't have the slides today here, but I think it's important to understand who are your key customers, who were your first customers, how did the business develop a little bit to other customers? Then really interested in understanding when you go to them, and you showcase your expertise and what you can do, why would they choose you? Why wouldn't they choose someone else? Okay. Yes. As I, my introduction at the beginning, we started from China. We had very big revenue in China still. Geely, of course, is our very important and big customer, and FAW Group is second. Also we have some programs with Dongfeng, Chery, and most of other Chinese domestic OEMs. Also outside China, we had Volkswagen. We had two times announcement last year, I just mentioned. That's the global program called Global Entry Infotainment Program. We announced that last year. Also, we are developing this platform for their MQB platform, vehicle platform, will support SOP in next quarter three and quarter four. Also, we had a program with Renault and Volvo Car, Polestar. Also, we had a program with Mercedes. We already built a very strong European OEM custom network already. We still very confidence ECARX is international global Tier 1 player in industry. Where do you have your R&D centers, your technology footprint? Where do you have your people across the world? Right now, because in the past 10 years, we start from China, we had a still big team in China. We have 800, 900 people R&D in China still, mainly in East China. Also Europe, we already built 200 people in the past three and four years because Volvo Car program was successful, EX30, SOP launch in 2023. That's the car of Europe, very successful. Also, we partner with Google very closely. We announced the white paper at the Google sponsor last October, for Google automotive ecosystem in the car. Also, in East and Southeast Asia, we built a joint venture with Proton in 2018, 2019. We already had 100 people there. Also, every year, we are shipping like 200 selling units product to Proton, the computer box. Also, we build a R&D center in Vietnam. East and Southeast Asia, total 150 people. Outside China, like 30%, and inside China, 60%, 70% people. Where are you based in Europe? I'm living- Not you personally, but where are your centers in Europe? Just to give a bit more flavor in terms of, I visited you in Stuttgart. You have presence there, obviously. Yeah. As you expand the business and helping the car companies- Yeah. -how do you position yourself in each of the regions? Just so the audience can understand that. Yeah, because in Europe, that's very important for our customer interface with European OEMs. That's why I built Gothenburg in Sweden at the beginning, particularly with Volvo Car program. I built Stuttgart office for German OEM, Mercedes-Benz and Volkswagen. Of course, I said a corporate function and global headquarter in London. Yeah. All right. Who do you think are your competitors? So people can also compare a bit- Yeah. -and compare ultimately valuation multiples, right? This is an investor conference, and we'll get to it, to revenues, multiples. Who do you think are your peers? Yeah. In China market, it is very tough competition market. Huawei is top competitor with us. Yeah, because including silicon and software system, even sensor, they have very strong portfolio, yeah, competition with us. Yeah. Outside China, we still believe the Korea player is strong competitor. Like Harman, Samsung. ZF, already owned by Harman and Samsung. Also LG, for sure. So we believe Korea player is strong competitor for us. Yeah. I mean, Jose, I would add to that. Please. You look at what we've built inside of ECARX and the capability that we have to deliver. There's a lot of automotive tier 1s that are trying to deliver these complex systems in cars. I think there are very few that have the capabilities when you look at the deep silicon capabilities that we bring in the company. We certainly have great partners in the silicon space that we work with, but we also have this deep technology inside our organization and our ecosystem. Having founded SiEngine, the silicon company, with Arm, and we bring together the consumer electronics capability and speed with Flyme, which is now, we've announced the intention to acquire that business and make it part of the company. We have very few competitors that have that full technology stack. I think one of the strong reasons why customers choose us and why we've been able to make some progress, especially with Volkswagen, is having that tremendous execution capability to deliver this product at scale on a consistent basis and at a super high quality level. It's very demanding in the automotive industry. Interesting. So two follow-ups there. One, we're in New York, who are your U.S. peers, your key U.S. competitors? You mentioned the Korean, you mentioned China, and I fully agree, Huawei has an incredible product breadth. Korea as well. In the U.S., who are your peers? Unlisted peers, maybe. Yeah, I think it's tough to look at a company that has the same capabilities as I was trying to explain. Exactly. For sure, when you look at, there are places that we're competing against the likes of Qualcomm. Yeah. Qualcomm's a great partner of ours. Yeah. We're very close to them. We deliver a large number of systems with Qualcomm tech in them. Yes. They have fantastic product. But with our silicon, there's also times that we see them in the competition landscape. You look at some of the big tier 1s that are in the same space, maybe an Aptiv or a Visteon. But there's a lot of places where they don't go in the depth of the technology space like we're able to do. We see them more as kind of consolidators, not innovators in the technical space. Interesting. Yeah. My view, actually, from this model point of view, we are Tier 1 for OEM. So that's why I want to say, like Aptiv and Visteon, definitely our competitor. Yeah, but because we strongly vertical integration, we have our in-house SoC. That's why we can select Qualcomm, or MediaTek, or in-house, our SoC. We are partnership in this area. That is my view. Yeah. You