What are the sales contributions of Company in the European market, Chinese market, and US market?
Why is the sales volume in China low? China is a new market for Company. In the first half of this year, China contributed 25% of the brand's deliveries, while historically, China contributed only about 5% of Company's sales. In the context of a sharp decline in sales of luxury brands in China during the first half of this year, Company still achieved double-digit sales growth in the Chinese market. China is an important market for Company. Company will continue to enhance brand awareness in China and strengthen services to increase sales. ⚫ The main reason for the low gross margin is the increase in the cost of the Emira sports car due to inflation, as well as seasonal changes in the product sales mix. ⚫ Company's Average Selling Price (ASP) remained above $100,000, achieving growth far exceeding the industry and luxury car segment. Company has taken a series of measures to respond to market changes (see below). The vehicle delivery numbers presented above are derived from reports submitted by Company's business units. These numbers may differ slightly from the vehicle delivery numbers recorded in the financial accounting and reporting systems announced or to be announced by the company. "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. Research and development expenses. Company's research and development expenses increased by US$22.3 million from US$152.5 million for the six months ended June 30, 2023, to US$174.9 million for the six months ended June 30, 2024, primarily due to the increase in share-based compensation expense of US$20.0 million. Selling and marketing expenses. Company's selling and marketing expenses increased by US$86.0 million from US$118.2 million for the six months ended June 30, 2023, to US$204.3 million for the six months ended June 30, 2024, primarily due to (i) the increase in marketing, promotion, and advertising-related expenses for the expansion of global sales of US$37.1 million, (ii) the increase in exhibition expenses, professional service fees, and other miscellaneous selling expenses of US$28.0 million; (iii) the increase in labor costs of US$12.1 million; (iv) the increase in depreciation of US$5.5 million; and (v) the increase in share-based compensation expense of US$3.3 million. General and administrative expenses. In the first nine months of 2024, Company achieved total deliveries of 7,617 units, representing a 136% year-on-year (YoY) increase. Global allocation was relatively diversified, with each region contributing 18-35% of the total deliveries in the first nine months of 2024, powered by over 200 stores in prime locations worldwide. The European market continued to expand, with a year-on-year increase of 372% in deliveries during the first nine months of 2024. The Rest of the World region achieved a year-on-year growth of 110% as Company continued to make steady progress in its expansion into new markets. In the third quarter of 2024, the deliveries of the Emira commenced in South Africa and India, and of the Eletre in Japan, South Korea, and the Philippines. The Eletre Carbon, a high-performance variant tailored for the North American market, was revealed and is expected to commence deliveries in the first half of 2025. Deliveries of bespoke and collection versions of both the Eletre (SUV) and the Emeya (GT, Sedan) also commenced in the third quarter. Company continues to drive technological innovation to meet market demand. New York – November 12, 2024 – Company. (“Company” or the “Company”), a leading global intelligent and luxury mobility provider, today announced its vehicle delivery results for the first ten months of 2024. Company. continues to achieve top-rate growth among traditional luxury car brands, delivering 8,631 vehicles in the first ten months of 2024. Europe and China continued to be the major markets for Company, with each region contributing about 35% and 25% of the total deliveries, respectively. In October, Company. started an open beta test for its urban NOA (Navigate on Autopilot) in key cities. Certain over-the-air updates of intelligent driving, including highway assistant driving functions, were launched in Europe. As previously announced, Subsidiary A, Company's intelligent driving arm, provides intelligent driving solutions with global coverage to both Company-brand intelligent vehicles and other global leading auto conglomerates such as Counterparty A, Counterparty B, and a top Japanese Tier-one supplier. In October, Company. was awarded the Highly Commends honor at the Reuters Sustainability Awards 2024 in the Business Transformation category as the only awardee from the automotive industry. Note 1: Invoiced deliveries, including commissioned deliveries in the US market. The following summarizes Company's Group revenues by geographic areas (based on the locations of customers):
