0001104659-26-107484 | 6-K | XBRL Viewer

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SHARE-BASED COMPENSATION - Schedule of share options activities (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2026	Dec. 31, 2025
Number of shares
Outstanding, Beginning balance	12,051,138
Granted	3,823,185
Forfeited	(1,203,162)
Exercised	0	0
Outstanding, Ending balance	14,671,161	12,051,138
Vested and expected to vest	14,671,161
Exercisable	14,649,013
Weighted average exercise price
Outstanding, Beginning balance	$ 2.89
Granted	2.89
Forfeited	2.89
Outstanding, Ending balance	2.89	$ 2.89
Vested and expected to vest	2.89
Exercisable	2.89
Weighted average grant-date fair value
Outstanding, Beginning balance	2.05
Granted	0.43
Forfeited	2.03
Outstanding, Ending balance	1.65	$ 2.05
Vested and expected to vest	1.65
Exercisable	$ 1.64
Weighted remaining contractual years
Weighted remaining contractual years	7 years 11 months 19 days	7 years 9 months 14 days
Vested and expected to vest	7 years 11 months 19 days
Exercisable	7 years 11 months 19 days

OTHER NON-CURRENT ASSETS - THIRD PARTIES (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Related party
OTHER NON-CURRENT ASSETS - THIRD PARTIES
Total	$ 587	$ 569
Nonrelated Party
OTHER NON-CURRENT ASSETS - THIRD PARTIES
Deposits for long-term operating leases	1,914	2,030
Prepayments for purchases of property, equipment and software	464	10,612
Deductible VAT	63,897	65,149
Others	592	617
Total	$ 66,867	$ 78,408

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

SUBSEQUENT EVENTS (Details) - Related party - Geely HK And Etika - LGIL Put Option $ / shares in Units, $ in Thousands		12 Months Ended
	Jan. 31, 2023 USD ($) item	Dec. 31, 2024 $ / shares shares
SUBSEQUENT EVENTS
Consideration \| $	$ 0
Option pre agreed price revenue multiplier	1.15
Number of vehicles to be sold, pre-agreed condition \| item	5,000
Exercise price \| $ / shares		$ 0
Ordinary shares issued \| shares		0

CONVERTIBLE NOTES (Tables)

6 Months Ended

Jun. 30, 2026

Convertible notes

CONVERTIBLE NOTES

Schedule of convertible notes


		Subsidiary		2025		ATW		2026
		Convertible Note		Convertible Notes		Convertible Note		Convertible Note		Total
		US$	* *	US$	* *	US$		US$	* *	US$
Balance as of December 31, 2025		62,439		203,378		10,787		—		276,604
Issuance of convertible notes		—		—		—		128,325		128,325
Interest paid		(4,670)		—		(361)		—		(5,031)
Changes in fair values of convertible notes, excluding impact of instrument-specific credit risk		3,144		3,125		(1,010)		572		5,831
Changes in fair values of convertible notes due to the instrument-specific credit risk		(8,415)		—		351		—		(8,064)
Repayment		—		(128,325)		—		—		(128,325)
Conversions to ordinary shares		—		—		(2,236)		—		(2,236)
Foreign currency translation adjustment		1,943		—		—		—		1,943
Balance as of June 30, 2026		54,441		78,178		7,531		128,897		269,047
Including:
– Current portion		—		78,178		—		128,897		207,075
– Non-current portion		54,441		—		7,531		—		61,972

Subsidiary Convertible Note

CONVERTIBLE NOTES

Schedule of assumptions used in determination of fair value of Convertible Note


		As of June 30, 2026
Risk-free interest rates		1.27	%
Probability of conversion		10	%
Bond yields		21.16%-22.82	%

2025 Convertible Notes

CONVERTIBLE NOTES

Schedule of assumptions used in determination of fair value of Convertible Note


		As of June 30, 2026
Risk‑free interest rate		3.95	%
Volatilities		42.69	%
Bond yield		26.40	%

ATW Convertible Notes

CONVERTIBLE NOTES

Schedule of assumptions used in determination of fair value of Convertible Note


		As of June 30, 2026
Risk‑free interest rate		3.96	%
Volatilities		43.32	%
Bond yield		26.14	%

2026 Convertible Notes

CONVERTIBLE NOTES

Schedule of assumptions used in determination of fair value of Convertible Note


		As of June 30, 2026
Risk‑free interest rate		3.94	%
Volatilities		43.38	%
Bond yield		26.30	%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

SHARE-BASED COMPENSATION - Narrative (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2026	Dec. 31, 2025	Sep. 30, 2022
SHARE-BASED COMPENSATION
Number of options granted during the period	3,823,185
Unrecognized share-based compensation expense	$ 25,600
Weighted-average period	1 year 2 months 8 days
Number of share options exercised	0	0
Options
SHARE-BASED COMPENSATION
Number of shares issued upon the exercise the option	314,504
Options \| 2022 Share Incentive Plan
SHARE-BASED COMPENSATION
Aggregate number of shares that may be issued			51,550,661
Number of options granted during the period	3,823,185
Share options, contractual term (in years)	10 years
Options \| 2022 Share Incentive Plan \| Minimum
SHARE-BASED COMPENSATION
Vesting period of share options (in years)	0 years
Options \| 2022 Share Incentive Plan \| Maximum
SHARE-BASED COMPENSATION
Vesting period of share options (in years)	3 years
Options \| Employee
SHARE-BASED COMPENSATION
Fair value of awards recognized as dividends	$ 687,000

NET LOSS PER SHARE - Potentially Dilutive Securities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
NET LOSS PER SHARE
Anti-dilutive ordinary share equivalents excluded in computation of net loss per share (in shares)	210,357,429	148,186,294
Share options
NET LOSS PER SHARE
Anti-dilutive ordinary share equivalents excluded in computation of net loss per share (in shares)	14,671,161	14,561,421
2025 Convertible Notes
NET LOSS PER SHARE
Anti-dilutive ordinary share equivalents excluded in computation of net loss per share (in shares)	65,250,704	86,583,567
Principal and accrued interest	$ 70,000
2026 Convertible Notes
NET LOSS PER SHARE
Anti-dilutive ordinary share equivalents excluded in computation of net loss per share (in shares)	109,972,857
Principal and accrued interest	$ 128,325
ATW Convertible Notes
NET LOSS PER SHARE
Anti-dilutive ordinary share equivalents excluded in computation of net loss per share (in shares)	5,921,401
Principal and accrued interest	$ 6,838
Meritz Put Option
NET LOSS PER SHARE
Anti-dilutive ordinary share equivalents excluded in computation of net loss per share (in shares)		32,500,000
Public Warrant
NET LOSS PER SHARE
Anti-dilutive ordinary share equivalents excluded in computation of net loss per share (in shares)	9,054,522	9,054,522
Sponsor warrant
NET LOSS PER SHARE
Anti-dilutive ordinary share equivalents excluded in computation of net loss per share (in shares)	5,486,784	5,486,784
Unvested earn out shares
NET LOSS PER SHARE
Anti-dilutive ordinary share equivalents excluded in computation of net loss per share (in shares)	1,417,544

DESCRIPTION OF BUSINESS AND ORGANIZATION

6 Months Ended

Jun. 30, 2026

DESCRIPTION OF BUSINESS AND ORGANIZATION

DESCRIPTION OF BUSINESS AND ORGANIZATION

1.	DESCRIPTION OF BUSINESS AND ORGANIZATION

(a)	Description of Business

Lotus Technology Inc. (“the Company”), an exempted company with limited liability, was incorporated in Cayman Islands, on August 9, 2021. The Company, through its wholly owned subsidiaries (collectively, “the Group”), is primarily engaged in the design, develop, and sales of luxury lifestyle battery electric vehicles (“EV”) under the “Lotus” brand (“Lotus EV business”) and the Group is also a distributor that sells luxury sports cars under the “Lotus” brand (“Lotus sports car business”) across the world. The Group provides other sales and ancillary services to customers.

(b)	Merger and recapitalization

On February 22, 2024 (the “Closing Date”), the Company consummated its merger with LCAA pursuant to a merger agreement dated January 31, 2023 (as amended and restated dated as of October 11, 2023, the “Merger Agreement”) by and among LCAA, the Company, a Cayman Islands exempted company, Lotus Temp Limited, a Cayman Islands exempted company and wholly-owned subsidiary of the Company (“Merger Sub 1”), and Lotus EV Limited, a Cayman Islands exempted company and wholly-owned subsidiary of the Company ( “Merger Sub 2”). Pursuant to the Merger Agreement, (i) Merger Sub 1 was merged with and into LCAA (the “First Merger”), with LCAA surviving the First Merger as a wholly-owned subsidiary of the Company (such company, as the surviving entity of the First Merger, “Surviving Entity 1”) and the shareholders of LCAA becoming shareholders of the Company, and (ii) immediately following the First Merger and as part of the same overall transaction as the First Merger, Surviving Entity 1 was merged with and into Merger Sub 2 (the “Second Merger,” and together with the First Merger, the “Mergers”), with Merger Sub 2 surviving the Second Merger as a wholly-owned subsidiary of the Company (such company, as the surviving entity of the Second Merger, “Surviving Entity 2”) (collectively, the “Merger Transaction” or “Business Combination”).

Upon the consummation of the Merger Transaction,

(i)All ordinary shares of the Company held by all existing shareholders of the Company before the Merger Transaction were recapitalized into 474,621,603 ordinary shares using recapitalization factor of 0.2215 (“Recapitalization Factor”). All applicable share and per share amounts in the consolidated financial statements have been retrospectively adjusted to reflect the effects of the recapitalization (“Recapitalization”);

(ii)All the preferred shares of the Company that were issued and outstanding immediately prior to the effective time of the First Merger were converted to the Company ordinary share on a one-for-one basis (the “Preferred Share Conversion”) and recapitalized into 68,228,526 ordinary shares using the Recapitalization Factor. All applicable share and per share amounts in the consolidated financial statements have been retrospectively adjusted to reflect the effects of the Recapitalization;

(iii)94,277,279 ordinary shares were issued to a number of investors (the “PIPE Investors”) and the holders of Class A ordinary shares of LCAA for a total consideration of US$858,495 (the “PIPE Investments”), among which,

50,000,000 ordinary shares were issued to Meritz Securities Co., Ltd. (“Meritz”) for a total consideration of US$500,000, concurrent with the issuance of put option and call options. The Company repurchased a total of 17,500,000 ordinary shares on August 2025, and the remaining 32,500,000 ordinary shares on September 5, 2025;

35,849,458 ordinary shares were issue to other PIPE Investors, among which, 12,750,000 ordinary shares were issued to Lotus Technology International Investment Limited (“LTIIL”), and 12,250,000 ordinary shares were issued to Etika Automotive SDN BHD (“Etika”);

8,427,821 ordinary shares were issued to then holders of Class A ordinary shares of LCAA, including 1,265,103 Class A ordinary shares of LCAA held by public shareholders and 7,087,718 Class A ordinary share of LCAA held by LCA Acquisition Sponsor LP (the “Sponsor”) and 75,000 Class A ordinary shares of LCAA held by the directors and officers of LCAA, among which all or a portion of (as reasonably determined by the Company in good faith) 20% of the ordinary shares, i.e. 1,417,544 ordinary shares held by the Sponsor will remain unvested upon the consummation of the Merger Transaction and become vested upon each occurrence of (a) the commencement or official announcement of any business collaboration facilitated by Sponsor or its affiliates (including, without limitation, in connection with product development, marketing, customer engagement, retail space, and technology infrastructure development), or (b) an approved commitment to invest in the Company or one of its subsidiaries by an investor introduced or facilitated by Sponsor or its affiliate, in each case, within eighteen months following the Closing Date. As of June 30, 2026, 1,417,544 ordinary shares remained unvested;

(iv)36,597,038 ordinary shares were issued to Wuhan Lotus Technology Co., Ltd. (“WFOE”), holder of the exchangeable notes, following the settlement of the outstanding principal amount;

(v)577,456 and 2,433,912 ordinary shares, totally 3,011,368 ordinary shares, were issued to Momenta Global Limited and a number of Pre-IPO Notes investors, respectively, pursuant to the conversion of Momenta Note and Pre-IPO Notes;

(vi)9,550,246 warrants were issued to the then public shareholders of LCAA in exchange for the warrants held by public shareholders of LCAA (the “Public Warrants”), and 5,486,784 warrants were issued to the Sponsor in exchange for warrants held by the Sponsor (the “Sponsor Warrants”). Each Public Warrant and Sponsor Warrant can be exercised at an exercise price of US$11.50 in exchange for one ordinary share of the Company. 495,724 warrants were excised during the year ended December 31, 2024.