mentioned reliability, close to the customer, execution. Notably, as we know, Volkswagen has had a, not now, but in the past years, has had a few topics in terms of software integration. Not just Volkswagen, other car companies have also had this topic, which has created product launch delays, which impacts cash flow at the end. Finding the right partners to integrate software and have the right silicon is key. Is there also an element around cost? Are you more cost competitive than your peers? Is there a reason why they also choose you? I am very intrigued because you have orders with Volkswagen, or you can comment, where do you have the orders with Volkswagen? Two, is there a price element there as well, where you win on price, you convince them on quality and technology, but also on price at the same time? Understand. Usually, well, because my background is engineer, usually the cost, not only the simple question. Cost always from design. Because you have good designs, then you have good cost. That is what I always tell my team. For our product, we quite fully vertical integration. Also, we want to centralize the feature as much as possible. That is why our entire product, our hero product right now, I want to introduce here, that is quite centralize the feature plan for. For example, we can integrate her surrounding view camera, and also parking system, and front view system, and hi-fi audio into one box. Even a gateway and diagnostic service in the car as well. Comparing other solution from third party SoC, they have a lot limited because the SoC quite a standard in general. They need support a lot of different requirements, not vertical integration. That is why our solution and design quite automotive focused and very centralized. Then we definitely have very good cost, efficiency, effective also. Yeah. Yeah. Interesting. I would add to that, the software-defined vehicle is a very common term in the automotive industry, right? It just fundamentally means in the car, there is less computers. Cars of the past have hundreds of electronic control units in it that range from a very complex computer that may be driving the engine, driving the transmission, controlling the body, to a simple electronic control unit that is your seat controller or your door controller. As we bring solutions to the market, we are helping the car makers simplify that network in the car, doing more from a software perspective. That brings complexity, but it also brings cost efficiency to the car maker. The other place that we really differentiate ourselves, having been born very successful in the China market, the China market operates at a speed that I would say is unmatched in the rest of the world, and we thrive in that environment. That speed, of course, infers cost. If we just simply can do things faster and quicker and maintain the quality, we then can deliver a more cost-effective solution as well. All right. Can you speak about, you touched on the speed of the China market, the product development in the China market. Can you give us a bit of an overview, like what has been happening in the Chinese market in the last two, maybe two, three years? What are you seeing in terms of product development, software development, and how do you thrive in that environment? How do you improve in that environment? We met in Shanghai, we met at the Beijing Auto Show. Yeah. And so yeah, just help us understand a bit better how you're navigating the Chinese market, and then you can bring that know-how back into the regions. Okay. Well, that's why I say at beginning, we start from China. Chinese speed means really build a lot of investment on R&D area. They want to depart very different. From OEM perspective, our Chinese customer, they want to win the markets, they always put a lot of effort, investment, very incredible in the R&D area. That's why innovation in China is crazy. You have to, as our company, you have to keep competition, continue to invest very huge R&D, then you can keep the position. That's very important. In the past two and three years, we had this plan, and we had success because we take our SoC with software successful and also with good platform volume and revenue, et cetera, et cetera. No problem. But for the long term, we need to look at a global market because total 90 million cars every year in the world. Right now, China probably like 20- 30 million cars. Still we have more than 50 million cars in the world. And of course, I think we have the opportunity because we start from China, we have the relationship with them and have a signature service in, we are supporting Chinese domestic brand export to the world, because we already had our footprint in worldwide already. Strongly support it. That's why comparing Chinese Tier 1, we had significant advantage on this. Also, meanwhile, like German OEMs and European OEMs particularly, they are facing Chinese competition in China. Also, they are faced competition from Chinese OEM in Eastern Southeast Asia, Latin America, and Europe as well. That's why they're really willing to work with us to catch up the competition. That's why we had a great partnership with Volkswagen, we announced. Also, we had a partnership with Mercedes-Benz, Renault, and Volvo. That's why we're quite successful and confident in this area as well. Then we can provide our R&D life cycle much longer than other Chinese local player competitor, because we had global market already and footprint already. That's very important. Can you give us a bit of an overview, what were the revenues three, four years ago? I had a list of questions. I am skipping complete the script, by the way. They might have noticed already that we are just going completely off-piste here. What were the revenues three, four years ago? Where do you see the revenues this year? Okay. What are you excited about in terms of growth about the company? Then we will touch on cash, then the necessary investment to generate growth, right? Just a bit of perspective on where we are on revenues three years ago, where are we heading? Actually, three years ago, four years ago, at that time, our