What are the long-term goals of Company?
Company is well positioned to capitalize on the growth momentum of the global luxury battery electric vehicle (BEV) segment by leveraging the following strategies:  
● Invest in brand equity and fully transform Company's brand.  
● Scale up and expand Company's geographical presence.  
● Develop next-generation electric vehicle technologies while monetizing Company's R&D prowess.  
● Continue to launch new vehicle models and upgrade existing models.  
● Company will focus on sustainability and lead in electrification. Company is in the process of transforming from a British sports car company to a global pioneer of high-performance lifestyle electric vehicles and has set high quality and safety standards for and makes continuous improvements on its vehicles and technologies, including sensory hardware and ADAS software. Company also plans to monetize its R&D capabilities by licensing its intellectual properties to other luxury auto brands and providing ADAS software subscriptions to its customers. Continue to launch new models and upgrade existing models. The successful launches of new models are critical for Company to continue capturing market share in the luxury BEV market and strengthening its leadership position. Company plans to launch a well-balanced portfolio of new models with exceptional performance in the coming years to broaden its customer base, in particular high net worth individuals and the tech-savvy younger generations, and expand its product breadth. Company plans to launch two additional fully-electric vehicles over the next two years, including a D-segment SUV in 2025 and a BEV lifestyle sports car in 2026. Company also intends to upgrade its models to equip its vehicles with innovative technology and design. Focus on sustainability and lead in electrification. 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. Company plans to launch a well-balanced portfolio of new models with exceptional performance in the coming years to broaden its customer base, in particular high net worth individuals and the tech-savvy younger generations, and expand its product breadth. Company plans to introduce two new models in the near future. Company also intends to upgrade its models to equip its vehicles with innovative technology and design. Focus on sustainability and lead in electrification. As a leader in the electrification transformation of the luxury car segment, Company has launched its E-segment battery electric vehicle (BEV) model years ahead of its competitors and plans to continue launching its other BEV models. As part of its sustainability commitment, Company aims to achieve carbon neutrality by 2038. Company expects to continue focusing on sustainability leadership through waste reduction and the ongoing adoption of renewable energy and recyclable materials. In addition, Company launched the “Win26” plan, aiming to achieve positive EBITDA in 2026 by further optimizing its internal processes and structures, implementing overall cost measures, and recalibrating its product plans to cater to globally diversified markets. 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 aims to deliver high-quality products and services to its customers in line with its core values and commitments. Company believes that quality assurance is key to ensuring the delivery of high-quality products and services, minimizing waste, and maximizing efficiency. Quality management has been strongly emphasized across all business functions, including product development, manufacturing, supplier quality management, procurement, charging solutions, customer experience, servicing, and logistics. The quality management groups are responsible for the overall quality strategy, quality systems and processes, quality culture, and general quality management implementation. During product development, several phases of testing have been implemented to verify design and production quality. Company's quality standards are guided by industry standards, including ISO9001, R155 CSMS, R156 SUMS, Aspice L2, ISO26262, and ISO/SAE 21434. Company's first volume-manufactured vehicle, the Eletre, is produced at a new plant operated by Counterparty A, adhering to quality standards. All production lines, including stamping, welding, painting, and general assembly, are developed in accordance with industry standards and feature a higher degree of automation. Company applies more than 4,000 standards across all phases of product development and supplier quality management. "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." For example, Company has designed 17 kinds of welding processes to realize lightweight vehicle mass production. The lightweight design enables BEV models to have faster straight-line acceleration, increased range, and extraordinary handling. Company has a dedicated global team to support its R&D activities with a sizable scale and comprehensive functionalities, covering all major technological perspectives. The company's approach to innovation demonstrates an interconnected global collaboration among highly experienced and dedicated Company teams across Europe and China, each with different technological focuses. Company's research and development efforts are focusing on the development of key EV technologies while benefiting from the technological support from the Counterparty A Holding ecosystem. Company intends to continually develop cutting-edge technologies, including its 800-volt EPA architecture and hardware, algorithms, and software system 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 auto brands. 