In 2023 and the six months ended June 30, 2024, Company delivered a total of 6,970 and 4,873 vehicles, respectively, consisting of lifestyle vehicles and Company-brand sports cars that were distributed through Subsidiary A. As of June 30, 2024, Company had 2,989 full-time employees globally, including in China and Europe, among which approximately 54.6% belong to the R&D division. The results of operations are affected by the following company-specific factors. The results of operations depend significantly on Company's ability to achieve vehicle delivery targets, which impacts vehicle sales revenue. It is critical for Company to successfully manage production ramp-up and quality control, in cooperation with Counterparty A, to deliver vehicles to customers in targeted volume and of high quality. Currently, Company works with a BEV manufacturing facility in Wuhan, China, which is owned and operated by Counterparty A. Subsidiary B has developed a Global Commercial Platform for the sales and distribution of its vehicles and sports cars. As of December 31, 2023, Subsidiary B had 215 stores in its global distribution network. Luxury Retailing Experience for Customers Aiming to provide a future-proof, luxurious customer experience, Company adopts a digital-first, omni-channel sales model for the Eletre, Emeya, and future battery electric vehicle (BEV) models to establish and develop direct relationships with customers, covering the entire spectrum of customer experience, both physically and virtually. Company's global sales digital platform provides a full suite of luxury retailing experiences, including a virtual showroom for the brand and its products, an inquiry, order, purchasing, and customization platform, and a reservation system for test drives, product delivery, and aftersales services, among others. Company also creates online forums in various geographic markets for customers to engage, search, communicate, and interact. Customers are offered a wide range of options for customization, including exterior, interior, and other functions and features. Customers can also reserve test-driving sessions and have access to the digital payment system, aftersales services, and software updates. The results of operations depend significantly on Company's ability to achieve vehicle delivery targets, which impacts vehicle sales revenue. It is critical for Company to successfully manage production ramp-up and quality control, in cooperation with Counterparty A, to deliver vehicles to customers in targeted volume and of high quality. Currently, Company works with a battery electric vehicle (BEV) manufacturing facility in Wuhan, China, which is owned and operated by Counterparty A. The manufacturing plant has an annual production capacity of 150,000 vehicles. Company has operations across the UK, the EU, and China. The company is dedicated to delivering luxury lifestyle battery electric vehicles, with a focus on world-class research and development in next-generation automobility technologies such as electrification, digitalization, and more. For more information about Company, please visit www.group-Company.com. Aside from the EPA, Company has developed a leading Advanced Driver Assistance System (ADAS) with fully embedded Level 4-ready hardware capabilities enabled by the world’s first deployable LiDAR system and proprietary software system. Company's wholly-owned R&D facilities across Europe and China demonstrate a seamless collaboration among highly experienced and dedicated Company teams to support its world-class R&D capabilities. Company brings customers a luxury retailing experience through a digital-first, omni-channel sales model to establish and develop direct relationships with customers, covering the entire spectrum of customer experience, both physically and virtually. Company operates premium stores in high-footfall locations, providing personalized and exclusive services to create a luxurious purchasing experience for its customers. The global sales digital platform provides a full suite of luxury retailing experiences, including a virtual showroom of the Company brand and products, an inquiry, order, purchasing and customization platform, and a reservation system for test driving, product delivery, and aftersales services, among others. Customers are offered a wide range of options for customization, including exterior, interior, and other functions and features. [Table Level]
- Table Title: Geographic Distribution of Revenues
- Table Summary: The table presents the revenues generated by Company across different geographic regions for the years ended December 31, 2023, 2022, and 2021. It highlights the significant growth in revenues from various regions, particularly the Chinese mainland, with a detailed breakdown for each location over the years.
- Special Notes: All revenue amounts are in thousands of US dollars.

