What is the gross margin of Company?
How was Company's performance in the first half of the year? Total revenue for the first half of 2024 was $398 million, representing a year-on-year increase of 206%. Company's Average Selling Price (ASP) remained above $100,000, achieving growth far exceeding the industry and luxury car segment. Company's gross margin for the first half of this year was 13%, compared to 5% in the same period of 2023.

In the first half of 2024, Company achieved total product deliveries of 4,873 units, a 239% year-on-year increase, making it the fastest-growing brand among traditional luxury car brands. Global deliveries were balanced, with the four major markets (Europe, China, North America, and Rest of World) each contributing 20-30% of deliveries.

In the first half of 2024, as Company began collaborating with several leading automotive brands by providing intelligent driving solutions and technology development services, technology-related revenue started to expand. With the continued increase in cumulative deliveries of lifestyle vehicles equipped with advanced hardware, the potential for generating paid software subscription revenue continues to grow.

Company launched the Person A Bespoke Service, offering personalized options, designer customization, limited editions, and exclusive customization to meet the growing demands of its customers. The delivery of customized models is expected to further enhance the brand's luxury positioning and benefit Company's long-term profit margins. In the first nine months of 2024, Company achieved a 105% year-on-year increase in topline growth, attributed to growing deliveries. Sales of goods reached $624 million, reflecting a 104% year-on-year increase. Service revenues also surged by 129% year-on-year, totaling $29 million and making up 4.4% of total revenue, an increase from 3.9% in the same period of 2023. Proactive inventory management strategies resulted in a temporary impact on gross margin, but this was partially offset by the growth of the high-margin intelligent driving business. The gross margin of sales of goods declined to 7% for the first nine months of 2024, compared to 10% in the same period of 2023, mainly due to destocking. However, the gross margin of service revenues saw an increase to 55% from 28% during the same period, driven by high-margin technology-related income. The company focused on optimizing operations and organizational structures to improve efficiency while maintaining customer experience. As a result of the foregoing, Company's gross profits increased from US$2.3 million for the year ended December 31, 2022, to US$102.2 million for the year ended December 31, 2023, while the gross margin decreased from 24.1% for the year ended December 31, 2022, to 15.0% for the year ended December 31, 2023. The increased gross profit was primarily due to the ramp-up of sales volume of BEV lifestyle models and the distribution of Company-brand sports cars. The decreased gross margin was primarily due to the ramp-up of sales of vehicles with lower gross margins than those of the services provided by the company.
Company's subsidiaries in the U.K., Netherlands, and Germany are subject to value added tax (VAT). Revenues from sales of products and provision of services are generally subject to VAT at the rate of 20% for Company's U.K. subsidiaries, 21% for Company's Netherlands subsidiaries, and 19% for Company's Germany subsidiaries, and payable after netting input VAT on purchases. Company's subsidiaries in the U.K., Netherlands, and Germany are also subject to income tax. The maximum applicable income tax rates in the U.K. are 19% for the period from January to March 2023, 25% for the period from April to December 2023, 19% for 2022, and 19% for 2021. The maximum applicable income tax rate in the Netherlands is 25.8% for the years ended December 31, 2023, 2022, and 2021. In Germany, the maximum applicable income tax rate for corporation tax is 15.825% for 2023, 2022, and 2021, while the maximum applicable income tax rate for trade tax is 14.35% for 2023, 14.35% for 2022, and 13.825% for 2021. For Germany's income tax, the corporate tax rate excludes trade tax, which rate depends on the municipality in which Subsidiary A conducts its business. "While the gross margin for the first nine months of 2024 was 9%, shrinking 2 percentage points compared to the same period of 2023 due to proactive management of inventory in response to trade protectionism, inflation impacts, and macroeconomic uncertainties, the high-margin intelligent driving business has secured \$130 million in total contract value to boost future growth. Company is committed to advancing the ‘Win26’ Plan target to continuously improve profitability and create long-term value." [Table Level]  
- Table Title: Gross Profit and Gross Margin Overview  
- Table Summary: The table presents the gross profit amounts and corresponding gross margins for specified periods, both semi-annually and annually from 2021 to 2024. It highlights trends in profitability and efficiency over time in thousands of US dollars and percentages.  
- Context: Prior to the table, costs related to revenues are discussed in terms of goods sold and services, outlining the components of these costs. Following the table, a breakdown of operating expenses is provided, including expectations for future expense growth.  
- Special Notes: All values are displayed in thousands and percentages.  

[Row Level]  
Row 1: For the six months ending June 30, 2024, the gross profit is $50,912 thousand. During the same period in 2023, the gross profit was $6,127 thousand. Annually, for 2023, the gross profit was $102,181 thousand; in 2022, the gross profit was $2,307 thousand; and in 2021, the gross profit was $557 thousand.  

Row 2: The gross margin for the six months ending June 30, 2024, is 12.8%. In the same period for 2023, the gross margin was 4.7%. Annually, the gross margin was 15.0% for 2023, 24.1% for 2022, and 15.1% for 2021. [Table Level]

- Table Title: Consolidated and Combined Statements of Comprehensive Loss
- Table Summary: The table presents a detailed overview of the financial performance of Company for the fiscal years ended December 31, 2023, 2022, and 2021. It includes information on revenues, costs, operating expenses, and other financial metrics affecting net loss. The values are expressed in thousands of US dollars.
- Context: The financial data provided in the table should be interpreted alongside "Management’s Discussion and Analysis of Financial Condition and Results of Operation" and accompanying financial statements.
- Special Notes: All figures are in thousands, except for percentages.

[Row Level]

Row 1: In 2023, sales of goods amounted to $660,158; in 2022, they were $1,186; and in 2021, they were $369.

Row 2: Service revenues were $18,850 in 2023, $8,371 in 2022, and $3,318 in 2021.

Row 3: Total revenues reached $679,008 in 2023, while in 2022, they were $9,557, and $3,687 in 2021.

Row 4: The cost of goods sold in 2023 was $564,741, in 2022 was $948, and in 2021 was $331.

Row 5: Cost of services accounted for $12,086 in 2023, $6,302 in 2022, and $2,799 in 2021.

Row 6: Total cost of revenues was $576,827 in 2023, $7,250 in 2022, and $3,130 in 2021.

Row 7: Gross profit was $102,181 in 2023, $2,307 in 2022, and $557 in 2021.

Row 8: Research and development expenses amounted to $368,729 in 2023, $445,844 in 2022, and $511,364 in 2021.

Row 9: Selling and marketing expenses were $328,935 in 2023, $151,331 in 2022, and $38,066 in 2021.

Row 10: General and administrative expenses in 2023 were $144,533, in 2022 were $148,369, and in 2021 were $54,763.

Row 11: Government grants provided $4,077 in 2023, $55,824 in 2022, and $490,694 in 2021.

Row 12: Total operating expenses were $838,120 in 2023, $689,720 in 2022, and $113,499 in 2021.

Row 13: Operating loss for 2023 was $735,939, for 2022 was $687,413, and for 2021 was $112,942.

Row 14: Interest expenses incurred were $10,200 in 2023, $8,542 in 2022, and $3,615 in 2021.

Row 15: Interest income was $9,204 in 2023, $12,188 in 2022, and $6,219 in 2021.

Row 16: Investment (loss) income, net, was $1,162 in 2023, $3,246 in 2022, and $2,229 in 2021.

Row 17: Share of results of equity method investments generated a loss of $1,048 in 2023, $2,762 in 2022, and $0 in 2021.

Row 18: Foreign currency exchange gains (losses), net, included a gain of $42 in 2023, a loss of $11,505 in 2022, and a gain of $798 in 2021.

Row 19: Changes in fair values of mandatorily redeemable noncontrolling interest, exchangeable notes, and convertible notes, excluding instrument-specific credit risk, resulted in a loss of $7,531 in 2023, $22,991 in 2022, and $1,367 in 2021.

Row 20: Changes in fair values of put option liabilities led to a loss of $2,508 in 2023, with no data for 2022 and 2021.

Row 21: Loss before income taxes was $749,142 in 2023, $724,271 in 2022, and $108,678 in 2021.

Row 22: Income tax expense was $1,113 in 2023, $292 in 2022, and $1,853 in 2021.

Row 23: Net loss totaled $750,255 in 2023, $724,563 in 2022, and $110,531 in 2021. [Table Level]
- Table Title: Gross Profit and Margin Comparison for Years Ended December 31, 2023, and 2022
- Table Summary: The table compares the gross profit and gross margin percentages for the years 2022 and 2023. It highlights significant growth in gross profit, alongside a decrease in the gross margin percentage.
- Context: The increase in gross profits is due to a ramp-up in sales volume of BEV lifestyle models and Company-brand sports cars, while the decrease in gross margin results from lower margins on vehicle sales compared to services.
- Special Notes: Values are in thousands of US dollars, except the percentages.

[Row Level]
Row 1: For the year ended December 31, 2023, the gross profit was US$102,181,000, which increased by US$99,874,000 from US$2,307,000 in 2022, marking a 42.3% change.
Row 2: The gross margin for 2023 was 15.0%, down from 24.1% in 2022. [Table Level]
- Table Title: Consolidated Balance Sheets of Company. as of December 31, 2022 and 2023
- Table Summary: The table outlines the changes in equity of Company. over the year ending December 31, 2022. It includes the number of ordinary shares, the additional paid-in capital, receivables from shareholders, accumulated comprehensive income or loss, accumulated deficit, equity attributable to ordinary shareholders, noncontrolling interests, and the total shareholders' equity or deficit.
- Context: The financial statements are part of an audit conducted according to PCAOB standards to ensure they are free from material misstatements. The surrounding context includes notes on the business structure and operations of Company.
- Special Notes: All amounts are presented in thousands, except for share and per share data.

[Row Level]

Row 1: As of January 1, 2022, the balance was 479,954,430 ordinary shares with additional paid-in capital at $424,414, a receivable from shareholders amounting to $(106,210), accumulated other comprehensive loss of $(69), and an accumulated deficit of $(122,836). The equity attributable to ordinary shareholders was $195,321, with no noncontrolling interests, resulting in total shareholders' equity of $195,321.

Row 2: The net loss for the period was $(723,921), which contributed to the accumulated deficit and resulted in a comprehensive impact of $(723,921) on both shareholders' equity attributable to ordinary shareholders and total shareholders' equity, with $(642) additionally affecting noncontrolling interests.

Row 3: Fair value changes of various financial instruments resulted in an accumulated other comprehensive loss of $(893), reducing the total comprehensive loss to $17,776.

Row 4: A foreign currency translation adjustment, net of nil income taxes, improved accumulated comprehensive income by $18,669.

Row 5: The total comprehensive loss, considering other adjustments, resulted in a net accumulated deficit change of $(723,921), ending with $(706,145) attributable to ordinary shareholders, $(642) for noncontrolling interests, and a total of $(706,787) for total shareholders' equity.

Row 6: The settlement of receivables from shareholders added $79,763 to equity attributable to ordinary shareholders.

Row 7: Re-designation of ordinary shares to Series Pre-A Preferred Shares involved $(5,332,827) share reduction, influencing additional paid-in capital and resulting in an overall $13,025 reduction in equity.