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. Recently, Company disclosed the output of its intelligent driving solutions to multiple automakers. As the intelligent driving business continues to develop, Company expects this business to contribute significantly to high-profit revenue and drive rapid growth in its overall performance. Company has a limited operating history, and its ability to develop, manufacture, and deliver automobiles of high quality and appeal to customers, on schedule, and on a large scale is unproven and still evolving. Company's electric vehicle (EV) business was founded in 2018. The company's first vehicle model, the Eletre, was launched in 2022. There is limited historical basis for making judgments on the demand for Company's vehicles or the company's ability to develop, manufacture, and deliver vehicles, or its profitability in the future. It is difficult to predict Company's future revenues and appropriately budget for its expenses, and the company may have limited insight into trends that may emerge and affect its business. The sustainability of Company's business depends, in large part, on the company's ability to timely execute its plan to develop, manufacture, and deliver on a large scale automobiles of high quality and appeal to customers. Company has entered into an agreement with Counterparty A to manufacture its new models for the global market using the Wuhan manufacturing facility. 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. What is Company's future guidance? Company's annual delivery target is 12,000 units, with year-over-year growth exceeding 70%. Through the Win26 program, Company aims to achieve positive cash flow and profitability by 2026. Company believes it benefits from a number of competitive advantages:  
● Early mover in the luxury battery electric vehicle (BEV) market.  
● Iconic brand with a racing heritage.  
● Proprietary next-generation technology built on world-class research and development (R&D) capabilities.  
● Asset-light business model supported by the Counterparty A ecosystem.  
● Focus on sustainability targeting a fully electric product portfolio.  
● Luxury retail experience and omnichannel sales model.  
● Global, experienced, and visionary leadership. Company believes that its close relationship with Counterparty A provides the company with a unique competitive advantage in its ability to rapidly scale commercialization while maintaining an asset-light operating model with less upfront capital expenditure commitment than other original equipment manufacturers (OEMs). Company has entered into a variety of agreements, including agreements related to technology licensing, manufacturing cooperation, and supply of framework, among others, with Counterparty A. This strategic partnership with Counterparty A allows Company to effectively control supply chain-related risks and accelerate product development. With that level of complexity and interconnectivity in mind, Company is building cybersecurity through the TARA process into its vehicle development process itself, with the intent of enabling the business to remain resilient to any potential attacks during vehicle development. The objective of Company's privacy policies is to facilitate beneficial uses of data to improve its products and services while preserving customers’ privacy expectations and complying with applicable law. Global privacy laws and practices will guide the operational design, controls, procedures, and policies for Company's program. Company's strategy accounts for increased risk as the business scales by addressing appropriate security and access controls for customer and employee information. A core tenet of Company's privacy measures is to implement privacy-by-design principles in both software and hardware development throughout the organization. Company's privacy measures will continue to evolve and adapt, utilizing best practices and tailored risk management frameworks, to allow for close collaboration across the organization, particularly between the information technology and legal functions, which is critical for effective privacy measures. Company also works to increase cybersecurity and privacy awareness throughout the organization through education and training. [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 Subsidiary A 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. To help engage the next generation of Company colleagues, Company leverages its unique global appeal and stimulates the ambitions of the next generation, especially in the creative science, technology, engineering, art, and mathematics subjects. Company helps carry out educational outreach programs and works with communities outside the core business to provide support and stability within those environments. Company also adopts and aligns its strategy to external frameworks including the UN Global Compact, including commitments to transparent, responsible, and ethical business management. Company released its first annual ESG Report on October 25, 2023, which documented its ESG strategy and highlighted its 2022 ESG achievements as part of Company’s advancement into a fully electric, intelligent, and sustainable luxury mobility provider under the brand’s Vision80 strategy. The strategy focuses on six key fields: Nature Positive, Climate Neutrality, Sustainable Supply Chain, Inclusion and Equality, Community Commitment, and Transparent Governance. Company joined the United Nations Global Compact (UNGC) in May 2023 and has set targets aligned with the United Nations Sustainable Development Goals (SDGs) for each field, embedding actionable frameworks into its operations to achieve the global goals. To enhance the connectivity functions within the vehicle, Company has onboarded 5G high-speed mobile networks for external downloads and gigabit ethernet for efficient internal connections among vehicle modules. The Bluetooth 5.2 and ultra-wideband digital keys serve as critical supplements to vehicle connectivity functions for high-quality data transfer. Engineering Design The lightweight vehicle design and vehicle aerodynamics are the most noteworthy engineering features of Company's BEV models. Company also provides engineering design consultancy services to external OEMs. ● Aerodynamic efficiency. Company has proprietary and patented technologies related to aerodynamics, including wedge-shaped car designs, air intakes, and airfoils, and the electric vehicle portfolio inherits the aerodynamics design heritage. For example, the