[Row Level]
Row 1: "For the year ended December 31, 2023, the revenue from the Chinese mainland was $419,448, whereas in 2022 it was $8,816, and in 2021, $3,109."

Row 2: "In the UK, the revenue recorded for 2023 was $83,827, compared to $437 in 2022 and $439 in 2021."

Row 3: "Japan contributed $26,390 to the revenues in 2023, with no recorded revenue in 2022 or 2021."

Row 4: "Australian revenue for 2023 was $20,335, with no revenue in the previous two years."

Row 5: "Belgium generated $20,701 in revenue for 2023, with no revenue in 2022 and 2021."

Row 6: "Revenues from France reached $16,341 in 2023, with no prior revenue in 2021 and 2022."

Row 7: "In Italy, the revenue was $14,650 for 2023, with no records for 2022 and 2021."

Row 8: "Germany contributed $15,904 to the 2023 revenue, with no amounts recorded for 2022 and 2021."

Row 9: "Revenue from the Netherlands amounted to $13,729 in 2023, with no revenue for the other two years."

Row 10: "Other regions generated $47,683 in revenue for 2023, compared to $304 in 2022 and $139 in 2021."

Row 11: "The total revenues for Company reached $679,008 in 2023, significantly rising from $9,557 in 2022 and $3,687 in 2021." By building upon Company's iconic sports car reputation, along with the ambition to invest in a lifestyle business, the company has established a strong commercial organizational competence. Company's marketing activities include branding, global marketing campaigns, public relations, digital marketing, creative product marketing, communications, social media, and other marketing programs. The company aims to create demand and expand its customer base globally. Company plans to build a network of around 300 retail stores globally by the end of 2025. Company believes that one of the most effective forms of marketing is to continually improve customers’ experience. The omni-channel sales model is customer-oriented, where customers can both access the online platform to customize their vehicles, make payments, and order aftersales services, and visit in person to consult the sales team and reserve test-driving sessions. Company's marketing department is responsible for building the brand and corporate image, promoting products, facilitating a best-in-class customer experience, and providing information regarding the company's products, strategies, and technology through the omni-channel sales model. Company is dedicated to offering its customers a convenient and efficient charging experience and provides multiple solutions including home charging, flash charging through its company-owned charging network, and on-the-go charging provided by its designated partners. In Europe, Company is partnering with a leading platform that provides customers with an extensive charging network covering the region. Company also offers home charging solutions for owners of its vehicles. In China, Company provides home charging solutions and partners with leading suppliers that have charging networks across the country. Partnering with local charging solutions developers, Company operates a company-owned charging network that provides 480 kW flash charging for its featured 800-volt EPA in core commercial areas of metropolises such as Beijing and Shanghai, among others. As of June 30, 2024, Company had launched 101 flash charging stations in China and partnered with public charging stations to bring convenience to the charging experience of its customers. In the U.S. and other global markets, Company plans to provide comprehensive charging solutions tailored for local market conditions and customer demands. In particular, in China, Company's vehicles are sold either directly to users (rather than through dealerships) or through city partners that act as sales agents and collect sales commissions on such sales. As of December 31, 2023, Company had 215 stores in its global distribution network. Company plans to further expand its physical sales network through a balanced combination of company-operated stores and partner stores. This planned expansion may not have the desired effect of increasing sales and enhancing brand recognition in a cost-efficient manner. Company may need to invest significant capital and management resources to operate existing company-operated stores and open new ones, and there can be no assurance that Company will be able to improve the operational efficiency of its company-operated stores. Company's direct-to-consumer approach to vehicle distribution is relatively new, and its long-term effectiveness is unproven, especially in China. This approach subjects Company to substantial risks as it requires, in the aggregate, significant expenditures and provides for slower expansion of its distribution and sales systems compared to the traditional dealership system. In the first nine months of 2024, Company Robotics reported a revenue of $19 million, which represents a year-over-year growth of 217%. The revenue from other customers soared to $11 million, marking a 450% increase as the external customer base expanded. Additionally, the revenue from Company itself grew to $8 million, reflecting a 100% year-over-year growth. The recognized revenue mix for the first nine months of 2024 comprised 58% from other customers and 42% from Company. The contract value distribution by region for the same period revealed that 70% originated from China, while Europe and the rest of the world (ROW) accounted for the remaining 30%. Company's research and development efforts are focusing on the development of key electric vehicle technologies while benefiting from the technological support from the Counterparty A Holding ecosystem. Company intends to continually develop cutting-edge technologies, including the 800-volt EPA architecture and hardware, algorithms, and software systems to enhance the competitiveness of its vehicles. Company also plans to monetize its R&D capabilities by licensing its intellectual properties and software via subscriptions to other luxury automotive brands. Guided by Company's R&D leaders, the global research and development team has extensive experience in the automotive and technology industries. As of December 31, 2023, Company's R&D team consisted of 1,802 professionals with extensive knowledge in automotive engineering, software, and artificial intelligence, as well as diversified working experiences from leading vehicle manufacturers globally. Such composition ensures solid technology development capabilities, especially in intelligence and digitalization. The diversified cultural and professional background promotes the exchange of ideas from different perspectives and ensures the generation of innovations. Company has a dedicated global team to support its R&D activities with a sizable scale and comprehensive functionalities, covering all major technological perspectives. Company's approach to innovation demonstrates an interconnected global collaboration among highly experienced and dedicated teams in the U.K., Germany, and China, each with different technological focuses. Centered around Company's global headquarters in China, which focuses on cloud computing and online data processing, the company operates a software center in Shanghai focusing on global system integration and network security, and a research institute in Ningbo focusing on electric architecture, charging and power systems, and intelligent driving. Company has established two R&D centers on engineering and product design, including the Company Creative Centre (Subsidiary A) located in the U.K., with a focus on automotive design and design strategy, product and brand communication, and sustainable material science, and the Company Innovative Centre (Subsidiary B) located in Germany, with a focus on behavioral science, innovative vehicle technologies, dynamic attribute development, user interface, and regional tuning and application. [Table Level]  
- Table Title: Revenue by Service Line and Customer Type  
- Table Summary: The table presents revenue data for Company for the years ending December 31, 2023, 2022, and 2021. It categorizes revenue based on sales of goods and services to third parties and related parties, further breaking down sales into battery electric vehicle (BEV) lifestyle models, sports cars, and other categories.  
- Special Notes: All amounts are in thousands of US dollars.  