Row 8: A shareholder contribution related to exchangeable notes amounted to $8,135 in additional paid-in capital.

Row 9: A deemed distribution from reorganization under common control impacted additional paid-in capital negatively by $(15,512).

Row 10: The accretion of redeemable convertible preferred shares accounted for a negative $(910) in additional paid-in capital.

Row 11: Contributions from a non-controlling shareholder added $149 to non-controlling interests.

Row 12: A liquidation of a subsidiary resulted in a $(149) decrease in non-controlling interests.

Row 13: By December 31, 2022, balances included 474,621,603 ordinary shares, additional paid-in capital of $403,103, receivables from shareholders of $(26,447), accumulated other comprehensive income of $17,707, an accumulated deficit of $(846,757), resulting in $(452,373) attributable to ordinary shareholders, $(642) in noncontrolling interests, and $(453,015) as total shareholders' deficit. The following tables present Company's selected consolidated and combined financial data. Company prepares its consolidated and combined financial statements in accordance with U.S. GAAP. The selected consolidated and combined statements of comprehensive loss data for the years ended December 31, 2023, 2022, and 2021, the selected consolidated and combined balance sheets data as of December 31, 2023, and 2022, and the selected consolidated and combined statements of cash flows data for the years ended December 31, 2023, 2022, and 2021 have been derived from Company's audited consolidated and combined financial statements for the years ended December 31, 2023, 2022, and 2021, which are included elsewhere in this prospectus. Company's historical results for any prior period are not necessarily indicative of results expected in any future period. The financial data set forth below should be read in conjunction with, and is qualified by reference to “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and the consolidated and combined financial statements and notes thereto included elsewhere in this prospectus. [Table Level]  
- Table Title: Consolidated Balance Sheets as of December 31, 2023 and 2022  
- Table Summary: This table outlines the changes in shareholders' equity of Company for the year ending December 31, 2022. It captures the fluctuations in ordinary shares, additional paid-in capital, receivables, accumulated comprehensive income, and noncontrolling interests.  
- Context: The table is part of the financial statements audited by KPMG Huazhen LLP, demonstrating the standards and procedures taken to ensure accuracy and compliance with PCAOB guidelines.  
- Special Notes: All amounts are presented in thousands of US dollars, except for share and per share data.  

[Row Level]  
Row 1: Balance as of January 1, 2022, includes 479,954,430 ordinary shares at a nominal value of US$22, with additional paid-in capital of US$424,414, receivables from shareholders at US$106,210, accumulated other comprehensive loss of US$69, accumulated deficit of US$122,836, leading to total shareholders' equity attributable to ordinary shareholders of US$195,321, and total shareholders' equity is US$195,321.  

Row 2: Net loss for the period affects the accumulated deficit by US$723,921, impacting total shareholders' equity attributable to ordinary shareholders by the same amount and noncontrolling interests by US$642, resulting in a total equity deficit of US$724,563.  

Row 3: There is a fair value change of mandatorily redeemable noncontrolling interest, among other financial instruments, which impacts the accumulated other comprehensive loss by US$893 and results in a similar decline in the total equity deficit.  

Row 4: The foreign currency translation adjustment improves accumulated other comprehensive income by US$18,669, and contributes the same amount to total shareholders' equity.  

Row 5: Total comprehensive loss amounts to US$17,776, affecting other comprehensive income and adjusting the total equity deficit to US$706,787.  

Row 6: The settlement of receivable from shareholders adds US$79,763 to the equity, improving the accumulated deficit by the same figure.  

Row 7: A re-designation of ordinary shares to Series Pre-A Preferred Shares results in a decrease of 5,332,827 shares, a reduction in nominal value by US$1, and a decrease in additional paid-in capital by US$13,024, bringing the total equity down to US$13,025.  

Row 8: Shareholder contributions linked to the issuance of exchangeable notes add US$8,135 to the total shareholders' equity.  

Row 9: A deemed distribution linked to a reorganization under common control leads to a decrease of US$15,512 in total equity.  

Row 10: The accretion of redeemable convertible preferred shares impacts the accumulated deficit by US$910, adjusting the total equity deficit by the same amount.  

Row 11: Contribution from a non-controlling shareholder adds US$149 to the noncontrolling interests but decreases by the same figure in the total equity.  

Row 12: The liquidation of a subsidiary decreases the total equity by US$149.  

Row 13: The balance as of December 31, 2022 includes 474,621,603 ordinary shares at a nominal value of US$21, with additional paid-in capital at US$403,103, a reduced receivable from shareholders of US$26,447, accumulated other comprehensive income of US$17,707, and reflects an accumulated deficit of US$846,757. This leads to total shareholders' equity attributable to ordinary shareholders and total shareholders' equity of US$453,015 deficit. Primarily as a result of the foregoing, Company's loss before income taxes for the year ended December 31, 2022, was US$724.3 million, an increase of US$615.6 million from US$108.7 million for the year ended December 31, 2021. [Table Level]
- Table Title: Cost of Revenues for the Year Ended December 31
- Table Summary: The table summarizes the cost of revenues for the years 2023 and 2022, detailing specific categories such as the cost of goods sold and cost of services. It shows both the absolute values and the changes in costs over these years, along with percentage changes.
- Context: The data shows a significant increase in costs corresponding to Company's growing sales volumes, particularly in vehicle products and associated services.
- Special Notes: All values are listed in thousands of US dollars. Percentages indicate the rate of change compared to the previous year.

[Row Level]
Row 1: The "Cost of goods sold" amounted to US$564,741,000 in 2023, up from US$948,000 in 2022, representing an increase of US$563,793,000 or 59,471.8%.
Row 2: The "Cost of services" was US$12,086,000 in 2023, compared to US$6,302,000 in 2022, which is an increase of US$5,784,000 or 91.8%.
Row 3: The "Total" cost of revenues reached US$576,827,000 in 2023, rising from US$7,250,000 in 2022, marking an increase of US$569,577,000 or 7,856.2%. ● Total revenues for the first nine months of 2024 were \$653 million, a 105% year-over-year increase.  
● Sales of goods were \$624 million, a 104% year-over-year increase.  
● Service revenues were \$29 million, a 129% year-over-year increase.  
● Gross margin for the first nine months was 9%, compared to 11% in the same period of 2023.  
● Gross margin of sales of goods for the first nine months of 2024 was 7%, compared to 10% for the same period of 2023, mainly due to destocking.  
● Gross margin of service revenues for the first nine months of 2024 was 55%, compared to 28% for the same period of 2023, due to an increase in high-margin technology-related income.  
● Operating loss was \$598 million for the first nine months of 2024, an 18% year-over-year increase.  
● Net loss was \$667 million for the first nine months of 2024. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was \$633 million for the first nine months of 2024, a 20% year-over-year increase.  
● Adjusted EBITDA (non-GAAP) was a loss of \$563 million for the first nine months of 2024, a 16% year-over-year increase. *[Table Level]
- Table Title: Company. Consolidated Balance Sheets
- Table Summary: The table details the financial activities of Company. as of December 31, 2023, 2022, and 2021. It includes cash flows from financing activities, reconciliation of cash and restricted cash, and supplemental information regarding interest and tax payments.
- Context: The table is part of an audited financial statement for Company., reflecting its operations in designing, developing, and selling luxury BEV lifestyle models and sports cars.
- Special Notes: All values are in thousands of US dollars. There are various notes providing additional detail on specific entries, such as Note 17 for Share Issuances.

[Row Level]
Row 1: Proceeds from the issuance of ordinary shares were not recorded in any of the years presented.

Row 2: In 2023, proceeds from the settlement of receivables from shareholders are documented as $26,139 thousand, a decrease compared to $76,147 thousand in 2022.

Row 3: There were no proceeds from the issuance of Series Pre-A Preferred Shares in 2023 and 2022, contrasted with $197,918 thousand in 2021.

Row 4: Proceeds from the issuance of Series A Preferred Shares were $129,681 thousand in 2022, with no entries for 2023 and 2021.

Row 5: The repayment of exchangeable notes used for the issuance of Series A Preferred Shares amounted to $17,147 thousand in 2022, with no entries for other years.

Row 6: In 2023, there were proceeds from the issuance of convertible notes totaling $25,297 thousand, with previous amounts being $75,037 thousand in 2022 and $23,445 thousand in 2021.

Row 7: Proceeds from the issuance of exchangeable notes were $27,883 thousand in 2023, $378,964 thousand in 2022, and $125,039 thousand in 2021.

Row 8: Proceeds from the issuance of mandatorily redeemable noncontrolling interest were recorded as $6,299 thousand in 2021 only.

Row 9: In 2023, there was a repayment of mandatorily redeemable noncontrolling interest of $11,554 thousand, with no comparable entries in other years.

Row 10: Receipts of refundable deposits in connection with the issuance of Series A Preferred Shares were $28,945 thousand in 2022, compared to multiple entries across other years.

Row 11: Repayments of refundable deposits related to Series A Preferred Shares issuance totaled $28,628 thousand in 2022.

Row 12: Payments for the redemption of convertible notes occurred in 2023, totaling $5,648 thousand.

Row 13: In 2022, $10,000 thousand was recorded as receipts from refundable deposits related to PIPE investments.

Row 14: Capital contributions from shareholders in 2021 were $15,695 thousand; other years saw no similar activity.

Row 15: There was a dividend paid to a shareholder of $1,880 thousand in 2022.

Row 16: Consideration payments related to reorganization in 2022 amounted to $50,794 thousand.

Row 17: Capital contributions by noncontrolling interests were $4,460 thousand in 2023, with lesser amounts in 2022 and none in 2021.

Row 18: Repayments of loans to a related party were recorded as $9,844 thousand in 2022.

Row 19: Proceeds from bank loans equaled $481,176 thousand in 2023, a significant increase from $28,170 thousand in 2022.

Row 20: Payments of bank loans in 2023 amounted to $272,897 thousand.

Row 21: A payment to a noncontrolling interest in the liquidation of a subsidiary was recorded as $148 thousand in 2023.

Row 22: Net cash provided by financing activities was highest in 2022 at $758,131 thousand, followed by $284,708 thousand in 2023, and $364,853 thousand in 2021.

Row 23: The effect of exchange rate changes on cash and restricted cash resulted in a decrease of $12,189 thousand in 2023.

Row 24: There was a net decrease in cash and restricted cash of $312,398 thousand in 2023, compared to an increase of $208,081 thousand in 2022.

Row 25: Cash and restricted cash at the beginning of 2023 were $739,533 thousand, compared to $531,452 thousand in 2022.

Row 26: Cash and restricted cash at the end of 2023 amounted to $427,135 thousand.

Row 27: As of December 31, 2023, cash was reported at $418,941 thousand, compared to $736,605 thousand in 2022.

Row 28: Restricted cash, current, increased to $7,873 thousand in 2023.

Row 29: Restricted cash, non-current, was recorded as $321 thousand in 2023.

Row 30: Total cash and restricted cash at the end of 2023 was $427,135 thousand.

Row 31: Interest paid amounted to $8,086 thousand in 2023.

