Is Company profitable?
Company may be unable to adequately control the costs associated with its operations. Company has devoted significant capital to developing and growing its business, including developing its first model, the Eletre, expanding its sales and servicing network, and building its headquarters in Wuhan. In addition, Company plans to introduce two new models in the near future. The company expects to further incur significant costs that will impact its profitability, including research and development expenses as it rolls out new models and improves existing models, additional operating costs and expenses for production ramp-up, selling and distribution expenses as it continues to build its brand and market its vehicles, and additional costs associated with being a public company. Furthermore, currency fluctuations, tariffs, or shortages in petroleum and other economic or political conditions may result in significant increases in freight charges and raw material costs. In addition, Company may also face increased costs in connection with the services it provides, including after-sale services. The company's ability to become profitable in the future will not only depend on its ability to successfully market its vehicles and other products and services but also to control its costs. Company may not generate sufficient revenues and may incur substantial losses for a number of reasons, including lack of demand for its vehicles, increasing competition, and other risks discussed herein. Additionally, Company may incur unforeseen expenses or encounter difficulties, complications, or delays in deriving revenues or achieving profitability. Company's operating results forecast relies in large part upon assumptions and analyses developed by Company's management and reflects current estimates of future performance, any or all of which may not prove to be correct or accurate. If these assumptions, analyses, or estimates prove to be incorrect or inaccurate, Company's actual operating results may differ materially and adversely from those forecasted or projected. Company believes that the assumptions in the forecasts and projections were reasonable at the time such information was prepared, given the information available at that time. In particular, the prospective financial information was prepared by Company's management based on estimates and assumptions believed to be reasonable with respect to the expected future financial performance, which do not take into account any circumstances or events occurring thereafter. Company believes that continued investments in technologies are critical to establishing market share, attracting new customers, and becoming a profitable global BEV developer. Company's future profitability depends on the company's 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 the cost of sales will be affected primarily by production volume. The cost of sales will also be influenced by fluctuations in certain raw material prices, although Company typically seeks to manage these costs and minimize their volatility through a supply of framework agreements with suppliers. In addition, the results of operations are further affected by the company's ability to maintain and improve 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 operating efficiency and achieve economies of scale. Company has not been profitable since its inception. The company incurred a net loss of US\$460.3 million, US\$750.3 million, US\$724.6 million, and US\$110.5 million for the six months ended June 30, 2024, and in 2023, 2022, and 2021, respectively. In addition, Company had negative net cash flows from operating activities of US\$468.4 million, US\$386.9 million, US\$351.4 million, and US\$126.5 million for the six months ended June 30, 2024, and in 2023, 2022, and 2021, respectively. As of June 30, 2024, and as of December 31, 2023, 2022, and 2021, the company's accumulated deficit was US\$2.0 billion, US\$1.6 billion, US\$846.8 million, and US\$122.8 million, respectively. Company incurred capital expenditures of US\$49.5 million, US\$213.7 million, US\$133.3 million, and US\$34.6 million for the six months ended June 30, 2024, and in 2023, 2022, and 2021, respectively. Historically, Company relied principally on proceeds from the issuance of exchangeable notes, convertible notes, and related party borrowings to finance its operations and business expansion. The company will require additional liquidity to continue its operations over the next 12 months. Company is evaluating strategies to obtain the required additional funding for future operations. Company'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 has a limited operating history, and its ability to develop, manufacture, and deliver automobiles of high quality that appeal to customers, on schedule, and on a large scale is unproven and still evolving. Company has not been profitable and has experienced negative net cash flows from operations. If Company does not effectively manage its cash and other liquid financial assets, execute its plan to increase profitability, and obtain additional financing, it may not be able to continue as a going concern. ● Forecasts and projections of Company's operating and financial results rely in large part upon assumptions and analyses developed by Company's management. If these assumptions or analyses prove to be incorrect, Company's actual operating results may be materially different from those forecasted or projected. Company has received a limited number of orders for its vehicles, some of which may be cancelled by customers despite their deposit payment and online confirmation. ● Company currently depends on revenues generated from a limited number of vehicle models. If Company does not effectively manage its cash and other liquid financial assets, execute its plan to increase profitability, and obtain additional financing, it may not be able to continue as a going concern. Company has not been profitable since its inception. The company incurred a net loss of US\$750.3 million, US\$724.6 million, and US\$110.5 million in 2023, 2022, and 2021, respectively. In addition, Company had negative net cash flows from operating activities of US\$386.9 million, US\$351.4 million, and US\$126.5 million in 2023, 2022, and 2021, respectively. As of December 31, 2023, 2022, and 2021, the company's accumulated deficit was US\$1.6 billion, US\$846.8 million, and US\$122.8 million, respectively. Company incurred capital expenditures of US\$213.7 million, US\$133.3 million, and US\$34.6 million in 2023, 2022, and 2021, respectively. Historically, Company relied principally on proceeds from the issuance of exchangeable notes, convertible notes, and related party borrowings to finance its operations and business expansion. The company will require additional liquidity to continue its operations over the next 12 months. Company is evaluating strategies to obtain the required additional funding for future operations. Company may not generate sufficient revenues and may incur substantial losses for a number of reasons, including lack of demand for its vehicles, increasing competition, and other risks discussed herein. Additionally, Company may incur unforeseen expenses or encounter difficulties, complications, or delays in deriving revenues or achieving profitability. ● The automotive market is highly competitive, and Company may not be successful in competing in this industry. Company's reliance on a variety of arrangements with Counterparty A, such as agreements related to research and development, procurement, manufacturing, engineering, and IT and human resource-related supporting services, could subject the company to risks. ● Company may not succeed in continuing to maintain and strengthen its brand, and its brand and reputation could be harmed by negative publicity with respect to the company, its directors, officers, employees, shareholders, peers, business partners, or the automotive industry in general. ● 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 has not been profitable and has experienced negative net cash flows from operations. If the company does not effectively manage its cash and other liquid financial assets, execute its plan to increase profitability, and obtain additional financing, it may not be able to continue as a going concern.
[Table Level]
- Table Title: Breakdown of Revenues by Type
- Table Summary: The table provides a detailed breakdown of revenues by type for the years ended December 31, 2023, 2022, and 2021. It includes data on sales of goods and services revenues, expressed in thousands of US dollars and percentages of total revenues.
- Context: The table is part of a report discussing Company's diverse revenue streams, including sales of vehicles, parts, tools, and services such as automotive design and development.
- Special Notes: The numbers are presented in thousands, except for percentages.

[Row Level]
Row 1: For the year ended December 31, 2023, revenues from sales of goods amounted to US$660,158, representing 97.2% of the total revenue of US$679,008.

Row 2: For the year ended December 31, 2023, services revenues totaled US$18,850, which constituted 2.8% of the total revenue.

Row 3: For the year ended December 31, 2022, revenues from sales of goods were US$1,186, accounting for 12.4% of the year's total revenue of US$9,557.

Row 4: For the year ended December 31, 2022, services revenues were US$8,371, making up 87.6% of the total revenue.

Row 5: For the year ended December 31, 2021, sales of goods generated US$369, which was 10.0% of the total revenue of US$3,687.

Row 6: For the year ended December 31, 2021, services revenues reached US$3,318, comprising 90.0% of the total revenue. 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. [Table Level]

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

[Row Level]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Row 23: Net loss totaled $750,255 in 2023, $724,563 in 2022, and $110,531 in 2021. The company expects the Wuhan manufacturing facility will continue production and, with additional investment in necessary tooling and fixture upgrades, its planned Sedan and SUV. To date, Company has limited automobile manufacturing experience, and therefore cannot assure stakeholders that it will be able to achieve its targeted production volume of commercially viable vehicles on a timely basis, or at all. Company's continued development, manufacturing, and delivery of high-quality automobiles to achieve the company's targeted production volume are and will be subject to risks, including with respect to: ● delays in Company's EV technology development; ● lack of necessary funding; ● delays or disruptions in Company's supply chain; ● quality control deficiencies; ● inability to adapt to changing market conditions and manage growth effectively; ● noncompliance with environmental, workplace safety, and regulatory standards; and  
● cost overruns. Historically, automakers are expected to periodically introduce new and improved models to stay abreast of the market. To remain competitive, Company may be required to introduce new vehicle models and perform facelifts on existing vehicle models earlier or more frequently than originally planned, which would require the company to invest to a larger extent in research and development. Services. Company generates revenues mainly by providing automotive design and development services to OEM customers, technology-related services, and after-sales service. Cayman Islands Under the current laws of the Cayman Islands, Company is not subject to tax on income or capital gains. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, Company's Subsidiary A is subject to Hong Kong profits tax at the rate of 16.5% on its taxable income generated from operations in Hong Kong. The first HK$2 million of assessable profits earned by a company will be taxed at 8.25%, while the remaining profits will continue to be taxed at 16.5%. There is an anti-fragmentation measure where each group will have to elect only one company in the group to benefit from the progressive anti-fragmentation two-tier rates. [Table Level]
- Table Title: Revenues and Sales Breakdown
- Table Summary: The table presents a breakdown of total revenues for Company for the years ending December 31, 2023, and 2022, with a focus on "Sales of goods" and "Service revenues." It details revenue from various categories, highlighting significant year-over-year changes.
- Context: The financial overview indicates substantial revenue growth driven by increased sales volumes in battery electric vehicle (BEV) lifestyle models and Company-brand products. The context surrounding the table emphasizes examining these metrics alongside GAAP measures for a comprehensive understanding of performance.
- Special Notes: All monetary values are in thousands of US dollars, except for percentage changes.

[Row Level]
Row 1: Sales of goods revenue for 2023 amounted to $660,158,000, marking an increase of $658,972,000 or 55,562.6% from $1,186,000 in 2022.

Row 2: Revenue from BEV lifestyle models was $465,265,000 in 2023, with no comparable revenue in 2022, indicating a significant marketing launch impact of $465,265,000.

Row 3: Sports cars generated $184,111,000 in revenue in 2023, which is an increase of $183,283,000 from $828,000 in 2022, showing a 22,135.6% growth.

Row 4: The ‘Others’ category contributed $10,782,000 to the 2023 revenue, compared to $358,000 in 2022, representing an increase of $10,424,000 or 2,911.7%.

Row 5: Service revenues for 2023 reached $18,850,000, up from $8,371,000 in 2022, with a year-over-year increase of $10,479,000 or 125.2%.

Row 6: The Total Revenues for 2023 were $679,008,000, which is an increase of $669,451,000 or 7,004.8% from $9,557,000 in 2022. The following tables present Company's selected consolidated and combined financial data. Company prepares its consolidated and combined financial statements in accordance with U.S. GAAP. The selected consolidated and combined statements of comprehensive loss data for the years ended December 31, 2023, 2022, and 2021, the selected consolidated balance sheets data as of December 31, 2023, and 2022, and the selected consolidated and combined statements of cash flows data for the years ended December 31, 2023, 2022, and 2021 have been derived from Company's audited consolidated and combined financial statements for the years ended December 31, 2023, 2022, and 2021, which are included elsewhere in this prospectus. The selected consolidated statements of comprehensive loss data for the six months ended June 30, 2024, and 2023, the selected consolidated balance sheets data as of June 30, 2024, and the selected consolidated statements of cash flows data for the six months ended June 30, 2024, and 2023 have been derived from Company's unaudited condensed consolidated financial statements for the six months ended June 30, 2024, and 2023, which are included elsewhere in this prospectus. [Table Level]
- Table Title: Consolidated Balance Sheets of Company as of December 31, 2023 and 2022
- Table Summary: The table presents the consolidated balance sheets for Company, detailing ordinary shares, additional paid-in capital, receivables from shareholders, accumulated income or loss, deficits, equity changes, and the total shareholders' equity including noncontrolling interests as of December 31, 2023 and 2022. It tracks financial changes over the year, accounting for losses, shareholder contributions, and other significant equity transactions.
- Context: The financial audits were performed using PCAOB standards to ensure the financial statements are free from material misstatement. Detailed evaluations were made on principles and estimates used by management.
- Special Notes: All financial amounts are presented in thousands, with specific notes about the number of shares and financial transactions detailed.