[Row Level]  
Row 1: In 2023, sales of BEV lifestyle models to third parties generated $464,172, with no revenue reported for 2022 or 2021.  

Row 2: For 2023, sports cars sold to third parties brought in $183,160, while $828 was reported for 2022 and $369 for 2021.  

Row 3: Sales categorized as "Others" to third parties amounted to $9,394 in 2023, $335 in 2022, and no revenue in 2021.  

Row 4: Total sales of goods to third parties were $656,726 in 2023, $1,163 in 2022, and $369 in 2021.  

Row 5: In 2023, sales of BEV lifestyle models to related parties amounted to $1,093, with no revenue recorded for the previous years.  

Row 6: Sports cars sold to related parties earned $951 in 2023, with no revenue for previous years.  

Row 7: Revenue from sales classified as "Others" to related parties was $1,388 in 2023, and $23 in 2022, with no revenue in 2021.  

Row 8: Total sales of goods to related parties were $3,432 in 2023, and $23 in 2022, with no revenue in 2021.  

Row 9: The subtotal for sales of goods combining third and related parties was $660,158 in 2023, $1,186 in 2022, and $369 in 2021.  

Row 10: Revenue from services to related parties was $12,573 in 2023, $8,344 in 2022, and $3,280 in 2021.  

Row 11: For 2023, services to third parties generated $6,277, with $27 in 2022 and $38 in 2021.  

Row 12: The subtotal for services combining related and third parties was $18,850 in 2023, $8,371 in 2022, and $3,318 in 2021.  

Row 13: Total revenues, combining all categories, were $679,008 in 2023, $9,557 in 2022, and $3,687 in 2021. Company believes that its R&D capability is one of its key competitive strengths. Drawn from Company brand sports car design heritage, deep automotive expertise, and next-generation technologies, Company's proprietary 800-volt EPA is a high-performance platform for luxury electric vehicles, which was developed over five years of R&D efforts. The platform features supercharging capabilities, high energy conservation, and high-speed data transmission, with high adaptability that can accommodate varying battery sizes, motors, and component layouts across vehicle classes. Such superior design enables Company to quickly roll out new models and ramp up production with competitive performance attributes and achieve economies of scale. Aside from the EPA, Company has developed a leading ADAS with fully embedded L4-ready hardware capabilities enabled by the world’s first deployable LiDAR system and proprietary software system. Company's wholly-owned R&D facilities across Europe and China demonstrate a seamless collaboration among highly experienced and dedicated Company teams to support its world-class R&D capabilities. Company manufactures all battery electric vehicle (BEV) lifestyle models through a contract manufacturing partnership with Counterparty A, utilizing Counterparty A’s newly constructed, state-of-the-art manufacturing facilities dedicated to electric vehicles in Wuhan, China. Master Distribution Agreement with Subsidiary B Pursuant to the Distribution Agreement entered into by and between Subsidiary B, the entity carrying out Subsidiary B’s sportscar manufacturing operations, and Subsidiary A, Company is the exclusive global distributor (excluding the U.S., where Subsidiary A will act as the head distributor with the existing regional distributor continuing its functions) for Subsidiary B to distribute vehicles, parts, and certain tools, and to provide aftersales services, branding, marketing, and public relations for such vehicles, parts, and tools distributed by Subsidiary B. The Distribution Agreement also provides that each year Company and Subsidiary B will prepare business plans and annual targets taking into account historical sales figures, forecast demand, national, regional, and local trends, and Subsidiary B’s production capacity for the vehicles. Additionally, pursuant to the Distribution Agreement, existing stores and dealers of Subsidiary B are transferred to Company. [Table Level]
- Table Title: Regional Performance Overview for January to September 2024 and 2023
- Table Summary: This table provides a comparative analysis of performance across different regions for the periods of January to September in 2024 and 2023. It presents the number of units sold and revenue figures alongside the percentage contribution from each region for both years.
- Context: The table is part of a broader report detailing Company's market expansion and financial highlights for 2024, including new deliveries and technological advancements.
- Special Notes: The percentages indicate the share of each region in the total outcome for the respective years.