Row 32: Non-cash investing and financing activities included various significant entries, such as a $71,064 thousand purchase of intangible assets in 2023. [Table Level]
- Table Title: Consolidated Balance Sheets Data
- Table Summary: This table presents the selected consolidated balance sheet data for Company as of June 30, 2024, and December 31 for the years 2023 and 2022. It includes data on total current assets, total non-current assets, total current liabilities, total non-current liabilities, and total liabilities.
- Context: The table is part of the consolidated and combined financial statements prepared in accordance with U.S. GAAP, which have been audited or derived from unaudited condensed consolidated financial statements.
- Special Notes: All values are presented in thousands of US dollars.

[Row Level]
Row 1: As of June 30, 2024, total current assets were $1,279,213, compared to $883,712 as of December 31, 2023, and $823,463 as of December 31, 2022.

Row 2: Total non-current assets amounted to $1,227,041 as of June 30, 2024, while they were $700,966 as of December 31, 2023, and $548,489 as of December 31, 2022.

Row 3: The total assets stood at $2,506,254 as of June 30, 2024, reflecting an increase from $1,584,678 as of December 31, 2023, and $1,371,952 as of December 31, 2022.

Row 4: Total current liabilities were $1,840,454 as of June 30, 2024, compared to $1,757,281 as of December 31, 2023, and $932,879 as of December 31, 2022.

Row 5: As of June 30, 2024, total non-current liabilities were $839,881, while they were $654,569 as of December 31, 2023, and $523,679 as of December 31, 2022.

Row 6: The total liabilities as of June 30, 2024, were reported at $2,680,335, compared to $2,411,850 as of December 31, 2023, and $1,456,558 as of December 31, 2022. [Table Level]
- Table Title: Consolidated and Combined Cash Flows
- Table Summary: The table outlines the cash flow activities of Company. for the six months ended June 30, 2024, and 2023, as well as for the years ended December 31, 2023, 2022, and 2021. It includes details on operating, investing, and financing activities, as well as the changes in cash due to exchange rate fluctuations, and summarizes the net changes in cash and restricted cash over these periods.
- Context: The financial data is derived from both audited and unaudited consolidated and combined financial statements, intended to provide insights into past performance that may not necessarily predict future results.
- Special Notes: All amounts are in thousands of US dollars. Differences in cash due to exchange rate changes are accounted for.

[Row Level]
Row 1: For the six months ended June 30, 2024, net cash used in operating activities was US$468,361, compared to US$303,700 in the same period of 2023. For the years ended December 31, net cash used totaled US$386,932 in 2023, US$351,419 in 2022, and US$126,505 in 2021.

Row 2: Net cash used in investing activities amounted to US$542,860 for the first half of 2024, in contrast to US$103,733 in the same period of 2023. Annually, the amounts were US$197,985 in 2023, US$149,414 in 2022, and Company. received US$244,476 in 2021.

Row 3: Company. provided US$1,248,800 in net cash through financing activities during the first six months of 2024, compared to US$415,283 in 2023. For the whole years, the amounts were US$284,708 in 2023, US$758,131 in 2022, and US$364,853 in 2021.

Row 4: The effect of exchange rate changes on cash and restricted cash was a decrease of US$20,899 for the six months ending in June 2024, compared to a decrease of US$18,356 for the same period in 2023. For the full years, changes accounted for decreases of US$12,189 in 2023, US$49,217 in 2022, and an increase of US$2,943 in 2021.

Row 5: There was a net increase in cash and restricted cash by US$216,680 during the first half of 2024, while for the same period in 2023, there was a net decrease of US$10,506. Annually, cash decreased by US$312,398 in 2023, and increased by US$208,081 in 2022 and US$485,767 in 2021.

Row 6: Cash and restricted cash at the beginning of the period was US$427,135 for 2024 and US$739,533 for 2023. As of the beginning of calendar years, these values were US$739,533 in 2023, US$531,452 in 2022, and US$45,685 in 2021.

Row 7: At the end of the period, cash and restricted cash amounted to US$643,815 as of June 30, 2024, and US$729,027 for 2023. At year-end, these amounts were US$427,135 in 2023, US$739,533 in 2022, and US$531,452 in 2021. As a result of the foregoing, Company's gross profits increased from US$557 thousand for the year ended December 31, 2021, to US$2,307 thousand for the year ended December 31, 2022, and Company's gross margins increased from 15.1% for the year ended December 31, 2021, to 24.1% for the year ended December 31, 2022. The increased gross profit and gross margin were primarily due to the increased revenue from automotive design services, which had a higher gross profit margin. [Table Level]
- Table Title: Consolidated Balance Sheets of Company.
- Table Summary: The table presents the consolidated balance sheets of Company. as of January 1, 2021, and December 31, 2021. The table details changes in ordinary shares, additional paid-in capital, receivables from shareholders, accumulated deficits, and total shareholders' equity, including contributions from shareholders and effects of reorganization.
- Context: The table is a part of the audited financial statements of Company., following PCAOB standards, representing the financial position at year-end 2021 and various financial activities throughout the year.
- Special Notes: All amounts are in thousands of US dollars unless specified otherwise. Footnote (1) refers to the number of ordinary shares.

[Row Level]
Row 1: As of January 1, 2021, Company. had additional paid-in capital of $25,877, an accumulated deficit of $10,425, and total shareholders' equity of $16,107.

Row 2: Company. reported a net loss during the year, which is not individually quantified in the table rows but impacts the accumulated deficit.

Row 3: Adjustments for fair value changes related to credit risk of financial instruments, net of no income taxes, are noted with no specific amounts recorded in individual columns.

Row 4: Foreign currency translation adjustments, also net of nil income taxes, contributed negatively, decreasing by $843.

Row 5: Total comprehensive loss for the period resulted in an accumulated deficit of $110,531 and a total shareholders' deficit of $111,255.

Row 6: The issuance of 479,954,430 ordinary shares resulted in a nominal capital of $22 and an addition to paid-in capital of $417,958, though receivables from shareholders increased by $106,210.

Row 7: Shareholders contributed $3,391 in connection with the issuance of exchangeable notes.

Row 8: An additional capital contribution from shareholders amounted to $15,695.

Row 9: Dividends of $38,507 were paid to a shareholder, reducing the total shareholders' equity.

Row 10: A deemed distribution under common control reorganization is mentioned without affecting the ordinary shares numerically.

Row 11: As of December 31, 2021, the balance sheet reported 479,954,430 ordinary shares, additional paid-in capital of $424,414, receivables from shareholders at $106,210, an accumulated deficit of $122,836, and total shareholders' equity of $195,321. Company's cost of revenues increased by US$569.6 million from US$7.3 million for the year ended December 31, 2022, to US$576.8 million for the year ended December 31, 2023. The increase in cost of revenues was primarily due to the increased revenues in vehicle sales. This increase was attributable to the rise in cost of sales from vehicle products of US$553.0 million, auto parts and peripheral products of US$10.8 million, and automotive design and development services provided to OEM customers of US$5.8 million. As a result of the foregoing, Company's gross profits increased from US$6.1 million for the six months ended June 30, 2023, to US$50.9 million for the six months ended June 30, 2024. Company's gross margin increased from 4.7% for the six months ended June 30, 2023, to 12.8% for the six months ended June 30, 2024, primarily due to (i) the cost reduction per vehicle and increased average selling price of vehicles sold; and (ii) the increase in income from intelligent driving solutions, commission service fees, and other automotive design and development services to OEM customers, which carry higher margins. Company cannot assure you that facelifts on its current and future models will appeal to its customers as expected, or that any introduction of new models or facelifts will not adversely affect the sales of existing models. Furthermore, Company relies on third-party suppliers for the provision and development of many of the key components and materials used in its vehicles. To the extent that these suppliers experience any difficulties in providing or developing necessary components, Company could experience delays in delivering vehicles. See also “— Risks Relating to our Business and Industry   —   Company is dependent on suppliers, many of whom are single source suppliers for the components they supply.” Any delay in the development, manufacturing, and delivery of Company's current or future models, or in performing facelifts to existing models, could subject the company to customer complaints and materially and adversely affect its reputation, demand for its vehicles, and growth prospects. Any of the foregoing could materially and adversely affect Company's business, financial condition, and results of operations. Company has not been profitable and has experienced negative net cash flows from operations. "Company continued to deliver strong operational growth, with total deliveries of 7,617 units in the first nine months of 2024, up by 136% year-on-year, driven by the European market," said Person A, Chief Executive Officer. "Company is excited to see significant progress in its intelligent driving business across the world, with revenue from customers other than Company surging to \$11 million, reflecting a year-on-year growth of 450%, contributing about 2% of total revenue. Company also launched Hyper Hybrid EV technology, in line with evolving market demands. The company remains committed to executing the ‘Win26’ Plan to drive efficiency and competitiveness, delivering sustainable value for its shareholders and investors." "Company has made continual improvements and streamlined its operations to drive efficiency, optimize resources, and achieve a reduction in operating expenses for four consecutive quarters," said Person B, Chief Financial Officer. As a result of the foregoing, Company's gross profits increased from US$557,000 for the year ended December 31, 2021, to US$2,307,000 for the year ended December 31, 2022, and Company's gross margins increased from 15.1% for the year ended December 31, 2021, to 24.1% for the year ended December 31, 2022. The increased gross profit and gross margin were primarily due to the increased revenue from automotive design services with a higher gross profit margin. [Table Level]
- Table Title: Revenue Analysis for Jan-Sep 2024 vs. Jan-Sep 2023
- Table Summary: The table presents a comparative analysis of revenue generated from two customer segments, illustrating the change from January to September in 2024 compared to the same period in 2023. It highlights the year-on-year percentage change in revenue for each segment.
- Context: The table is situated in a discussion about Company's technological advancements and strategic partnerships, emphasizing a rapid growth in revenue driven largely by innovative driving solutions and technologies.
- Special Notes: The table includes a footnote marked "(A)" next to "from Company", but the details of the footnote are not provided in the image.

[Row Level]
- Row 1: Total revenue from January to September 2024 was 19 units, compared to 6 units in the same period of 2023, reflecting a 217% year-on-year increase.
- Row 2: Revenue from Company in January to September 2024 was 8 units, up from 4 units in 2023, marking a 100% increase.
- Row 3: Revenue from other customers in January to September 2024 reached 11 units, a significant rise from 2 units in the same months of 2023, resulting in a 450% increase. [Table Level]
- Table Title: Geographic Revenues for Company.
- Table Summary: The table presents the revenues of Company by geographic areas for the years ended December 31, 2023, 2022, and 2021. It shows the monetary contribution from various regions, highlighting significant sales in the Chinese mainland and the United Kingdom. The total revenues for each year are also provided.
- Context: The revenues shown are part of Company's financial performance. The table focuses on the geographic distribution of sales, correlating with the financial statement notes that discuss factors affecting financial operations and performance.
- Special Notes: All values are in thousands of US dollars, as indicated in the financial statement notes. The table's footnotes outline the items included in financial calculations and conditions affecting convertible notes and shares.

[Row Level]
Row 1: In 2023, the revenues from the Chinese mainland were US$419,448, a significant increase from US$8,816 in 2022, and US$3,109 in 2021.

Row 2: The United Kingdom contributed US$83,827 in 2023, up from US$437 in 2022, and US$439 in 2021.