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

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

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

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

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

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

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

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

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

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

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

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

Row 13: As of December 31, 2023, Company reported 474,621,603 ordinary shares with a reduced additional paid-in capital at US$ 358,187 and increased accumulated other comprehensive income of US$ 25,267. The accumulated deficit stood at US$ (1,588,773), with total shareholders’ equity attributable to ordinary shareholders at US$ (1,205,298), noncontrolling interests at US$ (5,404), and a total shareholders’ equity deficit of US$ (1,210,702). If neither Company nor Counterparty A Holding enters into longer-term supplier agreements with guaranteed pricing for parts or components, Company may be exposed to fluctuations in prices of components, materials, and equipment. For more details, see “—Risks Relating to Our Business and Industry — We are dependent on our suppliers, many of whom are our single source suppliers for the components they supply” and “—Risks Relating to Our Business and Industry — We could experience cost increases or disruptions in supply of raw materials or other components used in our vehicles.” Company may not succeed in continuing to maintain and strengthen its brand, and its brand and reputation could be harmed by negative publicity with respect to Company, its directors, officers, employees, shareholders, peers, business partners, or the automotive industry in general. Company's business and prospects will heavily depend on its ability to maintain and strengthen the “Company” brand associated with design, sustainability, and technological excellence. Company obtained licenses from Counterparty B to use the trademarks in the “Company” brand on lifestyle vehicles, parts, and components. Company's cost of revenues can be categorized as cost of goods sold and cost of services. The cost of goods sold primarily consists of purchase costs of vehicles, charging piles, parts, and accessories, depreciation of molds and tooling equipment, warehousing and transportation costs, and customs duties. The cost of goods sold also includes reserves for estimated warranty expenses and charges to write down the carrying value of the inventory when it exceeds its estimated net realizable value. The cost of services generally includes costs of direct parts and materials, costs associated with providing extended warranty service and after-sales services, depreciation of associated assets used for providing services, labor costs, rental expenses, consumed materials, and depreciation of associated assets used for providing automotive design and development services. (All amounts in thousands) 

As of September 30, 2024, cash assets amount to $191,300, while on December 31, 2023, the amount was $418,941. Restricted cash is reported at $465,064 on September 30, 2024, compared to $7,873 on December 31, 2023. Accounts receivable from third parties are shown at $94,503 for September 30, 2024, and $76,664 for December 31, 2023. Accounts receivable from related parties stand at $56,638 as of September 30, 2024, versus $22,430 as of December 31, 2023. Inventories are measured at $320,834 on September 30, 2024, and $265,190 on December 31, 2023. Prepayments and other current assets from third parties are listed as $107,905 on September 30, 2024, and $63,870 on December 31, 2023. Prepayments and other current assets from related parties are recorded at $57,716 for September 30, 2024, and $28,744 for December 31, 2023. The total current assets sum up to $1,293,960 for September 30, 2024, and $883,712 for December 31, 2023. Non-current restricted cash is $1,542 on September 30, 2024, compared to $321 on December 31, 2023. Investment securities related to parties amount to $2,011 on September 30, 2024, and $3,326 on December 31, 2023. [Table Level]  
- Table Title: Revenues Disaggregated by Product and Service Lines for Six Months Ended June 30, 2024 and 2023  
- Table Summary: This table provides a detailed breakdown of Company's revenues by product and service lines for the six months ended June 30, 2024, and 2023. It differentiates between sales to third parties and related parties, including specific categories like battery electric vehicle (BEV) lifestyle models, sports cars, and research and development (R&D) services.  
- Context: The revenues are part of a broader financial statement analysis, detailing disaggregated revenues by region and noting influences on earnings such as dilutive shares and contract liabilities.  
- Special Notes: All amounts are presented in thousands of US dollars, with footnotes clarifying certain categories. Footnote (1) and (2) correspond to other services provided to third parties and related parties, respectively.  

[Row Level]  
Row 1: Sales of goods to third parties for BEV lifestyle models amounted to $262,849 in 2024, increasing from $72,790 in 2023.  
Row 2: Sales of sports cars to third parties were $102,618 in 2024, up from $49,146 in 2023.  
Row 3: Other sales to third parties reached $15,096 in 2024 compared to $2,111 in 2023.  
Row 4: The subtotal for sales of goods to third parties was $380,563 in 2024, significantly higher than $124,047 in 2023.  
Row 5: Sales of goods to related parties for BEV lifestyle models were $535 in 2024 and $436 in 2023.  
Row 6: Sales of sports cars to related parties were $91 in 2024, with no sales in 2023.  
Row 7: Other sales to related parties were $1,704 in 2024 versus $371 in 2023.  
Row 8: The subtotal for sales of goods to related parties was $2,330 in 2024, compared to $807 in 2023.  
Row 9: The total subtotal for sales of goods, combining third parties and related parties, was $382,893 in 2024 and $124,854 in 2023.  
Row 10: Services provided to third parties for R&D amounted to $56 in 2024, with no corresponding revenue in 2023.  
Row 11: Other services to third parties were valued at $4,504 in 2024, compared to $160 in 2023.  
Row 12: The subtotal for services to third parties was $4,560 in 2024 and $160 in 2023.  
Row 13: Services provided to related parties for R&D were $6,366 in 2024, increasing from $4,983 in 2023.  
Row 14: Other services to related parties were $4,296 in 2024 versus $38 in 2023.  
Row 15: The subtotal for services to related parties was $10,662 in 2024, compared to $5,021 in 2023.  
Row 16: The total subtotal for all services, combining third parties and related parties, was $15,222 in 2024 and $5,181 in 2023.  
Row 17: The total revenues amounted to $398,115 in 2024, rising from $130,035 in 2023. Company has devoted significant capital to developing and growing its business, including developing its first model, the Eletre, expanding its sales and servicing network, and building its headquarters in Wuhan. In addition, Company plans to introduce two new battery electric vehicle (BEV) models in the near future. The company expects to further incur significant costs that will impact its profitability, including research and development expenses as it rolls out new models and improves existing models, additional operating costs and expenses for production ramp-up, selling and distribution expenses as it continues to build its brand and market its vehicles, and additional costs associated with being a public company. Furthermore, currency fluctuations, tariffs, or shortages in petroleum and other economic or political conditions may result in significant increases in freight charges and raw material costs. In addition, Company may also face increased costs in connection with the services it provides, including after-sale services. The company's ability to become profitable in the future will not only depend on its ability to successfully market its vehicles and other products and services but also to control its costs. [Table Level]
- Table Title: Consolidated Balance Sheets as of December 31, 2023, and 2022
- Table Summary: This table presents the operating and investing activities of Company for the years 2023, 2022, and 2021. It details the adjustments made to reconcile net losses to net cash used in operating activities, lists changes in operating assets and liabilities, and outlines net cash used in investing activities.
- Context: The table follows an introduction to audit standards and precedes detailed notes about the financial statements of Company, which involve activities related to the design, development, and sales of luxury battery electric vehicles and sports cars.
- Special Notes: All amounts are in thousands of US dollars. Notations such as "—" indicate that specific values are not available or not applicable for the year.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Row 19: Other non-current assets – third parties recorded $(34,248) in 极3, $(2,044) in 2022, and $(8,028) in 2021.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Row 34: Payments upon settlement of derivative instruments recorded $(641) in 2023 with no earlier values. 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. [Table Level]
- Table Title: Company. Unaudited Condensed Consolidated Statements of Comprehensive Loss
- Table Summary: This table presents Company.'s unaudited condensed consolidated statements of comprehensive loss for the nine months ended September 30, 2023, and 2024. It details net loss and other comprehensive income components, including adjustments for foreign currency translation and non-controlling interests. The financial data provide insights into Company.'s financial performance over this period.
- Special Notes: All amounts are presented in thousands, except for share and per share data. The analysis involves both GAAP and Non-GAAP financial results.

[Row Level]
Row 1: The net loss for the nine months ended September 30, 2024, is reported as $(666,520) thousand, compared to $(526,524) thousand for the same period in 2023.
Row 2: The fair value changes of mandatorily redeemable noncontrolling interest and notes, net of nil income taxes, show an income of $230 thousand for 2024 and a loss of $(585) thousand for 2023.
Row 3: Foreign currency translation adjustment, net of nil income taxes, is $118 thousand for 2024 and $24,077 thousand for 2023.
Row 4: Total other comprehensive income stands at $348 thousand for 2024 and $23,492 thousand for 2023.
Row 5: Total comprehensive loss for 2024 is $(666,172) thousand, compared to $(503,032) thousand in 2023.
Row 6: The total comprehensive loss attributable to noncontrolling interests is $(1,402) thousand for 2024, compared to $(7,587) thousand for 2023.
Row 7: Total comprehensive loss attributable to ordinary shareholders is $(664,770) thousand for 2024, compared to $(495,445) thousand for 2023. [Table Level]
- Table Title: Company. Unaudited Condensed Consolidated Statements of Comprehensive Loss
- Table Summary: The table presents the unaudited condensed consolidated statements of comprehensive loss for Company. for the three-month periods ending September 30, 2024, and September 30, 2023. It includes detailed financial metrics such as revenues, costs, operating expenses, and net loss attributable to ordinary shareholders, with all amounts expressed in thousands of US dollars.
- Context: The surrounding text emphasizes that the content may include forward-looking statements with inherent risks. All financial information is recent as of the release date.
- Special Notes: Amounts are provided in thousands. The loss per ordinary share is specified for both basic and diluted shares.

[Row Level]
Row 1: For the quarter ending September 30, 2024, revenues from sales of goods were $241,356, compared to $180,626 for the same period in 2023.

Row 2: Service revenues reached $13,352 in 2024, showing an increase from $7,280 in 2023.

Row 3: Total revenues for 2024 amounted to $254,708, up from $187,906 in the previous year.

Row 4: The cost of goods sold was $239,938 in 2024, compared to $155,689 in 2023.

Row 5: Cost of services in 2024 was $6,567, up from $4,596 in 2023.

Row 6: Total cost of revenues for 2024 was $246,505, higher than $160,285 in 2023.

Row 7: The gross profit for 2024 stood at $8,203, declining from $27,621 in 2023.

Row 8: Research and development expenses were $52,671 in 2024, compared to $81,999 in 2023.

Row 9: Selling and marketing expenses were recorded at $55,530 in 2024, compared to $72,995 in 2023.

Row 10: General and administrative expenses increased to $63,364 in 2024, from $37,786 in 2023.

Row 11: Government grants contributed $3,323 in 2024, up from $1,695 in 2023.

Row 12: Total operating expenses amounted to $168,242 in 2024, compared to $191,085 in 2023.

Row 13: The operating loss was $160,039 in 2024, slightly improved from $163,464 in 2023.

Row 14: Interest expenses increased to $8,849 in 2024, from $3,897 in 2023.

Row 15: Interest income rose to $6,618 in 2024, from $1,410 in 2023.

Row 16: Investment income (loss), net was $7,303 in 2024, compared to $4,079 in 2023.

Row 17: Share of results of equity method investments was a negative $398 in 2024, down from negative $22 in 2023.

Row 18: Foreign currency exchange gains, net increased to $19,392 in 2024, from $4,502 in 2023.

Row 19: Changes in fair values of mandatorily redeemable noncontrolling interest and notes resulted in a loss of $4,884 in 2024, up from $2,637 in 2023.

Row 20: Changes in fair values of warrant liabilities resulted in a gain of $1,060 in 2024, compared to no change in 2023.

Row 21: The loss before income taxes was $205,468 in 2024, rising from $172,214 in 2023.

Row 22: Income tax expense was $800 in 2024, compared to $1,368 in 2023.

Row 23: Net loss was $206,268 in 2024, compared to $173,582 in 2023.

Row 24: Net loss attributable to noncontrolling interests was $469 in 2024, compared to $1,872 in 2023.

Row 25: Net loss attributable to ordinary shareholders was $205,799 in 2024, compared to $171,710 in 2023.

Row 26: The accretion of redeemable convertible preferred shares was $4,805 in 2023.