Pursuant to the Mergers above stated, LCAA was considered as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the financial statements of the Company represented a continuation of its operations with the Mergers treated as the equivalent of the Company issuing shares for the net assets of LCAA, accompanied by a recapitalization. The net assets of the Company are stated at historical cost, with no goodwill or other intangible assets recorded.

The ordinary shares of the Company and the Public Warrants are listed on the Nasdaq Stock Market LLC, or “Nasdaq”, under the trading symbols “LOT” and “LOTWW”, respectively, on February 23, 2024.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities:
Net cash used in operating activities	$ (53,728)	$ (150,905)
Investing activities:
Payments for purchases of property, equipment and software and intangible assets	(9,927)	(52,493)
Proceeds from disposal of property, equipment and software	4,818	11,814
Receipts of government grants related to assets	10,200
Disposal of subsidiaries, net of cash disposed	(11,969)	(371)
Proceeds from interest arising from securities pledged to an investor		4,469
Loans to a related party	(72,731)
Proceed from settlement of related party loans	80,251
Proceed from settlement of derivative instruments		740
Net cash provided by (used in) investing activities	642	(35,841)
Financing activities:
Proceeds from issuance of exchangeable notes		27,842
Proceeds from issuance of convertible notes	128,325	189,263
Repayments of convertible notes	(128,325)	(119,263)
Proceeds from borrowings	719,624	809,735
Repayments of borrowings	(690,077)	(601,425)
Payments of cash collateral to Meritz		(74,469)
Net cash provided by financing activities	35,547	231,706
Effect of exchange rate changes on cash and restricted cash	26,723	(38,349)
Net increase in cash and restricted cash	9,184	6,611
Cash and restricted cash at beginning of the period	550,277	484,937
Cash and restricted cash at end of the period	559,461	491,548
Reconciliation of cash and restricted cash:
Cash	80,378	67,849
Restricted cash, current	269,593	420,971
Restricted cash, non-current	209,490	2,728
Total cash and restricted cash	559,461	491,548
Supplemental information
Interest paid	27,014	16,614
Income taxes paid	629	1,455
Income taxes refund		(349)
Non-cash investing and financing activities:
Purchase of property, equipment and software and intangible assets included in accrued expenses and other current liabilities	18,375	37,921
Issuance costs payable	6,556	6,556
Receivable from a disposal of an equity investment under common control		58,671
Receivable from issuance of ordinary shares to Westwood		82
Issuance of ordinary shares through conversion of convertible notes	2,236
Westwood Capital Group LLC
Financing activities:
Proceeds from issuance of ordinary shares		$ 23
ECARX
Financing activities:
Proceeds from issuance of ordinary shares	$ 6,000

CONVERTIBLE NOTES - Key assumptions used in determining fair value of Subsidiary Convertible Note (Details) - Subsidiary Convertible Note	Jun. 30, 2026 shares
Risk-free interest rate
CONVERTIBLE NOTES
Measurement input	0.0127
Probability of conversion
CONVERTIBLE NOTES
Measurement input	0.10
Minimum \| Bond yields
CONVERTIBLE NOTES
Measurement input	0.2116
Maximum \| Bond yields
CONVERTIBLE NOTES
Measurement input	0.2282

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

RELATED PARTY BALANCES AND TRANSACTIONS - Significant related party balances (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Contract liabilities - related parties	$ 4,354	$ 228
Equity security without readily determinable fair values using the measurement alternative - related party	36,706	35,568
Loan receivable from a related party	368,584	351,486
Shortterm borrowings	1,266,520	1,263,707
Related party
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounts Receivable	59,734	114,126
Contract liabilities - related parties	4,354	228
Prepayments and other current assets, net	112,784	111,886
Other non-current assets	587	569
Accounts payable	633,627	458,189
Accrued expenses and other current liabilities	130,871	211,665
Other non-current liabilities		856
Operating lease liabilities-related parties, current	1,661	1,636
Operating lease liabilities, non-current	2,219	3,105
Investment securities - related parties	1,358	1,811
Equity security without readily determinable fair values using the measurement alternative - related party	36,706	35,568
Loan receivable from a related party	368,584	351,486
Shortterm borrowings	$ 863,776	$ 784,288

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
INVENTORIES
Products available for sale	$ 170,094	$ 112,235
Goods in transit	277	7,589
Raw materials		1,506
Work-in-progress		31
Total	$ 170,371	$ 121,361

LEASES - Supplemental cash flows information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
LEASES
Operating cash outflows from operating leases	$ 5,131	$ 9,196
Operating leases		$ 145

CONVERTIBLE NOTES - Key assumptions used in determining fair value of ATW Convertible Note (Details) - ATW Convertible Notes	Jun. 30, 2026
Risk-free interest rate
CONVERTIBLE NOTES
Measurement input	0.0396
Volatilities
CONVERTIBLE NOTES
Measurement input	0.4332
Bond yields
CONVERTIBLE NOTES
Measurement input	0.2614

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

WARRANT LIABILITIES - Schedule of warrant liabilities (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2025 USD ($)
WARRANT LIABILITIES
Balance at beginning of the year	$ 800
Changes in fair values	45
Balance at end of the year	$ 845

SHARE-BASED COMPENSATION - Compensation expenses (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2026	Dec. 31, 2025
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share based compensation expense	$ 1,634	$ 2,215
Research and development expenses
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share based compensation expense	187	950
Selling and marketing expenses
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share based compensation expense	28	176
General and administrative expenses
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share based compensation expense	$ 1,419	$ 1,089

DEFERRED INCOME (Tables)

6 Months Ended

Jun. 30, 2026

DEFERRED INCOME.

Schedule of benefit recognized from asset and research and development related subsidy


		Asset-related
		subsidy
		US$
Balance as of December 31, 2025		311,912
Subsidy received		10,200
Recognized as government grants during the period		(52)
Deconsolidation of subsidiaries		(1,782)
Foreign currency translation adjustment		10,056
Balance as of June 30, 2026		330,334

PROPERTY, EQUIPMENT AND SOFTWARE, NET

6 Months Ended

Jun. 30, 2026

PROPERTY, EQUIPMENT AND SOFTWARE, NET

PROPERTY, EQUIPMENT AND SOFTWARE, NET

6.	PROPERTY, EQUIPMENT AND SOFTWARE, NET

Property, equipment and software, net, consisted of the following:


		As of June 30,		As of December 31,
		2026		2025
		US$		US$
Buildings and facilities		1,400		22,617
Machinery and R&D equipment		12,493		21,361
Molds and tooling		135,665		124,378
Motor vehicles		24,152		23,222
Office and electronic equipment		25,851		29,045
Purchased software		65,431		64,321
Leasehold improvements		29,160		31,201
Property, equipment and software		294,152		316,145
Less: Accumulated depreciation		(176,455)		(156,686)
Construction in progress (i)		59,903		67,432
Property, equipment and software, net		177,600		226,891

(i)Represents the capitalized expenditures on the construction of corporate buildings, leasehold improvements, molds, tooling and R&D equipment under construction.

Depreciation expenses on property, equipment and software were allocated to the following expense items:


		Six Months Ended June 30,
		2026		2025
		US$		US$
Cost of revenues		10,024		11,901
Research and development expenses		3,600		3,421
Selling and marketing expenses		5,171		7,334
General and administrative expenses		8,124		12,996
Total		26,919		35,652

SHAREHOLDERS' DEFICIT

6 Months Ended

Jun. 30, 2026

SHAREHOLDERS' DEFICIT

SHAREHOLDERS' DEFICIT

17.	SHAREHOLDERS’ DEFICIT

Ordinary shares

On December 23, 2025, the Company entered into a share subscription agreement with ECARX, pursuant to which ECARX agreed to subscribe for and purchase a total of 16,788,321 newly issued ordinary shares from the Company at a price of US$1.37 per ordinary share for a total purchase price of US$23 million through a private placement. On December 29, 2025, the initial tranche of US$17 million was settled and 12,408,759 ordinary shares were issued. The second tranche of remaining US$6 million was settled on January 19, 2026 and 4,379,562 ordinary shares were issued. The ordinary shares purchased by ECARX is subject to a six-month lock-up period with certain customary exceptions.

The number of ordinary shares issued and outstanding as of June 30, 2026 was 711,576,295 and 646,893,910, respectively. The number of ordinary shares issued and outstanding as of December 31, 2025 was 707,196,733 and 640,672,331, respectively.

Treasury stock

On September 5, 2025, all of 50,000,000 ordinary shares issued to Meritz were fully repurchased by the Company. The repurchased ordinary shares were accounted for using the cost method and recorded as treasury stock as a component of the shareholders’ deficit. During the six months ended June 30, 2026, a total of 1,842,017 repurchased ordinary shares were reissued for conversion of convertible notes. As of June 30, 2026, the number of treasury stock was 47,375,141.

- Definition

The entire disclosure for equity.

+ References

+ Details

SHARE-BASED COMPENSATION

6 Months Ended

Jun. 30, 2026

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

22.	SHARE-BASED COMPENSATION

The Company’ s shareholders approved and adopted a share incentive plan in September 2022, or the 2022 Share Incentive Plan, for the purpose of attracting and retaining the best available personnel, providing additional incentives to employees, directors and consultants, and promoting the success of the Group’s business. Under the 2022 Share Incentive Plan, the Company is authorized to grant options. The maximum aggregate number of ordinary shares that may be issued pursuant to all awards under the 2022 Share Incentive Plan is 51,550,661. During the six months ended June 30, 2026, 3,823,185 share options were granted under the 2022 Share Incentive Plan, none of which were granted to non-employee service providers or directors or officers.

Share options granted under the 2022 Share Incentive Plan have a contractual term of ten years or have varying vesting terms that requires the grantees to render services for a period ranged from nil to three years under which the grantees earn an entitlement to vest over such stipulated services period.

Share options

A summary of the share options activities during the six months ended June 30, 2026 was presented below:


						Weighted		Weighted
				Weighted		average		remaining		Aggregate
		Number of		average		grant-date		contractual		intrinsic
		shares		exercise price		fair value		years		value
				US$		US$				US$
Outstanding at December 31, 2025		12,051,138		2.89		2.05		7.79		—

Granted		3,823,185		2.89		0.43		—		—
Forfeited		(1,203,162)		2.89		2.03		—		—

Outstanding at June 30, 2026		14,671,161		2.89		1.65		7.97		—
Vested and expected to vest as of June 30, 2026		14,671,161		2.89		1.65		7.97		—
Exercisable as of June 30, 2026		14,649,013		2.89		1.64		7.97		—

Compensation expenses recognized for share options during the six months ended June 30, 2025 and 2024 were allocated as follows:


	Six Months Ended June 30,
	2026		2025
	US$		US$
Research and development expenses	187		950
Selling and marketing expenses	28		176
General and administrative expenses	1,419		1,089
	1,634		2,215

As of June 30, 2026, there was US$25.6 of unrecognized share-based compensation expenses related to the share options granted. The expenses are expected to be recognized over a weighted-average period of 1.19 years.

For the options granted to employees of an entity controlled by the controlling shareholder of the Company (“Company A”), the Group elects to recognize the fair value of these options as dividends to the shareholder upon exercise. As of June 30, 2026, the number of shares to be issued upon the exercise of these options was 314,504. The total fair value of these awards measured on the grant date was US$687. As the Company A is providing sports cars to the Group and the Group pays the purchase price at market rates, no share-based compensation expense is reflected for these grants. None of options granted to employees of Company A were exercised for the six months ended June 30, 2026 and 2025.