Row 3: Revenue from Japan was US$26,390 in 2023, with no significant revenue reported in prior years.

Row 4: In 2023, Australia generated US$20,335 in revenues, marking this as a new revenue stream.

Row 5: Belgium's revenue in 2023 was US$20,701, with no recorded revenues in earlier years.

Row 6: France contributed US$16,341 in 2023, with no revenues noted in previous years.

Row 7: Italy had revenues of US$14,650 in 2023, with no previous data available.

Row 8: Germany reported US$15,904 in 2023, marking its first entry as a revenue source.

Row 9: The Netherlands had revenues of US$13,729 in 2023, also a new entry.

Row 10: Revenues classified as 'Others' totaled US$47,683 in 2023, increased from US$304 in 2022, and US$139 in 2021.

Row 11: Total revenues for Company were US$679,008 in 2023, sharply rising from US$9,557 in 2022, and US$3,687 in 2021. As a result of the foregoing, Company's gross profits increased from US$2.3 million for the year ended December 31, 2022, to US$102.2 million for the year ended December 31, 2023, and Company's gross margin decreased from 24.1% for the year ended December 31, 2022, to 15.0% for the year ended December 31, 2023. The increased gross profit was primarily due to the ramp-up of sales volume of BEV lifestyle models and the distribution of Company-brand sports cars. The decreased gross margin was primarily due to the ramp-up of sales of vehicles with lower gross margins than those of the services provided by the company. [Table Level]
- Table Title: Consolidated Balance Sheets of Company. as of December 31, 2023 and 2022
- Table Summary: The table presents the consolidated balance sheets for Company., detailing ordinary shares, additional paid-in capital, receivables from shareholders, accumulated income or loss, deficits, equity changes, and the total shareholders' equity including noncontrolling interests as of December 31, 2023 and 2022. It tracks financial changes over the year, accounting for losses, shareholder contributions, and other significant equity transactions.
- Context: The financial audits were performed using PCAOB standards to ensure the financial statements are free from material misstatement. Detailed evaluations were made on principles and estimates used by management.
- Special Notes: All financial amounts are presented in thousands, with specific notes about the number of shares and financial transactions detailed.

[Row Level]
Row 1: As of December 31, 2022, Company. had a total of 474,621,603 ordinary shares and additional paid-in capital amounting to US$ 403,103. Receivables from shareholders were at US$ 26,447, while accumulated other comprehensive income was US$ 17,707. The accumulated deficit totaled US$ (846,757), leading to shareholders’ equity attributable to ordinary shareholders of US$ (452,373), with noncontrolling interests contributing US$ (642), culminating in a total shareholders’ equity deficit of US$ (453,015).

Row 2: The adoption of a new accounting standard resulted in a cumulative effect adjustment of US$ (15) on the accumulated deficit as of January 1, 2023.

Row 3: As of January 1, 2023, the financial position remained with 474,621,603 ordinary shares, additional paid-in capital of US$ 403,103, and receivables from shareholders at US$ (26,447). Accumulated other comprehensive income was US$ 17,707, while the accumulated deficit was US$ (846,772). Shareholders’ equity attributable to ordinary shareholders stood at US$ (452,388), with noncontrolling interests at US$ (642), resulting in a total shareholders’ equity deficit of US$ (453,030).

Row 4: The net loss incurred was US$ (742,001), resulting in a reduction of the accumulated deficit to US$ (742,001).

Row 5: A fair value change of mandatorily redeemable noncontrolling interests and certain notes led to adjustments net of taxes amounting to US$ (8,650).

Row 6: Foreign currency translation adjustments, net of nil income taxes, added US$ 16,210 to the comprehensive income.

Row 7: Total comprehensive loss reported was US$ 7,560, thereby revising the accumulated deficit to US$ (742,001), reducing shareholders' equity to US$ (734,441), with noncontrolling interests at US$ (8,254), resulting in a new total equity of US$ (742,695).

Row 8: The settlement of receivables from shareholders added back US$ 26,447 to the financials.

Row 9: Shareholder contributions related to the issuance of exchangeable notes amounted to US$ 909, decreasing the comprehensive loss.

Row 10: A deemed distribution to shareholders accounted for a reduction of US$ (31,672).

Row 11: Accretion of redeemable convertible preferred shares reduced equity further by US$ (15,121).

Row 12: Contributions from non-controlling shareholders added US$ 968, balancing other reductions and settling at US$ 3,492 under noncontrolling interests.

Row 13: As of December 31, 2023, Company. reported 474,621,603 ordinary shares with a reduced additional paid-in capital at US$ 358,187 and increased accumulated other comprehensive income of US$ 25,267. The accumulated deficit stood at US$ (1,588,773), with total shareholders’ equity attributable to ordinary shareholders at US$ (1,205,298), noncontrolling interests at US$ (5,404), and a total shareholders’ equity deficit of US$ (1,210,702). Company recorded losses in share of results of equity method investments of US$2.8 million for the year ended December 31, 2022, primarily due to losses from three associate companies that Company newly invested in 2022, calculated using the equity method. If Company does not effectively manage its cash and other liquid financial assets, execute its plan to increase profitability, and obtain additional financing, it may not be able to continue as a going concern. Company has not been profitable since its inception. The company incurred a net loss of US\$750.3 million, US\$724.6 million, and US\$110.5 million in 2023, 2022, and 2021, respectively. In addition, Company had negative net cash flows from operating activities of US\$386.9 million, US\$351.4 million, and US\$126.5 million in 2023, 2022, and 2021, respectively. As of December 31, 2023, 2022, and 2021, the company's accumulated deficit was US\$1.6 billion, US\$846.8 million, and US\$122.8 million, respectively. Company incurred capital expenditures of US\$213.7 million, US\$133.3 million, and US\$34.6 million in 2023, 2022, and 2021, respectively. Historically, Company relied principally on proceeds from the issuance of exchangeable notes, convertible notes, and related party borrowings to finance its operations and business expansion. The company will require additional liquidity to continue its operations over the next 12 months. Company is evaluating strategies to obtain the required additional funding for future operations. [Table Level]
- Table Title: Key Preliminary Financial Results for the First Nine Months Ended September 30, 2024
- Table Summary: This table presents a comparison of financial results between the first nine months of 2024 and 2023, showcasing revenues, costs, and profit margins. It highlights significant year-over-year changes in financial metrics such as operating loss and net loss.
- Context: Company experienced substantial revenue growth due to increases in both goods and service sales, although operating and net losses also rose. Gross margins for sales of goods decreased due to destocking, while service revenue margins improved owing to high-margin technology-related income.
- Special Notes: All values are in millions of U.S. dollars, unaudited. Adjusted metrics are noted with (A).

[Row Level]
- Row 1: Revenues for Jan-Sep, 2024 were $653 million, compared to $318 million in 2023, showing a 105% year-over-year increase.
- Row 2: The cost of revenues for the first nine months of 2024 was $594 million, up from $284 million in 2023, marking a 109% increase.
- Row 3: Gross profit for 2024 was $59 million, compared to $34 million in 2023, which is a 75% increase.
- Row 4: The gross margin percentage for Jan-Sep, 2024 was 9%, which decreased from 11% in 2023.
- Row 5: Operating loss for the first nine months of 2024 amounted to $598 million, compared to $508 million in 2023, showing an 18% increase.
- Row 6: Net loss for 2024 was $667 million, a 27% increase from $527 million in 2023.
- Row 7: Adjusted net loss (A) for Jan-Sep, 2024 was $633 million, increasing by 20% from $527 million in 2023.
- Row 8: Adjusted EBITDA (A) for the first nine months of 2024 was a loss of $563 million, compared to a $486 million loss in 2023, reflecting a 16% year-over-year increase. [Table Level]  
- Table Title: Financial Performance Overview for Year Ended December 31  
- Table Summary: This table illustrates the changes in gross profit and gross margin for the years ended December 31, 2022, and 2023. It highlights the significant increase in gross profit alongside a decrease in gross margin percentage over the specified period.  
- Context: The surrounding text discusses increases in service revenue and costs, attributing profit growth to sales in BEV lifestyle models and Company-brand sports cars while noting a reduced gross margin due to lower-margin vehicle sales.  
- Special Notes: The figures are presented in thousands of US dollars, except where percentages are noted.  

[Row Level]  
Row 1: For the year ended December 31, 2023, the gross profit was US$102,181,000 compared to US$2,307,000 in 2022, representing an increase of US$99,874,000 or 42.3%.  
Row 2: The gross margin percentage for the year ended December 31, 2023, was 15.0%, a decrease from 24.1% in 2022. [Table Level]
- Table Title: Consolidated Balance Sheets as of December 31, 2023, and 2022
- Table Summary: This table presents the operating and investing activities of Company. for the years 2023, 2022, and 2021. It details the adjustments made to reconcile net losses to net cash used in operating activities, lists changes in operating assets and liabilities, and outlines net cash used in investing activities.
- Context: The table follows an introduction to audit standards and precedes detailed notes about the financial statements of Company., which involve activities related to the design, development, and sales of luxury battery electric vehicles and sports cars.
- Special Notes: All amounts are in thousands of US dollars. Notations such as "—" indicate that specific values are not available or not applicable for the year.

[Row Level]
Row 1: The net loss for 2023 is $750,255, for 2022 is $724,563, and for 2021 is $110,531.

Row 2: Depreciation expense was $54,957 in 2023, $12,790 in 2022, and $2,056 in 2021.

Row 3: Reduction in the carrying amount of operating lease right-of-use assets was $20,056 in 2023, $15,413 in 2022, and $5,638 in 2021.

Row 4: Investment loss (income), net, was $1,162 in 2023, $3,246 in 2022, and $(2,229) in 2021.

Row 5: Share of results of equity method investments was $1,048 in 2023 and $2,762 in 2022, with no value reported for 2021.

Row 6: Changes in fair values of mandatorily redeemable noncontrolling interest and other instruments were $7,531 in 2023, $22,991 in 2022, and $1,367 in 2021.

Row 7: Changes in fair values of put options amounted to $2,508 in 2023, $10,625 was recorded in 2022, and no value was reported in 2021.

Row 8: Deferred income tax expense was $(126) in 2023 with no value for 2022, and $216 in 2021.

Row 9: Non-cash interest expenses were $1,620 in 2023, $8,167 in 2022, and $3,615 in 2021.

Row 10: Amortization of deferred income related to government grants accounted for $(54,954) in 2023, a significant $(490,461) in 2022, with no value in 2021.

Row 11: Expected credit loss expenses recorded were $389 in 2023, with no values in the previous years.

Row 12: Warranty expenses were $8,492 in 2023 with no prior data available.

Row 13: Net unrealized foreign currency exchange losses (gains) were $1,466 in 2023, $10,192 in 2022, and $(694) in 2021.

Row 14: Accounts receivable – third parties showed a change of $(75,265) in 2023, $(111) in 2022, and no value for 2021.

Row 15: Accounts receivable – related parties showed $(14,356) in 2023, $(2,976) in 2022, and $(89) in 2021.

Row 16: Inventories showed substantial change at $(235,074) in 2023, $(21,628) in 2022, and $(1,960) in 2021.