Row 27: Net loss available to ordinary shareholders was $205,799 in 2024, compared to $176,515 in 2023.

Row 28: Loss per ordinary share, both basic and diluted, was $0.30 in 2024, compared to $0.37 in 2023.

Row 29: The weighted average number of ordinary shares outstanding, used in computing the net loss per ordinary share, was 675,897,690 in 2024, compared to 474,621,603 in 2023. For example, based on the closing price of the American Depositary Shares (ADSs) and Warrants as referenced above, the Founder Shareholders may experience a potential profit of up to US$6.38 per share, holders of the Legacy Shares may experience a potential profit of up to US$5.78 per share; the PIPE Investors may experience a potential profit on the PIPE Shares if the price of the Ordinary Shares exceeds US$10.00 per share; the CB Investors may experience a potential profit on the CB Shares if the price of the Ordinary Shares exceeds US$10.00 per share; and the Sponsor may experience a potential profit on the Sponsor Warrants if the price of the Ordinary Shares exceeds US$11.50 per share. Public investors may not experience a similar rate of return on the securities they purchase due to differences in the purchase prices that they paid and the current trading price. The trading prices of Company's American Depositary Shares (ADSs) and Warrants may be volatile, and a market for Company's ADSs may not develop, which would adversely affect the liquidity and price of Company's ADSs. [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. [Table Level]
- Table Title: Consolidated Cash Flow Information for Company. for the Years Ended December 31, 2023, 2022, and 2021
- Table Summary: The table presents detailed cash flow activities of Company., including financing and investing activities over the years 2021 to 2023. This summary breaks down each category of cash inflow and outflow, showcasing fluctuations in financial activities such as proceeds from share issuances, bank loans, and investments.
- Context: The table follows an auditing procedure overview, pointing out the assurance of free material misstatements in financial reporting. It precedes a detailed description of Company.'s business operations, emphasizing their focus on luxury battery electric vehicles and sports cars under the Company brand.
- Special Notes: All financial amounts are presented in thousands of US dollars. Specific references to notes (e.g., Note 10, Note 17) provide further explanation for particular items.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Row 22: Non-cash investing and financing activities incorporate the purchase of intangible assets and securities via convertible notes in 2023 and earlier, as highlighted in the notes section. Company's core values, which include developing high-quality electric vehicles while operating with integrity, are an important component of the company's brand image, making its reputation sensitive to allegations of unethical business practices. Company does not control its independent suppliers or their business practices. Accordingly, the company cannot guarantee these suppliers' compliance with ethical business practices, such as environmental responsibilities, fair wage practices, and compliance with child labor laws, among others. A lack of demonstrated compliance could lead Company to seek alternative suppliers, which could increase costs and result in delayed delivery of its products, product shortages, or other disruptions of its operations. Violation of labor or other laws by Company's suppliers or the divergence of an independent supplier’s labor or other practices from those generally accepted as ethical in the markets in which Company operates could also attract negative publicity for Company and its brand. This could diminish the value of Company's brand image and reduce demand for its electric vehicles. If Company, or other manufacturers in the industry, encounter similar problems in the future, it could harm Company's brand image, business, prospects, results of operations, and financial condition. Securities pledged to an investor are reported at $318,398 for September 30, 2024, with no corresponding amount for December 31, 2023. Loans receivable from a related party are $280,808 as of September 30, 2024, with none reported for December 31, 2023. Property, equipment, and software, net, are valued at $347,751 on September 30, 2024, and $354,617 on December 31, 2023. Intangible assets are valued at $116,520 on September 30, 2024, and $116,360 on December 31, 2023. Operating lease right-of-use assets are $149,079 on September 30, 2024, and $173,103 on December 31, 2023. Other non-current assets from third parties are reported at $74,420 for September 30, 2024, and $50,533 for December 31, 2023. Other non-current assets from related parties are $2,735 on September 30, 2024, compared to $2,706 on December 31, 2023. The total non-current assets are $1,293,264 for September 30, 2024, and $700,966 for December 31, 2023. The total assets amount to $2,587,224 as of September 30, 2024, compared to $1,584,678 as of December 31, 2023. There is no assurance that Company's vehicles will maintain and strengthen a reputation comparable to that of Company’ sports vehicle segment. If Company fails to do so, it may lose the opportunity to build a critical mass of customers. Promoting and positioning the brand will likely depend significantly on Company's ability to provide high-quality vehicles and services and engage with customers as intended, and Company has limited experience in these areas. In addition, Company expects that its ability to develop, maintain, and strengthen the brand will depend heavily on the success of its branding efforts. Company markets the brand through media, word-of-mouth, events, and advertising. Such efforts may not achieve the desired results. If Company does not maintain and strengthen a strong brand, its business, financial condition, results of operations, and prospects will be materially and adversely affected. The trademark licenses granted to Company to use the “Company” brand are on a royalty-free and worldwide basis and are for use of the trademarks (i) exclusively (subject to any existing licenses already granted) for lifestyle vehicles and parts and components in relation thereto that Company designs, develops, manufactures, assembles, distributes, and sells; [Table Level]
- Table Title: Financial Performance Summary
- Table Summary: This table presents the net loss, adjusted net loss, and adjusted EBITDA figures for the years ended December 31, 2021 to 2023. It includes detailed breakdowns of interest expenses, interest income, income tax expenses, share-based compensation expenses, and depreciation.
- Context: The table reflects financial performance measures that should be analyzed in conjunction with GAAP measures and other financial information to gain a full understanding of Company's fiscal health. It indicates a substantial year-over-year increase in total revenues due to various sales activities.
- Special Notes: Values are reported in US dollars and thousands (from 2022 onwards where specified).

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

[Row Level]
- **Row 1**: "In 2023, sales of goods amounted to US$ 660,158, compared to US$ 1,186 in 2022 and US$ 369 in 2021."
- **Row 2**: "Service revenues in 2023 were US$ 18,850, growing from US$ 8,371 in 2022 and US$ 3,318 in 2021."
- **Row 3**: "Total revenues for 2023 reached US$ 679,008, significantly higher than US$ 9,557 in 2022 and US$ 3,687 in 2021."
- **Row 4**: "The cost of goods sold in 2023 amounted to US$ 564,741, with US$ 948 in 2022 and US$ 331 in 2021."
- **Row 5**: "Cost of services was US$ 12,086 in 2023, decreasing from US$ 6,302 in 2022 and US$ 2,799 in 2021."
- **Row 6**: "Total cost of revenues for 2023 was US$ 576,827, while it was US$ 7,250 in 2022 and US$ 3,130 in 2021."
- **Row 7**: "Gross profit in 2023 equaled US$ 102,181, contrasting with US$ 2,307 in 2022 and US$ 557 in 2021."
- **Row 8**: "Research and development expenses were US$ 368,729 in 2023, compared to US$ 445,844 in 2022 and US$ 511,364 in 2021."
- **Row 9**: "Selling and marketing expenses reached US$ 328,935 in 2023, increasing from US$ 151,331 in 2022 and US$ 38,066 in 2021."
- **Row 10**: "General and administrative expenses were US$ 144,533 in 2023, compared to US$ 148,369 in 2022 and US$ 54,763 in 2021."
- **Row 11**: "Government grants amounted to US$ 4,077 in 2023, down from US$ 55,824 in 2022 and US$ 490,694 in 2021."
- **Row 12**: "Total operating expenses for 2023 were US$ 838,120, compared to US$ 689,720 in 2022 and US$ 113,499 in 2021."
- **Row 13**: "Operating loss in 2023 was US$ 735,939, compared to US$ 687,413 in 2022 and US$ 112,942 in 2021."
- **Row 14**: "Interest expenses were US$ 10,200 in 2023, compared to US$ 8,542 in 2022 and US$ 3,615 in 2021."
- **Row 15**: "Interest income in 2023 was US$ 9,204, an increase from US$ 12,188 in 2022 and US$ 6,219 in 2021."
- **Row 16**: "Net investment loss was US$ 1,162 in 2023, with losses of US$ 3,246 in 2022 and gains of US$ 2,229 in 2021."
- **Row 17**: "Foreign currency exchange losses were US$ 1,048 in 2023, compared to US$ 2,762 in 2022 and gains of US$ 798 in 2021."
- **Row 18**: "The change in fair value of liabilities was US$ 42 in 2023, compared to a loss of US$ 11,505 in 2022."
- **Row 19**: "Loss before income taxes in 2023 was US$ 749,142, compared to US$ 724,271 in 2022 and US$ 108,678 in 2021."
- **Row 20**: "Income tax expense was US$ 1,113 in 2023, compared to US$ 292 in 2022 and US$ 1,853 in 2021."
- **Row 21**: "The net loss in 2023 was US$ 750,255, compared to US$ 724,563 in 2022 and US$ 110,531 in 2021." [Table Level]
- Table Title: Company. Assets Overview
- Table Summary: This table presents a detailed comparison of Company.'s assets as of September 30, 2024, and December 31, 2023. It categorizes assets into current and non-current groups, providing a comprehensive view of each asset's value at two different times.
- Context: The table is presented in a press release containing forward-looking statements, emphasizing the inherent risks and uncertainties disclosed under "Risk Factors" in Company.'s filings. This is accompanied by a standard disclaimer about updating such statements only as required by law.
- Special Notes: All amounts are displayed in thousands, with specific columns representing US dollars for two different dates: September 30, 2024, and December 31, 2023.

[Row Level]
Row 1: As of September 30, 2024, cash assets amount to $191,300, while on December 31, 2023, the amount was $418,941.
Row 2: Restricted cash is reported at $465,064 on September 30, 2024, compared to $7,873 on December 31, 2023.
Row 3: Accounts receivable from third parties are shown at $94,503 for September 30, 2024, and $76,664 for December 31, 2023.
Row 4: Accounts receivable from related parties stand at $56,638 as of September 30, 2024, versus $22,430 as of December 31, 2023.
Row 5: Inventories are measured at $320,834 on September 30, 2024, and $265,190 on December 31, 2023.
Row 6: Prepayments and other current assets from third parties are listed as $107,905 on September 30, 2024, and $63,870 on December 31, 2023.
Row 7: Prepayments and other current assets from related parties are recorded at $57,716 for September 30, 2024, and $28,744 for December 31, 2023.
Row 8: The total current assets sum up to $1,293,960 for September 30, 2024, and $883,712 for December 31, 2023.
Row 9: Non-current restricted cash is $1,542 on September 30, 2024, compared to $321 on December 31, 2023.
Row 10: Investment securities related to parties amount to $2,011 on September 30, 2024, and $3,326 on December 31, 2023.
Row 11: Securities pledged to an investor are reported at $318,398 for September 30, 2024, with no corresponding amount for December 31, 2023.
Row 12: Loans receivable from a related party are $280,808 as of September 30, 2024, with none reported for December 31, 2023.
Row 13: Property, equipment, and software, net, are valued at $347,751 on September 30, 2024, and $354,617 on December 31, 2023.
Row 14: Intangible assets are valued at $116,520 on September 30, 2024, and $116,360 on December 31, 2023.
Row 15: Operating lease right-of-use assets are $149,079 on September 30, 2024, and $173,103 on December 31, 2023.
Row 16: Other non-current assets from third parties are reported at $74,420 for September 30, 2024, and $50,533 for December 31, 2023.
Row 17: Other non-current assets from related parties are $2,735 on September 30, 2024, compared to $2,706 on December 31, 2023.
Row 18: The total non-current assets are $1,293,264 for September 30, 2024, and $700,966 for December 31, 2023.
Row 19: The total assets amount to $2,587,224 as of September 30, 2024, compared to $1,584,678 as of December 31, 2023. 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 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. 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. Many of Company's current and potential competitors, particularly international competitors, have significantly greater financial, technical, manufacturing, marketing, and other resources than Company does and may be able to devote greater resources to the design, development, manufacturing, distribution, promotion, sale, and support of their products. Company expects competition in the automotive industry to intensify in the future in light of increased demand and regulatory push for alternative fuel vehicles, continuing globalization, and consolidation in the worldwide automotive industry. Factors affecting competition include, among others, local protectionism, brand recognition, product quality and performance, technological innovation, product design and styling, pricing, safety, and customer service. Increased competition may lead to lower vehicle unit sales and increased inventory, which may adversely affect Company's business, financial condition, operating results, and prospects. The company's ability to successfully overcome the industry barriers and compete in its market will be fundamental to its future success in existing and new markets and its market share. There can be no assurance that Company will be able to successfully overcome the industry barriers and compete in its markets. 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. *[Table Level]
- Table Title: Financial Overview of Mezzanine Equity and Shareholders' Deficit
- Table Summary: The table presents a comparison of mezzanine equity and shareholders' deficit for Company as of September 30, 2024, and December 31, 2023. It details specific equity and deficit amounts and calculates total liabilities, mezzanine equity, and shareholders' deficit.
- Context: This financial summary is from a press release involving forward-looking statements. All figures are in thousands of US dollars.
- Special Notes: The amounts listed in the table are in thousands. Notably, no figures are provided for the Series Pre-A and Series A Redeemable Convertible Preferred Shares in 2024.