revenue was just one-fourth of this year. We got a 4x increase after IPO, since 2022. Very strong growth, not only in China, but also outside China market as well. Also for this year, we just update our new guidance, the revenue will up to $1.1 billion-$1.2 billion. Also gross margin 20%, the quarter two, we already announced yesterday. We are already four quarters adjusted EBITDA level profitable. We are going very good level from financial and R&D situation, I believe. Yeah. When it comes to investments, how do you think about the investments required to ramp up the business in the next years? Because you mentioned orders with Renault, with Mercedes-Benz, with Volkswagen. Yeah. With Geely, obviously, and other, Chery, I think you mentioned as well. There's a lot of car companies. Yeah. What are the requirements? Do you need more people? Is it a people investment? Is it capacity investment? What are the requirements for this? Yeah, I think the current investment point of view for next two and three years, we want to consider two areas. One area is our global expansion footprint, although we will have SOP launch in Latin America next quarter three, quarter four. We will have a European launch the year after. Also, probably India launch 2029, 2030. Also even Southeast Asia will continue invested for 500,000 units plan. That is one area, the global expansion. We need a localization, we need to build a structure, we need the region facilitate some investment like that. Another area, of course, we need to keep investment for future technology. Because China market is still our very important market, we have to keep future technology investment and to catch, even keep our competition position. That is very important. That is why future technology, including future AI stuffs, because AI is changing the world now, we have to accept that. That is why AI silicon and AI software and AI tool, we need to invest for future, of course. How do we fund that growth? Yeah, so because-- The balance sheet, is it cash? Yeah. Is it-- Good question. So in balance sheet, we have confidence because our year to year growth is very significant. 30% year to year growth and very sustainable 20%-25% growth margin, that is quite attractive. So we will have enough every year, the more budget on R&D, that is for sure. Because we can keep our budget, R&D, OpEx, at 7%-10% for three and five years, and the growth revenue per year to contribute more cash for R&D OpEx. That is for sure. Also, we are looking for strategic investor from the market as well. Sure. Yeah, we need a fundraising for strategic, only strategic, to support our region or support our technology, to working together. That is my personal plan. Interesting. The question will come at some point, but there is a lot of discussion around silicon, hardware, software, China, Europe, U.S. Can you give us a bit your thinking of how you think the world is going to come together in the next years? Will you see car companies developing China for China solutions, Europe for Europe, U.S. for U.S.? How do you balance also? How do you help car companies in China, in Europe, in the U.S. as well? What could be the restrictions and how do you just work in the ecosystem to work with other car companies? Ultimately, car companies want to have the most amount of economies of scale. They do not want to have too many solutions in too many countries. Yeah. Actually, we have to respect two area. One area is the product still is priority for the market, and the user is most important, right? The right product, the good product always is top priority. You have to bring right technology for the top product. That is why I said we want to invest, continue R&D area. Right? We also have to respect another area that's the regional compliance regulatory and trade policy still important. In maybe 20 years ago, the globalization make every economy can running very freely. But right now, probably de-globalization is trend. So region, you have region policy and also regulatory. We have to respect that. That's why we need to be very careful our investment on R&D area to support the different region requirement. That's my view. Yeah. Yeah. I would just add, as you talked about the engineering locations we built up, a lot of that is making sure we're close to our customers. As we've engaged with, let's say, the Sweden customers, we have a center in Sweden. We're close to them. We can work very in their environment in developing in their solution. Similarly with our German customers, we have an office in Germany. Our launches next year with Volkswagen will be in South America, so we've opened a team in South America to be close to the Volkswagen team there so we can deliver the local product. Especially the big piece of the core of our business, while we're a compute supplier and the software supplier, a big piece of the solutions we provide are digital cockpits, and those are very regional specific. We have to know the region requirements and be able to deliver solutions in region that then meet that marketplace. It is important we are close to our customers to do that. If there are any questions, feel free to raise your hand. Happy to take questions as well. Go for it. I have questions. Yeah. My name is Kiki. I am from Faraday Future Intelligent Electric Inc. based in California, our boss is famous Chinese businessman. So I have a question for Ziyu Shen. So I have two questions for you. So question one is, how did you get the business opportunities with this famous Chinese businessman, Li Shufu? Okay. He convinced me to build a company together because his vision is the semiconductor software is super important, so you need the right talent and three PIM to build up. That is the main reason. We build ECARX together, yeah. You look so young. How did you know him and- I am not young, so-- Maybe you can speak about your background in the automotive industry previously as well. Yeah, sure. I am born in Shanghai, my hometown is Shanghai. I graduated from Shanghai Jiao Tong University with a master's degree and a computer science background. I worked for General Motors