The fair values of the options granted were estimated on the dates of grant using the binomial option pricing model with the following assumptions used:


		Six Months Ended June 30,
Grant dates:		2026		2025
Risk‑free interest rate ⁽ⁱ⁾		4.46%-4.47	%	4.20%-4.53	%
Expected volatility ⁽ⁱⁱ⁾		58.91%-59.18	%	55.58%-56.22	%
Expected dividend yield ⁽ⁱⁱⁱ⁾		0.00	%	0.00	%
Exercise multiple ^(iv)		2.20-2.80		2.20-2.80
Expected terms^(v)		10.00 years		10.00 years
Fair value of underlying ordinary share ^(vi)		US$1.33		US$1.87-US$3.61

(i)The risk-free interest rate was estimated based on the yield to maturity of U.S. treasury bonds denominated in US$ for a term consistent with the expected term of the Company’s options in effect at the valuation date.

(ii)The expected volatility was estimated based on the historical volatility of comparable peer public companies with a time horizon close to the expected term of the Company’s options.

(iii)Expected dividend yield is zero as the Company does not anticipate any dividend payments in the foreseeable future.

(iv)The expected exercise multiple was estimated as the average ratio of the stock price to the exercise price of when employees or nonemployees would decide to voluntarily exercise their vested options. As the Company did not have sufficient information of past employees or nonemployees exercise history, it was estimated by referencing to a widely-accepted academic research publication.

(v)Expected term is the contract life of the share options.

(vi)The estimated fair value was determined using the discounted cash flow method based on the equity allocation model before the consummation of the Merger Transaction, and open market price after the consummation of the Merger Transaction, respectively.

BORROWINGS (Tables)

6 Months Ended

Jun. 30, 2026

BORROWINGS

Schedule of short-term borrowings-third parties


		As of June 30,		As of December 31,
		2026		2025
		US$		US$
Short-term borrowings:
Borrowings from banks (i)		402,744		479,419
Borrowings from related parties (note 24(vi))		863,776		784,288
Total		1,266,520		1,263,707
Long-term borrowings:
Borrowings from bank (ii)		204,644		98,254

(i)During the six months ended June 30, 2026, the Group borrowed loans due within one year or less with aggregated principal amounts of US$356,782 from banks in Chinese mainland, bearing an interest rate of 2.20% to 3.75% per annum. The interests shall be repaid periodically or upon maturity.

(ii)During the six months ended June 30, 2026, the Group borrowed two-year loans with aggregated principal amounts of US$101,839, bearing an interest rate of 2.4% per annum from a bank in Chinese mainland. As of June 30, 2026, long-term restricted cash of US$105,419 was pledged for this borrowing. The interest shall be repaid quarterly.

(iii)The weighted average interest rate on short-term borrowings outstanding as of June 30, 2026 and December 31, 2025 was 3.92% and 4.65%, respectively.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2026

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of movements of product warranty reserve


		Six Months Ended June 30,
		2026		2025
		US$		US$
Accrued warranty at the beginning of the period		32,278		24,048
Additions		8,089		5,244
Utilization		(8,279)		(6,034)
Foreign currency translation adjustment		1,351		1,315
Accrued warranty at the end of the period		33,439		24,573
Including:
- Current portion		5,030		4,207
- Non-current portion		28,409		20,366

Schedule of long-term investments


	As of June 30,		As of December 31,
	2026		2025
	US$		US$
Investment securities – related party (note 24(vi))	1,358		1,811
Equity method investments (note 24(v))	20,234		10,625
Equity security without readily determinable fair values using the measurement alternative – related party	36,706		35,568
Total	58,298		48,004

Schedule of concentration of customers and suppliers


		As of June 30,		As of December 31,
		2026		2025

		proportion of total accounts receivable balance
Geely Group		65.9	%	72.7	%


		Six Months Ended June 30,
		2026		2025

		proportion of total costs and expenses
Geely Group		82.8	%	48.8	%


		As of June 30,		As of December 31,
		2026		2025

		proportion of total payables balance
Geely Group		76.7	%	67.5	%

INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2026

INTANGIBLE ASSETS

Schedule of intangible assets


		As of June 30,		As of December 31,
		2026		2025
		US$		US$
Trademark licenses with indefinite useful lives		116,083		116,083
Others		289		392
Total		116,372		116,475

INVENTORIES (Tables)

6 Months Ended

Jun. 30, 2026

INVENTORIES

Schedule of inventories


		As of June 30,		As of December 31,
		2026		2025
		US$		US$
Products available for sale		170,094		112,235
Goods in transit		277		7,589
Raw materials		—		1,506
Work-in-progress		—		31
Total		170,371		121,361

COMMITMENTS AND CONTINGENCIES - Purchase commitment (Details) - purchase commitment related to vehicles, research and development services and other operating expenses $ in Thousands	Jun. 30, 2026 USD ($)
COMMITMENTS AND CONTINGENCIES
Less than one year	$ 43,290
More than one year	10,929
Total	$ 54,219

ACCOUNT RECEIVABLES - THIRD PARTIES, NET (Tables)

6 Months Ended

Jun. 30, 2026

ACCOUNT RECEIVABLES - THIRD PARTIES, NET

Schedule of accounts receivable - third parties, net


		As of June 30,		As of December 31,
		2026		2025
		US$		US$
Accounts receivable-third parties		31,432		37,603
Less: Allowance for credit losses		(848)		(753)
Total		30,584		36,850

EXCHANGEABLE NOTES (Details) - USD ($) $ in Thousands	6 Months Ended
EXCHANGEABLE NOTES (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Jun. 30, 2025
EXCHANGEABLE NOTES
Balance as of beginning	$ 128,852
Issuance of exchangeable notes		$ 27,842
Changes in fair values of exchangeable notes, excluding impact of instrument-specific credit risk	4,041
Changes in fair values of exchangeable notes due to the instrument- specific credit risk	(5,600)
Settlement of exchangeable notes	(131,408)
Foreign currency translation adjustment	4,115
Lightning Speed Exchangeable Notes
EXCHANGEABLE NOTES
Balance as of beginning	73,046
Changes in fair values of exchangeable notes, excluding impact of instrument-specific credit risk	2,852
Changes in fair values of exchangeable notes due to the instrument- specific credit risk	(3,606)
Settlement of exchangeable notes	(74,628)
Foreign currency translation adjustment	2,336
Kingway Exchangeable Note
EXCHANGEABLE NOTES
Balance as of beginning	55,806
Changes in fair values of exchangeable notes, excluding impact of instrument-specific credit risk	1,189
Changes in fair values of exchangeable notes due to the instrument- specific credit risk	(1,994)
Settlement of exchangeable notes	(56,780)
Foreign currency translation adjustment	$ 1,779

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(22))
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 235
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477314/942-235-S99-2

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480738/235-10-S50-4

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
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Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 55
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482949/835-30-55-8

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(16))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478546/942-210-S99-1

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
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-Paragraph 69B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69B

Reference 8: http://www.xbrl.org/2003/role/exampleRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1D
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1D

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 944
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03(a)(16)(a)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478777/944-210-S99-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Section 50
-Paragraph 4
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-4

+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2026

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)	Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company and its consolidated subsidiaries (collectively referred to “the Group”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted consistent with Article 10 of Regulation S-X. The consolidated balance sheet as of December 31, 2025 was derived from the audited consolidated financial statements of the Group. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated balance sheet of the Group as of December 31, 2025, and the related consolidated statements of comprehensive loss, changes in shareholders’ deficit and cash flows for the year then ended.

In the opinion of the management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the financial position as of June 30, 2026, the results of operations and cash flows for the six months ended June 30, 2026, have been made.

These unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP assuming the Company will continue as a going concern. The going concern assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. However, substantial doubt about the Company’s ability to continue as a going concern exists. The Company has incurred losses since its inception. As of June 30, 2026, the Company had an accumulated deficit of US$3,308,860 and net current liabilities exceeded current assets in the amount of US$1,709,672. In addition, the Company recorded net cash used in operating activities in the amount of US$53,728 for the six months ended June 30, 2026.

Historically, the Group had relied principally on proceeds from the issuance of redeemable convertible preferred shares, exchangeable notes, convertible notes and related party borrowings to finance its operations and business expansion. The Group will require additional liquidity to continue its operations over the next twelve months. The Group is evaluating strategies to obtain the required additional funding for future operations. These strategies may include, but are not limited to, i) restructuring of operations to grow revenues and accelerating pace of collections of receivables, ii) reducing discretionary capital and operating expenses, iii) obtaining additional loans from banks or related parties and renewal of existing loans when they are due, and iv) exploring opportunities for further equity financing. However, given the impact of the uncertainty of global economic and financial markets, the Group may be unable to access further debt or equity financing when needed. As such, there can be no assurance that the Group will be able to obtain additional liquidity when needed or under acceptable terms, if at all.

The unaudited condensed consolidated financial statements do not include any adjustments to the carrying amounts and classification of assets, liabilities, and reported expenses that may be necessary if the Company were unable to continue as a going concern.

(b)	Use of estimates

The preparation of the unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported revenues and expenses during the reported period in the unaudited condensed consolidated financial statements and accompanying notes. Accounting estimates reflected in the Group’s unaudited condensed consolidated financial statements include, but not limited to, standalone selling price of each distinct performance obligation in revenue recognition, lower of cost and net realizable value of inventories, provision of credit losses of financial assets, useful lives and recoverability of property, equipment and software, recoverability of right-of-use assets and intangible assets with indefinite useful lives, valuation allowance of deferred tax assets, determination of incremental borrowing rates for leases, estimated product warranties reserve, and fair value determination of i) exchangeable notes; ii) convertible notes; iii) warrant liabilities; iv) put option liabilities; and v) share-based compensation arrangements. Management bases the estimates on historical experience, known trends and various other assumptions that are believed to be reasonable under current circumstances. Actual results could differ from those estimates.

(c)	Warranties

The following table shows the movements of product warranty reserve:


		Six Months Ended June 30,
		2026		2025
		US$		US$
Accrued warranty at the beginning of the period		32,278		24,048
Additions		8,089		5,244
Utilization		(8,279)		(6,034)
Foreign currency translation adjustment		1,351		1,315
Accrued warranty at the end of the period		33,439		24,573
Including:
- Current portion		5,030		4,207
- Non-current portion		28,409		20,366

(d)	Disposal of subsidiaries

On June 16, 2026, the Group disposed of a 73% equity interest in Hangzhou Lightning Speed Technology Co., Ltd. (“Lightning Speed”) and its subsidiaries to Zhejiang Vast Energy Technology Co., Ltd., a related party ultimately controlled by Mr. Li Shufu (the “Controlling Shareholder”), at nominal consideration. The transaction was accounted for as a common control transaction, and the difference between the book value of the disposed subsidiaries and nominal consideration, US$92,003, was recorded in additional paid-in capital.

On June 30, 2026, one of the Group’s subsidiaries, Hangzhou Kingway Technology Co., Ltd. (“Kingway”), amended certain terms in the Articles of Association. As a result, the Group ceased to exercise control over Kingway, and Kingway became a joint venture of the Group. Consequently, the Group accounted for the remaining long-term investment using equity method and measured at fair value of US$12,239 initially. The Group recorded a total of US$90,227 investment gain in additional paid-in capital as it was a common control transaction, out of which US$6,660 was attributed to a remeasurement gain.

(e)	Long-term investments

The Group’s long-term investments mainly include equity investments.

The Group applies the equity method to account for equity interests in investees over which the Group has significant influence but does not own a majority equity interest or otherwise control. Under the equity method, the Group initially records its investments at cost and the difference between the cost of the equity investee and the fair value of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill, which is included in the equity method investment on the consolidated balance sheets. The Group subsequently adjusts the carrying amount of the investments to recognize its proportionate share of each equity investee’s net income or loss into earnings after the date of investment. An impairment loss on the equity method investments is recognized in earnings when the decline in value is determined to be other-than-temporary. There was no equity method goodwill recognized. No impairment charge of equity method investments was recognized for the six months ended June 30, 2026 and 2025.

Equity securities with readily determinable fair values and over which the Group has neither significant influence nor control through investments in common stock or in-substance common stock are measured at fair value, with changes in fair value reported through earnings.

Equity securities without readily determinable fair values and over which the Group has neither significant influence nor control through investments in common stock or in-substance common stock are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes.