[Row Level]
Row 1: In Europe, January to September 2024 saw 2,683 units sold or revenue, making up 35% of the regional distribution, compared to 568 units in the same period of 2023, which constituted 18% of the regional share.

Row 2: China recorded 1,880 units sold or revenue in January to September 2024, equating to 25% of the regional total, whereas, in 2023, there were 1,993 units sold, accounting for 62%.

Row 3: North America reported 1,665 units sold or revenue for January to September 2024, contributing 22% to the region, with no corresponding data shown for 2023.

Row 4: The rest of the world achieved 1,389 units sold or revenue in January to September 2024, representing 18% of the region, while in 2023, there were 660 units sold, making up 20%.

Row 5: Total figures for January to September 2024 equaled 7,617 units sold or revenue across all regions, with the entire distribution being 100%, compared to 3,221 units sold in the same timeframe for 2023, also reflecting 100% distribution. Company's distribution model is not common in the automotive industry today. In particular, in China, Company's vehicles are sold either directly to users (rather than through dealerships) or through city partners that act as sales agents and collect sales commissions on such sales. Company plans to further expand its physical sales network through a balanced combination of company-operated stores and partner stores. This planned expansion may not have the desired effect of increasing sales and enhancing brand recognition in a cost-efficient manner. Company may need to invest significant capital and management resources to operate existing company-operated stores and open new ones, and there can be no assurance that Company will be able to improve the operational efficiency of its company-operated stores. Company's direct-to-consumer approach to vehicle distribution is relatively new, and its long-term effectiveness is unproven, especially in China. This approach subjects Company to substantial risks, as it requires significant expenditures and results in slower expansion of the distribution and sales systems compared to the traditional dealership system. For example, Company will not be able to utilize long-established sales channels developed through a dealership system to increase sales volume. As of June 30, 2024, Company had 207 stores in its global distribution network, and it plans to continue expanding its retail network. In 2023 and the six months ended June 30, 2024, Company delivered a total of 6,970 and 4,873 vehicles, respectively, consisting of lifestyle vehicles and Company-brand sports cars that were distributed through Subsidiary A. The growth of the global luxury car segment is expected to outpace that of the overall car market. Within the global battery electric vehicle (BEV) market, the luxury BEV segment is expected to outgrow the mass market BEV segment. Company is well positioned to capitalize on the growth momentum of the global luxury BEV segment by leveraging the following strategies. How will the company face the tariffs imposed by the EU and the US?Company will adjust product plans to cater to diverse global markets and launch high-performance special editions and limited editions to focus on ultra-luxury customers. Company will continue to enhance brand and service quality, improve resilience, and achieve sustainable growth.  
Both the United States and Europe are important markets for Company. The company will continue to focus on meeting the growing demand for luxury electric vehicles in these markets.  
Company closely monitors the implementation details of tariffs and other factors, which may have short-term impacts, but these do not affect the company's long-term development strategy and outlook.  
For US factory construction, Company continues to monitor global market dynamics and comprehensively considers local policy situations to formulate market strategies. What is the reason for the company's sales forecast adjustment? Based on Company's prudent assessment of the global macro market environment and the uncertainty of tariffs, Company has adjusted the delivery forecast for 2024 to 12,000 units. [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. Company is dedicated to offering its customers a convenient and efficient charging experience and provides multiple solutions including home charging, flash charging through the company-owned charging network, and on-the-go charging provided by designated partners. In Europe, Company is partnering with a leading platform that provides customers with an extensive charging network covering the region. Company also offers home charging solutions for owners of its vehicles. In China, Company provides home charging solutions and partners with leading suppliers that have charging networks across the country. Partnering with local charging solutions developers, Company operates a company-owned charging network that provides 480 kW flash charging for its featured 800-volt EPA in core commercial areas of metropolises such as Beijing and Shanghai, among others. As of December 31, 2023, Company had launched 65 flash charging stations in China and partnered with public charging stations to bring convenience to the charging experience of its customers. In the U.S. and other global markets, Company plans to provide comprehensive charging solutions tailored for local market conditions and customer demands. Such increased regulatory burdens and competition may limit the available market for Company's products and services and increase the costs associated with marketing the products and services where the company is able to offer its products. Company may also face local protectionism in some of its target markets that could hinder the company's ability to execute its business strategies and put it at a competitive disadvantage relative to domestic automotive manufacturers. For example, in September 2023, the European Commission announced that an investigation will be launched on whether to impose punitive tariffs to protect EU producers against cheaper Chinese electric vehicle imports that are said to be benefiting from state subsidies. If there are any adverse findings during or upon the conclusion of such investigation, the European Commission may impose countervailing duties or punitive tariffs, which may in turn negatively affect Company's operations and planned future expansion in Europe. For example, the company may be required to increase the price of its products in Europe, which may decrease sales. The Company brand is closely associated with “customer engagement” and “community building,” and in order to provide customers with a luxurious experience, Company has adopted a direct-to-consumer global sales and distribution strategy that focuses on establishing and developing direct relationships with customers, especially in selected regions including China, Europe, and the U.S., which represent some of the key areas driving fast growth in the global battery electric vehicle markets. By offering a luxurious purchasing experience and superior customer service, Company expects to further deepen its penetration in the global market and aims to establish a total of over 300 stores globally by 2025. Develop next-generation electric vehicle technologies while monetizing Company’s R&D prowess. Company intends to continuously develop and enhance proprietary cutting-edge technologies, including the 800-volt EPA architecture and hardware, algorithm, and software systems to enhance the competitiveness of its vehicles, supported by continuous R&D investment. All of Company's proprietary technologies are built with the principle of “For the Drivers,” while inheriting its unique design language and philosophy. What is the product plan for the future? Based on the increasing personalized needs of ultra-luxury market customers, Company has launched multiple special customization and limited edition models in addition to the aforementioned base models. Company will also launch high-performance special editions based on global diversified market demand. At a time when some 4-door saloon cars boasted a 0.30 coefficient of drag, rather surprisingly though, the Esprit S3 could only muster a Cd figure of no better than 0.33. Yet whatever criticism could be levelled at Company, no one had ever seriously accused it of not knowing what it was up to when it came to effective engineering – and the one thing which stood out about this car was that it worked so well. In fact, as an overall package it worked brilliantly. This perhaps explains why the Company board felt confident about once again launching an assault on the US market.