unique porosity design can reduce the low drag coefficient of the Eletre to 0.26, making it easier to pass through the surrounding air. In addition, the active rear spoiler and active air intake grille designs enable the Eletre to achieve considerable vehicle downforce for optimal stability at high speeds. ● Lightweight vehicle design. The “lightweight” design philosophy is key to Company's heritage, and the company continues to innovate in the use of materials and in designing new processes to reduce the vehicle's weight. Company is advancing its sustainability and electrification efforts through the Vision 80 strategy, focusing on intelligent performance. This strategy includes the introduction of the Electric Company Driving Experience, which aims to enhance driving pleasure and further sustainability goals. Key developments in their technology roadmap include the 800V Hyper EV Technology, which provides an instant power pure electric drivetrain and hyper charging technology with ultra-fast plug-in charging. The 900V Hyper Hybrid EV Technology by Company integrates an instant power hybrid electric drivetrain alongside dual hyper charging technology, offering ultra-fast plug-in and on-the-drive charging. This technology boasts a combined driving range exceeding 1,100 kilometers, and its charging capabilities rival industry-leading standards such as battery swaps. The on-the-drive charging offers a consumption rate five times that of typical driving, ensuring consistent electric performance even under extreme conditions. 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 intends to continuously develop and enhance proprietary cutting-edge technologies, including its 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. Company is in the process of transforming from a British sports car company to a global pioneer of high-performance lifestyle electric vehicles and has set high quality and safety standards for and makes continuous improvements on its vehicles and technologies, including its sensory hardware and ADAS software. Company also plans to monetize its R&D capabilities by licensing its intellectual properties to other luxury auto brands and providing ADAS software subscriptions to its customers. Continue to launch new models and upgrade existing models. The successful launches of new models are critical for Company to continue capturing market share in the luxury battery electric vehicle (BEV) market and strengthening its leadership position. Through the plant's automated system, the manufacturing process parameters and parts information are monitored for process control and traceability. Guided by the same principle of the Company brand and in collaboration with Subsidiary B, the new Environmental, Social and Governance (ESG) Charter formalizes the activities that Company has been carrying out. As Company transforms rapidly to become a global pioneer of electric performance vehicles, the company recognizes its responsibility to do so in ways that lead the industry in minimizing its impact on the environment, benefiting society and the planet as a whole. ● Focus on electric vehicles. The Eletre, the latest model in Company's new generation of vehicles, marks the company's transition to a broader line-up of electric vehicles. For parts requiring special designs, Company reviews design proposals and chooses largely based on design-related factors. However, in certain cases, Company has limited choices given its scale, such as battery cell packages, so in such circumstances, Company typically partners with suppliers that it believes to be well-positioned to meet its needs. In addition, when part suppliers are selected, Company has established certain environmental guidelines in accordance with its ESG strategies and goals. 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. 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. Company regards its patents, trademarks, copyrights, domain names, know-how, proprietary technologies, and similar intellectual property as critical to its success. Company's intellectual property portfolio consists of rights in, among others, vehicle architecture, intelligent cabin technology, intelligent driving systems, and fast charging solutions. As of June 30, 2024, Company had 422 registered patents and 926 pending patent applications in various jurisdictions such as mainland China, the U.S., Japan, and the U.K., including patents for its vehicle architecture, intelligent cabin technology, intelligent driving systems, and fast charging solutions. Company also had 362 registered trademarks, including “ELETRE” and “EMEYA,” registered copyrights for 47 software programs developed by the company relating to various aspects of its operations, as well as 113 registered domain names as of June 30, 2024. To the extent state data privacy laws apply to Company and its products or services, Company aims to ensure compliance with the requirements of those laws. Carbon-neutral sustainable development. Company plans to achieve its goal of becoming a carbon-neutral company through sustainability in the design of products. Manufacturing sustainability is of high importance to Company. Minimizing environmental impacts is one of the most important targets of the manufacturing plant from the very beginning. Company has worked with Counterparty A to carry out a series of energy-saving and emission reduction measures at Counterparty A’s manufacturing plant, including adopting the design of a dry box spray room, the establishment of photovoltaic power generation, waste gas incineration, rainwater collection, water reuse, waste heat utilization, and other green facilities. The photovoltaic power generation system at Company Global Smart Factory generated more than 9,800 MWh in 2023. Company also targets to achieve carbon neutrality across the entire value chain by 2038. Scope 1 and 2 refer to emissions that are owned or controlled by Company, whereas Scope 3 emissions are those that occur from sources not owned or controlled by Company but as a consequence of its activities. The