*[Row Level]
- Row 1: As of December 31, 2023, the Series Pre-A Redeemable Convertible Preferred Shares are valued at $184,509, while this figure is not available for September 30, 2024.
- Row 2: For December 31, 2023, the Series A Redeemable Convertible Preferred Shares are recorded as $199,021, with no corresponding figure in 2024.
- Row 3: The Total Mezzanine Equity is $383,530 as of December 31, 2023, with no data available for September 30, 2024.
- Row 4: Ordinary Shares are valued at $7 for September 30, 2024, increasing from $21 on December 31, 2023.
- Row 5: Additional Paid-In Capital as of September 30, 2024, stands at $1,857,225, compared to $358,187 for December 31, 2023.
- Row 6: The Accumulated Other Comprehensive Income is $25,615 on September 30, 2024, marginally increasing from $25,267 on December 31, 2023.
- Row 7: The Accumulated Deficit increased to $(2,253,891) by September 30, 2024, from $(1,588,773) at the end of 2023.
- Row 8: Total Shareholders' Deficit Attributable to Ordinary Shareholders is $(371,044) as of September 30, 2024, compared to $(1,205,298) as of December 31, 2023.
- Row 9: Noncontrolling Interests show a deficit of $(6,529) for September 30, 2024, slightly larger than $(5,404) for December 31, 2023.
- Row 10: The Total Shareholders' Deficit is $(377,573) as of September 30, 2024, compared with $(1,210,702) by December 31, 2023.
- Row 11: The Total Liabilities, Mezzanine Equity, and Shareholders' Deficit sum up to $2,587,224 on September 30, 2024, against $1,584,678 on December 31, 2023. ● brand recognition, prestige, and heritage; ● design, styling, and luxury; ● technological innovation; ● driver experience; ● product quality and performance; ● product reliability and safety; ● battery range, efficiency, and charging speeds; ● customer service and customer experience, including access to charging options and availability and terms of aftersales services; ● product pricing; ● management team experience in bringing electric vehicles and other disruptive technologies to market; ● manufacturing efficiency; ● environmental impact and perception; ● the degree and sophistication of related vehicle software. Company believes that the company is favorably positioned to compete on the basis of these factors. However, many of its current and potential competitors have substantially greater financial, technical, manufacturing, marketing, and other resources than Company. These competitors may be able to deploy greater resources to the design, development, manufacturing, distribution, promotion, sales, marketing, and support of their products. Additionally, many of these competitors also have greater name recognition, longer operating histories, larger sales forces, broader customer and industry relationships, and other tangible and intangible resources that exceed those of Company. The following tables present Company's selected consolidated and combined financial data. Company prepares its consolidated and combined financial statements in accordance with U.S. GAAP. The selected consolidated and combined statements of comprehensive loss data for the years ended December 31, 2023, 2022, and 2021, the selected consolidated and combined balance sheets data as of December 31, 2023, and 2022, and the selected consolidated and combined statements of cash flows data for the years ended December 31, 2023, 2022, and 2021 have been derived from Company's audited consolidated and combined financial statements for the years ended December 31, 2023, 2022, and 2021, which are included elsewhere in this prospectus. Company's historical results for any prior period are not necessarily indicative of results expected in any future period. The financial data set forth below should be read in conjunction with, and is qualified by reference to “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and the consolidated and combined financial statements and notes thereto included elsewhere in this prospectus. 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. These competitors also compete with Company in recruiting and retaining qualified research and development, sales, marketing, and management personnel, as well as in acquiring technologies complementary to, or necessary for, its products. Additional mergers and acquisitions in the electric vehicle and luxury automotive markets may result in even more resources being concentrated in these competitors. Company believes that its brand and history, its focus on design and experience, its advanced technologies, its relationship with Counterparty A and therefore the benefits it can obtain during the vehicle development phase, and its future-proof approach give it a competitive edge and allow it to formulate a highly differentiated go-to-market strategy. Company also has a scalable asset-light business model that it believes generates significant competitive advantages, allowing it to incur less upfront capital expenditure and focus on research and development and technologies. If neither Company nor Counterparty A Holding enters into long-term supplier agreements with guaranteed pricing for parts or components, Company may be exposed to fluctuations in prices of components, materials, and equipment. For more details, see “—Risks Relating to Our Business and Industry — We are dependent on our suppliers, many of whom are our single source suppliers for the components they supply” and “—Risks Relating to Our Business and Industry — We could experience cost increases or disruptions in supply of raw materials or other components used in our vehicles.” Company may not succeed in continuing to maintain and strengthen its brand, and its brand and reputation could be harmed by negative publicity with respect to Company, its directors, officers, employees, shareholders, peers, business partners, or the automotive industry in general. Company's business and prospects will heavily depend on its ability to maintain and strengthen the “Company” brand associated with design, sustainability, and technological excellence. Company obtained licenses from Counterparty B to use the trademarks in the “Company” brand on lifestyle vehicles, parts, and components. Company's cost of revenues can be categorized as cost of goods sold and cost of services. Cost of goods sold primarily consists of purchase costs of vehicles, charging piles, parts, and accessories, depreciation of molds and tooling equipment, warehousing and transportation costs, and customs duties. Cost of goods sold also includes reserves for estimated warranty expenses and charges to write down the carrying value of the inventory when it exceeds its estimated net realizable value. Cost of services generally includes costs of direct parts, materials, costs associated with providing extended warranty service and after-sales services, depreciation of associated assets used for providing services, labor costs, rental expenses, consumed materials, and depreciation of associated assets used for providing automotive design and development services. Company cannot assure you that facelifts on its current and future models will appeal to its customers as expected, or that any introduction of new models or facelifts will not adversely affect the sales of existing models. Furthermore, Company relies on third-party suppliers for the provision and development of many of the key components and materials used in its vehicles. To the extent that these suppliers experience any difficulties in providing or developing necessary components, Company could experience delays in delivering vehicles. See also “— Risks Relating to our Business and Industry   —   Company is dependent on suppliers, many of whom are single source suppliers for the components they supply.” Any delay in the development, manufacturing, and delivery of Company's current or future models, or in performing facelifts to existing models, could subject the company to customer complaints and materially and adversely affect its reputation, demand for its vehicles, and growth prospects. Any of the foregoing could materially and adversely affect Company's business, financial condition, and results of operations. Company has not been profitable and has experienced negative net cash flows from operations. Convertible notes to third parties were $78,009 as of September 30, 2024, and $81,635 on December 31, 2023. Deferred income in non-current liabilities was $301,541 at the end of September 2024 and $270,097 on December 31, 2023. Other non-current liabilities to third parties were $114,348 on September 30, 2024, as opposed to $103,403 on December 31, 2023. Other non-current liabilities to related parties were $1,580 on September 30, 2024, compared to $1,634 in December 2023. Total non-current liabilities equaled $834,842 as of September 30, 2024, and were $654,569 at the end of 2023. Total liabilities were $2,964,797 on September 30, 2024, while these were $2,411,850 on December 31, 2023. [Table Level]
- Table Title: Cost of Revenues Breakdown for the Years Ended December 31, 2023, 2022, and 2021
- Table Summary: This table details the cost of revenues for Company over three years, split into the cost of goods sold and cost of services. It shows the absolute amounts in thousands of US dollars, alongside their respective percentages of total cost of revenues for each year.
- Context: The cost of revenues is categorized into costs related to goods sold and services, and these costs are expected to increase as Company expands globally.
- Special Notes: All monetary values are in thousands of US dollars, and percentages represent each component's portion of total cost of revenues for the given year.

[Row Level]
Row 1: In 2023, the cost of goods sold was $(564,741) thousand, making up 97.9% of the total cost of revenues. In 2022, the cost of goods sold was $(948) thousand, comprising 13.1%, and in 2021, the cost of goods sold was $(331) thousand, accounting for 10.6%.
Row 2: In 2023, the cost of services was $(12,086) thousand, constituting 2.1% of the total cost of revenues. The cost of services was $(6,302) thousand in 2022, representing 86.9%, and $(2,799) thousand in 2021, making up 89.4%.
Row 3: The total cost of revenues for 2023 amounted to $(576,827) thousand, totaling 100%. For 2022, the total cost of revenues was $(7,250) thousand, also at 100%, and for 2021, the total cost of revenues was $(3,130) thousand, at 100% as well. Convertible notes due to related parties were $113,701 as of September 30, 2024, with no amount reported as of December 31, 2023. Convertible notes to third parties had no value as of September 30, 2024, but were $20,277 on December 31, 2023. Put option liabilities to related parties were $18 as of September 30, 2024, and non-existent by December 31, 2023. Total current liabilities were $2,129,955 on September 30, 2024, versus $1,757,281 on December 31, 2023. Contract liabilities to third parties under non-current liabilities were $7,645 as of September 30, 2024, and $6,245 at the end of 2023. Non-current operating lease liabilities to third parties were $72,295 as of September 30, 2024, compared to $91,929 on December 31, 2023. Non-current operating lease liabilities to related parties totaled $11,648 on September 30, 2024, and $12,064 on December 31, 2023. Put option liabilities to third parties were $135,864 on September 30, 2024, with $11,884 listed as of December 31, 2023. Put option liabilities to related parties were $4,489 on September 30, 2024, with no amount as of December 31, 2023. Exchangeable notes were $107,423 on September 30, 2024, and $75,678 at the end of 2023. Company is unable to predict the effect that such sales may have on the prevailing market price of its securities. Company cannot assure you that financing will be available in amounts or on terms acceptable to it, if at all. In the event that additional financing is required from third-party sources, Company may not be able to raise it on acceptable terms or at all. See “Risk Factors   —   Risks Relating to Company's Business and Industry   —   Company has not been profitable and had negative net cash flows from operations. If Company does not effectively manage its cash and other liquid financial assets, execute its plan to increase profitability and obtain additional financing, it may not be able to continue as a going concern and “Risk Factors   —   Risks Relating to Company's Business and Industry   —   Company's business plans require a significant amount of capital. [Table Level]  
- Table Title: Company. Consolidated Balance Sheets  
- Table Summary: This table presents the consolidated financial statements of Company. for the years ended December 31, 2023, 2022, and 2021. It includes information about revenues, expenses, and net loss attributable to ordinary shareholders.  
- Context: The audits, conducted according to PCAOB standards, provide reasonable assurance that the financial statements are free from material misstatement. The audits evaluate accounting principles, risk assessments, and presentation of statements.  
- Special Notes: All amounts are in thousands, except for share and per-share data. Notes and special marks are referenced throughout the table.  