Long-term investments consisted of the following:


	As of June 30,		As of December 31,
	2026		2025
	US$		US$
Investment securities – related party (note 24(vi))	1,358		1,811
Equity method investments (note 24(v))	20,234		10,625
Equity security without readily determinable fair values using the measurement alternative – related party	36,706		35,568
Total	58,298		48,004

(f)	Concentration and Risk

Concentration of customers and suppliers

The Group’s accounts receivables – related parties are mainly due from Zhejiang Geely Holding Group (“Geely Holding”) and its subsidiaries (collectively as “Geely Group”), representing 99.66% and 96.2% and 78.67%of the Group’s accounts receivable — related parties as of June 30, 2026 and December 31, 2025, respectively. During the the six months ended June 30, 2026 and 2025, Geely Group contributed US$11,297 and US$17,854 of the Group’s total revenues, respectively.

No third-party customer contributed more than 10.0% of the Group’s total revenues for the six months ended June 30, 2026 and 2025.

Accounts receivable balances with greater than 10.0% the Group’s accounts receivable balances as of June 30, 2026 and December 31, 2025 were as follows.


		As of June 30,		As of December 31,
		2026		2025

		proportion of total accounts receivable balance
Geely Group		65.9	%	72.7	%

Suppliers contributed more than 10.0% of total purchases for the six months ended June 30, 2026 and 2025 are as below.


		Six Months Ended June 30,
		2026		2025

		proportion of total costs and expenses
Geely Group		82.8	%	48.8	%

Payable balances with greater than 10.0% the Group’s amounts due to suppliers as of June 30, 2026 and December 31, 2025 were as follows:


		As of June 30,		As of December 31,
		2026		2025

		proportion of total payables balance
Geely Group		76.7	%	67.5	%

Concentration of credit risk

Financial instruments that potentially expose the Group to concentrations of credit risk consist principally of cash, restricted cash, accounts receivable, loan receivables, and other receivables included in prepayments and other current assets.

Substantial all of the Group’s cash at bank is held by third-party financial institutions located in Chinese mainland and European countries. The Company believes that it is not exposed to unusual risks as these financial institutions have high credit quality. If the financial institutions could become insolvent, the Company could lose some or all of the value of cash.

Accounts receivables are primarily derived from revenue earned from sales of sports cars and EV lifestyle models, and automotive design and development services. Accounts receivable, loans receivables and other receivables included in prepayments and other current assets are unsecured. The risk is mitigated by credit evaluations performed on them.

(g)	Segment Reporting

The Group’s chief operating decision maker (“CODM”) has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. For the purpose of internal reporting and management’s operation review, the Company’s chief executive officer and management personnel do not segregate the Group’s business by product or service. Management has determined that the Group has one operating segment. The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets. The CODM evaluates performance for its single reportable segment based on total revenues and gross profit, which are the same as those presented on the consolidated statements of comprehensive loss.

RELATED PARTY BALANCES AND TRANSACTIONS

6 Months Ended

Jun. 30, 2026

RELATED PARTY BALANCES AND TRANSACTIONS

24.	RELATED PARTY BALANCES AND TRANSACTIONS

(a)

Related parties


Names of the major related parties		Nature of relationship
Geely Holding		Entity controlled by the Controlling Shareholder of the Company
Lotus Group International Limited (“LGIL”)		Entity controlled by the Controlling Shareholder of the Company
Lotus Cars Limited (“LCL”)		Entity controlled by the Controlling Shareholder of the Company
Geely HK		Entity controlled by the Controlling Shareholder of the Company
ECARX		Entity controlled by the Controlling Shareholder of the Company
Hubei Ecarx Technology Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Wuhan Geely Auto Parts Co., Ltd. (“Wuhan Geely Auto Parts”)		Entity controlled by the Controlling Shareholder of the Company
Zhejiang Geely Automobile Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Zhejiang Geely Automobile Co., Ltd. Wuhan Branch (“Geely Auto Wuhan Branch”)		Entity controlled by the Controlling Shareholder of the Company
Ningbo Geely R&D		Entity controlled by the Controlling Shareholder of the Company
Geely Automobile Research Institute (Ningbo) Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Hangzhou Fenghua Technology Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Zhejiang Jisu Supply Chain Management Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Zhejiang Huanfu Technology Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Chengdu Jinluda Automobile Sales Service Co., Ltd.		Entity which is under significant influence of the Company
Hangzhou Luhongyuan Automobile Sales Service Co., Ltd.		Entity which is under significant influence of the Company
Hubei Changjiang Chegu Industry Investment Fund Partnership		Entity which is under significant influence of the Company
Wuxi InfiMotion		Entity which is under significant influence of the Company
Lotus Cars USA Inc.		Entity controlled by the Controlling Shareholder of the Company
Hangzhou Geely Evun Technology Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Jizhi Culture Creative Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Volvo Personvagnar Aktiebolag		Entity controlled by the Controlling Shareholder of the Company
Shanghai Global Trading Corporation		Entity controlled by the Controlling Shareholder of the Company
Viridi E-Mobility (Ningbo) Co.,LTD		Entity controlled by the Controlling Shareholder of the Company
Ningbo Jining Automobile Parts Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Zhejiang Muguang Digital Technology Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Hunan Geely Automobile Components Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Zhejiang Geely Automobile Engineering Technology Development Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Jixing Era Technology (Nanjing) Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Zhejiang Farizon Commercial Vehicle Research and Development Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Sichuan Geely Automobile Parts Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Jiangsu Weikenxi Automotive Technology Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Ningbo Jirun Auto Parts Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Guizhou Geely Automobile Manufacturing Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
London EV Company Limited		Entity controlled by the Controlling Shareholder of the Company
Zhejiang Geely Commerce Service Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Geely UK Limited		Entity controlled by the Controlling Shareholder of the Company
Zhejiang Geely Powertrain Co., Ltd		Entity controlled by the Controlling Shareholder of the Company
Zhejiang Geely Automobile Parts & Components Stock Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Zhejiang Zeekr Automobile Research & Development Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Qizheng New Energy Vehicle (Jinan) Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Weixing Technology Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Zhejiang Vast Energy Technology Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Zhejiang Jidi Technology Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Zhejiang Geely Power Assembly Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
DRB HICOM BERHAD		Entity controlled by the ultimate owner of a principal shareholder of the Company
Chongqing Ruilan Automobile Manufacturing Co., Ltd.		Entity controlled by the Controlling Shareholder of the Company
Lotus GmbH		Entity which is under significant influence of the Company
Chongqing Qianli Intelligent Driving Technology Co., Ltd.		Entity which is under significant influence of the Controlling Shareholder the Company
Lightning Speed		Entity controlled by the Controlling Shareholder of the Company
Kingway		Joint venture of the Group

During the six months ended June 30, 2026 and 2025, in addition to the related party transactions disclosed in note 2(d) disposal of subsidiaries, note 10 of borrowings and note 15 of convertible notes to the financial statements, the Group entered into the following significant related party transactions.

(b)

Significant related party transactions

During the six months ended June 30, 2026 and 2025, the Group entered into the following significant related party transactions:


		Six Months Ended June 30,
		2026		2025
		US$		US$
Provision of services (i)		231		16,685
Sales of goods (i)		11,767		2,762


		Six Months Ended June 30,
		2026		2025
		US$		US$
Purchase of products and services ((iii).a)		334,976		178,224
Purchase of products and services for R&D activities ((iii).b)		14,221		49,264
Purchase of equipment and software ((iii).c)		58		465
Short-term lease cost ((iii).e)		81		151
Loans to a related party ((ii).b)		72,731		—
Proceed from settlement of related party loans ((ii).b)		62,136		—
Interest income on loans due from related parties ((ii).b)		11,765		9,317
Payment of lease liabilities (iv)		935		922
Payments on behalf of related parties((ii).a)		8,859		4,619
Payments by related parties on behalf of the Group ((iii).d)		929		1,294
Proceeds of borrowing from related parties (vi)		261,003		342,633
Repayments of borrowing from related parties (vi)		226,108		161,639
Interest expense on borrowing due to related parties ((iii).a & (vi))		23,183		13,799
Disposal of equipment ((ii).f)		331		10,162
Refund of license fee in connection with adjustments to the product pipeline from a related party (vii)		99,114		—

(c)

Significant related party balances

The outstanding balances mainly arising from the above transactions as of June 30, 2026 and December 31, 2025 are as follows:


		As of		As of
		June 30, 2026		December 31, 2025
		US$		US$
Accounts receivable – related parties (i)		59,734		114,126
Contract liabilities – related parties* (i)		4,354		228
Prepayments and other current assets – related parties (ii)		112,784		111,886
Other non-current assets – related parties ((ii).e)		587		569
Accounts payable – related parties ((iii).a)		633,627		458,189
Accrued expenses and other current liabilities – related parties (iii)		130,871		211,665
Other non-current liabilities – related parties ((iii).f)		—		856
Operating lease liabilities– related parties, current* (iv)		1,661		1,636
Operating lease liabilities– related parties, non-current (iv)		2,219		3,105
Investment securities – related parties (v)		1,358		1,811
Equity security without readily determinable fair values using the measurement alternative – related party		36,706		35,568
Loan receivable from a related party ((ii). b)		368,584		351,486
Short-term borrowings - related parties(vi)		863,776		784,288

* These items are included in accrued expenses and other current liabilities – related parties in the unaudited condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025.

Note:

(i)

The Group sold sports cars, EV lifestyle models, auto parts and peripheral products and provided R&D services and other consulting services to a number of related parties. The Group provided services to related parties amounting to US$231 and US$16,685 for the six months ended June 30, 2026 and 2025, respectively. The Group sold sports cars, EV lifestyle models, auto parts and peripheral products to related parties amounting to US$11,767 and US$2,762 for the six months ended June 30, 2026 and 2025, respectively.

Accounts receivable due from related parties arising from sales of goods and provision of services, including facilitation services in relation to logistics and order processing, were US$59,734 and US$114,126 as of June 30, 2026 and December 31, 2025, respectively. Receipts in advance of US$4,354 and US$228 were included in contract liabilities – related parties as of June 30, 2026 and December 31, 2025, respectively.

(ii)

Prepayments and other current assets – related parties, other non-current assets – related parties and loan receivable from a related party of the Group are mainly arising from transactions related to purchase of products and services (see note (iii).a), loans to related parties, and cash payments on behalf of related parties.

The Group made payments of US$8,859 and US$4,619 on behalf of related parties for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, receivables of US$25,000 and US$5,764 was included in prepayments and other current assets – related parties, respectively.

On March 11, 2024, the Company’s subsidiary and a related party, ultimately controlled by the Controlling Shareholder, entered into a loan agreement, pursuant to which the Company’s subsidiary provided unsecured loans with a total principal amount of US$354,000 with a term of five years and annual interest rate of 6.95%. During the six months ended June 30, 2026 and 2025, the Group provided loan principal of US$72,731 and nil and recognized interest income of US$11,564 and US$9,017, respectively. As of June 30, 2026 and December 31, 2025, the receivable for the loan principal and interest of US$368,564 and US$351,486 was included in loan receivable from a related party, respectively.

The Group provided unsecured short-term loans to a subsidiary disposed in September 2024 with an interest rate of 3% per annum. During the six months ended June 30, 2026 and 2025, the Group recognized interest income of US$120 and US$232. The Group received total repayments of US$18,115 during the six months ended June 30, 2026, and the loan was fully settled. As of December 31, 2025, the receivable for the loan principal and interest of US$18,052 was included in prepayments and other current assets – related parties.

In addition, the Group recognized interest income of US$81 and US$68 arising from unsecured short-term loans with interest rates of 3.65%-4.5% per annum to related parties for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, the receivable for the loan principal and interest of US$4,779 and US$ 4,706 was included in prepayments and other current assets – related parties, respectively.

As mentioned in note ((iii).a) and note ((iii).c) below, the amounts of prepayments to related parties for purchase of vehicles, auto parts and peripheral products of US$83,398 and US$83,296 were included in prepayments and other current assets – related parties as of June 30, 2026 and December 31, 2025, respectively.

As mentioned in note ((iii).e), the amounts of prepayments to related parties for short-term lease agreements of US$2 and US $9 were included in prepayments and other current assets – related parties as of June 30, 2026 and December 31, 2025, respectively.

As of June 30, 2026 and December 31, 2025, the deposit paid recorded in other non-current assets - related parties was US$587 and US$ 569, respectively.