scope of what must be reported annually is significantly expanded. Where Company's entities are subject to this Directive, Company must report according to European Sustainability Reporting Standards on issues such as environmental matters, social matters and treatment of employees, respect for human rights, anti-corruption and bribery, and diversity on company boards (in terms of age, gender, educational and professional background). In addition, the European Union is expected to finalize over the next 2 to 3 years the Corporate Sustainability Due Diligence Directive, which will implement mandatory due diligence that certain large companies must undertake regarding human rights and environmental impacts along their supply chains. Company Robotics, a wholly owned subsidiary of Company, provides intelligent driving solutions with a broad global reach, serving both Company-branded intelligent vehicles and other prominent auto industry partners. The company offers a comprehensive range of intelligent driving, research, and development solutions. These services include the procurement and innovation of intelligent driving software and hardware, spearheaded by leading algorithms like the One Model and L2&L2+ ADAS software upgrades. Their solutions have global cloud and data center coverage, ensuring seamless operation. The Advanced Driver Assistance Systems (ADAS) and PAS solutions have been successfully delivered across regions including Europe, Asia, the GCC, North America, and Oceania. Notably, the Highway Assistant functions have seen recent upgrades in Europe. Company Robotics has established a strong track record and customer relationships, collaborating with multiple brands within the Counterparty A ecosystem and other distinguished clients such as a leading European conglomerate and a top-tier Japanese supplier. As a leader in the electrification transformation of the luxury car segment, Company has launched its E-segment BEV model years ahead of competitors and plans to continue launching additional BEV models. Company also aims to become the first traditional luxury auto brand to achieve a 100% BEV product portfolio by 2027. As part of its sustainability commitment, Company aims to achieve carbon neutrality by 2038, with the Company Global Smart Factory, which is owned and operated by Counterparty A. Company expects to continue focusing on sustainability leadership through waste reduction and the ongoing adoption of renewable energy and recyclable materials. title: 4. Can you introduce the situation of the company recently disclosing to multiple automakers the output of intelligent driving solutions?  
Subsidiary A, a subsidiary of Company' intelligent driving business, has partnered with several leading automotive manufacturers to provide industry partners with intelligent driving technology and software solutions. The company has officially announced the cooperation with Counterparty A and Counterparty B, including providing high-level intelligent driving solutions such as high-speed NOA and urban NOA for the first pure electric flagship sedan under the Counterparty A brand. It provides a comprehensive set of advanced intelligent driving solutions including ADAS, highway NOA, urban NOA, and intelligent driving tool chain for Counterparty B, which is expected to be applied to a number of its commercial vehicles (such as heavy trucks, light trucks, buses, etc.) in the future. These collaborations mark key milestones in Company' successful export and commercialization of its leading technology capabilities. All domestic vehicles under the Company brand (including SUVs and sedans) can be equipped with hardware supporting L4 level intelligent driving capability to carry Company advanced end-to-end intelligent driving service solutions. As cumulative residential vehicle deliveries continue to climb, the potential for future paid software subscription revenue is increasing. Other than as shown above, Company did not have any other significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2023. 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. Company has worked with Counterparty A to carry out a series of energy-saving and emission reduction measures at Counterparty A’s manufacturing plant, including adopting the design of a dry box spray room, the establishment of photovoltaic power generation, waste gas incineration, rainwater collection, water reuse, waste heat utilization, and other green facilities. The photovoltaic power generation system at Counterparty A’s manufacturing plant has a capacity of over 16 million kWh. Company also targets to achieve carbon neutrality (Scope 1, 2, and 3) by 2038. Scope 1 and 2 refer to emissions that are owned or controlled by Company, whereas Scope 3 emissions are those that occur from sources not owned or controlled by Company but as a consequence of its activities. The driving change commitment includes significant reduction in carbon emissions throughout the business, substantial elimination of waste, driving efficient and sustainable use of resources in both operations and supply chains, and protecting and preserving natural environments. Counterparty A’s manufacturing plant adopted a water reuse system that replenishes the water volume of Company Lake by recycling roof rainwater. The lake water will be treated and used for greening, flushing, and landscaping. ● Inspiring the next generation. [Table Level]
- Table Title: Consolidated Balance Sheets
- Table Summary: The table provides a detailed financial overview of Company's liabilities, equity, and shareholders' deficit as of December 31, 2023, and 2022. It includes total non-current liabilities, mezzanine equity, and shareholders' equity or deficit, along with relevant detailed subcategories.
- Context: The audits for Company follow PCAOB standards, ensuring financial statements are free of material misstatement. Company is engaged in selling luxury battery electric and sports cars under the "Company" brand globally.
- Special Notes: All amounts are in thousands, except for share and per share data.