Indeed, its failure to effectively market the Elite and Éclat in the US must rank as one of the company’s biggest missed opportunities. Now it was hoped that the Esprit S3 and the Turbo would give the company another chance, particularly as Company had recently signed a deal with Counterparty A in America, to sell cars through its 68-dealer network. Unfortunately, just as the new deal launched, America took a tumble. The Dollar/Pound exchange rate was worse for the US market than it had been for years, and foreign car sales nosedived. Counterparty A, quite naturally, looked to Customers are offered a wide range of options for customization, including exterior, interior, and other functions and features. In addition to the fully digitalized online retail model supported by the Company App, Company adopts a direct sales model and has established co-partnership programs with some of the leading automotive dealers across all regions to expand its presence rapidly in an asset-light manner. As part of the Company brand’s philosophy of “born British and raised globally,” Company has developed a global sales and distribution network. Company and Subsidiary B have entered into the Distribution Agreement pursuant to which a subsidiary of Company is appointed as the global distributor for Subsidiary B. As such, Company has established a Global Commercial Platform to distribute Company branded vehicle models, including the Eletre, Emeya, and future lifestyle models, as well as certain sports car models that were or will be developed and manufactured by Subsidiary B, such as the Evija (BEV sports car) and Emira (ICE sports car). Company believes this is the most efficient approach to market Company cars and promote the Company brand globally. Company's ability to execute effective marketing and attract orders Company's results of operations depend significantly on the company's ability to execute effective marketing and attract orders from customers. Demand for Company's vehicles directly affects sales volume, which in turn contributes to revenue growth and the ability to achieve and maintain profitability. Vehicle orders may depend, in part, on whether prospective customers find it compelling to purchase Company's vehicles among competing vehicle models as their first, second, or replacement cars, which in turn depends on, among other factors, prospective customers’ perception of the Company brand. Company develops battery electric vehicles (BEVs) and technologies through cutting-edge design, research and development, and sustainable choices. Company has a dedicated global team across Europe and China to conduct its research and development activities, such as developing electric powertrain architecture (EPA), intelligent driving systems, aerodynamics, and cloud services, among others, supported by a strong portfolio of intellectual properties. As of June 30, 2024, Company had 1,631 research and development employees, which accounted for 54.6% of its total number of employees. Company develops battery electric vehicles (BEVs) and technologies through cutting-edge design, research and development, and sustainable choices. Company has a dedicated global team in the U.K., Germany, and China to conduct its research and development activities, such as developing electric powertrain architecture (EPA), intelligent driving systems, aerodynamics, and cloud services, among others, supported by a strong portfolio of intellectual properties. The company's major research and development efforts are centered on architecture and chassis platforms, intelligent driving, e-mobility platforms, cabin and connectivity, and engineering design. As of December 31, 2023, Company had 1,802 research and development employees, which accounted for 56.7% of its total number of employees. Company believes that continued investments in technologies are critical to establishing market share, attracting new customers, and becoming a profitable global BEV developer. [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. Company's results of operations depend significantly on the company's ability to execute effective marketing and attract orders from customers. Demand for Company's vehicles directly affects sales volume, which in turn contributes to revenue growth and the ability to achieve and maintain profitability. Vehicle orders may depend, in part, on whether prospective customers find it compelling to purchase Company's vehicles among competing vehicle models as their first, second, or replacement cars, which in turn depends on, among other factors, prospective customers’ perception of the Company brand. 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. Company achieved a 136% year-on-year increase in deliveries, maintaining its position as a top-performing luxury car brand among global competitors. The company delivered over 7,600 vehicles in the first nine months of 2024, making it the top seller among British luxury car brands. Four models were in delivery, each with an average Manufacturer’s Suggested Retail Price (MSRP) over $100,000. The current portfolio includes one SUV, one sedan, and two sportscars. Company maintained the MSRP above $100,000 throughout the first nine months of 2024, despite faster-than-sector growth and intensified competition. The intelligent driving business achieved a contract value of $130 million. Subsidiary A, the intelligent driving division, provided solutions to multiple global auto conglomerates, contributing significantly to this growth. Company's global expansion included entering over 10 new markets across the Gulf Cooperation Council (GCC) countries, Asia, and Oceania. The company introduced the Eletre Carbon, a high-performance variant tailored for the North American market, and also penetrated the fleet market for environmentally sustainable corporate clients in Europe. 