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

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

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

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

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

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

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

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

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

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

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

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

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

Row 14: Interest expenses for the respective years amounted to $10,200 in 2023, $8,542 in 2022, and $3,615 in 2021.  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Row 31: Total other comprehensive income (loss) If Company is unable to maintain collaboration with Counterparty A, the company's financial performance would be directly and adversely affected. There can be no assurance that in such an event, Company would be able to partner with other third parties to meet its needs on acceptable terms or at all. The expense and time required to complete any transition, and to ensure that vehicles manufactured at facilities of new third-party partners comply with Company's quality standards and regulatory requirements, may be greater than anticipated. Any of the foregoing could adversely affect Company's business, results of operations, financial condition, and prospects. Furthermore, Company's supply chain efficiency also relies heavily on Counterparty A, largely attributable to Counterparty A's bargaining power derived from its volume and reputation. Failure to maintain agreements or partnerships with Counterparty A could adversely affect Company's relationships with suppliers, and there is no assurance that in such an event Company would be able to maintain relationships with current suppliers or secure new suppliers to meet its needs on comparable and acceptable terms. Company cannot assure you that facelifts on its current and future models will appeal to its customers as expected, or that any introduction of new models or facelifts will not adversely affect the sales of existing models. Furthermore, Company relies on third-party suppliers for the provision and development of many of the key components and materials used in its vehicles. To the extent that these suppliers experience any difficulties in providing or developing necessary components, Company could experience delays in delivering vehicles. See also “— Risks Relating to our Business and Industry   —   Company is dependent on suppliers, many of whom are single source suppliers for the components they supply.” Any delay in the development, manufacturing, and delivery of current or future models, or in performing facelifts to existing models, could subject Company to customer complaints and materially and adversely affect its reputation, demand for its vehicles, and growth prospects. Any of the foregoing could materially and adversely affect Company's business, financial condition, and results of operations. [Table Level]
- Table Title: Consolidated and Combined Statements of Cash Flows
- Table Summary: This table presents the cash flow activities of Company and its subsidiaries for the fiscal years ended December 31, 2023, 2022, and 2021. It details cash flows from operating, investing, and financing activities, along with the impact of exchange rate changes and the net change in cash and restricted cash over these years.
- Context: The table is part of a broader financial analysis and should be interpreted alongside the management's discussion, analysis of financial condition, results of operation, and the accompanying notes to the consolidated and combined financial statements.
- Special Notes: Amounts for the year 2022 are in thousands of US dollars.

[Row Level]
- Row 1: For the year 2023, net cash used in operating activities amounted to $(386,932). In 2022, this figure was $(351,419) (in thousands), while in 2021, it was $(126,505).
- Row 2: The net cash used in investing activities was $(197,985) in 2023, compared to $(149,414) in 2022 (in thousands), and $244,476 in 2021.
- Row 3: Net cash provided by financing activities reached $284,708 in 2023, $758,131 (in thousands) in 2022, and $364,853 in 2021.
- Row 4: The effect of exchange rate changes on cash and restricted cash was $(12,189) in 2023, $(49,217) in 2022 (in thousands), and $2,943 in 2021.
- Row 5: The net decrease in cash and restricted cash stood at $(312,398) for 2023, $208,081 (in thousands) for 2022, and $485,767 for 2021.
- Row 6: Cash and restricted cash at the beginning of the year was $739,533 in 2023, $531,452 in 2022 (in thousands), and $45,685 in 2021.
- Row 7: Cash and restricted cash at the end of the year totaled $427,135 in 2023, $739,533 in 2022, and $531,452 in 2021 (with 2022 figures in thousands). [Table Level]  
- Table Title: Company. Unaudited Condensed Consolidated Statements of Comprehensive Loss  
- Table Summary: This table presents the unaudited condensed consolidated statements of comprehensive loss for Company. for the three months ended September 30, 2024, and September 30, 2023. It includes details of net loss, other comprehensive income or loss, and total comprehensive loss attributable to ordinary shareholders.  
- Context: The table appears within a press release containing forward-looking statements under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.  
- Special Notes: All amounts in the table are expressed in thousands of US dollars.  

[Row Level]  
- Row 1: For the three months ended September 30, 2024, the net loss was US$206,268, compared to US$173,582 for the three months ended September 30, 2023.  
- Row 2: Fair value changes of mandatorily redeemable noncontrolling interest and similar items for September 30, 2024, were US$631, while September 30, 2023, registered US$974.  
- Row 3: Foreign currency translation adjustment, net of nil income taxes, showed a loss of US$294 for September 30, 2024, and a loss of US$10,486 for September 30, 2023.  
- Row 4: Total other comprehensive income for September 30, 2024, was reported as US$337, whereas a loss of US$9,512 was reported for September 30, 2023.  
- Row 5: Total comprehensive loss for September 30, 2024, is indicated at US$205,931, in contrast to US$183,094 for September 30, 2023.  
- Row 6: The loss attributable to noncontrolling interests for September 30, 2024, was US$469, compared to US$1,998 for September 30, 2023.  
- Row 7: Total comprehensive loss attributable to ordinary shareholders was US$205,462 for the period ending September 30, 2024, while it stood at US$181,096 for the same period in 2023. [Table Level]
- Table Title: Cost of Revenues Analysis
- Table Summary: This table presents the costs associated with revenues for different time periods, distinguishing between the cost of goods sold and the cost of services. It includes detailed breakdowns for the six months ended June 30, 2024, and 2023, as well as the years ended December 31, 2023, 2022, and 2021. 
- Context: Before the table, the specific components of cost of goods sold and services are described, such as purchase costs and warranty reserves. After the table, an overview of gross profit and operating expenses is provided, with insights into anticipated marketing and administrative expenses.
- Special Notes: All financial figures are in thousands of US dollars, and percentages are provided. 

[Row Level]
Row 1: For the six months ended June 30, 2024, the cost of goods sold amounted to $340,882, representing 98.2% of the total revenue cost.
Row 2: For the same period, the cost of services was $6,321, accounting for 1.8% of the total, culminating in a total revenue cost of $347,203.
Row 3: For the six months ended June 30, 2023, the cost of goods sold was $119,557, making up 96.5% of the total revenue cost.
Row 4: The cost of services for this period amounted to $4,351, representing 3.5% of the total, with an overall revenue cost of $123,908.
Row 5: For the year ended December 31, 2023, the cost of goods sold totaled $564,741, comprising 97.9% of the total revenue cost.
Row 6: In the same year, the cost of services was $12,086, accounting for 2.1%, leading to a cumulative revenue cost of $576,827.
Row 7: For the year ended December 31, 2022, the cost of goods sold was $948, which represented 13.1% of the total revenue cost.
Row 8: The cost of services during this period was $6,302, making up 86.9% of the total, with an overall revenue cost of $7,250.
Row 9: For the year ended December 31, 2021, the cost of goods sold reached $331, accounting for 10.6% of the total revenue cost.
Row 10: The cost of services in 2021 was $2,799, representing 89.4%, amounting to a total revenue cost of $3,130. Company operates in the electric vehicle market, which is rapidly evolving and may not develop as anticipated. The regulatory framework governing the industry in various countries is currently uncertain and may remain uncertain for the foreseeable future. As the electric vehicle industry and Company's business develop, the company may need to modify its business model or change its services and solutions. Such changes may not achieve expected results, which could have a material adverse effect on Company's results of operations and prospects. Furthermore, Company may be unable to keep up with changes in electric vehicle technology and, as a result, its competitiveness may suffer. Company's research and development efforts may not be sufficient to adapt to changes in electric vehicle technology. As technologies change, Company plans to upgrade or adapt its vehicles and introduce new models in order to equip its vehicles with the latest technology, in particular battery cell technology. Such upgrades could involve substantial costs and lower the return on investment for existing vehicles. The following table sets forth Company's results of operations with line items in absolute amounts for the years indicated. 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. If Company is unable to design, develop, market, sell, and service its vehicles and provide services, or if the manufacturing of its vehicles cannot be conducted in a cost-efficient manner, its margins, profitability, and prospects would be materially and adversely affected. If Company fails to manage its growth effectively, the company may not be able to market and sell its vehicles successfully. Company has expanded its operations, and as Company ramps up production, significant expansion will be required, especially in connection with potential increases in sales, providing customers with high-quality servicing, expanding the retail, delivery, and servicing center network, and managing different models of vehicles. Company's future operating results depend to a large extent on its ability to manage this expansion and growth successfully. Risks that Company faces in undertaking this expansion include, among others:  
● managing Company's supply chain to support fast business growth;  
● maintaining Company's partnership with Counterparty A to manufacture its vehicles;  
● managing a larger organization with a greater number of employees in different divisions;  
● controlling expenses and investments in anticipation of expanded operations;  
● establishing or expanding design, sales, and service facilities; [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). [Table Level]
- Table Title: Financial Position as of December 31, 2023
- Table Summary: The table presents a comparison of actual and pro forma financial metrics for December 31, 2023. It includes data on cash, restricted cash, equity, and various kinds of debt, providing insights into Company's financial capitalization both in real terms and projected adjustments from the Business Combination.
- Context: The table is part of the selected historical financial data of Company, illustrating both actual results and adjustments as if the Business Combination had already occurred.
- Special Notes: All amounts are in USD thousands.

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

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

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

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

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

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

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

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

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

Row 10: Total capitalization shows a deficit of $(415,818) in actual terms, shifting to a positive $780,682 on a pro forma basis, highlighting the financial impact of the Business Combination. Company's cloud security policies seek to enable secure cloud architecture deployments and extend security capabilities. Utilizing signed certificates, encryption keys, message authentication codes, and cryptographic algorithms, Company has deployed authentication and encryption as part of its efforts to secure its products, software, vehicles and their components, and over-the-air updates. Additionally, Company utilizes pre-condition checks, sequence and dependency execution, failure detection, and rollback and recovery when performing updates during the over-the-air process. Company faces competition from both traditional luxury automotive developers and an increasing number of newer companies focused on electric and other alternative fuel vehicles. Company believes the primary competitive factors on which Company competes with its peers include, but are not limited to: [Table Level]
- Table Title: Consolidated Balance Sheets of Company as of December 31, 2022 and 2023
- Table Summary: The table outlines the changes in equity of Company over the year ending December 31, 2022. It includes the number of ordinary shares, the additional paid-in capital, receivables from shareholders, accumulated comprehensive income or loss, accumulated deficit, equity attributable to ordinary shareholders, noncontrolling interests, and the total shareholders' equity or deficit.
- Context: The financial statements are part of an audit conducted according to PCAOB standards to ensure they are free from material misstatements. The surrounding context includes notes on the business structure and operations of Company.
- Special Notes: All amounts are presented in thousands, except for share and per share data.

[Row Level]

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

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

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

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

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

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

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

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

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

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

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

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

Row 13: By December 31, 2022, balances included 474,621,603 ordinary shares, additional paid-in capital of $403,103, receivables from shareholders of $(26,447), accumulated other comprehensive income of $17,707, an accumulated deficit of $(846,757), resulting in $(452,373) attributable to ordinary shareholders, $(642) in noncontrolling interests, and $(453,015) as total shareholders' deficit. [Table Level]  
- Table Title: Consolidated Balance Sheets as of December 31, 2023 and 2022  
- Table Summary: This table outlines the changes in shareholders' equity of Company for the year ending December 31, 2022. It captures the fluctuations in ordinary shares, additional paid-in capital, receivables, accumulated comprehensive income, and noncontrolling interests.  
- Context: The table is part of the financial statements audited by KPMG Huazhen LLP, demonstrating the standards and procedures taken to ensure accuracy and compliance with PCAOB guidelines.  
- Special Notes: All amounts are presented in thousands of US dollars, except for share and per share data.  

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

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

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

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

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

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

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

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

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

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

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

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

Row 13: The balance as of December 31, 2022 includes 474,621,603 ordinary shares at a nominal value of US$21, with additional paid-in capital at US$403,103, a reduced receivable from shareholders of US$26,447, accumulated other comprehensive income of US$17,707, and reflects an accumulated deficit of US$846,757. This leads to total shareholders' equity attributable to ordinary shareholders and total shareholders' equity of US$453,015 deficit. 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. [Table Level]
- Table Title: Consolidated Balance Sheets Data
- Table Summary: This table presents the selected consolidated balance sheet data for Company as of June 30, 2024, and December 31 for the years 2023 and 2022. It includes data on total current assets, total non-current assets, total current liabilities, total non-current liabilities, and total liabilities.
- Context: The table is part of the consolidated and combined financial statements prepared in accordance with U.S. GAAP, which have been audited or derived from unaudited condensed consolidated financial statements.
- Special Notes: All values are presented in thousands of US dollars.