[Row Level]
Row 1: Deferred income stands at $270,097, compared to $258,450 in the previous year, indicating a slight increase in deferred obligations.

Row 2: Other non-current liabilities to third parties are recorded at $103,403, significantly increased from $15,824, suggesting increased long-term obligations to third-party entities.

Row 3: Liabilities to related parties amount to $1,634, slightly up from $1,584, indicating stable liability levels with related entities.

Row 4: Total non-current liabilities are $654,569, an increase from $523,679, reflecting overall growth in long-term obligations.

Row 5: Total liabilities amount to $2,411,850, up from $1,456,558, showing a substantial rise in Company's total financial liabilities.

Row 6: Series Pre-A Redeemable Convertible Preferred Shares have a redemption value of $184,509 and $174,429, indicating an increase with a liquidation preference matching these values.

Row 7: Series A Redeemable Convertible Preferred Shares have a redemption value of $199,021, compared to $191,125 in 2022, with a liquidation preference of up to $200,971.

Row 8: Total mezzanine equity amounts to $383,530, up from $368,409, reflecting an increase in equity-like financial instruments.

Row 9: Ordinary shares were issued at a nominal value of US$0.00001 per share, with 5,000,000,000 authorized, and 474,621,603 issued and outstanding, remaining unchanged from the last year.

Row 10: Additional paid-in capital is $358,187, decreasing from $403,103, indicating reduced additional equity contributions.

Row 11: Receivables from shareholders have increased from a negative position of $26,447 to none, showing reduced liabilities from shareholder receivables.

Row 12: Accumulated other comprehensive income is $25,267, up from $17,707, reflecting overall gains in comprehensive income elements.

Row 13: The accumulated deficit is $1,588,773, increasing from $846,757, showing a significant rise in accumulated losses.

Row 14: Total shareholders' deficit attributable to ordinary shareholders is $1,205,298, up from $452,373, demonstrating increased equity deficits.

Row 15: Non-controlling interests are a deficit of $5,404, slightly down from $642, indicating minor changes in interests attributable to minority stakeholders.