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. In the first ten months of 2024, Company delivered a total of 8,631 vehicles, making significant inroads in the luxury electric vehicle market in China. In October, Company cars accounted for about 40% of the total luxury electric vehicles (LEV) sold in the Chinese market. The company initiated a beta test for Urban Navigation of Autopilot (NOA) services in key cities in October 2024. This followed the successful launch of highway over-the-air (OTA) services, and included a highway assistant driving function which has already been introduced in Europe. Upcoming events include opening orders for the Emeya GT Sedan in markets such as the Gulf Cooperation Council (GCC), India, Oceania, Japan, South Korea, and Southeast Asia. Company Day 2025 is scheduled for March 2025, and Company Capital Market Day will occur on December 4, 2024. Deliveries of lifestyle vehicles saw a remarkable 126% year-on-year increase in the first nine months of 2024, constituting 52% of the total deliveries. Europe, being the home of the Company brand, demonstrated significant growth with a 372% year-on-year increase in vehicle deliveries during this period. The Rest of the World (ROW) region achieved a 110% year-on-year increase, as Company continued to expand into new markets. Furthermore, the company has surpassed 200 stores worldwide, with per-store sales steadily improving through operational optimization. The delivery breakdown for the first nine months of 2024 was 52% lifestyle vehicles and 48% sportscars. By region, deliveries were distributed as follows: Europe accounted for 35%, China for 25%, North America for 18%, and ROW for 22%. Regarding the store distribution, Europe held 34%, China had 25%, North America had 24%, and ROW had 17%. Leveraging Counterparty A’s readily available production capacity, Company believes it can execute its business plan with higher scalability and flexibility while limiting its upfront capital commitments compared to most other original equipment manufacturers (OEMs). Additionally, by leveraging Counterparty A’s global supply chain network, strong bargaining power in procurement, and stable relationships established with reputable suppliers, Company can secure high-quality components at more competitive prices, which it believes would allow for better management of any supply chain disruption risk more effectively compared to other OEMs. Company brings customers a luxury retailing experience through a digital-first, omni-channel sales model to establish and develop direct relationships with customers, covering the entire spectrum of customer experience, both physically and virtually. Company operates premium stores in high-footfall locations, providing personalized and exclusive services to create a luxurious purchasing experience for its customers. The global sales digital platform provides a full suite of luxury retailing experiences, including a virtual showroom of the Company brand and products, an inquiry, order, purchasing and customization platform, and a reservation system for test driving, product delivery, and aftersales services, among others. Invest in brand equity and fully transform the brand. Leveraging Company's brand racing heritage and proven leadership, Company intends to further elevate the brand by continuing to deliver a portfolio of intelligent and high-performance vehicles that satisfy customers’ expectations and broaden the customer base, in particular high net worth individuals and tech-savvy younger generations who value the brand’s DNA. Scale up and expand geographical presence. Company intends to deepen its penetration across all regions. The Company brand is closely associated with “customer engagement” and “community building,” and in order to provide customers with a luxurious experience, Company has adopted a direct-to-consumer sales and distribution strategy that focuses on establishing and developing direct relationships with customers, especially in selected regions including China, Europe, and the U.S., which represent some of the key areas driving fast growth in the global BEV markets. By offering a luxurious purchasing experience and superior customer service, Company expects to further deepen its penetration in the global market. Develop next-generation electric vehicle technologies while monetizing Company's R&D prowess. Company's future profitability depends on its ability to develop its vehicles in a cost-effective manner. As part of the development process, Company's vehicles use a wide variety of components, raw materials, and other supplies. Company expects that its cost of sales will be affected primarily by its production volume. The cost of sales will also be affected by fluctuations in certain raw material prices, although Company typically seeks to manage these costs and minimize their volatility through its supply of framework agreements with its suppliers. In addition, Company's results of operations are further affected by its ability to maintain and improve its operating efficiency, as measured by total operating expenses as a percentage of revenues. This is important to the success of the business and the prospect of gradually achieving profitability. As the business grows, Company expects to improve its operating efficiency and achieve economies of scale. Company currently provides 4 products to the market through 200 stores around the world, 2 models and delivery. The delivery cycle is 3-6 months, depending on customs clearance and transportation conditions in different markets. The two trams are produced by the Wuhan factory. Except for the Chinese mainland market, the delivery cycle is also 3-6 months. In mainland China, the delivery time is shorter due to its transportation advantages. [Table Level]
- Table Title: Geographic Revenue Distribution
- Table Summary: The table presents the revenues of Company from various geographic locations for the six-month periods ending June 30, 2024, and 2023. It highlights the revenue distribution across different countries and regions, showing significant increases in certain areas over the previous year.
- Context: The table is part of Company's unaudited condensed consolidated financial statements and provides a breakdown of revenues by geographic area, detailing how customer locations contribute to sales figures.
- Special Notes: All figures are represented in thousands of US dollars (US$). There are disclaimers regarding the calculation of loss per share which is related to put options.