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

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

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

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

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

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

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

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

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

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

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

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

Row 7: At the end of the period, cash and restricted cash amounted to US$643,815 as of June 30, 2024, and US$729,027 for 2023. At year-end, these amounts were US$427,135 in 2023, US$739,533 in 2022, and US$531,452 in 2021. If Company is unable to maintain collaboration with Counterparty A, its financial performance would be directly and adversely affected. There can be no assurance that in such an event Company would be able to partner with other third parties to meet its needs on acceptable terms or at all. The expense and time required to complete any transition, and to ensure that vehicles manufactured at facilities of new third-party partners comply with Company's quality standards and regulatory requirements, may be greater than anticipated. Any of the foregoing could adversely affect Company's business, results of operations, financial condition, and prospects. Furthermore, Company's supply chain efficiency also relies heavily on Counterparty A, largely attributable to Counterparty A's bargaining power derived from its volume and reputation. Failure to maintain agreements or partnerships with Counterparty A could adversely affect Company's relationships with suppliers, and there is no assurance that in such an event Company would be able to maintain relationships with current suppliers or secure new suppliers to meet its needs on comparable and acceptable terms. [Table Level]
- Table Title: Company. Unaudited Condensed Consolidated Statements of Comprehensive Loss
- Table Summary: The table presents the financial performance of Company., showing net loss, adjusted net loss, interest expenses, interest income, income tax expenses, share-based compensation expenses, depreciation, and adjusted EBITDA for the nine and three months ended September 30, 2024, and 2023. It distinguishes between GAAP and non-GAAP results.
- Context: The surrounding context includes a forward-looking statement disclaimer relevant for investors and highlights that this is unaudited financial data in thousands, except for share-based metrics.
- Special Notes: All amounts are in thousands of US dollars, and share-based compensation expenses note a tax effect of nil.

[Row Level]
For Nine Months Ended September 30, 2024:
- Row 1: The net loss was $666,520,000.
- Row 2: Share-based compensation expenses, net of tax effect of nil, were $33,565,000.
- Row 3: The adjusted net loss was $632,955,000.
- Row 4: Interest expenses were $20,557,000.
- Row 5: Interest income was $(15,276,000).
- Row 6: Income tax expenses were $1,155,000.
- Row 7: Share-based compensation expenses were $33,565,000.
- Row 8: Depreciation amounted to $63,153,000.
- Row 9: The adjusted EBITDA was $(563,366,000).

For Nine Months Ended September 30, 2023:
- Row 1: The net loss was $526,524,000.
- Row 2: Share-based compensation expenses, net of tax effect of nil, are not applicable.
- Row 3: The adjusted net loss was $526,524,000.
- Row 4: Interest expenses were $7,367,000.
- Row 5: Interest income was $(7,258,000).
- Row 6: Income tax expenses were $1,350,000.
- Row 7: Share-based compensation expenses are not applicable.
- Row 8: Depreciation amounted to $38,650,000.
- Row 9: The adjusted EBITDA was $(486,415,000).

For Three Months Ended September 30, 2024:
- Row 1: The net loss was $206,268,000.
- Row 2: Share-based compensation expenses, net of tax effect of nil, were $(2,329,000).
- Row 3: The adjusted net loss was $208,597,000.
- Row 4: Interest expenses were $8,849,000.
- Row 5: Interest income was $(6,618,000).
- Row 6: Income tax expenses were $800,000.
- Row 7: Share-based compensation expenses were $(2,329,000).
- Row 8: Depreciation amounted to $23,867,000.
- Row 9: The adjusted EBITDA was $(181,699,000).

For Three Months Ended September 30, 2023:
- Row 1: The net loss was $173,582,000.
- Row 2: Share-based compensation expenses, net of tax effect of nil, are not applicable.
- Row 3: The adjusted net loss was $173,582,000.
- Row 4: Interest expenses were $3,897,000.
- Row 5: Interest income was $(1,410,000).
- Row 6: Income tax expenses were $1,368,000.
- Row 7: Share-based compensation expenses are not applicable.
- Row 8: Depreciation amounted to $16,009,000.
- Row 9: The adjusted EBITDA was $(153,718,000). As a result of the foregoing, Company's gross profits increased from US$557 thousand for the year ended December 31, 2021, to US$2,307 thousand for the year ended December 31, 2022, and Company's gross margins increased from 15.1% for the year ended December 31, 2021, to 24.1% for the year ended December 31, 2022. The increased gross profit and gross margin were primarily due to the increased revenue from automotive design services, which had a higher gross profit margin. (All amounts in thousands, except for share and per share) [Table Level]
- Table Title: Revenue Breakdown for Different Periods
- Table Summary: The table provides a detailed breakdown of revenue sources for Company across different financial periods, including both sales of goods and service revenues. It shows the amount in US dollars and the percentage contributions for both the six months ended June 30 and the years ended December 31 from 2021 to 2024.
- Context: The context discusses Company's operations as a global distributor for Company Cars and their sources of revenue, which include sales of automotive products and services. Their cost structure and revenue generation strategies are further elaborated upon, highlighting the importance of product distribution and service delivery.
- Special Notes: The financial figures represented in the table are in thousands, except for percentages.

[Row Level]
Row 1: For the six months ended June 30, 2024, sales of goods amounted to $382,893, contributing 96.2% to total revenues. In contrast, in the same period for 2023, sales of goods were $124,854, making up 96.0% of the total revenues.

Row 2: Service revenues for the six months ending June 30, 2024, were $15,222, accounting for 3.8% of total revenues. This compares to $5,181 in 2023, which represented 4.0% of total revenues.

Row 3: The total revenues for the six months ended June 30, 2024, were $398,115, which was 100% of revenue composition, compared to $130,035 or 100% for the same period in 2023.

Row 4: For the year ended December 31, 2023, sales of goods reached $660,158, which was 97.2% of the total revenues, while for 2022, these were $1,186, contributing 12.4%.

Row 5: Service revenues for the year ended December 31, 2023, stood at $18,850, representing 2.8% of total revenue, and $8,371 in 2022, making up 87.6%.

Row 6: The total revenues for the year ended December 31, 2023, were $679,008, making up 100% of revenues, whereas in 2022, the total was $9,557, also 100%.

Row 7: In 2021, sales of goods were $369, equivalent to 10.0% of the total, while service revenues were $3,318, contributing 90.0%.

Row 8: Total revenues for 2021 stood at $3,687, making up 100% of the total revenues. [Table Level]
- Table Title: Consolidated Balance Sheets of Company. as of December 31, 2023 and 2022
- Table Summary: The table presents the financial position of Company. by detailing liabilities, equity, and deficits for the years ending December 31, 2023, and 2022. It categorizes mezzanine equity, shareholders' equity, and deficits alongside total liabilities and commitments.
- Context: The accompanying financial statements are audited by KPMG Huazhen LLP, ensuring compliance with PCAOB standards. The table forms part of the consolidated balance sheets for Company., a company specializing in luxury electric vehicles and sports cars under the "Company" brand.
- Special Notes: All financial figures are expressed in thousands of US dollars, excluding share and per share data.

[Row Level]
Row 1: The total liabilities are reported as $2,411,850 for 2023 and $1,456,558 for 2022.

Row 2: There are commitments and contingencies, referenced in note 28, but no specific values are provided in the table.

Row 3: Under mezzanine equity, Series Pre-A Redeemable Convertible Preferred Shares have a par value of $0.00001 per share, with 40,885,006 shares authorized and outstanding as of the end of 2023 and 2022. The redemption value is $184,509 for 2023 and $174,429 for 2022, with a liquidation preference matching these values.

Row 4: Series A Redeemable Convertible Preferred Shares also have a par value of $0.00001 per share, with 27,343,520 shares authorized and outstanding as of the end of 2023 and 2022. The redemption value noted is $199,021 for 2023 and $187,441 for 2022, with corresponding liquidation preferences.

Row 5: The total mezzanine equity amounts to $383,530 for 2023 and $368,409 for 2022.

Row 6: In the shareholders' equity (deficit) section, ordinary shares, with a par value of $0.00001 and 5,000,000,000 shares authorized, have 474,621,603 shares issued and outstanding at year-end 2023 and 2022. The numerical values for ordinary shares are $20 in 2023 and $21 in 2022.

Row 7: Additional paid-in capital is reported as $358,187 for 2023 and $403,103 for 2022.

Row 8: There are no receivables from shareholders in 2023, whereas, in 2022, a receivable from shareholders is noted at $(26,447).

Row 9: Accumulated other comprehensive income records $25,267 in 2023 and $17,707 in 2022.

Row 10: The accumulated deficit is $(1,588,773) for 2023 and $(846,757) for 2022.

Row 11: The total shareholders' deficit attributable to ordinary shareholders stands at $(1,205,298) for 2023 and $(452,373) for 2022.

Row 12: Noncontrolling interests are $(5,404) in 2023 and $(642) in 2022.

Row 13: The total shareholders' deficit is $(1,210,702) for 2023 and $(453,015) for 2022.

Row 14: Summing liabilities, mezzanine equity, and shareholders' deficit, the total is $1,584,678 for 2023 and $1,371,952 for 2022. 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 future revenues and appropriately budget for expenses, and Company may have limited insight into trends that may emerge and affect the 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 BEV lifestyle models for the global market using the Wuhan manufacturing facility. 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. Additionally, many of these competitors also have greater name recognition, longer operating histories, larger sales forces, broader customer and industry relationships, and other tangible and intangible resources that exceed those of Company. These competitors also compete with Company in recruiting and retaining qualified research and development, sales, marketing, and management personnel, as well as in acquiring technologies complementary to, or necessary for, the company's products. Additional mergers and acquisitions in the electric vehicle and luxury automotive markets may result in even more resources being concentrated in Company's competitors. Company believes that its brand and history, focus on design and experience, advanced technologies, relationship with Counterparty A, and the benefits obtained during the vehicle development phase, along with its future-proof approach, provide a competitive edge and enable the formulation of a highly differentiated go-to-market strategy. Company also has a scalable asset-light business model that is believed to generate significant competitive advantages, allowing the company to incur less upfront capital expenditure and focus on research and development and technologies. As of June 30, 2024, Company had 207 stores in its global distribution network. Major vehicle models currently in Company's global sales and distribution network include 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 Evija (BEV sports car) and Emira (ICE sports car). Key Components of Results of Operations Company generates revenues primarily through sales of goods and services. Sales of goods. Company generates revenues by providing the following products: ● Battery Electric Vehicle (BEV) lifestyle models developed by Company;  
● Company-brand sports cars developed by Subsidiary B;  
● auto parts; and  
● peripheral products. There is a risk of potential disputes with Counterparty A, and Company could be affected by adverse publicity related to Counterparty A whether or not such publicity is related to their collaboration. Company's ability to successfully build a luxury lifestyle vehicle brand could also be adversely affected by perceptions about the quality of Counterparty A’s vehicles. In addition, although Company is involved in each step of the supply chain and manufacturing process, given that Company also relies on Counterparty A to meet its quality standards, there can be no assurance that Company will successfully maintain quality standards. If Company is unable to maintain collaboration and partnership with Counterparty A, Company may be unable to enter into new agreements with third-party manufacturing partners on terms and conditions acceptable to the company or at all. The company's ability to operate as a standalone business, produce vehicles, reach development and production targets, or focus efforts on core areas of differentiation could be materially and adversely affected. Additionally, Company generated a portion of revenue from automotive design and development services provided to Counterparty A. [Table Level]
- Table Title: Consolidated and Combined Balance Sheets Data
- Table Summary: The table presents selected financial data showing the total current assets, non-current assets, total assets, current liabilities, non-current liabilities, and total liabilities as of December 31, 2023, and 2022. This data is measured in thousands of U.S. dollars and derived from audited financial statements, reflecting Company's financial position.
- Context: This table forms part of the consolidated and combined financial data prepared according to U.S. GAAP. It should be read alongside management discussions and detailed financial statements included in the prospectus.
- Special Notes: All values are presented in thousands of U.S. dollars.