Row 16: Total shareholders' deficit stands at $1,210,702, a considerable increase from $453,015, pointing to an overall rise in equity deficits. 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. Company equips its vehicles with certain advanced driver assistance features. Generally, laws pertaining to driver assistance features and intelligent driving vehicles are evolving globally and, in some cases, may create restrictions on advanced driver assistance or intelligent driving features that Company may develop. Company aims to meet the requirements for each product, market, and time frame. As a result, future capital requirements may be uncertain, and actual capital requirements may be significantly different from what is currently anticipated. Company may need to seek equity or debt financing to finance a portion of its capital expenditures. Such financing might not be available in a timely manner or on acceptable terms, or at all. If Company cannot obtain sufficient capital on acceptable terms, its business, financial condition, and prospects may be materially and adversely affected. Company's ability to obtain the necessary financing to carry out its business plan is subject to a number of factors, including general market conditions and investor acceptance of its business plan. These factors may make the timing, amount, terms, and conditions of such financing unattractive or unavailable to Company. If Company is unable to raise sufficient funds, it may need to significantly reduce its spending, delay or cancel its planned investment or expansion activities, or substantially change its corporate structure. 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. The driving change commitment includes significant reduction in carbon emissions throughout the business, substantial elimination of waste, driving efficient and sustainable use of resources in both operations and supply chains, and protecting and preserving natural environments. Counterparty A’s manufacturing plant adopted a water reuse system that replenishes the water volume of Company Lake by recycling roof rainwater. The lake water will be treated and used for greening, flushing, and landscaping. ● Inspiring the next generation. To help engage the next generation of Company colleagues, Company leverages its unique global appeal and stimulates the ambitions of the next generation, especially in the creative science, technology, engineering, art, and mathematics subjects. Company helps carry out educational outreach programs and works with communities outside the core business to provide support and stability within those environments. Company also adopts and aligns its strategy to external frameworks including the UN Global Compact, including commitments to transparent, responsible, and ethical business management. Company released its first annual ESG Report on October 25, 2023, which documented its ESG strategy and highlighted its 2022 ESG achievements as part of Company’s advancement into an intelligent and sustainable luxury mobility provider under the brand’s Vision80 strategy. The strategy focuses on six key fields: Nature Positive, Climate Neutrality, Sustainable Supply Chain, Inclusion and Equality, Community Commitment, and Transparent Governance. Company joined the United Nations Global Compact (UNGC) in May 2023 and has set targets aligned with the United Nations Sustainable Development Goals (SDGs) for each field, embedding actionable frameworks into its operations to achieve the global goals. In June 2024, Company was recognized by the Global Zero Carbon City Pioneer Awards at the 2024 Shanghai International Carbon Neutrality Expo for its innovation and exceptional commitment to sustainability and responsible business practices. Additionally, Company was nominated as a finalist in the business and operations transformation categories at the Reuters Sustainability Awards 2024, demonstrating global recognition of its holistic approach to sustainability. Guided by Company's R&D leaders, the global research and development team has extensive experience in the automotive and technology industries. As of June 30, 2024, Company's R&D team consisted of 1,631 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 established Subsidiary A in China, the arm of its in-house intelligent driving competence. Subsidiary A is committed to developing advanced intelligent driving technologies to foster global industry growth. Subsidiary A has established itself as a global premier provider of comprehensive intelligent driving solutions, including advanced intelligent driving platform software, cloud toolchains, integrated hardware and software development, and intelligent driving operation solutions. Starting from 2024, Subsidiary A has been providing end-to-end intelligent driving solutions to several leading automakers, including Counterparty A and Counterparty B. (iii) As of June 30, 2024, the carrying amount of Company's put option liabilities to third parties was US$175.2 million, which represents the fair value of the put option liabilities to third parties as of June 30, 2024. Pursuant to the terms of the Investor A Subscription Agreement, Investor A has the right to require Company to redeem all outstanding Investor A Subscription Shares upon the occurrence of certain triggering events or the third anniversary of the closing of the Investor A Investment, all or part of the Investor A Subscription Shares then held. The Investor A put option obligation upon maturity is US$711.9 million. Other than as shown above, Company did not have any other significant capital and other commitments, long-term obligations, or guarantees as of June 30, 2024. [Table Level]
- Table Title: Consolidated Balance Sheets for Company as of December 31, 2023, 2022, and 2021
- Table Summary: The table represents the financial performance of Company, detailing revenues, costs, operating expenses, and comprehensive income over three fiscal years. It provides an overview of Company's gross profit, operating loss, and net loss alongside other financial metrics.
- Context: The audit was conducted following PCAOB standards to ensure the accuracy and transparency of the financial statements. Company is involved in designing and selling luxury electric vehicles and sports cars worldwide.
- Special Notes: All financial figures are presented in thousands, except for share and per share data. The table includes various notes for further explanations.

[Row Level]
Row 1: Revenues from sales of goods reached US$660,158 in 2023, significantly higher compared to US$1,186 in 2022 and US$369 in 2021.

Row 2: Service revenues amounted to US$18,850 in 2023, showing growth from US$8,371 in 2022 and US$3,318 in 2021.

Row 3: Total revenues for 2023 were US$679,008, increasing from US$9,557 in 2022 and US$3,687 in 2021.

Row 4: Cost of goods sold in 2023 was US$564,741, compared to US$948 in 2022 and US$331 in 2021.

Row 5: Cost of services totaled US$12,086 in 2023, an increase from US$6,302 in 2022 and US$299 in 2021.

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

Row 7: Company's gross profit in 2023 stood at US$102,181, compared to US$2,307 in 2022 and US$557 in 2021.

Row 8: Research and development expenses were notably high at US$86,729 in 2023, compared to US$445,844 in 2022 and US$345,655 in 2021.

Row 9: Selling and marketing expenses amounted to US$32,935 in 2023, decreasing from US$151,331 in 2022 and US$131,066 in 2021.

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

Row 11: Government grants contributed US$4,077 in 2023, decreasing 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: The operating loss for 2023 was US$735,939, compared to US$687,413 in 2022 and US$112,942 in 2021.

Row 14: Interest expenses amounted to US$10,200 in 2023, up from US$8,542 in 2022 and US$3,615 in 2021.