During the six months ended June 30, 2026 and 2025, the Group disposed some equipment amounting to US$331 and US$10,162 to related parties. As of June 30, 2026 and December 31, 2025, receivable from the disposal recorded in prepayments and other current assets – related parties was US$2,297 and US$2,666.

(iii)

Accounts payable - related parties, accrued expenses and other current liabilities – related parties and other non-current liabilities– related parties are mainly arising from transactions related to purchase of products and services, purchase of equipment and software, and payments by related parties on behalf of the Group.

The Group purchased sports cars, EV lifestyle models, auto parts, peripheral products, commercial services relating to sales of sports cars and EV lifestyle models and other consulting services from related parties. During the six months ended June 30, 2026 and 2025, these purchases amounted to US$334,976 and US$178,224, among which, US$198,294 and US$158,085 were recognized as cost of goods sold for the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026 and December 31, 2025, the amounts due to related parties for purchase of office materials, commercial services relating to sales of sports cars and EV lifestyle models and other consulting services of US$94,940 and US$52,917 were included in accrued expenses and other current liabilities – related parties, respectively.

As of June 30, 2026 and December 31, 2025, the amounts due to related parties for purchase of sports cars, EV lifestyle models, auto parts and peripheral products of US$633,627 and US$458,189 was included in accounts payable-related parties, respectively.

During the six months ended June 30, 2026 and 2025, the Group incurred interest expense of US$4,420 and US$3,709 due to the delay payments of accounts payable due to related parties, bearing interest rate of 5.00% - 6.95% per annum.

The Group purchased products and services from related parties for R&D activities. The Group recoded R&D expenses of US$14,221 and US$49,264 during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, the amounts due to related parties for purchase of products and services for R&D activities of US$33,360 and US$156,442 were included in accrued expenses and other current liabilities – related parties, respectively.

The Group purchased equipment and software of US$58 and US$465 from related parties for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, the amounts due to related parties for purchase of equipment and software of US$591 and US$1,603 were included in accrued expenses and other current liabilities – related parties, respectively.

During the six months ended June 30, 2026 and 2025, related parties paid US$929 and US$1,294 on behalf of the Group in association with travelling expenses, staff salary and social welfare, and other miscellaneous expenses, out of which US$882 and US$397 were included in accrued expenses and other current liabilities – related parties as of June 30, 2026 and December 31, 2025, respectively.

The Group entered into short-term lease agreements with related parties to rent office spaces. During the six months ended June 30, 2026 and 2025, the Group incurred short-term lease costs of US$81 and US$151, respectively.

The Group received deposits of US$943 and nil for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, US$1,097 and US$306 were included in accrued expenses and other current liabilities – related parties, and nil and US$856 was included in other non-current liabilities-related parties, respectively.

(iv)

The Group entered into lease agreements with related parties to rent office spaces and parking spaces. During the six months ended June 30, 2026 and 2025, the Group paid lease liabilities of US$935 and US$922, respectively. As of June 30, 2026 and December 31, 2025, current portion of operating lease liabilities were US$1,661 and US$1,636, respectively, and non-current portion of operating lease liabilities were US$2,219 and US$3,105, respectively.

(v)

On May 13, 2022, the Company purchased a one-year convertible note with the principal of US$10,000 issued by ECARX. Upon the listing of ECARX on December 21, 2022, the convertible note was automatically converted to the Class A ordinary shares of ECARX at conversion price of US$9.5 per share. As of June 30, 2026 and December 31, 2025, the fair value of such shares was US$1,358 and US$1,811, respectively.

(vi)

During the six months ended June 30, 2026, the Group borrowed loans due within one year or less with principal amounts of US$261,003 from related parties ultimately controlled by the Controlling Shareholder, bearing interest rates of 3.45% - 7.91% per annum, and repaid the loan principal amounts of US$226,108 to related parties.

During the six months ended June 30, 2025, the Group borrowed loans due within one year or less with principal amounts of US$342,633 from related parties ultimately controlled by the Controlling Shareholder, bearing interest rates of 3.7%-6.0% per annum, and repaid the loan principal amounts of US$161,639 to related parties.

During the six months ended June 30, 2026 and 2025, the Group incurred related interest expenses of US$18,763 and US$10,090, respectively.

As of June 30, 2026 and December 31, 2025, the outstanding loan principal and interest balance of US$863,776 and US$784,288 were included in short-term borrowings – related parties, respectively.

For the outstanding loan principal and interest as of June 30, 2026, US$187,178 was secured by 45% equity interests held by Ningbo Lotus in Ningbo Robotics, US$433,852 was secured by the Group’s intellectual property with carrying amount of nil as the research and development costs were expensed historically, and US$242,136 was a stock-settled debt as the Company granted a right to an affiliate of Geely Holding to subscribe for shares of the Company at market price covering the then outstanding loan amount in the event of default, out of which US$84,640 was further secured by the Group’s intellectual property with carrying amount of nil.

For the outstanding loan principal and interest as of December 31, 2025, US$178,414 was secured by 45% equity interests held by Ningbo Lotus in Ningbo Robotics, US$374,501 was secured by the Group’s intellectual property with carrying amount of nil as the research and development costs were expensed historically, and US$231,328 was a stock-settled debt as the Company granted a right to an affiliate of Geely Holding to subscribe for shares of the Company at market price covering the then outstanding loan amount in the event of default, out of which US$79,664 was further secured by the Group’s intellectual property with carrying amount of nil.

(vii)

The Group received a total of US$99.1 million refund of license fee in connection with adjustments to the product pipeline from a related party, and recorded as a deduction of research and development expenses during the six months ended June 30, 2026.

(d)

Manufacturing agreement with the Geely Group

The Group entered into a manufacturing agreement with Geely Auto Wuhan Branch and Wuhan Geely Auto Parts (collectively as “OEMs”), for the manufacture of the Group’s electrical vehicles for 10 years starting from June 21, 2022. Pursuant to the manufacturing agreement, the Group commissioned OEMs for the production of electrical vehicles and agreed to authorize OEMs to access the Group’s technologies for the production of such models. The Group is mainly responsible for the design and development of the models, designation of suppliers, product announcement, and ensuring consistency with global standards of the Lotus brand. The Group also provides OEMs the necessary intellectual properties for the manufacture of electrical vehicles. OEMs are mainly responsible for the procurement and inspection of raw materials, production planning, production quality control, logistics and transportation of manufactured vehicles, and construction and operation of the manufacturing plant. Particularly, quality control is carried out in accordance with the Group’s quality assurance framework and approved by OEMs. In addition, OEMs are responsible for obtaining certificates for the manufactured vehicles.

(e)Lotus Application Entrusted Operation & Maintenance Contract with Wuhan Quanqing

The Group entered into an application entrusted operation & maintenance contract with Wuhan Quanqing, in May 2023. Pursuant to the contract, the Group will pay Wuhan Quanqing certain service fee for the entrusted daily operation and maintenance service provided by Wuhan Quanqing for the Group’s Lotus App. As of June 30, 2026 and December 31, 2025, nil service fee has been incurred.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-2

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-5

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-6

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

+ Details

LEASES (Tables)

6 Months Ended

Jun. 30, 2026

LEASES

Schedule of components of lease cost


		Six Months Ended June 30,
		2026		2025
		US$		US$
Operating lease cost		4,429		9,850
Short-term lease cost		4,673		4,066
Total		9,102		13,916

Schedule of supplemental cash flow information related to leases


		Six Months Ended June 30,
		2026		2025
		US$		US$
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from operating leases		5,131		9,196
Right-of-use assets obtained in exchange for lease obligations
Operating leases		—		145

Schedule of supplemental balance sheet information related to leases


		As of June 30,		As of December 31,
		2026		2025
		US$		US$
Operating Leases
Operating lease right-of-use assets		96,879		118,845
Operating lease liabilities, current
- Operating lease liabilities-third parties		9,146		11,598
- Operating lease liabilities-related parties*		1,661		1,636
Operating lease liabilities, non-current
- Operating lease liabilities-third parties		47,653		57,576
- Operating lease liabilities-related parties		2,219		3,105
Total operating lease liabilities		60,679		73,915

* This item is included in accrued expenses and other current liabilities – related parties in the unaudited condensed consolidated balance sheets.

Schedule of weighted average remaining lease term and weighted average discount rate for operating leases


		Six Months Ended June 30,
		2026		2025
		US$		US$
Weighted-average remaining lease term
Operating leases		6.02 years		6.71 years
Weighted-average discount rate
Operating leases		6.37	%	6.31	%

EXCHANGEABLE NOTES (Tables)

6 Months Ended

Jun. 30, 2026

Exchangeable notes

EXCHANGEABLE NOTES

Schedule of exchangeable notes


		Lightning
		Speed		Kingway
		Exchangeable		Exchangeable
		Notes		Notes		Total
		US$		US$		US$
Balance as of December 31, 2025		73,046		55,806		128,852
Changes in fair values of exchangeable notes, excluding impact of instrument-specific credit risk		2,852		1,189		4,041
Changes in fair values of exchangeable notes due to the instrument-specific credit risk		(3,606)		(1,994)		(5,600)
Settlement of exchangeable notes		(74,628)		(56,780)		(131,408)
Foreign currency translation adjustment		2,336		1,779		4,115
Balance as of June 30, 2026		—		—		—

Kingway Exchangeable Note

EXCHANGEABLE NOTES

Schedule of assumptions used in determination of fair value of Exchangeable Notes


		As of the settlement date
		Lightning Speed		Kingway
		Exchangeable		Exchangeable
		Notes		Notes
Risk‑free interest rates		1.06%-1.18	%	1.31%-1.35	%
Probability of conversion		50	%	75	%
Bond yield		21.44	%	19.65%-20.96	%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

FAIR VALUE MEASUREMENT

6 Months Ended

Jun. 30, 2026

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT

21.	FAIR VALUE MEASUREMENT

Assets and liabilities measured at fair value on a recurring basis include investment securities, exchangeable notes, convertible notes, and warrant liabilities.

The following tables set the major financial instruments measured at fair value, by level within the fair value hierarchy as of June 30, 2026 and December 31, 2025.


		Fair Value Measurement at Reporting Date Using
		Quoted Prices	Significant
		in Active	Other	Significant
	Fair Value as of	Markets for	Observable	Unobservable
	June 30,	Identical Assets	Inputs	Inputs
	2026	(Level 1)	(Level 2)	(Level 3)
	US$	US$	US$	US$
Assets
Investment securities	1,358	1,358	—	—
Liabilities
Warrant liabilities	845	845	—	—
Convertible notes	269,047	—	—	269,047


		Fair Value Measurement at Reporting Date Using
		Quoted Prices	Significant
		in Active	Other	Significant
	Fair Value as of	Markets for	Observable	Unobservable
	December 31,	Identical Assets	Inputs	Inputs
	2025	(Level 1)	(Level 2)	(Level 3)
	US$	US$	US$	US$
Assets
Investment securities	1,811	1,811	—	—
Liabilities
Warrant liabilities	800	800	—	—
Convertible notes	276,604	—	—	276,604
Exchangeable notes	128,852	—	—	128,852

Valuation Techniques

Investment securities: The Group invested in a listed equity securities ECARX and values the equity securities using quoted prices for the underlying securities in active markets. Accordingly, the Group classifies the valuation technique that use these inputs as Level 1.

Public Warrants and Sponsor Warrants: Public Warrants and Sponsor Warrants is classified as Level 1 due to the use of the observed trading price.

The other financial assets and liabilities of the Group primarily consist of cash, restricted cash, accounts receivable, loan receivables and other receivables included in prepayments and other current assets and other non-current assets, short-term borrowings, accounts payable, other payables included in accrued expenses and other current liabilities and other non-current liabilities and operating lease liabilities. As of June 30, 2026, and December 31, 2025, the fair values of financial assets and liabilities included in non-current assets, operating leases liabilities and other non-current liabilities approximated to their carrying values, which were due to that the underlying interest rates approximated to the market rates for similar instruments with similar maturities. As of June 30, 2026, and December 31, 2025, the carrying amounts of other financial instruments approximated to their fair values due to short term maturity of these instruments.