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

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

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

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

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

Row 6: Total liabilities as of December 31, 2023, were $2,411,850 thousand, significantly higher than the $1,456,558 thousand reported in 2022. How is the company's overseas expansion situation? As a legendary brand with a history of 76 years, Company has a high reputation in the global market. The company currently has over 200 sales outlets in key global locations. The company's global deliveries were balanced, with the four major markets (Europe, China, North America, and Rest of World) each contributing 20-30% of deliveries. The company's lifestyle vehicles (Eletre and Emeya) are gradually entering new markets. After delivery in Southeast Asia, the Eletre SUV has started delivery in markets such as the Middle East, New Zealand, India, and Egypt. Eletre SUV production orders have commenced in Australia, Japan, and South Korea. The Emeya GT sedan has started delivery in Europe and has been pre-ordered in the Middle East, Northeast Asia, and Southeast Asia. There is a risk of potential disputes with Counterparty A, and Company could be affected by adverse publicity related to Counterparty A whether or not such publicity is related to their collaboration. Company's ability to successfully build a luxury lifestyle vehicle brand could also be adversely affected by perceptions about the quality of Counterparty A’s vehicles. In addition, although Company is involved in each step of the supply chain and manufacturing process, given that Company also relies on Counterparty A to meet its quality standards, there can be no assurance that Company will successfully maintain quality standards. If Company is unable to maintain collaboration and partnership with Counterparty A, Company may be unable to enter into new agreements with third-party manufacturing partners on terms and conditions acceptable to Company or at all. Company's ability to operate as a standalone business, produce vehicles, reach development and production targets, or focus efforts on core areas of differentiation could be materially and adversely affected. Additionally, Company generated a portion of revenue from automotive design and development services provided to Counterparty A. Company uses adjusted net loss and adjusted EBITDA in evaluating its operating results and for financial and operational decision-making purposes. Adjusted net loss represents net loss excluding share-based compensation expenses, and such adjustment has no impact on income tax. Company defines adjusted EBITDA as net loss excluding interest income, interest expenses, income tax expenses, depreciation of property, equipment, and software, and share-based compensation expenses. Company presents these non-GAAP financial measures because they are used by Company's management to evaluate operating performance and formulate business plans. Company believes that adjusted net loss and adjusted EBITDA help identify underlying trends in the business that could otherwise be distorted by the effect of certain expenses included in net loss. Company also believes that the use of the non-GAAP measures facilitates investors’ assessment of operating performance. Company believes that adjusted net loss and adjusted EBITDA provide useful information about operating results, enhance the overall understanding of past performance and future prospects, and allow for greater visibility with respect to key metrics used by management in financial and operational decision-making. [Table Level]
- Table Title: Selected Consolidated and Combined Financial Data
- Table Summary: The table presents the financial performance of Company, showcasing revenues, costs, operating expenses, and profits/losses for the six months ended June 30, 2024, and 2023, and for the years ended December 31, 2023, 2022, and 2021. It includes data on sales, costs, operating expenses, and calculations of gross profit and net loss, highlighting the financial changes over these periods.
- Context: The financial data should be considered alongside the "Management’s Discussion and Analysis of Financial Condition and Results of Operation” for a comprehensive understanding. Historical results are not necessarily indicative of future performance.
- Special Notes: All amounts are in thousands of US dollars.

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

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

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

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

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

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

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

Row 8: Loss before income taxes for this mid-year was US$(459,897), followed by an income tax expense of US$(355), resulting in a net loss of US$(460,252). Sales of goods. Company generates revenues by providing the following products:  
● Battery Electric Vehicle (BEV) lifestyle models developed by Company;  
● Company-brand sports cars developed by Subsidiary B;  
● auto parts; and  
● peripheral products.  

Services. Company generates revenues mainly by providing automotive design and development services to OEM customers and after-sales service. The following table sets forth a breakdown of revenues by type both in absolute amount and as a percentage of Company's revenues for the years indicated. This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “potential,” “forecast,” “plan,” “seek,” “future,” “propose,” or “continue,” or the negatives of these terms or variations of them or similar terminology, although not all forward-looking statements contain such terminology. Forward-looking statements involve inherent risks and uncertainties, including those identified under the heading “Risk Factors” in Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Company undertakes no obligation to update any forward-looking statement, except as required under applicable law. Contact Information for Investor Inquiries: ir@group-Company.com (All amounts in thousands) 

Short-term borrowings from third parties amounted to $703,130 as of September 30, 2024, and $226,772 as of December 31, 2023. Accounts payable to third parties were $56,425 on September 30, 2024, compared to $20,123 on December 31, 2023. Accounts payable to related parties totaled $492,599 as of September 30, 2024, and were $340,419 as of December 31, 2023. Contract liabilities to third parties were reported as $48,390 on September 30, 2024, and $44,184 on December 31, 2023. Operating lease liabilities owed to third parties stood at $12,423 as of September 30, 2024, while they were $16,760 on December 31, 2023. Third-party accrued expenses and other current liabilities amounted to $366,762 on September 30, 2024; comparatively, these were $419,422 on December 31, 2023. Accrued expenses and other current liabilities to related parties were $231,067 on September 30, 2024, and $290,686 on December 31, 2023. As of September 30, 2024, there were no exchangeable notes, while as of December 31, 2023, $378,638 were noted. Mandatorily redeemable ordinary shares accounted for $105,440 on September 30, 2024, and showed no amount by December 31, 2023. Under the laws of mainland China, each of Company's mainland China subsidiaries is required to set aside at least 10% of its after-tax profits each year, if any, after making up previous years’ accumulated losses, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of the subsidiary's registered capital. In addition, each of Company's wholly foreign-owned subsidiaries in China may allocate a portion of its after-tax profits based on PRC accounting standards to enterprise expansion funds and staff bonus and welfare funds at its discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by SAFE. Company's PRC subsidiaries will not be able to pay dividends until they generate accumulated profits and meet the requirements for statutory reserve funds. 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. The strategic partnership with Counterparty A allows Company to effectively control supply chain-related risks and accelerate product development. Company's ability to successfully operate its Global Commercial Platform will affect its ability to increase revenues. Company has taken steps to diversify its revenue sources, for example, by entering into the Distribution Agreement with Subsidiary A, pursuant to which Company is the exclusive global distributor (excluding the U.S., where Company International Limited will act as the head distributor with the existing regional distributor continuing its functions) for Subsidiary A to distribute Subsidiary A vehicles, parts, and certain tools, and to provide aftersales services, branding, marketing, and public relations for such vehicles, parts, and tools distributed by Company. Under the current Hong Kong Inland Revenue Ordinance, Company's Hong Kong subsidiary is subject to Hong Kong profits tax at the rate of 16.5% on its taxable income generated from operations in Hong Kong. A two-tiered profits tax rates regime was introduced in 2018, where the first HK$2 million of assessable profits earned by a company will be taxed at half of the current tax rate (8.25%), while the remaining profits will continue to be taxed at 16.5%. There is an anti-fragmentation measure where each group will have to elect only one company in the group to benefit from the progressive rates. No provision for Hong Kong profits tax has been made in the financial statements as the subsidiary in Hong Kong has no assessable profits for the years ended December 31, 2023, 2022, and 2021. The Inland Revenue (Amendment) (Taxation on Specified Foreign-sourced Income) Bill 2022 was enacted in Hong Kong on December 14, 2022, and became effective on January 1, 2023. [Table Level]  
- Table Title: Consolidated Balance Sheets - Non-current Liabilities  
- Table Summary: The table presents the non-current liabilities of Company as of December 31, 2023, and 2022. It details various liability categories, including contract liabilities, operating lease liabilities, put option liabilities, exchangeable notes, convertible notes, deferred tax liabilities, deferred income, and other liabilities, and compares their values across the two years.  
- Context: The audits were conducted according to PCAOB standards to ensure financial statements are free of material misstatement. The table is part of Company's consolidated balance sheets as of the end of 2023 and 2022, with financial details presented in thousands of dollars.  
- Special Notes: All amounts are in thousands of US dollars, with detailed notes for specific liabilities.  

[Row Level]  
Row 1: As of December 31, 2023, contract liabilities to third parties amount to US $6,245 with no corresponding liability in 2022.  

Row 2: Operating lease liabilities owed to third parties, including those of variable interest entities (VIEs) without recourse, totaled US $91,929 in 2023, a decrease from US $98,963 in 2022.  

Row 3: Operating lease liabilities to related parties, also considering VIEs without recourse, were US $12,064 in 2023, significantly higher than US $170 in 2022.  

Row 4: Put option liabilities stood at US $11,884 in 2023, with no such liabilities in 2022.  

Row 5: Exchangeable notes were recorded as US $75,678 in 2023, an increase from US $71,792 in 2022.  

Row 6: Convertible notes summed to US $81,635 in 2023, up from US $76,770 the previous year.  

Row 7: Deferred tax liabilities were US $126 in 2023, unchanged from 2022.  

Row 8: Deferred income grew to US $270,097 in 2023 from US $258,450 in 2022.  

Row 9: Other non-current liabilities to third parties increased to US $103,403 in 2023 from US $15,824 in 2022.  

Row 10: Other non-current liabilities to related parties were US $1,634 in 2023, slightly up from US $1,584 in 2022.  

Row 11: The total of non-current liabilities was US $654,569 in 2023, compared to US $523,679 in 2022. [Table Level]
- Table Title: Consolidated Balance Sheets of Company.
- Table Summary: The table presents the consolidated balance sheets of Company. as of January 1, 2021, and December 31, 2021. The table details changes in ordinary shares, additional paid-in capital, receivables from shareholders, accumulated deficits, and total shareholders' equity, including contributions from shareholders and effects of reorganization.
- Context: The table is a part of the audited financial statements of Company., following PCAOB standards, representing the financial position at year-end 2021 and various financial activities throughout the year.
- Special Notes: All amounts are in thousands of US dollars unless specified otherwise. Footnote (1) refers to the number of ordinary shares.

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

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

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

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

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

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

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

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

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

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

Row 11: As of December 31, 2021, the balance sheet reported 479,954,430 ordinary shares, additional paid-in capital of $424,414, receivables from shareholders at $106,210, an accumulated deficit of $122,836, and total shareholders' equity of $195,321. Company's historical results for any prior period are not necessarily indicative of results expected in any future period. The financial data set forth below should be read in conjunction with, and is qualified by reference to “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and the consolidated and combined financial statements and notes thereto included elsewhere in this prospectus. The Group’s revenues are disaggregated by product and service lines as follows: The company expects the Wuhan manufacturing facility will continue production and, with additional investment in necessary tooling and fixture upgrades, its planned Sedan and SUV. To date, Company has limited automobile manufacturing experience, and therefore cannot assure stakeholders that it will be able to achieve its targeted production volume of commercially viable vehicles on a timely basis, or at all. Company's continued development, manufacturing, and delivery of high-quality automobiles to achieve the targeted production volume are and will be subject to risks, including with respect to: ● delays in Company's EV technology development; ● lack of necessary funding; ● delays or disruptions in Company's supply chain; ● quality control deficiencies; ● inability to adapt to changing market conditions and manage growth effectively; ● noncompliance with environmental, workplace safety, and regulatory requirements; and  
● cost overruns. Historically, automakers are expected to periodically introduce new and improved models to stay abreast of the market. To remain competitive, Company may be required to introduce new vehicle models and perform facelifts on existing vehicle models earlier or more frequently than originally planned, which would require the company to invest to a larger extent in research and development. As a result of the foregoing, Company's gross profits increased from US$557,000 for the year ended December 31, 2021, to US$2,307,000 for the year ended December 31, 2022, and Company's gross margins increased from 15.1% for the year ended December 31, 2021, to 24.1% for the year ended December 31, 2022. The increased gross profit and gross margin were primarily due to the increased revenue from automotive design services with a higher gross profit margin. [Table Level]
- Table Title: Non-current Liabilities as of December 31, 2023 and 2022
- Table Summary: This table outlines the non-current liabilities of Company for the years ending December 31, 2023, and December 31, 2022. The liabilities are categorized into various types, such as contract liabilities, operating lease liabilities, financial notes, and other liabilities. It provides a comparison of the amounts for each category over the two years.
- Context: The table is part of the consolidated balance sheets audited by KPMG Huazhen LLP for Company, highlighting the financial status and liabilities of the company.
- Special Notes: All values are in thousands of US dollars. Certain liabilities include operating lease obligations of variable interest entities (VIEs) without recourse to Company.