after university, my first job. That is a very important project experience for me that I worked for OnStar technology and embedded software engineer in Detroit in 2007 and 2008. We successfully embedded a Qualcomm modem in a car and collecting data from the car. In 2010, 2011, I came back to Shanghai and I left GM. I started my startup company journey. That is the company called PATEO, right now listed in The Stock Exchange of Hong Kong already. I was a co-founder and the general manager of the company. We supply all our systems, 3G and 4G system in the car, with many, many Chinese domestic OEM, including Geely. That is why Eric Li knows me and understands what I am doing and why he convinced me to leave PATEO and build ECARX together. Yep. Great. Got you. Thank you. He found you? Yeah, we are partnership. Got it. My question two is, you mentioned about Latin America market. Why go to Latin America market and not North America market? No, both we will do, no doubt about that, because we are partnership with Volkswagen Group, for worldwide platform, and Latin America is a very important market. The first launch will be quarter three next year, for their MQB platform, and then the Europe and India in the future. Last year, we already announced that including India and the Latin America market both. Yep. Can I do one more question? Yeah. So, you are partnered with Geely, that is the biggest car company in China. You mentioned you need a strategic partner in the future? Yeah. We need a strategic partner always because we are doing the ecosystem build up, right? You need a tech vendor, you need an OEM customer, you need a lot of supporter, in different area. That for sure. Okay. This strategic partner from U.S. market or from different- Oh, we are welcome to everywhere. We only want to come from the right partner, right? U.S. market is important. Maybe they say no to Chinese company, I am fine, but we willing to work with U.S. partner for U.S. market, that is for sure. Gotcha. Do you have a specific number? What do you mean? Like how much you need? Oh, you mean fundraising? That's a bank job. We can just For later discussion. On the next question- Yeah. -partnerships, like you don't have enough already to do. You're super busy with the day-to-day business. I've seen you're expanding on road axes, you're expanding on LiDAR. Can you talk about those partnerships and just help us a little bit understand those investments as well and how they come together in the ECARX ecosystem? Because it's becoming more of an ecosystem as well, right? We would like to actually provide a computing box and a sensor system in the car. Whatever the box computing power can be higher, like 1,000 TOPS, 2,000 TOPS AI performance or maybe entry just infotainment, that's fine. But we are providing a computer box. Also sensor system, we announced the LiDAR partnership with in-house LiDAR and a manufacture will be in TPK, Thailand manufacturing. That's quite important for sensor collecting, for our computing software. Also, we believe the sensor system will be very close with the computing system to simplify the connection and simplify the data flow. That's our view. That's why we would like to go like sensor and the computing together, one kit, develop a kit for OEM, even other open platform. The SoC, the LiDAR in partnership with another company. You are not manufacturing the LiDAR yourself, you are in partnership with We always contract manufacturing. We do not have too much CapEx. Okay. Now help us out on who is May Mobility and what investment do you do there? That is another market. We are very interested in L4 market. We believe passenger car market is still big, but L4 market robot taxi is becoming bigger and bigger. Also, every robot taxi-based vehicle with computing system and sensor system is huge and high-end. We need in this market to let our technology with very highest competition from technology moat perspective. That's why we signed deal with May Mobility, American L4 company. They are based in? Based in Ann Arbor, in Michigan. We are developing a computing system, hardware and firmware base, and also sensor system, also hardware, firmware base, to support their architecture, simplify their L4 platform. Who are the customers of May Mobility? May Mobility will purchase the base vehicle and the computing system from us, and they will go their base model for robot taxi, running partnership with Uber or Grab. They already have investment from them. Sounds like we want to talk to you again in six months and see how things are developing. A few, literally, a minute and 50 seconds left. Any messages you want to If you got any questions, just press your hand. But any final elements you would like to flag around the investment case? Where can we meet you the next time around? What's the next auto show where you'll be showcasing products? Because you're in many auto shows. I mean, we can find you many places. But so two questions, 50 questions there. But where can we see you the next auto show or the next product demo, just to get people closer? Say it, Gus. Yeah, we're certainly planning future events. For sure we'll be at CES next year. Be at CES, yes. I think we'll have a big presence there to demonstrate our capabilities. The company looks for certainly a lot of opportunities to demonstrate our tech. We've been in other shows, as you know. From a 2026 milestones, like from a bit more financial perspective, what's the focus now into the second half of the year? Deliver the revenue guidance ramp-up? Yeah, as you mentioned earlier, we just announced very good results. We believe in our second quarter, $225 million in revenue, up 40%+ year-on-year. Gross margin at almost 20%. We doubled it year-on-year. I think we have good progress this second quarter. Our full-year target is $1 billion-$1.1 billion in revenue. I think we are well on our way to deliver that and then focused on ensuring that we execute the back end of the year plan. Super. With this, thank you so much everyone for joining the session. Thank you very much. Thank you. Thank you, all of you. Thank you. Welcome. Thank you.