The Group’s non-financial assets, such as property, equipment and software and intangible assets, would be measured at fair value only if they were determined to be impaired.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 107
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-107

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 940
-SubTopic 820
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

CONVERTIBLE NOTES - 2026 Convertible Notes (Details)		6 Months Ended
CONVERTIBLE NOTES - 2026 Convertible Notes (Details)	Jun. 12, 2026 USD ($)	Jun. 30, 2026 USD ($)	Jun. 30, 2025 USD ($)
CONVERTIBLE NOTES
Repayment of convertible note		$ 128,325,000	$ 119,263,000
2026 Convertible Notes
CONVERTIBLE NOTES
Variable interest rate	3.35%
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]	us-gaap:SecuredOvernightFinancingRateSofrMember
Debt convertible, consecutive trading days	10
2026 Convertible Notes \| Geely HK
CONVERTIBLE NOTES
Aggregate principal amount of loan	$ 128,325,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

ACCOUNT RECEIVABLES - THIRD PARTIES, NET (Details) - Nonrelated Party - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Dec. 31, 2025
ACCOUNT RECEIVABLES - THIRD PARTIES, NET
Accounts receivable-third parties	$ 31,432		$ 37,603
Less: Allowance for credit losses	(848)		(753)
Total	30,584		$ 36,850
Provisions	$ 226	$ 2,479

PROPERTY, EQUIPMENT AND SOFTWARE, NET (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Property, equipment and software	$ 294,152	$ 316,145
Less: Accumulated depreciation	(176,455)	(156,686)
Construction in progress(i)	59,903	67,432
Property, equipment and software, net	177,600	226,891
Buildings and facilities
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Property, equipment and software	1,400	22,617
Machinery and R&D equipment
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Property, equipment and software	12,493	21,361
Molds and tooling
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Property, equipment and software	135,665	124,378
Motor vehicles
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Property, equipment and software	24,152	23,222
Office and electronic equipment
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Property, equipment and software	25,851	29,045
Purchased software
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Property, equipment and software	65,431	64,321
Leasehold improvements
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Property, equipment and software	$ 29,160	$ 31,201

OTHER NON-CURRENT LIABILITIES - THIRD PARTIES

6 Months Ended

Jun. 30, 2026

OTHER NON-CURRENT LIABILITIES - THIRD PARTIES

OTHER NON-CURRENT LIABILITIES - THIRD PARTIES

16.

OTHER NON-CURRENT LIABILITIES – THIRD PARTIES

Other non-current liabilities – third parties consisted of the following:


		As of		As of
		June 30, 2026		December 31, 2025
	* *	US$	* *	US$
Deposits from third parties		18,372		18,442
Conditional and refundable government grants (i)		11,746		77,624
Warranty provision		28,409		28,938
Total		58,527		125,004

(i)The Group was awarded grants from governments, which were conditional on the operation performance and tax contribution in certain specified regions in next few years. Government grants received were recognized as other non-current liabilities initially and will be released to government grants in the consolidated statements of comprehensive loss when the conditions attached for operation performance and tax contribution are satisfied. As of June 30, 2026, as the Group estimated that the conditions attached for operation performance and tax contribution would be not probable to be satisfied, the Group classified these liabilities as other non-current liabilities.

SHAREHOLDERS' DEFICIT - Ordinary Shares (Details) - USD ($) $ / shares in Units, $ in Millions	Jan. 19, 2026	Dec. 23, 2025	Jun. 30, 2026	Dec. 31, 2025
Ordinary Shares [Line Items]
Common shares, shares issued			711,576,295	707,196,733
Common shares, shares outstanding			646,893,910	640,672,331
Share subscription agreement
Ordinary Shares [Line Items]
Common stock subscribed		16,788,321
Price per share		$ 1.37
Total purchase price		$ 23
Proceeds from issuance of ordinary shares	$ 6	$ 17
Number of shares issued	4,379,562	12,408,759
Shares lock-up period	6 months

PROPERTY, EQUIPMENT AND SOFTWARE, NET (Tables)

6 Months Ended

Jun. 30, 2026

PROPERTY, EQUIPMENT AND SOFTWARE, NET

Schedule of property, equipment and software, net


		As of June 30,		As of December 31,
		2026		2025
		US$		US$
Buildings and facilities		1,400		22,617
Machinery and R&D equipment		12,493		21,361
Molds and tooling		135,665		124,378
Motor vehicles		24,152		23,222
Office and electronic equipment		25,851		29,045
Purchased software		65,431		64,321
Leasehold improvements		29,160		31,201
Property, equipment and software		294,152		316,145
Less: Accumulated depreciation		(176,455)		(156,686)
Construction in progress (i)		59,903		67,432
Property, equipment and software, net		177,600		226,891

(i)Represents the capitalized expenditures on the construction of corporate buildings, leasehold improvements, molds, tooling and R&D equipment under construction.

Schedule of allocation of depreciation expenses on property, equipment and software


		Six Months Ended June 30,
		2026		2025
		US$		US$
Cost of revenues		10,024		11,901
Research and development expenses		3,600		3,421
Selling and marketing expenses		5,171		7,334
General and administrative expenses		8,124		12,996
Total		26,919		35,652

INVENTORIES - Narratives (Details) - USD ($) $ in Thousands	6 Months Ended
INVENTORIES - Narratives (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Jun. 30, 2025
INVENTORIES
Inventories write-downs	$ 4,213	$ 6,262

NET LOSS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2026

NET LOSS PER SHARE

Schedule of computation of basic and diluted net loss per ordinary share


	Six Months Ended June 30,
	2026	2025
	US$	US$
Numerator:
Net loss attributable to ordinary shareholders	(150,942)	(313,038)
Numerator for basic and diluted net loss per ordinary share calculation	(150,942)	(313,038)
Denominator:
Weighted average number of ordinary shares, basic and diluted¹	645,541,822	659,335,966
Denominator for basic and diluted net loss per ordinary share calculation	645,541,822	659,335,966
Net loss per ordinary share attributable to ordinary shareholders
—Basic and diluted	(0.23)	(0.47)

Schedule of potentially dilutive ordinary share equivalents excluded from the computation of net loss per share


		Six Months Ended June 30,
		2026		2025
Share options (i)		14,671,161		14,561,421
2025 Convertible Notes (ii) (note 14)		65,250,704		86,583,567
2026 Convertible Notes (iii) (note 14)		109,972,857		—
ATW Convertible Notes (iv) (note 14)		5,921,401		—
Meritz put option (v)		—		32,500,000
Public Warrant (vi) (note 12)		9,054,522		9,054,522
Sponsor Warrant (vi) (note 12)		5,486,784		5,486,784
Total		210,357,429		148,186,294

(i)For the six months ended June 30, 2026 and 2025, 14,671,161 and 14,561,421 vested and unvested share options are not included in the calculation of diluted loss per share as their exercise price was above underlying stock price.

(ii)Represents the number of potentially dilutive ordinary shares equivalent on as-if-converted basis, calculated by the principal and accrued interest of US$70,000 divided by the estimated fair value of ordinary shares as of June 30, 2026, which are not included in the calculation of diluted loss per share due to their antidilutive effect.

(iii)Represents the number of potentially dilutive ordinary shares equivalent on as-if-converted basis, calculated by the principal and accrued interest of US$128,325 divided by the estimated fair value of ordinary shares as of June 30, 2026, which are not included in the calculation of diluted loss per share due to their antidilutive effect.

(iv)Represents the number of potentially dilutive ordinary shares equivalent on as-if-converted basis, calculated by the principal and accrued interest of US$6,838 divided by the average closing market price of ordinary shares, which was not included in the calculation of diluted loss per share due to their antidilutive effect.

(v)For the six months ended June 30, 2025, the exercise of put option issued to Meritz are not included in the calculation of diluted loss per share due to antidilutive effect using reverse treasury stock method.

(vi)For the six months ended June 30, 2026 and 2025, public and sponsor warrants are not included in the calculation of diluted loss per share as their exercise price is above underlying stock price.

OTHER NON-CURRENT ASSETS - THIRD PARTIES

6 Months Ended

Jun. 30, 2026

OTHER NON-CURRENT ASSETS - THIRD PARTIES

OTHER NON-CURRENT ASSETS - THIRD PARTIES

9.	OTHER NON-CURRENT ASSETS – THIRD PARTIES

Other non-current assets consisted of the following:


		As of June 30,		As of December 31,
		2026		2025
		US$		US$
Deposits for long-term operating leases		1,914		2,030
Prepayments for purchases of property, equipment and software		464		10,612
Deductible VAT		63,897		65,149
Others		592		617
Total		66,867		78,408

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - THIRD PARTIES (Tables)

6 Months Ended

Jun. 30, 2026

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - THIRD PARTIES

Schedule of accrued expenses and other current liabilities


		As of June 30,		As of December 31,
		2026		2025
		US$		US$
Accrued salaries and benefits		47,242		55,135
Payables for R&D expenses		28,412		30,124
Payables for marketing events		49,184		49,781
Payables for purchase of property, equipment and software		17,780		24,534
Advance from customers		4,550		3,881
Deposits from third parties suppliers		8,191		9,950
VAT and other taxes payables		6,628		11,782
Payables for service fees		19,593		31,754
Others		33,943		34,420
Total		215,523		251,361

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Long-term investments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Dec. 31, 2025
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Investment securities - related party	$ 1,358		$ 1,811
Equity method investments	20,234		10,625
Equity security without readily determinable fair values using the measurement alternative - related party	36,706		35,568
Total	58,298		$ 48,004
Impairment charge of equity method investments	$ 0	$ 0

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2026

COMMITMENTS AND CONTINGENCIES

Schedule of future minimum purchase commitment

As of June 30, 2026, the Group has future minimum purchase commitment related to the purchase of vehicles, research and development services and other operating expenses. Total purchase obligations contracted but not yet reflected in the unaudited condensed consolidated financial statements as of June 30, 2026 were as follows:


		Less than		More than
		one year		one year		Total
		US$		US$		US$
Purchase commitment		43,290		10,929		54,219

Schedule of capital expenditure commitment

As of June 30, 2026, the Group has certain capital commitments on the construction of the Group’s corporate buildings, leasehold improvements, molds and tooling. Total capital expenditures contracted but not yet reflected in the unaudited condensed consolidated financial statements as of June 30, 2026 were as follows:


		Less than		More than
		one year		one year		Total
		US$		US$		US$
Capital expenditure commitment		9,925		—		9,925

FAIR VALUE MEASUREMENT - Schedule of major financial instruments measured at fair value (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025	Jun. 30, 2025	Dec. 31, 2024
Liabilities
Warrant liabilities	$ 845	$ 800	$ 845	$ 800
Level 1
Assets
Investment securities	1,358	1,811
Liabilities
Warrant liabilities	845	800
Level 3
Liabilities
Convertible notes	269,047	276,604
Exchangeable notes		128,852
Recurring
Assets
Investment securities	1,358	1,811
Liabilities
Warrant liabilities	845	800
Convertible notes	$ 269,047	276,604
Exchangeable notes		$ 128,852

- Definition

Fair value portion of borrowing which can be exchanged for a specified number of another security at the option of the issuer or the holder, for example, but not limited to, the entity's common stock.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (c)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-28

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-11

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-11

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-10

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

+ Details

- Definition

Fair value portion of investment securities, including, but not limited to, marketable securities, derivative financial instruments, and investments accounted for under the equity method.

+ References + Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Warranties (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Movements of product warranty reserve:
Accrued warranty at the beginning of the period	$ 32,278	$ 24,048
Additions	8,089	5,244
Utilization	(8,279)	(6,034)
Foreign currency translation adjustment	1,351	1,315
Accrued warranty at the end of the period	33,439	24,573
Current portion	5,030	4,207
Non-current portion	$ 28,409	$ 20,366

FAIR VALUE MEASUREMENT (Tables)

6 Months Ended

Jun. 30, 2026

FAIR VALUE MEASUREMENT

Schedule of major financial instruments measured at fair value, by level within the fair value hierarchy


		Fair Value Measurement at Reporting Date Using
		Quoted Prices	Significant
		in Active	Other	Significant
	Fair Value as of	Markets for	Observable	Unobservable
	June 30,	Identical Assets	Inputs	Inputs
	2026	(Level 1)	(Level 2)	(Level 3)
	US$	US$	US$	US$
Assets
Investment securities	1,358	1,358	—	—
Liabilities
Warrant liabilities	845	845	—	—
Convertible notes	269,047	—	—	269,047


		Fair Value Measurement at Reporting Date Using
		Quoted Prices	Significant
		in Active	Other	Significant
	Fair Value as of	Markets for	Observable	Unobservable
	December 31,	Identical Assets	Inputs	Inputs
	2025	(Level 1)	(Level 2)	(Level 3)
	US$	US$	US$	US$
Assets
Investment securities	1,811	1,811	—	—
Liabilities
Warrant liabilities	800	800	—	—
Convertible notes	276,604	—	—	276,604
Exchangeable notes	128,852	—	—	128,852

LEASES

6 Months Ended

Jun. 30, 2026

LEASES

LEASES

The Group has entered into various non-cancellable operating lease agreements for land use rights, certain offices, warehouses, retail and service locations, and vehicles worldwide. The Group determines if an arrangement is a lease, or contains a lease, at inception and record the leases in the financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor.