Row 17: Prepayments and other current assets – third parties recorded $(20,268) in 2023 and $1,705 in 2022, with no value for 2021.

Row 18: Prepayments and other current assets – related parties had $(18,880) in 2023, $405,176 in 2022, and $83,160 in 2021.

Row 19: Other non-current assets – third parties recorded $(34,248) in 2023, $(2,044) in 2022, and $(8,028) in 2021.

Row 20: Other non-current assets – related parties recorded $(2,706) in 2023 with no prior values.

Row 21: Accounts payable – third parties amounted to $21,067 in 2023, $1,583 in 2022, and no value for 2021.

Row 22: Accounts payable – related parties recorded $335,307 in 2023, $5,975 in 2022, with no value for 2021.

Row 23: Contract liabilities – third parties amounted to $42,393 in 2023, $6,286 in 2022, and $1,934 in 2021.

Row 24: Accrued expenses and other current liabilities – third parties amounted to $124,094 in 2023, $145,857 in 2022, and $84,713 in 2021.

Row 25: Accrued expenses and other current liabilities – related parties were $89,876 in 2023, $(201,088) in 2022, and $401,327 in 2021.

Row 26: Operating lease liabilities were $(29,357) in 2023, $(14,610) in 2022, and $(55,421) in 2021.

Row 27: Other non-current liabilities – third parties were $81,728 in 2023, $16,147 in 2022, and no value for 2021.

Row 28: Other non-current liabilities – related parties recorded $(91) in 2023, $1,640 in 2022, and no value for 2021.

Row 29: Net cash used in operating activities was $(386,932) in 2023, $(351,419) in 2022, and $(126,505) in 2021.

Row 30: Payments for purchases of property, equipment, and software stood at $(213,714) in 2023, $(133,345) in 2022, and $(34,590) in 2021.

Row 31: Proceeds from disposal of property, equipment, and software amounted to $5,117 in 2023, $1,071 in 2022, and $14 in 2021.

Row 32: Payments for purchases of short-term investments recorded $(38,254) in 2023, $(300,662) in 2022, and no value for 2021.

Row 33: Proceeds from sales of short-term investments were $37,428 in 2023, $289,587 in 2022, and no value for 2021.

Row 34: Payments upon settlement of derivative instruments recorded $(641) in 2023 with no earlier values. [Table Level]
- Table Title: Company. Consolidated Balance Sheets
- Table Summary: This table presents the consolidated financial statements of Company. for the years ended December 31, 2023, 2022, and 2021. It includes information about revenues, expenses, and net loss attributable to ordinary shareholders.
- Context: The audits, conducted according to PCAOB standards, provide reasonable assurance that the financial statements are free from material misstatement. The audits evaluate accounting principles, risk assessments, and presentation of statements.
- Special Notes: All amounts are in thousands, except for share and per-share data. Notes and special marks are referenced throughout the table.

[Row Level]
Row 1: In 2023, sales of goods, including related party amounts of $3,432, were $660,158. In 2022, with related party revenue of $23, sales were $1,186. In 2021, there was no related party revenue, and sales were $369.

Row 2: Service revenues, including related party amounts of $12,573 in 2023, $8,344 in 2022, and $3,280 in 2021, were recorded as $18,850 for 2023, $8,871 for 2022, and $3,318 for 2021.

Row 3: Total revenues amounted to $679,008 in 2023, $9,557 in 2022, and $3,687 in 2021.

Row 4: Cost of revenues, including related party costs of $549,893 in 2023, $839 in 2022, and $331 in 2021, were $564,741, $948, and $331 respectively.

Row 5: Cost of services were $12,086 in 2023, $6,302 in 2022, and $2,799 in 2021.

Row 6: Total cost of revenues for 2023, 2022, and 2021 were $576,827, $7,250, and $3,130, respectively.

Row 7: Gross profit was $102,181 in 2023, $2,307 in 2022, and $557 in 2021.

Row 8: Research and development expenses, including related party amounts of $135,334 in 2023, $167,028 in 2022, and $345,655 in 2021, were recorded as $368,729 in 2023, $445,844 in 2022, and $511,364 in 2021.

Row 9: Selling and marketing expenses amounted to $328,953 in 2023, $121,311 in 2022, and $38,066 in 2021, including related party amounts of $40,531, $6,964, and $763 respectively.

Row 10: General and administrative expenses, including related party amounts of $13,085 in 2023, $12,034 in 2022, and $2,782 in 2021, were $144,533, $47,003, and $54,763, respectively.

Row 11: Government grants in 2023 amounted to $4,095.

Row 12: Total operating expenses were $838,120 in 2023, $689,720 in 2022, and $113,499 in 2021.

Row 13: Operating loss was $735,939 in 2023, $687,413 in 2022, and $112,942 in 2021.

Row 14: Interest expenses for the respective years amounted to $10,200 in 2023, $8,542 in 2022, and $3,615 in 极1.

Row 15: Investment income/(loss), net resulted in $9,204 income in 2023, $2,188 in 2022, and $6,219 in 2021.

Row 16: Share of results of equity method investments were losses of $1,163 in 2023, $2,346 in 2022, and $2,229 in 2021.

Row 17: Foreign currency exchange gains/(losses), net amounted to $4,081 in 2023, losses of $2,762 in 2022, and $798 in 2021.

Row 18: Changes in fair values of mandatorily redeemable interests resulted in a loss of $7,531 in 2023, $11,505 in 2022, and a gain of $798 in 2021.

Row 19: Changes in fair values of put option liabilities were losses of $2,508 in 2023, $22,991 in 2022, and $1,367 in 2021.

Row 20: Loss before income taxes was $749,142 in 2023, $724,471 in 2022, and $108,678 in 2021.

Row 21: Income tax expense for the years was $1,113 in 2023, $92 in 2022, and $1,853 in 2021.

Row 22: Net loss for 2023, 2022, and 2021 amounted to $750,255, $724,563, and $110,531 respectively, less losses attributable to noncontrolling interests of $8,254 in 2023, $642 in 2022, and none in 2021.

Row 23: Net loss attributable to ordinary shareholders was $742,001 in 2023, $723,921 in 2022, and $110,531 in 2021.

Row 24: Accretion of Redeemable Convertible Preferred Shares resulted in $15,121 in 2023 and $910 in 2022.

Row 25: Net loss available to ordinary shareholders was $757,122 in 2023, $724,831 in 2022, and $110,531 in 2021.

Row 26: Loss per ordinary share (basic and diluted) for 2023 was $(1.60), for 2022 was $(1.52), and for 2021 was $(0.33).

Row 27: Weighted average number of ordinary shares outstanding used in computing net loss per share were 474,621,603 in 2023, 475,805,054 in 2022, and 334,127,181 in 2021.

Row 28: Net loss for the years was $750,255 in 2023, $724,563 in 2022, and $110,531 in 2021.

Row 29: Other comprehensive income/(loss) related to fair value changes resulted in losses极 $8,650 in 2023, $893 in 2022, and a gain of $119 in 2021.

Row 30: Foreign currency translation adjustment amounted to $16,210 in 2023, $18,669 in 2022, and a loss of $843 in 2021.

Row 31: Total other comprehensive income (loss) [Table Level]
- Table Title: Consolidated Balance Sheets for Company. as of December 31, 2023 and 2022
- Table Summary: This table displays the financial position of Company. as of December 31, 2023, and December 31, 2022, focusing on equity components, including shares, capital contributions, and accumulated deficits. It highlights activities such as loss adjustments, currency translations, and contributions from shareholders over the year.
- Context: The audits were performed according to PCAOB standards to provide reasonable assurance of no material misstatement in the financial reports. Company. is primarily engaged in the design and sale of luxury electric vehicles and distributes luxury sports cars under the Company brand.
- Special Notes: All amounts are presented in thousands. There are additional notes referring to specific accounting impacts and shareholder actions.

[Row Level]
Row 1: As of December 31, 2022, Company. had 474,621,603 ordinary shares valued at US$21, with additional paid-in capital of US$403,103. Receivables from shareholders amounted to US$(26,447), and accumulated other comprehensive income was US$17,707. The accumulated deficit stood at US$(846,757), resulting in a shareholders' equity deficit of US$(452,373) and total shareholders' equity deficit, including noncontrolling interests, of US$(453,015).

Row 2: On January 1, 2023, following the cumulative effect of adopting a new accounting standard, the balance remained essentially unchanged from December 31, 2022, with ordinary shares, additional paid-in capital, and receivables from shareholders maintaining their respective values. Accumulated comprehensive income and deficit also reflected previous figures.

Row 3: During 2023, a net loss contributed to an additional reduction in equity by US$(15).

Row 4: There was a fair value change of mandatorily redeemable noncontrolling interests and other notes leading to a deficit adjustment of US$(8,650).

Row 5: A foreign currency translation adjustment contributed a gain of US$16,210, resulting in a total comprehensive loss adjustment of US$7,560 for the year.

Row 6: Settlement of receivables from shareholders yielded an addition of US$26,447 to equity.

Row 7: A shareholder contributed US$909 related to exchangeable notes issuance.

Row 8: There was a deemed distribution to shareholders incurring a decrease of US$(31,672).

Row 9: Accretion of Redeemable Convertible Preferred Shares resulted in a US$(15,121) reduction in equity.

Row 10: Contributions from non-controlling shareholders added US$968 to the equity.

Row 11: By December 31, 2023, Company. maintained 474,621,603 ordinary shares valued at US$21. Additional paid-in capital was US$358,187. Accumulated other comprehensive income was US$25,267. The accumulated deficit grew to US$(1,588,773), leading to shareholders' equity deficit of US$(1,205,298) and a total equity deficit of US$(1,210,702) including noncontrolling interests of US$(5,404). Key Financial Results The table below summarizes key preliminary financial results for Company for the first nine months ended September 30, 2024. (in millions of U.S. dollars, unaudited) [Table Level]
- Table Title: Consolidated Balance Sheets of Company. as of December 31, 2023, 2022, and 2021
- Table Summary: The table outlines the adjustments made to reconcile net loss to net cash used in operating activities for Company. over three years. It includes details on operating cash flows, investing activities, and changes in assets and liabilities, with a specific focus on numerical adjustments and cash flow activities.
- Context: Conducted audits in accordance with PCAOB standards to ensure material misstatements are addressed. Company. is involved in designing and distributing luxury vehicles and sports cars, noted in financial disclosures.
- Special Notes: All amounts are in thousands of US dollars, except where noted, and adjustments are made for non-cash items and changes in operating assets and liabilities.