[Row Level]
Row 1: Contract liabilities from third parties amount to $6,245 in 2023, whereas in 2022, there were no such liabilities recorded.

Row 2: Operating lease liabilities to third parties, including liabilities of VIEs, are $91,929 for 2023, showing a decrease from $98,963 in 2022.

Row 3: Operating lease liabilities to related parties are recorded at $12,064 in 2023, up significantly from $170 in 2022.

Row 4: Put option liabilities are consistent at $11,884 in 2023, with no recorded liability in 2022.

Row 5: Exchangeable notes are noted at $75,678 in 2023, increasing from $71,792 in 2022.

Row 6: Convertible notes have a value of $81,635 in 2023, compared to $76,770 in 2022.

Row 7: Deferred tax liabilities are shown as $126 in 2022, with no such liabilities in 2023.

Row 8: Deferred income is recorded as $270,097 in 2023, which is an increase from $258,450 in 2022.

Row 9: Other non-current liabilities to third parties are $103,403 in 2023, a significant rise from $15,824 in 2022.

Row 10: Other non-current liabilities to related parties are $1,634 in 2023, slightly up from $1,584 in 2022.

Row 11: Total non-current liabilities amount to $654,569 in 2023, up from $523,679 in 2022. [Table Level]  
- Table Title: Liabilities, Mezzanine Equity and Shareholders' Deficit  
- Table Summary: This table provides a detailed breakdown of Company's liabilities as of September 30, 2024, and December 31, 2023. It categorizes liabilities into current and non-current, listing specific financial obligations to third parties and related parties.  
- Context: The surrounding context indicates financial results tied to forward-looking statements from Company, focusing on potential risks and forecasts. The numbers are reported in thousands.  
- Special Notes: All amounts are in thousands, and the table helps in understanding the financial position regarding liabilities.  

[Row Level]  
Row 1: Short-term borrowings from third parties amounted to $703,130 as of September 30, 2024, and $226,772 as of December 31, 2023.  

Row 2: Accounts payable to third parties were $56,425 on September 30, 2024, compared to $20,123 on December 31, 2023.  

Row 3: Accounts payable to related parties totaled $492,599 as of September 30, 2024, and were $340,419 as of December 31, 2023.  

Row 4: Contract liabilities to third parties were reported as $48,390 on September 30, 2024, and $44,184 on December 31, 2023.  

Row 5: Operating lease liabilities owed to third parties stood at $12,423 as of September 30, 2024, while they were $16,760 on December 31, 2023.  

Row 6: Third-party accrued expenses and other current liabilities amounted to $366,762 on September 30, 2024; comparatively, these were $419,422 on December 31, 2023.  

Row 7: Accrued expenses and other current liabilities to related parties were $231,067 on September 30, 2024, and $290,686 on December 31, 2023.  

Row 8: As of September 30, 2024, there were no exchangeable notes, while as of December 31, 2023, $378,638 were noted.  

Row 9: Mandatorily redeemable ordinary shares accounted for $105,440 on September 30, 2024, and showed no amount by December 31, 2023.  

Row 10: Convertible notes due to related parties were $113,701 as of September 30, 2024, with no amount reported as of December 31, 2023.  

Row 11: Convertible notes to third parties had no value as of September 30, 2024, but were $20,277 on December 31, 2023.  

Row 12: Put option liabilities to related parties were $18 as of September 30, 2024, and non-existent by December 31, 2023.  

Row 13: Total current liabilities were $2,129,955 on September 30, 2024, versus $1,757,281 on December 31, 2023.  

Row 14: Contract liabilities to third parties under non-current liabilities were $7,645 as of September 30, 2024, and $6,245 at the end of 2023.  

Row 15: Non-current operating lease liabilities to third parties were $72,295 as of September 30, 2024, compared to $91,929 on December 31, 2023.  

Row 16: Non-current operating lease liabilities to related parties totaled $11,648 on September 30, 2024, and $12,064 on December 31, 2023.  

Row 17: Put option liabilities to third parties were $135,864 on September 30, 2024, with $11,884 listed as of December 31, 2023.  

Row 18: Put option liabilities to related parties were $4,489 on September 30, 2024, with no amount as of December 31, 2023.  

Row 19: Exchangeable notes were $107,423 on September 30, 2024, and $75,678 at the end of 2023.  

Row 20: Convertible notes to third parties were $78,009 as of September 30, 2024, and $81,635 on December 31, 2023.  

Row 21: Deferred income in non-current liabilities was $301,541 at the end of September 2024 and $270,097 on December 31, 2023.  

Row 22: Other non-current liabilities to third parties were $114,348 on September 30, 2024, as opposed to $103,403 on December 31, 2023.  

Row 23: Other non-current liabilities to related parties were $1,580 on September 30, 2024, compared to $1,634 in December 2023.  

Row 24: Total non-current liabilities equaled $834,842 as of September 30, 2024, and were $654,569 at the end of 2023.  

Row 25: Total liabilities were $2,964,797 on September 30, 2024, while these were $2,411,850 on December 31, 2023. According to Maples and Calder (Hong Kong) LLP, Company's Cayman Islands counsel, the Cayman Islands currently levies no taxes on corporations based upon profits, income, capital gains, or appreciation. There are no other taxes likely to be material to Company levied by the government of the Cayman Islands except for stamp duties which may be applicable on instruments executed in, or brought within the jurisdiction of the Cayman Islands. In addition, the Cayman Islands does not impose withholding tax on payments of dividends. Under the current Hong Kong Inland Revenue Ordinance, Subsidiary A is subject to Hong Kong profits tax at the rate of 16.5% on its taxable income generated from operations in Hong Kong. A two-tiered profits tax rates regime was introduced in 2018, where the first HK$2 million of assessable profits earned by a company will be taxed at half of the current tax rate (8.25%), while the remaining profits will continue to be taxed at 16.5%. There is an anti-fragmentation measure where each group will have to elect only one company in the group to benefit from the progressive rates. 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. Company. Unaudited Condensed Consolidated Statements of Comprehensive Loss  
(cont’d) (All amounts in thousands, except for share and per share) These related party agreements include the Technology License Agreement, the Manufacture Cooperation Agreement, and the Supply of Framework Agreement, among other areas. These agreements are described in more detail in this prospectus under “Certain Relationships and Related Person Transactions   —   Related Party Transactions.” These partnerships permit Company to benefit from Counterparty A’s decades of experience investing in established automakers while focusing its efforts on core areas of differentiation, such as design, research and development, performance, and rapid adoption of the latest technologies and sustainability solutions. Company intends to continue to rely on its partnership with Counterparty A as part of its strategy. Collaboration with Counterparty A for research and development, procurement, manufacturing, and engineering is subject to risks with respect to operations that are outside of Company's control. Company currently relies on and expects to continue to rely on its strategic partner, Counterparty A, in terms of research and development, procurement, manufacturing, and engineering with regard to its vehicles. [Table Level]
- Table Title: Company. Financial Performance for the Nine Months Ended September 30
- Table Summary: The table presents a detailed breakdown of Company.'s financial performance for the nine months ended September 30, 2024, compared to the same period in 2023. It includes revenues, costs, operating expenses, and net loss figures. Key financial metrics like gross profit, operating loss, and net loss per ordinary share are highlighted.
- Context: The table is part of a press release that includes forward-looking statements according to the U.S. Private Securities Litigation Reform Act of 1995. It's meant to communicate financial results subject to risks and uncertainties.
- Special Notes: All amounts are in thousands of US dollars, except for share and per share data. A footnote indicates the loss per ordinary share is calculated using basic and diluted shares.

[Row Level]
Row 1: Revenues from sales of goods for 2024 are $624,249, an increase from $305,480 in 2023.
Row 2: Service revenues in 2024 amount to $28,574, up from $12,461 in 2023.
Row 3: Total revenues for 2024 are reported at $652,823, compared to $317,941 in 2023.
Row 4: Cost of goods sold for 2024 is $580,820, compared to $275,246 in 2023.
Row 5: Cost of services in 2024 is $12,888, rising from $8,947 in 2023.
Row 6: Total cost of revenues for 2024 is $593,708, compared to $284,193 in 2023.
Row 7: Gross profit for 2024 is $59,115, up from $33,748 in 2023.
Row 8: Research and development expenses for 2024 are $227,525, slightly lower than $234,547 in 2023.
Row 9: Selling and marketing expenses for 2024 climb to $259,804, from $191,231 in 2023.
Row 10: General and administrative expenses in 2024 sum up to $175,342, compared to $118,203 in 2023.
Row 11: Government grants for 2024 are $5,811, more than double the $2,357 reported in 2023.
Row 12: Total operating expenses for 2024 total $656,860, a rise from $541,624 in 2023.
Row 13: Operating loss for 2024 is $597,745, up from $507,876 in 2023.
Row 14: Interest expenses for 2024 are $20,557, an increase from $7,367 in 2023.
Row 15: Interest income in 2024 is $15,276, up from $7,258 in 2023.
Row 16: Net investment income for 2024 is $10,799, compared to a loss of $1,309 in 2023.
Row 17: Share of results of equity method investments for 2024 records a loss of $39, compared to a loss of $648 in 2023.
Row 18: Foreign currency exchange gains, net for 2024 are $14,963, up from $883 in 2023.
Row 19: Changes in fair values of mandatorily redeemable noncontrolling interest in 2024 are $3,917, compared to a loss of $15,395 in 2023.
Row 20: Changes in fair values of warrant liabilities are $7,377 for 2024 and not applicable in 2023.
Row 21: Loss before income taxes for 2024 is $665,365, broader than the $525,174 in 2023.
Row 22: Income tax expense for 2024 is $1,155, slightly lower than $1,350 in 2023.
Row 23: Net loss for 2024 is $666,520, versus $526,524 in 2023.
Row 24: Net loss attributable to noncontrolling interests for 2024 is $1,402, compared to a small loss of $7,651 in 2023.
Row 25: Net loss attributable to ordinary shareholders for 2024 is $665,118, broader than $518,873 in 2023.
Row 26: Accretion of Redeemable Convertible Preferred Shares in 2024 is $2,979, a decrease from $5,063 in 2023.
Row 27: Net loss available to ordinary shareholders for 2024 is $668,097, compared to $523,936 in 2023.
Row 28: Loss per ordinary share for 2024 is $1.05, similar to the $1.10 in 2023.
Row 29: Weighted average number of ordinary shares outstanding (basic and diluted) for 2024 is 636,737,124, compared to 474,621,603 in 2023. Company. Unaudited Reconciliation of GAAP and Non-GAAP Results (Adjusted Net Loss/Adjusted EBITDA) (All amounts in thousands) [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. Competition Company faces competition from both traditional luxury automotive developers and an increasing number of newer companies focused on electric and other alternative fuel vehicles. Company believes the primary competitive factors on which Company competes with its peers include, but are not limited to: ● brand recognition, prestige, and heritage; ● design, styling, and luxury; ● technological innovation; ● driver experience; ● product quality and performance; ● product reliability and safety; ● battery range, efficiency, and charging speeds; ● customer service and customer experience, including access to charging options and availability and terms of aftersales services; ● product pricing; ● management team experience in bringing electric vehicles and other disruptive technologies to market; ● manufacturing efficiency; ● environmental impact and perception; ● the degree and sophistication of related vehicle software. Company believes that the company is favorably positioned to compete on the basis of these factors. However, many of Company's current and potential competitors have substantially greater financial, technical, manufacturing, marketing, and other resources than the company. These competitors may be able to deploy greater resources to the design, development, manufacturing, distribution, promotion, sales, marketing, and support of their products. The following table sets forth Company's gross profit for the years/periods indicated.