The components of lease cost were as follows:


		Six Months Ended June 30,
		2026		2025
		US$		US$
Operating lease cost		4,429		9,850
Short-term lease cost		4,673		4,066
Total		9,102		13,916

Certain leases have annual rent escalations based on subsequent year-to-year changes in the consumer price index (“CPI”). While operating lease liabilities are not remeasured as a result of changes to the CPI, the year-to-year changes to the CPI are treated as variable lease payments and recognized in the period in which they are incurred.

The above lease costs are recognized as cost of revenues, selling and marketing expenses, general and administrative expenses and research and development expenses.

Supplemental cash flows information related to leases was as follows:


		Six Months Ended June 30,
		2026		2025
		US$		US$
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from operating leases		5,131		9,196
Right-of-use assets obtained in exchange for lease obligations
Operating leases		—		145

Supplemental balance sheet information related to leases was as follows:


		As of June 30,		As of December 31,
		2026		2025
		US$		US$
Operating Leases
Operating lease right-of-use assets		96,879		118,845
Operating lease liabilities, current
- Operating lease liabilities-third parties		9,146		11,598
- Operating lease liabilities-related parties*		1,661		1,636
Operating lease liabilities, non-current
- Operating lease liabilities-third parties		47,653		57,576
- Operating lease liabilities-related parties		2,219		3,105
Total operating lease liabilities		60,679		73,915

* This item is included in accrued expenses and other current liabilities – related parties in the unaudited condensed consolidated balance sheets.

Weighted average remaining lease term and weighted average discount rate for leases, excluding prepaid land use rights, were as follows:


		Six Months Ended June 30,
		2026		2025
		US$		US$
Weighted-average remaining lease term
Operating leases		6.02 years		6.71 years
Weighted-average discount rate
Operating leases		6.37	%	6.31	%

CONVERTIBLE NOTES - Key assumptions used in determining fair value of 2026 Convertible Note (Details) - 2026 Convertible Notes	Jun. 30, 2026
Risk-free interest rate
CONVERTIBLE NOTES
Measurement input	0.0394
Volatilities
CONVERTIBLE NOTES
Measurement input	0.4338
Bond yields
CONVERTIBLE NOTES
Measurement input	0.263

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2026
Document and Entity Information
Document Type	6-K
Document Period End Date	Jun. 30, 2026
Entity Registrant Name	Lotus Technology Inc.
Entity Central Index Key	0001962746
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2026
Document Fiscal Period Focus	Q2
Amendment Flag	false

REVENUES - Contract liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
REVENUES
Contract liabilities - related parties	$ 4,354	$ 228
Contract liabilities, non-current	7,578	7,458
Contract liabilities	38,530	26,145
Third parties
REVENUES
Contract liabilities, current	26,598	18,459
Contract liabilities, non-current	7,578	7,458
Related parties
REVENUES
Contract liabilities - related parties	4,354	228
Contract liabilities	$ 4,354	$ 228

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

OTHER NON-CURRENT LIABILITIES - THIRD PARTIES (Tables)

6 Months Ended

Jun. 30, 2026

OTHER NON-CURRENT LIABILITIES - THIRD PARTIES

Schedule of other non-current liabilities - third parties


		As of		As of
		June 30, 2026		December 31, 2025
	* *	US$	* *	US$
Deposits from third parties		18,372		18,442
Conditional and refundable government grants (i)		11,746		77,624
Warranty provision		28,409		28,938
Total		58,527		125,004

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - THIRD PARTIES

6 Months Ended

Jun. 30, 2026

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - THIRD PARTIES

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - THIRD PARTIES

11.	ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES – THIRD PARTIES

Accrued expenses and other current liabilities – third parties consisted of the following:


		As of June 30,		As of December 31,
		2026		2025
		US$		US$
Accrued salaries and benefits		47,242		55,135
Payables for R&D expenses		28,412		30,124
Payables for marketing events		49,184		49,781
Payables for purchase of property, equipment and software		17,780		24,534
Advance from customers		4,550		3,881
Deposits from third parties suppliers		8,191		9,950
VAT and other taxes payables		6,628		11,782
Payables for service fees		19,593		31,754
Others		33,943		34,420
Total		215,523		251,361

CONVERTIBLE NOTES (Details) - USD ($) $ in Thousands		6 Months Ended
CONVERTIBLE NOTES (Details) - USD ($) $ in Thousands	Jun. 18, 2026	Jun. 30, 2026	Jun. 30, 2025
CONVERTIBLE NOTES
Repayments of convertible notes		$ (128,325)	$ (119,263)
Changes in fair values of liabilities, excluding impact of instrument-specific credit risk		4,041
Changes in fair values of convertible notes due to the instrument-specific credit risk		(5,600)
Conversion to ordinary shares		2,236
Foreign currency translation adjustment		4,115
Convertible notes
CONVERTIBLE NOTES
Beginning balance		276,604
Issuance of convertible notes		128,325
Interest paid		(5,031)
Changes in fair values of liabilities, excluding impact of instrument-specific credit risk		5,831
Changes in fair values of convertible notes due to the instrument-specific credit risk		(8,064)
Repayment		(128,325)
Conversion to ordinary shares		(2,236)
Foreign currency translation adjustment		1,943
Ending balance		269,047
- Current portion		207,075
- Non-current portion		61,972
Subsidiary Convertible Note
CONVERTIBLE NOTES
Beginning balance		62,439
Interest paid		(4,670)
Changes in fair values of liabilities, excluding impact of instrument-specific credit risk		3,144
Changes in fair values of convertible notes due to the instrument-specific credit risk		(8,415)
Foreign currency translation adjustment		1,943
Ending balance		54,441
- Non-current portion		54,441
2025 Convertible Notes
CONVERTIBLE NOTES
Beginning balance		203,378
Repayments of convertible notes	$ (119,263)
Changes in fair values of liabilities, excluding impact of instrument-specific credit risk		3,125
Repayment		(128,325)
Ending balance		78,178
- Current portion		78,178
ATW Convertible Notes
CONVERTIBLE NOTES
Beginning balance		10,787
Interest paid		(361)
Changes in fair values of liabilities, excluding impact of instrument-specific credit risk		(1,010)
Changes in fair values of convertible notes due to the instrument-specific credit risk		351
Conversion to ordinary shares		(2,236)
Ending balance		7,531
- Non-current portion		7,531
2026 Convertible Notes
CONVERTIBLE NOTES
Issuance of convertible notes		128,325
Changes in fair values of liabilities, excluding impact of instrument-specific credit risk		572
Ending balance		128,897
- Current portion		$ 128,897

REVENUES (Tables)

6 Months Ended

Jun. 30, 2026

REVENUES

Schedule of disaggregated by product and service


	Six Months Ended June 30,
	2026	2025
	US$	US$
Sales of goods - third parties
- EV lifestyle models	209,541	143,966
- Sports cars	30,346	32,906
- Others	11,602	17,851
	251,489	194,723
Sales of goods - related parties
- EV lifestyle models	1,403	1,066
- Sports cars	—	227
- Others	10,364	1,469
	11,767	2,762
Subtotal	263,256	197,485

Services- third parties
- R&D service	365	1,087
- Others¹	4,247	3,069
	4,612	4,156
Services- related parties
- R&D service	231	13,666
- Others²	—	3,019
	231	16,685
Subtotal	4,843	20,841
Total revenues	268,099	218,326

¹ Others primarily include trainings, installed premium intelligent driving system upgrades, free battery charging services, maintenance services and vehicle internet connection services.

² Others primarily include commission service fee.

Schedule of contract liabilities


	As of		As of
	June 30, 2026		December 31, 2025
	US$		US$
Current liabilities
- Contract liabilities - third parties	26,598		18,459
- Contract liabilities - related parties*	4,354		228
Non-current liabilities
- Contract liabilities – third parties	7,578		7,458
Contract liabilities, current and non-current	38,530		26,145

* This item is included in accrued expenses and other current liabilities – related parties in the unaudited condensed consolidated balance sheets.

DEFERRED INCOME

6 Months Ended

Jun. 30, 2026

DEFERRED INCOME.

DEFERRED INCOME

15.	DEFERRED INCOME


		Asset-related
		subsidy
		US$
Balance as of December 31, 2025		311,912
Subsidy received		10,200
Recognized as government grants during the period		(52)
Deconsolidation of subsidiaries		(1,782)
Foreign currency translation adjustment		10,056
Balance as of June 30, 2026		330,334

The Group received government grants of US$3,585 with no future related costs required during the six months ended June 30, 2026, which were directly recognized as government grants in the unaudited condensed consolidated statements of comprehensive loss for the six months ended June 30, 2026.

OTHER NON-CURRENT ASSETS - THIRD PARTIES (Tables)

6 Months Ended

Jun. 30, 2026

OTHER NON-CURRENT ASSETS - THIRD PARTIES

Schedule of other non-current assets


		As of June 30,		As of December 31,
		2026		2025
		US$		US$
Deposits for long-term operating leases		1,914		2,030
Prepayments for purchases of property, equipment and software		464		10,612
Deductible VAT		63,897		65,149
Others		592		617
Total		66,867		78,408

RELATED PARTY BALANCES AND TRANSACTIONS - Revenue and Prepayments and other current assets (Details) - USD ($) $ in Thousands			6 Months Ended
	Mar. 11, 2024	May 13, 2022	Jun. 30, 2026	Jun. 30, 2025	Dec. 31, 2025
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Receipts in advance			$ 38,530		$ 26,145
Interest income			15,202	$ 13,157
Proceed from settlement of related party loans			80,251
Related party
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounts Receivable			59,734		114,126
Receipts in advance			4,354		228
Salary and other expenses paid on behalf of related party			8,859	4,619
Term of loan		1 year
Loans to related parties			72,731
Interest income			11,765	9,317
Proceed from settlement of related party loans			62,136
Related party \| Salary and other expenses \| Prepayments and other current assets
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Amount receivable from related party included in prepayments and other current assets			25,000		5,764
Related party \| Unsecured loan to a related party
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Total principal amount	$ 354,000
Term of loan	5 years
Interest rate on loan	6.95%
Loans to related parties			72,731	0
Interest income			11,564	9,017
Interest included in loan receivable			368,564		351,486
Related party \| Unsecured short term loans \| Prepayments and other current assets
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Amount receivable from related party included in prepayments and other current assets			4,779		4,706
Related party \| Unsecured short term loan to a related party
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Loans to related parties			81	68
Related party \| pertaining to purchase of vehicles, auto parts and peripheral products \| Prepayments and other current assets
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Amount receivable from related party included in prepayments and other current assets			83,398		83,296
Related party \| Provision of services
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues			231	16,685
Related party \| Sales of goods
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues			11,767	2,762
Accounts Receivable			59,734		114,126
Subsidiary \| Unsecured loan to a related party
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Interest income			120	$ 232
Proceed from settlement of related party loans			$ 18,115
Interest included in loan receivable					$ 18,052