[Row Level]
- Row 1: The net loss for 2023 is $(750,255) thousand, compared with $(724,563) thousand in 2022 and $(110,531) thousand in 2021.
- Row 2: Depreciation is $54,957 thousand for 2023, rising sharply from $12,790 thousand in 2022, and $2,056 thousand in 2021.
- Row 3: Reduction in carrying amount of operating lease right-of-use assets is $20,056 thousand for 2023, and $15,413 thousand in 2022, compared to $5,638 thousand in 2021.
- Row 4: Investment loss is $1,162 thousand in 2023, down from $3,246 thousand in 2022, and $(2,229) thousand loss in 2021.
- Row 5: Share of results of equity method investments is $1,048 thousand in 2023, versus $2,762 thousand in 2022.
- Row 6: Changes in fair values of mandatorily redeemable noncontrolling interest and exchangeable notes is $7,531 thousand in 2023, $22,991 thousand in 2022, and $1,367 thousand in 2021.
- Row 7: Changes in fair values of put options are $2,508 thousand for 2023.
- Row 8: Share-based compensation expense is reported as $10,625 thousand for 2022.
- Row 9: Deferred income tax expense shows $(126) thousand for 2023, with $216 thousand in 2021.
- Row 10: Non-cash interest expenses are $1,620 thousand for 2023, $8,167 thousand in 2022, and $3,615 thousand in 2021.
- Row 11: Amortization of deferred income relating to government grants is $(54,954) thousand for 2023 versus $(490,461) thousand in 2021.
- Row 12: Expected credit loss expenses are $389 thousand in 2023.
- Row 13: Warranty expenses total $8,492 thousand for 2023.
- Row 14: Net unrealized foreign currency exchange losses (gains) are $1,466 thousand for 2023, and $10,192 thousand in 2022.
- Row 15: Accounts receivable - third parties decreased by $(75,265) thousand in 2023.
- Row 16: Accounts receivable - related parties decreased by $(14,356) thousand in 2023.
- Row 17: Inventories reduced by $(235,074) thousand in 2023.
- Row 18: Prepayments and other current assets - third parties decreased by $(20,268) thousand in 2023.
- Row 19: Prepayments and other current assets - related parties exhibited $(18,880) thousand in 2023.
- Row 20: Other non-current assets - related parties are $(2,706) thousand in 2023.
- Row 21: Accounts payable - third parties increased by $21,067 thousand for 2023.
- Row 22: Accounts payable - related parties rose to $335,307 thousand in 2023.
- Row 23: Contract liabilities - third parties saw an increase of $42,393 thousand in 2023.
- Row 24: Accrued expenses and other current liabilities - third parties were $124,994 thousand in 2023.
- Row 25: Accrued expenses and other current liabilities - related parties were $89,876 thousand in 2023.
- Row 26: Operating lease liabilities were $(29,357) thousand in 2023.
- Row 27: Other non-current liabilities - third parties increased by $81,728 thousand in 2023.
- Row 28: Other non-current liabilities - related parties are $(91) thousand in 2023.
- Row 29: Net cash used in operating activities was $(386,932) thousand in 2023, $(351,419) thousand in 2022, and $(126,505) thousand in 2021.
- Row 30: Payments for purchases of property, equipment, and software, and intangible assets were $(213,714) thousand in 2023.
- Row 31: Proceeds from disposal of property, equipment, and software were $5,117 thousand in 2023.
- Row 32: Payments for purchases of short-term investments were $(38,254) thousand in 2023.
- Row 33: Proceeds from sales of short-term investments were $37,428 thousand in 2023.
- Row 34: Payments upon settlement of derivative instruments were $(5,059) thousand in 2023.
- Row 35: Receipts of government grants related to assets were $16,345 thousand for 2023.
- Row 36: Payments for investments in equity investees were $(5,509) thousand in 2023.
- Row 37: Proceeds from disposal of a subsidiary, net of cash disposed, were $1,379 thousand in 2023, noted by 1(f).
- Row 38: Loans to related parties required $(1,227) thousand in 2023.
- Row 39: Net cash provided by (used in) investing activities was $(197,985) thousand in 2023, $(149,414) thousand in 2022, and $244,476 thousand in 2021. What is the gross margin outlook and reasons? Specific measures include: Maintain luxury positioning and a unified pricing strategy to protect brand value, continuously enhance brand desirability and used vehicle value. ◼ Company will adjust product plans (such as high-performance special editions, limited editions, etc.) to cater to diverse global markets. ◼ Optimize operations and organizational structure to achieve cost initiatives while ensuring a premium customer experience. [Table Level]
- Table Title: Consolidated and Combined Statements of Cash Flows
- Table Summary: This table presents the cash flow activities of Company and its subsidiaries for the fiscal years ended December 31, 2023, 2022, and 2021. It details cash flows from operating, investing, and financing activities, along with the impact of exchange rate changes and the net change in cash and restricted cash over these years.
- Context: The table is part of a broader financial analysis and should be interpreted alongside the management's discussion, analysis of financial condition, results of operation, and the accompanying notes to the consolidated and combined financial statements.
- Special Notes: Amounts for the year 2022 are in thousands of US dollars.

[Row Level]
- Row 1: For the year 2023, net cash used in operating activities amounted to $(386,932). In 2022, this figure was $(351,419) (in thousands), while in 2021, it was $(126,505).
- Row 2: The net cash used in investing activities was $(197,985) in 2023, compared to $(149,414) in 2022 (in thousands), and $244,476 in 2021.
- Row 3: Net cash provided by financing activities reached $284,708 in 2023, $758,131 (in thousands) in 2022, and $364,853 in 2021.
- Row 4: The effect of exchange rate changes on cash and restricted cash was $(12,189) in 2023, $(49,217) in 2022 (in thousands), and $2,943 in 2021.
- Row 5: The net decrease in cash and restricted cash stood at $(312,398) for 2023, $208,081 (in thousands) for 2022, and $485,767 for 2021.
- Row 6: Cash and restricted cash at the beginning of the year was $739,533 in 2023, $531,452 in 2022 (in thousands), and $45,685 in 2021.
- Row 7: Cash and restricted cash at the end of the year totaled $427,135 in 2023, $739,533 in 2022, and $531,452 in 2021 (with 2022 figures in thousands). [Table Level]
- Table Title: Consolidated and Combined Balance Sheets Data
- Table Summary: The table presents selected financial data showing the total current assets, non-current assets, total assets, current liabilities, non-current liabilities, and total liabilities as of December 31, 2023, and 2022. This data is measured in thousands of U.S. dollars and derived from audited financial statements, reflecting Company's financial position.
- Context: This table forms part of the consolidated and combined financial data prepared according to U.S. GAAP. It should be read alongside management discussions and detailed financial statements included in the prospectus.
- Special Notes: All values are presented in thousands of U.S. dollars.

[Row Level]
Row 1: As of December 31, 2023, the total current assets were $883,712 thousand, compared to $823,463 thousand in 2022, indicating an increase in current assets over the year.

Row 2: For the year ending December 31, 2023, the total non-current assets amounted to $700,966 thousand, rising from $548,489 thousand in 2022.

Row 3: The total assets as of December 31, 2023, reached $1,584,678 thousand, up from $1,371,952 thousand in the previous year.

Row 4: Total current liabilities were reported as $1,757,281 thousand for December 31, 2023, showing an increase from $932,879 thousand in 2022.

Row 5: The total non-current liabilities were $654,569 thousand at the end of 2023, compared to $523,679 thousand in 2022.

Row 6: Total liabilities as of December 31, 2023, were $2,411,850 thousand, significantly higher than the $1,456,558 thousand reported in 2022. In the first nine months of 2024, Company delivered 7,617 vehicles, which marks a 136% increase from the 3,221 units delivered during the same period in 2023. Revenue reached $653 million, representing a 105% year-on-year increase compared to $318 million in 2023. The cost of revenues also rose significantly by 109%, totaling $594 million compared to $284 million the previous year. As a result, gross profit was $59 million, up 75% from $34 million in 2023. However, the gross profit margin decreased to 9% from 11% in the previous year. For the third quarter of 2024, 2,744 vehicles were delivered, a 54% increase from 1,782 in the same quarter of 2023. Revenue in Q3 2024 was $255 million, a 36% increase over $188 million in Q3 2023. The cost of revenues for this quarter was $247 million, up 54% compared to $160 million in Q3 2023. The following summarizes Company's Group revenues by geographic areas (based on the locations of customers): [Table Level]
- Table Title: Consolidated Cash Flow Information for Company. for the Years Ended December 31, 2023, 2022, and 2021
- Table Summary: The table presents detailed cash flow activities of Company., including financing and investing activities over the years 2021 to 2023. This summary breaks down each category of cash inflow and outflow, showcasing fluctuations in financial activities such as proceeds from share issuances, bank loans, and investments.
- Context: The table follows an auditing procedure overview, pointing out the assurance of free material misstatements in financial reporting. It precedes a detailed description of Company.'s business operations, emphasizing their focus on luxury battery electric vehicles and sports cars under the Company brand.
- Special Notes: All financial amounts are presented in thousands of US dollars. Specific references to notes (e.g., Note 10, Note 17) provide further explanation for particular items.

[Row Level]
Row 1: In 2023, there were no proceeds from the issuance of ordinary shares. In 2021, the proceeds amounted to $197,918 thousand.

Row 2: There were no proceeds from the settlement of receivables from shareholders in 2023, 2022, or 2021.

Row 3: Proceeds from the issuance of Series Pre-A Preferred Shares in 2022 were $129,681 thousand, under Note 17.

Row 4: In 2022, $187,734 thousand was raised from the issuance of Series A Preferred Shares, as referenced in Note 17.

Row 5: Company. did not issue Series A Preferred Shares in 2021, generating a negative cash flow of $57,430 thousand. Note 17 applies.

Row 6: For 2023, proceeds from the issuance of Series A Preferred Shares totaled $25,297 thousand, referenced in Note 15.

Row 7: A large inflow of $378,964 thousand from the exchangeable notes issuance occurred in 2022, as per Note 14.

Row 8: Convertible notes issuance contributed $27,883 thousand in 2023, with no activity in 2021. Note 18 applies.

Row 9: Issuance of mandatorily redeemable noncontrolling interest brought $6,299 thousand in 2021, referencing Note 18.

Row 10: Repayment of mandatorily redeemable noncontrolling interest led to an outflow of $11,554 thousand in 2023 and $28,628 thousand in 2022. Note 15 applies.

Row 11: In 2022, $10,000 thousand was achieved from PIPE investments, under Note 13.

Row 12: Payments for the redemption of convertible notes in 2023 resulted in a cash outflow of $5,648 thousand, under Note 15.

Row 13: In 2023, the proceeds from bank loans were $481,176 thousand, with Note 10 providing specifics.

Row 14: Repayments of bank loans in 2023 totaled $272,897 thousand, as detailed in Note 10.

Row 15: Net cash provided by financing activities in 2023 was $284,708 thousand, compared to $758,131 thousand in 2022 and $364,853 thousand in 2021.

Row 16: Exchange rate changes adversely affected cash by $12,189 thousand in 2023, while positively affecting it by $2,943 thousand in 2021.

Row 17: There was a net decrease in cash and restricted cash of $312,398 thousand in 2023, contrasting with an increase of $208,081 thousand in 2022.

Row 18: Starting cash and restricted cash balance was $739,533 thousand at the end of 2022, growing from $485,767 thousand in 2021.

Row 19: By the end of 2023, cash and restricted cash stood at $427,135 thousand.

Row 20: Reconciliation shows that of this total, cash accounted for $418,941 thousand, with restricted cash current at $7,873 thousand in 2023.

Row 21: Supplemental information includes interest payments of $8,086 thousand in 2023 and mentions other items specific to the financial activities.