Row 15: Interest income was US$9,204 in 2023, a slight increase from US$12,183 in 2022 and US$8,269 in 2021.

Row 16: Net investment loss was US$1,068 in 2023, compared to US$7,865 in 2022 and US$2,299 in 2021.

Row 17: Equity method investments resulted in a loss of US$1,468 in 2023, reduced from US$2,762 in 2022 and US$2,056 in 2021.

Row 18: Foreign currency exchange losses were US$1,085 in 2023, down from US$9,657 in 2022 and US$798 in 2021.

Row 19: Changes in noncontrolling interest liabilities amounted to US$2,508 in 2023, compared to US$22,991 in 2022 and US$1,367 in 2021.

Row 20: The loss before income taxes was US$749,142 in 2023, compared to US$724,271 in 2022 and US$108,678 in 2021.

Row 21: The income tax expense for 2023 was US$1,113, a decrease from US$29 in 2022 and US$1,853 in 2021.

Row 22: Net loss was US$750,255 in 2023, decreased from US$724,563 in 2022 and US$110,531 in 2021.

Row 23: Net loss attributable to noncontrolling interests was US$8,254 in 2023, compared to US$642 in 2022.

Row 24: Net loss attributable to ordinary shareholders was US$742,001 in 2023, while it was US$723,921 in 2022 and US$110,531 in 2021.

Row 25: Redeemable Convertible Preferred Shares accretion was US$15,121 in 2023, up from US$910 in 2022.

Row 26: Net loss available to ordinary shareholders was US$757,122 in 2023, compared to US$724,831 in 2022 and US$110,531 in 2021.

Row 27: The basic and diluted loss per ordinary share was US$1.60 in 2023, compared to US$1.52 in 2022 and US$0.33 in 2021.

Row 28: The weighted average number of ordinary shares outstanding was 474,621,603 in 2023, compared to 475,805,054 in 2022 and 334,127,181 in 2021.

Row 29: Other comprehensive income losses were US$8,650 in 2023, compared to US$893 in 2022 and US$119 in 2021.

Row 30: Foreign currency translation adjustments were US$16,210 in 2023, slightly lower than US$18,669 in 2022 and US$9,453 in 2021.

Row 31: The total other comprehensive income was US$7,560 in 2023, compared to US$17,776 in 2022 and US$724 in 2021.

Row 32: Total comprehensive loss was US$742,695 in 2023, compared to US$706,787 in 2022 and US$111,255 in 2021.

Row 33: Comprehensive loss attributable to noncontrolling interests was US$8,254 in 2023, compared to US$642 in 2022. Company believes it benefits from a number of competitive advantages: Early mover in the luxury BEV market. Company is well positioned to capitalize on the rapid growth of the global luxury BEV market and address unmet demand by offering a portfolio of BEV models. Company operates at the “sweet-spot” within the luxury BEV segment by providing vehicles with a target price range between US$80,000 to US$149,000, which represents the largest volume contributor to the luxury BEV segment. Additionally, the global luxury BEV market is underserved due to limited availability of models. As an early mover in the luxury BEV market, Company has launched its E-segment BEV model years ahead of competitors and expects to continue launching its BEV models, anticipating significant early mover advantages in terms of electrification progress compared to other brands. Iconic brand with racing heritage. The core principles and Company's DNA at the heart of the company come from more than 70 years of sports car design and engineering. The concepts of aerodynamics and lightweight sports car design are highly distinguished and have been an essential part of the Company brand’s ethos. 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. 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. [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). Guided by the same principle of the Company brand and in collaboration with Subsidiary B, the new Environmental, Social and Governance (ESG) Charter formalizes the activities that Company has been carrying out. As Company transforms rapidly to become a global pioneer of electric performance vehicles, the company recognizes its responsibility to do so in ways that lead the industry in minimizing its impact on the environment, benefiting society and the planet as a whole. ● All electric. The first of Company's core Environmental, Social and Governance (ESG) commitments is that, throughout the Company product line, all future new mainstream vehicles from Company and from Subsidiary B will be fully electric. The Eletre, the latest of Company's new generation of vehicles, marks the company's transition to a full line-up of electric vehicles. ● Carbon-neutral sustainable development. Company plans to achieve its goal of becoming a carbon-neutral company through sustainability in the design of products. Manufacturing sustainability is of high importance to Company. Minimizing environmental impacts is one of the most important targets of the manufacturing plant from the very beginning.