[Row Level]
Row 1: For the six months ended June 30, 2024, the revenue from the Chinese mainland was US$138,210, a significant increase from US$93,013 in 2023.

Row 2: The United Kingdom contributed US$69,728 in 2024, showing a marked increase compared to US$7,396 in 2023.

Row 3: Thailand generated US$24,594 in revenue for 2024, up from US$248 in 2023, reflecting substantial growth.

Row 4: In 2024, Malaysia's revenue was US$23,652, a rise from US$1,040 reported in 2023.

Row 5: Revenue from Belgium was US$21,155 in 2024, with no corresponding figure reported for 2023.

Row 6: Italy contributed US$17,522 in 2024, while there was no reported revenue for 2023.

Row 7: Japanese revenue reached US$16,943 in 2024, slightly up from US$16,217 in 2023.

Row 8: Revenue from Germany was US$14,951 in 2024, with no prior year data available.

Row 9: The Netherlands showed US$11,145 in revenue for 2024, not reported in 2023.

Row 10: France generated US$10,553 in 2024, without a reported figure for 2023.

Row 11: Other regions collectively contributed US$49,662 in revenue in 2024, compared to US$12,121 in 2023.

Row 12: The total revenue for the six months ending June 30, 2024, was US$398,115, a substantial increase from US$130,035 in 2023.