Row 22: Non-cash investing and financing activities incorporate the purchase of intangible assets and securities via convertible notes in 2023 and earlier, as highlighted in the notes section. Over 7,600 vehicles were delivered in the first nine months of 2024, a year-on-year increase of 136%. Total revenue reached $653 million, more than doubling year-on-year. Revenue from the intelligent driving business generated from customers other than Company surged to $11 million, with a year-on-year growth of 450%. Company launched Hyper Hybrid EV technology that provides high performance with a combined range of over 1,100 kilometers. New York – Nov 21, 2024 – Company. (“Company Tech” or the “Company”), a leading global intelligent and luxury mobility provider, today announced its unaudited financial results for the third quarter and first nine months ended September 30, 2024. [Table Level]
- Table Title: Contract Liabilities Breakdown
- Table Summary: The table shows the breakdown of current and non-current contract liabilities of Company as of December 31, 2023, and 2022. It includes details on liabilities to third parties and related parties, providing insights into changes over the two-year period.
- Context: Prior to the table, the context discusses Company's financial treatment of convertible notes and share options which are contingent on future conditions. Afterward, there is an explanation of how contract liabilities, particularly up-front payments for vehicles or services, are accounted for in the financial statements.
- Special Notes: Amounts are in thousands of US dollars. The item marked with an asterisk (*) is included in accrued expenses and other current liabilities related to related parties.

[Row Level]
Row 1: The current contract liabilities to third parties as of December 31, 2023, are US$44,184, marking an increase from US$7,843 recorded in 2022.

Row 2: The current contract liabilities to related parties as of December 31, 2023, are US$1, a decrease from US$8 in 2022.

Row 3: The non-current contract liabilities to third parties as of December 31, 2023, amount to US$6,245. There were no such liabilities recorded in 2022.

Row 4: The total contract liabilities, combining both current and non-current, are US$50,430 as of December 31, 2023, compared to US$7,851 in 2022. [Table Level]
- Table Title: Consolidated and Combined Financial Data for the Year Ended December 31, 2023
- Table Summary: This table presents the consolidated and combined financial data for Company and its subsidiaries, including the Wholly Foreign-Owned Enterprise (WFOE) and Variable Interest Entity (VIE), for the year ended December 31, 2023. It details revenue, costs, expenses, and profits, along with specific adjustments for eliminating transactions within the entities.
- Context: The table is part of a financial analysis covering selected financial statements following U.S. GAAP for 2021-2023, and forecasts are not guaranteed to be indicative of future results.
- Special Notes: Values are in thousands of U.S. dollars. Certain financial adjustments and eliminations are specified, such as loans and their effects on consolidation.

[Row Level]
Row 1: Revenues were reported at \$679,000, following eliminations of \$175,123 from total subsidiary revenues of \$854,165.

Row 2: Cost of revenues totaled \$576,827, after accounting for elimination adjustments of \$25,055.

Row 3: The consolidated gross profit amounted to \$102,181.

Row 4: Total operating expenses reached \$838,120, factoring in eliminations of \$150,068.

Row 5: Company experienced an operating loss of \$735,939.

Row 6: Interest expenses were eliminated significantly in consolidation, showing a consolidated value of \$9,204.

Row 7: Interest income was recorded as \$9,204 after eliminations.

Row 8: Investment loss was minimized to \$1,048 in the consolidated results.

Row 9: Foreign currency exchange yielded a gain of \$42 across subsidiaries.

Row 10: Changes in fair values resulted in a loss of \$7,531 post adjustments.

Row 11: The adjusted net profit (loss) before income taxes was a loss of \$749,142.

Row 12: The net profit (loss) was reported at a negative \$750,255 after accounting for noncontrolling interests.

Row 13: Total comprehensive income (loss) showed a deficit of \$734,441 attributable to ordinary shareholders, after fair value adjustments and currency translations. [Table Level]  
- Table Title: Financial Performance Summary  
- Table Summary: The table provides a comparison of gross profit and gross margin for the six months ending June 30, 2023, and June 30, 2024. It highlights the increase in gross profit and gross margin over this period, indicating significant financial growth.  
- Context: Prior to the table, the document discusses the increase in service revenues and cost of revenues, outlining various contributing factors. Following the table, there is a summary of the increase in gross profits and margin attributed to cost reductions, increased vehicle selling prices, and high-margin services.  
- Special Notes: Values are in thousands of US dollars, and percentages are used for gross margin.  

[Row Level]  
Row 1: For the six months ended June 30, 2024, the gross profit was $50,912,000 compared to $6,127,000 in 2023, showing an increase of $44,785,000, or 730.9%.  
Row 2: The gross margin for the six months ended June 30, 2024, was 12.8%, compared to 4.7% in 2023, indicating a substantial improvement. Company recorded foreign currency exchange gains of US$0.8 million for the year ended December 31, 2021, compared to losses of US$11.5 million for the year ended December 31, 2022. The net change in foreign currency exchange losses was primarily attributable to fluctuations in exchange rates between the U.S. dollar and the Chinese yuan (RMB). Company recorded losses in changes in fair value of US$23.0 million for the year ended December 31, 2022, primarily due to the recognition of losses from changes in fair value of mandatorily redeemable noncontrolling interest of US$5.6 million, exchangeable notes of US$13.2 million, and convertible notes of US$4.3 million. In the first nine months of 2024, Company delivered over 7,600 vehicles, marking a 136% increase compared to the same period in 2023, when 3,221 vehicles were delivered. The third quarter alone saw 2,744 vehicles delivered, a 54% increase over the 1,782 vehicles delivered in Q3 2023. Total revenue for the first nine months of 2024 amounted to $653 million, representing an impressive 105% year-on-year growth from the $318 million reported in the same period of 2023. In the third quarter of 2024, revenue was $255 million, showing a 36% increase from the $188 million in Q3 2023. The intelligent driving business showed remarkable growth, with revenue from external customers reaching $11 million, reflecting a year-on-year growth of 450%. Despite this, the gross profit margins declined, with Q3 2024 margins at 3%, down from 15% in Q3 2023. For the first nine months of 2024, the gross profit margin was 9%, compared to 11% in the same period of 2023. This item is included in accrued expenses and other current liabilities related to related parties in the consolidated balance sheets of Company as of December 31, 2023, and 2022. Among the balance of contract liabilities of US$7,851 as of December 31, 2022, US$5,438 was recognized as revenue during the year ended December 31, 2023. The contract liabilities relate to up-front payments from Company's customers for the purchase of vehicles or services in advance of the transfer of control of the products and services under the contract. Amounts that are expected to be recognized as revenue within one year are included as current contract liabilities, with the remaining balance recognized as other non-current liabilities. The Group expects that US$333,985 of the transaction price allocated to unsatisfied performance obligations as of December 31, 2023, will be recognized as revenue within one year. The remaining US$12,067 will be recognized over the remaining contract periods of 1 to 10 years. The Group has elected, as a practical expedient, not to disclose the transaction price allocated to unsatisfied or partially unsatisfied performance obligations that are part of contracts with an original expected duration of one year or less. [Table Level]
- Table Title: Financial Performance Summary
- Table Summary: This table presents the net loss, adjusted net loss, and adjusted EBITDA figures for the years ended December 31, 2021 to 2023. It includes detailed breakdowns of interest expenses, interest income, income tax expenses, share-based compensation expenses, and depreciation.
- Context: The table reflects financial performance measures that should be analyzed in conjunction with GAAP measures and other financial information to gain a full understanding of Company's fiscal health. It indicates a substantial year-over-year increase in total revenues due to various sales activities.
- Special Notes: Values are reported in US dollars and thousands (from 2022 onwards where specified).

[Row Level]
- Row 1: Net loss for the year 2023 was $(750,255), compared to $(724,563) for 2022, and $(110,531) for 2021.
- Row 2: Share-based compensation expenses were not applicable in 2023, amounted to $10,625 in 2022, and were not applicable in 2021.
- Row 3: Adjusted net loss for 2023 was $(750,255), while it was $(713,938) for 2022, and $(110,531) for 2021.
- Row 4: Restates net loss figures for 2023 as $(750,255), 2022 as $(724,563), and 2021 as $(110,531) for additional context.
- Row 5: Interest expenses were $10,200 in 2023, $8,542 in 2022, and $3,615 in 2021.
- Row 6: Interest income in 2023 was $(9,204), in 2022 was $(12,188), and in 2021 was $(6,219).
- Row 7: Income tax expense for 2023 was $1,113, compared to $292 for 2022, and $1,853 for 2021.
- Row 8: Share-based compensation expenses are reiterated as not applicable for 2023 and 2021, but were $10,625 in 2022.
- Row 9: Depreciation was $54,957 in 2023, $12,790 in 2022, and $2,056 in 2021.
- Row 10: Adjusted EBITDA was $(693,189) for 2023, $(704,502) for 2022, and $(109,226) for 2021. The following table sets forth Company's results of operations with line items in absolute amounts for the years indicated. What is the gross margin outlook and reasons? Company will achieve positive EIBTDA and cash flow by 2026 through tactical adjustments and a series of measures implemented through the Win26 program. [Table Level]
- **Table Title**: Results of Operations for the Years Ended December 31
- **Table Summary**: The table presents a detailed breakdown of Company's financial performance for the years 2023, 2022, and 2021, including revenues, costs, operating expenses, and net income metrics. It highlights significant figures such as total revenues, cost of sales, operating expenses, and net loss across these years.
- **Context**: Company's subsidiaries in the U.K., Netherlands, and Germany are subject to varying maximum income tax rates. Non-GAAP measures like adjusted net loss and adjusted EBITDA provide insights into financial and operational performance.
- **Special Notes**: All figures are in thousands of US dollars (US$).

