On April 8, Lotus handed over its first annual report after going public. According to the financial report, in 2023, Lotus will achieve an operating income of 679 million US dollars (about 4.916 billion yuan). Among them, the revenue in the fourth quarter was 361 million US dollars (about 2.614 billion yuan), an increase of 92% from the previous quarter. This is also the first half of Lotus's "Vision80" strategy, which was proposed in 2018.
This achievement is inseparable from the growth of Lotus sales, especially pure electric models. In 2023, Lotus delivered a total of 6,970 vehicles, the highest annual delivery record in the brand's 76-year history. Entering the fourth quarter, with the delivery of the Eletre for life cars, Lotus' sales entered a high-speed growth mode. During the quarter, Lotus delivered 3,749 vehicles, up nearly 110% from the previous quarter.
At present, Lotus sells the Evija, the last electric sports car, the Eletre, and the Emeya (launched on January 18, 2024), completing the product layout from the track to the road and then to the life car. In Lotus's sales mix, the proportion of electric sales of pure electric models has increased significantly, accounting for 63% of the total deliveries. Among them, the Eletre accounts for an absolute proportion of its overall sales.
At the same time, backed by Geely's asset-light model, Lotus's gross profit margin is also steadily improving. In 2023, Lotus gross margin is 15%. Among them, the gross profit margin in the fourth quarter increased by 4 percentage points compared with the third quarter, reaching 19%, and profitability increased steadily. "We are pleased with the initial progress and results we have achieved in 2023, with the increase in deliveries reflecting the strength of our brand and increased capacity. Feng Qingfeng, CEO of Lotus Technology, said.
However, Lotus is still facing losses, with a net loss of US$750 million (about 5.4 billion yuan) in 2023, an increase of 3.5% year-on-year. In 2021 and 2022, Lotus had a net loss of $110 million and $720 million, respectively. According to Lotus' financial report, in 2023, its R&D investment will be US$369 million, a decrease of 17.30%, sales and marketing expenses will be US$329 million (about 2.38 billion yuan), an increase of 117.36%, and general and administrative expenses will be US$146 million (about 1.06 billion yuan), an increase of 2.59%.
In addition to promoting the launch of products, Lotus's globalization strategy has also been further accelerated. By the end of 2023, Lotus had expanded to 215 stores worldwide, an increase of 46 from last year. Among them, the number of stores in China has increased from 41 to 65, the number of stores in North America has increased from 41 to 47, and the number of stores in Europe has increased from 54 to 70. By 2025, Lotus will expand its global network of marketing channels to 300 stores, laying the foundation for the global promotion of its products.
In addition, in terms of energy replenishment, Lotus has built 65 supercharging stations in China. In addition, around 300,000 public charging stations across Europe and China provide Lotus owners with convenient charging services. With the global rollout of electric models, the company expects to continue to expand its charging network.
As the beginning of the second half of the "Vision80 strategy", Lotus will successfully land on the NASDAQ at the beginning of 2024, becoming the first auto stock to land on the US stock market this year. This also provides Lotus with a richer arsenal of ammunition to accelerate product innovation, develop next-generation automotive technologies, expand its global distribution network, and operate its business on a day-to-day basis. As of the end of 2023, Lotus had cash and cash equivalents of US$419 million (about RMB 3 billion).
In 2024, Lotus will hit its target of about tripling annual deliveries to 26,000 vehicles. Previously, the sales target for 2024 was 56,000 units. At the product level, the Emeya model was delivered in China in March, with deliveries expected in Europe in the third quarter of 2024. In addition, the Eletre model will also enter Malaysia, the Middle East, Australia and New Zealand in the first half of this year, and Japan, South Korea, and the United States in the second half of the year.
In addition to the above-mentioned models already launched, Lotus will also launch an electric sports car and a four-door coupe in the future, forming a "3+3" product matrix of three sports cars and three lifestyle cars, and will continue to move towards the goal of "becoming the first traditional luxury brand to achieve 100% electrification of all products in 2027". At the same time, Lotus is also strengthening its connection with users and driving brand renaissance through new brand propositions, co-creation with users, and customer experience events. For example: Lotus Chapman Bespoke Haute Couture, Lotus Day, LOTUS Drive, etc.
With the launch of products in the global market, store expansion and operational efficiency improvement, Lotus expects revenue to reach 2.5 billion to 2.7 billion US dollars (about 18 billion to 19.5 billion yuan) in 2024, and gross profit will increase from 15% to 17% to 19%. In addition, Feng Qingfeng previously said in an interview that it is expected that in 2026, Lotus will achieve net profit and cash flow positive, when the gross profit margin will reach more than 20%, and the annual sales volume will reach 50,000-60,000 vehicles. This means that Lotus will have to complete the turnaround in three years.