[Row Level]
- **Row 1**: "In 2023, sales of goods amounted to US$ 660,158, compared to US$ 1,186 in 2022 and US$ 369 in 2021."
- **Row 2**: "Service revenues in 2023 were US$ 18,850, growing from US$ 8,371 in 2022 and US$ 3,318 in 2021."
- **Row 3**: "Total revenues for 2023 reached US$ 679,008, significantly higher than US$ 9,557 in 2022 and US$ 3,687 in 2021."
- **Row 4**: "The cost of goods sold in 2023 amounted to US$ 564,741, with US$ 948 in 2022 and US$ 331 in 2021."
- **Row 5**: "Cost of services was US$ 12,086 in 2023, decreasing from US$ 6,302 in 2022 and US$ 2,799 in 2021."
- **Row 6**: "Total cost of revenues for 2023 was US$ 576,827, while it was US$ 7,250 in 2022 and US$ 3,130 in 2021."
- **Row 7**: "Gross profit in 2023 equaled US$ 102,181, contrasting with US$ 2,307 in 2022 and US$ 557 in 2021."
- **Row 8**: "Research and development expenses were US$ 368,729 in 2023, compared to US$ 445,844 in 2022 and US$ 511,364 in 2021."
- **Row 9**: "Selling and marketing expenses reached US$ 328,935 in 2023, increasing from US$ 151,331 in 2022 and US$ 38,066 in 2021."
- **Row 10**: "General and administrative expenses were US$ 144,533 in 2023, compared to US$ 148,369 in 2022 and US$ 54,763 in 2021."
- **Row 11**: "Government grants amounted to US$ 4,077 in 2023, down from US$ 55,824 in 2022 and US$ 490,694 in 2021."
- **Row 12**: "Total operating expenses for 2023 were US$ 838,120, compared to US$ 689,720 in 2022 and US$ 113,499 in 2021."
- **Row 13**: "Operating loss in 2023 was US$ 735,939, compared to US$ 687,413 in 2022 and US$ 112,942 in 2021."
- **Row 14**: "Interest expenses were US$ 10,200 in 2023, compared to US$ 8,542 in 2022 and US$ 3,615 in 2021."
- **Row 15**: "Interest income in 2023 was US$ 9,204, an increase from US$ 12,188 in 2022 and US$ 6,219 in 2021."
- **Row 16**: "Net investment loss was US$ 1,162 in 2023, with losses of US$ 3,246 in 2022 and gains of US$ 2,229 in 2021."
- **Row 17**: "Foreign currency exchange losses were US$ 1,048 in 2023, compared to US$ 2,762 in 2022 and gains of US$ 798 in 2021."
- **Row 18**: "The change in fair value of liabilities was US$ 42 in 2023, compared to a loss of US$ 11,505 in 2022."
- **Row 19**: "Loss before income taxes in 2023 was US$ 749,142, compared to US$ 724,271 in 2022 and US$ 108,678 in 2021."
- **Row 20**: "Income tax expense was US$ 1,113 in 2023, compared to US$ 292 in 2022 and US$ 1,853 in 2021."
- **Row 21**: "The net loss in 2023 was US$ 750,255, compared to US$ 724,563 in 2022 and US$ 110,531 in 2021." [Table Level]
- Table Title: Gross Profit and Margin Comparison for the Years Ended December 31, 2021 and 2022
- Table Summary: This table presents a comparison of the gross profit and gross margin percentage for the years 2021 and 2022. It highlights the financial growth in gross profit and the improvement in gross margin over the specified period.
- Context: Prior discussion notes a substantial increase in service revenue primarily from automotive design services for Counterparty A. The text following the table attributes the improvement in gross profit and margin to increased revenue from high-margin design services.
- Special Notes: All monetary values are in thousands of U.S. dollars, and percentages are used for gross margin.

[Row Level]
Row 1: The gross profit increased from US$557,000 in 2021 to US$2,307,000 in 2022, showing a rise of US$1,750,000, which represents an increase of 314.2%.
Row 2: The gross margin improved from 15.1% in 2021 to 24.1% in 2022, reflecting enhanced profitability over the period. Company recorded investment income of US\$2.2 million for the year ended December 31, 2021, compared to an investment loss of US\$3.2 million for the year ended December 31, 2022. The loss during the year ended December 31, 2022, was primarily due to a loss on fair value change of the foreign exchange forwards of US\$2.7 million that were used to manage market risk associated with exposure to fluctuations in foreign currency rates and a loss on investment in Counterparty A of US\$1.5 million, which was partially offset by investment income of US\$1.0 million from structured deposits. During the year ended December 31, 2021, Company incurred a gain on fair value change of the foreign exchange forwards of US\$2.2 million that were used to manage market risk associated with exposure to fluctuations in foreign currency rates. Company has not been profitable since its inception. The company incurred a net loss of US\$460.3 million, US\$750.3 million, US\$724.6 million, and US\$110.5 million for the six months ended June 30, 2024, and in 2023, 2022, and 2021, respectively. In addition, Company had negative net cash flows from operating activities of US\$468.4 million, US\$386.9 million, US\$351.4 million, and US\$126.5 million for the six months ended June 30, 2024, and in 2023, 2022, and 2021, respectively. As of June 30, 2024, and as of December 31, 2023, 2022, and 2021, the company's accumulated deficit was US\$2.0 billion, US\$1.6 billion, US\$846.8 million, and US\$122.8 million, respectively. Company incurred capital expenditures of US\$49.5 million, US\$213.7 million, US\$133.3 million, and US\$34.6 million for the six months ended June 30, 2024, and in 2023, 2022, and 2021, respectively. Historically, Company relied principally on proceeds from the issuance of exchangeable notes, convertible notes, and related party borrowings to finance its operations and business expansion. The company will require additional liquidity to continue its operations over the next 12 months. Company is evaluating strategies to obtain the required additional funding for future operations. Company uses adjusted net loss and adjusted EBITDA in evaluating its operating results and for financial and operational decision-making purposes. Adjusted net loss represents net loss excluding share-based compensation expenses, and such adjustment has no impact on income tax. Company defines adjusted EBITDA as net loss excluding interest income, interest expenses, income tax expenses, depreciation of property, equipment, and software, and share-based compensation expenses. Company presents these non-GAAP financial measures because they are used by Company's management to evaluate operating performance and formulate business plans. Company believes that adjusted net loss and adjusted EBITDA help identify underlying trends in the business that could otherwise be distorted by the effect of certain expenses included in net loss. Company also believes that the use of the non-GAAP measures facilitates investors’ assessment of operating performance. Company believes that adjusted net loss and adjusted EBITDA provide useful information about operating results, enhance the overall understanding of past performance and future prospects, and allow for greater visibility with respect to key metrics used by management in financial and operational decision-making. [Table Level]
- Table Title: Selected Consolidated and Combined Financial Data
- Table Summary: The table presents the financial performance of Company, showcasing revenues, costs, operating expenses, and profits/losses for the six months ended June 30, 2024, and 2023, and for the years ended December 31, 2023, 2022, and 2021. It includes data on sales, costs, operating expenses, and calculations of gross profit and net loss, highlighting the financial changes over these periods.
- Context: The financial data should be considered alongside the "Management’s Discussion and Analysis of Financial Condition and Results of Operation” for a comprehensive understanding. Historical results are not necessarily indicative of future performance.
- Special Notes: All amounts are in thousands of US dollars.

[Row Level]
Row 1: For the six months ended June 30, 2024, sales of goods amounted to US$382,893, while service revenues were US$15,222, leading to total revenues of US$398,115.

Row 2: In the same period, the cost of goods sold was US$(340,882) and cost of services US$(6,321), resulting in a total cost of revenues of US$(347,203).

Row 3: The gross profit for this period was calculated to be US$50,912.

Row 4: During the first six months of 2024, research and development expenses were US$(174,854). Selling and marketing expenses incurred totaled US$(204,274), with general and administrative expenses of US$(111,978). Government grants contributed US$2,488, summing up total operating expenses to US$(488,618).

Row 5: The operating loss for this period stood at US$(437,706). Interest expenses incurred were US$(11,708), countered by an interest income of US$8,658.

Row 6: Investment income netted at US$3,496. Share of results of equity method investments was US$359, and foreign currency exchange losses were US$(4,429).

Row 7: The fair values of mandatorily redeemable noncontrolling interest, exchangeable notes, and convertible notes changed by US$8,801. Changes in fair values of warrant liabilities and put option liabilities amounted to US$6,317 and US$(33,685) respectively.

Row 8: Loss before income taxes for this mid-year was US$(459,897), followed by an income tax expense of US$(355), resulting in a net loss of US$(460,252). [Table Level]
- Table Title: Consolidated Balance Sheets of Company. (Continued) as of December 31, 2023 and 2022
- Table Summary: The table presents the changes in shareholders' equity for Company. during the year 2021. It details transactions and other comprehensive income affecting ordinary shares, additional paid-in capital, accumulated deficits, and total shareholders' equity, highlighting net loss, issuance of shares, and contributions by shareholders.
- Context: The report outlines auditing standards and compliance by KPMG Huazhen LLP for Company. It ensures that financial statements are free from material misstatements, involving the assessment of risks and validation of accounting principles.
- Special Notes: All amounts are in thousands, except for share and per-share data.

[Row Level]
Row 1: As of January 1, 2021, the balance included ordinary shares with an additional paid-in capital of $25,877, and accumulated other comprehensive income of $655, with an accumulated deficit of $10,425. The shareholders' equity attributable to ordinary shareholders was $16,107, making the total shareholders' equity $16,107.

Row 2: During 2021, the net loss was $110,531, which contributed to the accumulated deficit increasing to $110,531.

Row 3: There were no changes due to fair value adjustments, leaving the accumulated other comprehensive income unchanged.

Row 4: A foreign currency translation adjustment resulted in a decrease of $843 in accumulated other comprehensive income to $724 and correspondingly in total shareholders' equity.

Row 5: The total comprehensive loss amounted to $110,531, impacting the accumulated deficit and total shareholders' equity accordingly.

Row 6: The issuance of ordinary shares was 479,954,430 shares with an additional paid-in capital of $417,958 and a receivable from shareholders of $106,210, affecting the total shareholders' equity which amounted to $311,770.

Row 7: A shareholder contribution connected to the issuance of exchangeable notes provided an additional paid-in capital of $3,391.

Row 8: An additional capital contribution from shareholders added $15,695 to the overall shareholders’ equity.

Row 9: Dividends paid to a shareholder reduced the equity by $1,880.

Row 10: A deemed distribution arising from reorganization under common control resulted in a decrease of $38,507 in total shareholders’ equity.

Row 11: By December 31, 2021, the balance showed 479,954,430 ordinary shares with $22 in ordinary share value, an additional paid-in capital of $424,414, and a receivable from shareholders of $106,210. The accumulated deficit stood at $122,836, with accumulated other comprehensive loss of $69, noncontrolling interests at zero, and total shareholders’ equity at $195,321. [Table Level]
- Table Title: Financial Position as of December 31, 2023
- Table Summary: The table presents a comparison of actual and pro forma financial metrics for December 31, 2023. It includes data on cash, restricted cash, equity, and various kinds of debt, providing insights into Company's financial capitalization both in real terms and projected adjustments from the Business Combination.
- Context: The table is part of the selected historical financial data of Company, illustrating both actual results and adjustments as if the Business Combination had already occurred.
- Special Notes: All amounts are in USD thousands.

[Row Level]
Row 1: Cash is recorded at $418,941 on an actual basis but increases significantly to $723,951 on a pro forma basis, reflecting potential inflows from the Business Combination.

Row 2: Restricted cash remains unchanged at $8,194 in both actual and pro forma scenarios.

Row 3: Total shareholder’s equity shows a deficit of $(1,210,702) in actual terms, shifting to a positive $254,631 pro forma, indicating substantial adjustments.

Row 4: Debt is categorized into several components. Short-term borrowings from third parties are $226,772, consistent in both actual and pro forma scenarios.

Row 5: Exchangeable notes—current are $378,638 in actual terms and are eliminated in the pro forma scenario, indicating restructuring or conversion.

Row 6: Convertible notes—current are measured at $20,277, consistent across actual and pro forma terms.

Row 7: The put option liability increases drastically from $11,884 actual to $141,966 pro forma, suggesting significant potential liability changes.

Row 8: Convertible notes—non-current are stable at $81,635 in both actual and pro forma formats.

Row 9: Exchangeable notes—non-current are steady at $75,678, with no change from actual to pro forma.

Row 10: Total capitalization shows a deficit of $(415,818) in actual terms, shifting to a positive $780,682 on a pro forma basis, highlighting the financial impact of the Business Combination.