RELATED PARTY BALANCES AND TRANSACTIONS (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Short term lease cost	$ 4,673	$ 4,066
Interest income	15,202	13,157
Payment of lease liabilities	5,131	9,196
Disposal of equipment	11,297	17,854
Related party
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Loans to related parties	72,731
Interest income	11,765	9,317
Payment by related parties on behalf of the Group	8,859	4,619
Repayments of borrowing from related parties	226,108	161,639
Related party \| Purchase of Geely License
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Purchases	8,859	4,619
Related party \| Short-Term Loan
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Proceeds of borrowing from related parties	261,003	342,633
Related party \| Purchase of products and services
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Purchases	334,976	178,224
Related party \| Purchase of products and services for R&D activities
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Purchases	14,221	49,264
Related party \| Purchase of equipment and software
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Purchases	58	465
Related party \| Short-term lease
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Short term lease cost	81	151
Related party \| Staff salary, social welfare and other travel expenses
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Payment by related parties on behalf of the Group	929	1,294
Related party \| Unsecured loan to a related party
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Loans to related parties	72,731	0
Interest income	11,564	9,017
Interest expense on borrowing due to related parties	23,183	13,799
Related party \| Unsecured loan from a related party
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Interest income	11,765	9,317
Repayments of borrowing from related parties	226,108	161,639
Related party \| Lease agreements
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Payment of lease liabilities	935	922
Related party \| Disposal Of Equipment
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Disposal of equipment	331	10,162
Related party \| Refund of license fee in connection with adjustments to the product pipeline from a related party
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Disposal of equipment	99,114
Related party \| Provision of services
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues	231	16,685
Related party \| Sales of goods
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues	$ 11,767	$ 2,762

WARRANT LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2026

WARRANT LIABILITIES

Schedule of warrant liabilities


		Six Months Ended
		June 30, 2025
		US$
Balance as of December 31, 2024		800
Change in fair values		45
Balance as of June 30, 2025		845

DEFERRED INCOME (Details) $ in Thousands	6 Months Ended
DEFERRED INCOME (Details) $ in Thousands	Jun. 30, 2026 USD ($)
DEFERRED INCOME
Balance at the beginning of the year	$ 311,912
Subsidy received	10,200
Balance at the end of the year	330,334
Asset-related subsidy
DEFERRED INCOME
Balance at the beginning of the year	311,912
Subsidy received	10,200
Recognized as government grants during the period	(52)
Deconsolidation of subsidiaries	(1,782)
Foreign currency translation adjustment	10,056
Balance at the end of the year	330,334
Government grants
DEFERRED INCOME
Government grants	$ 3,585

WARRANT LIABILITIES

6 Months Ended

Jun. 30, 2026

WARRANT LIABILITIES

WARRANT LIABILITIES

12.

WARRANT LIABILITIES

The following table shows the movement of warrant liabilities:


		Six Months Ended
		June 30, 2025
		US$
Balance as of December 31, 2024		800
Change in fair values		45
Balance as of June 30, 2025		845

Public Warrants and Sponsor Warrants

As stated in note 1(b)(vi), 9,550,246 Public Warrants were issued to the then public shareholders of LCAA in exchange for the warrants held by public shareholders of LCAA, and 5,486,784 Sponsor warrants were issued to the Sponsor in exchange for warrants held by the Sponsor.

Given the Public Warrants are publicly traded on Nasdaq, the liability is measured at fair value using observable inputs and categorized in Level 1 of the fair value hierarchy. As of June 30, 2026, the management determined the fair value of Public Warrants and Sponsor Warrants were approximate, and used fair value of Public Warrants to estimate fair value of Sponsor Warrants.

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2026

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

23.	COMMITMENTS AND CONTINGENCIES

Purchase commitment


		Less than		More than
		one year		one year		Total
		US$		US$		US$
Purchase commitment		43,290		10,929		54,219

Capital commitment


		Less than		More than
		one year		one year		Total
		US$		US$		US$
Capital expenditure commitment		9,925		—		9,925

Repurchase commitment

The Group has entered into repurchase agreements with lending institutions in connection with its dealers’ wholesale floor-plan financing of vehicles. Pursuant to the agreements, in the event that a dealer has declared the intention to file for bankruptcy, and a lender is able to repossess the vehicle and deliver the repossessed vehicle to the Group, the Group is obligated to repurchase the vehicle from the lender at the unpaid balance of the original invoice price for the vehicle. The Group did not repurchase any vehicles under the repurchase agreements since the inception of the repurchase agreements, and the Group believes that, based on historical experience, the likelihood of a material loss pursuant to these repurchase obligations is remote. The total amount financed under the floor financing programs with repurchase obligations was US$62,981 as of June 30, 2026.

INCOME TAX - Effective income tax reconciliation (Details)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
INCOME TAX
Statutory income tax rate	25.00%	25.00%
Effective income tax rate	(0.44%)	(5.05%)

INVENTORIES

6 Months Ended

Jun. 30, 2026

INVENTORIES

INVENTORIES

4.	INVENTORIES

Inventories consisted of the following:


		As of June 30,		As of December 31,
		2026		2025
		US$		US$
Products available for sale		170,094		112,235
Goods in transit		277		7,589
Raw materials		—		1,506
Work-in-progress		—		31
Total		170,371		121,361

Inventory write-downs recognized in cost of goods sold for the six months ended June 30, 2026 and 2025 were US$4,213 and US$6,262, respectively.

PREPAYMENTS AND OTHER CURRENT ASSETS - THIRD PARTIES (Details) - Third parties - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
PREPAYMENTS AND OTHER CURRENT ASSETS
Deductible VAT	$ 53,949	$ 46,287
Prepayments to third-party suppliers	14,524	16,554
Contract costs	4,851	2,569
Deposits	2,204	2,726
Interest receivable	2,914	4,721
Others	7,513	4,727
Less: Allowance for credit losses	(30)	(14)
Total	$ 85,925	$ 77,570

CONVERTIBLE NOTES - Subsidiary Convertible Note (Details) ¥ / shares in Units, ¥ in Thousands	1 Months Ended
	Jun. 30, 2022 CNY (¥) ¥ / shares shares
CONVERTIBLE NOTES
Term of the debt instrument	5 years
Subsidiary Convertible Note
CONVERTIBLE NOTES
Term of the debt instrument	7 years
Aggregate principal amount of loan \| ¥	¥ 500,000
Variable interest rate	79.80%
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]	us-gaap:PrimeRateMember
Debt instrument conversion price per share \| ¥ / shares	¥ 135
Number of shares represented for 1 RMB registered capital \| shares	1

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

CONVERTIBLE NOTES - Key assumptions used in determining fair value of 2025 Convertible Note (Details) - 2025 Convertible Notes	Jun. 30, 2026
Risk-free interest rate
CONVERTIBLE NOTES
Measurement input	0.0395
Volatilities
CONVERTIBLE NOTES
Measurement input	0.4269
Bond yields
CONVERTIBLE NOTES
Measurement input	0.264

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

SHARE-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2026

SHARE-BASED COMPENSATION

Schedule of share options activities


						Weighted		Weighted
				Weighted		average		remaining		Aggregate
		Number of		average		grant-date		contractual		intrinsic
		shares		exercise price		fair value		years		value
				US$		US$				US$
Outstanding at December 31, 2025		12,051,138		2.89		2.05		7.79		—

Granted		3,823,185		2.89		0.43		—		—
Forfeited		(1,203,162)		2.89		2.03		—		—

Outstanding at June 30, 2026		14,671,161		2.89		1.65		7.97		—
Vested and expected to vest as of June 30, 2026		14,671,161		2.89		1.65		7.97		—
Exercisable as of June 30, 2026		14,649,013		2.89		1.64		7.97		—

Schedule of compensation expenses


	Six Months Ended June 30,
	2026		2025
	US$		US$
Research and development expenses	187		950
Selling and marketing expenses	28		176
General and administrative expenses	1,419		1,089
	1,634		2,215

Schedule of assumptions of share options granted


		Six Months Ended June 30,
Grant dates:		2026		2025
Risk‑free interest rate ⁽ⁱ⁾		4.46%-4.47	%	4.20%-4.53	%
Expected volatility ⁽ⁱⁱ⁾		58.91%-59.18	%	55.58%-56.22	%
Expected dividend yield ⁽ⁱⁱⁱ⁾		0.00	%	0.00	%
Exercise multiple ^(iv)		2.20-2.80		2.20-2.80
Expected terms^(v)		10.00 years		10.00 years
Fair value of underlying ordinary share ^(vi)		US$1.33		US$1.87-US$3.61

(ii)The expected volatility was estimated based on the historical volatility of comparable peer public companies with a time horizon close to the expected term of the Company’s options.

(iii)Expected dividend yield is zero as the Company does not anticipate any dividend payments in the foreseeable future.

(v)Expected term is the contract life of the share options.

PROPERTY, EQUIPMENT AND SOFTWARE, NET - Allocation of depreciation expenses on property, equipment and software (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2026	Dec. 31, 2025
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Total depreciation expenses	$ 26,919	$ 35,652
Property, equipment and software, net	177,600	226,891
Cost of revenues
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Total depreciation expenses	10,024	11,901
Research and development expenses
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Total depreciation expenses	3,600	3,421
Selling and marketing expenses
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Total depreciation expenses	5,171	7,334
General and administrative expenses
PROPERTY, EQUIPMENT AND SOFTWARE, NET
Total depreciation expenses	$ 8,124	$ 12,996

RELATED PARTY BALANCES AND TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of related party transactions


		Six Months Ended June 30,
		2026		2025
		US$		US$
Provision of services (i)		231		16,685
Sales of goods (i)		11,767		2,762


		Six Months Ended June 30,
		2026		2025
		US$		US$
Purchase of products and services ((iii).a)		334,976		178,224
Purchase of products and services for R&D activities ((iii).b)		14,221		49,264
Purchase of equipment and software ((iii).c)		58		465
Short-term lease cost ((iii).e)		81		151
Loans to a related party ((ii).b)		72,731		—
Proceed from settlement of related party loans ((ii).b)		62,136		—
Interest income on loans due from related parties ((ii).b)		11,765		9,317
Payment of lease liabilities (iv)		935		922
Payments on behalf of related parties((ii).a)		8,859		4,619
Payments by related parties on behalf of the Group ((iii).d)		929		1,294
Proceeds of borrowing from related parties (vi)		261,003		342,633
Repayments of borrowing from related parties (vi)		226,108		161,639
Interest expense on borrowing due to related parties ((iii).a & (vi))		23,183		13,799
Disposal of equipment ((ii).f)		331		10,162
Refund of license fee in connection with adjustments to the product pipeline from a related party (vii)		99,114		—


		As of		As of
		June 30, 2026		December 31, 2025
		US$		US$
Accounts receivable – related parties (i)		59,734		114,126
Contract liabilities – related parties* (i)		4,354		228
Prepayments and other current assets – related parties (ii)		112,784		111,886
Other non-current assets – related parties ((ii).e)		587		569
Accounts payable – related parties ((iii).a)		633,627		458,189
Accrued expenses and other current liabilities – related parties (iii)		130,871		211,665
Other non-current liabilities – related parties ((iii).f)		—		856
Operating lease liabilities– related parties, current* (iv)		1,661		1,636
Operating lease liabilities– related parties, non-current (iv)		2,219		3,105
Investment securities – related parties (v)		1,358		1,811
Equity security without readily determinable fair values using the measurement alternative – related party		36,706		35,568
Loan receivable from a related party ((ii). b)		368,584		351,486
Short-term borrowings - related parties(vi)		863,776		784,288

* These items are included in accrued expenses and other current liabilities – related parties in the unaudited condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025.

Note:

(i)

(ii)

As of June 30, 2026 and December 31, 2025, the deposit paid recorded in other non-current assets - related parties was US$587 and US$ 569, respectively.

(iii)

(iv)

(v)

(vi)

During the six months ended June 30, 2026 and 2025, the Group incurred related interest expenses of US$18,763 and US$10,090, respectively.

As of June 30, 2026 and December 31, 2025, the outstanding loan principal and interest balance of US$863,776 and US$784,288 were included in short-term borrowings – related parties, respectively.

(vii)

RELATED PARTY BALANCES AND TRANSACTIONS - Additional information (Details) $ / shares in Units, $ in Thousands		1 Months Ended	6 Months Ended		12 Months Ended
	May 13, 2022 USD ($) $ / shares	Sep. 30, 2024	Jun. 30, 2026 USD ($)	Jun. 30, 2025 USD ($)	Dec. 31, 2025 USD ($)	Dec. 31, 2024 $ / shares shares	Jan. 31, 2023 USD ($) item
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Borrowings from banks			$ 1,266,520		$ 1,263,707
Interest expenses			34,300	$ 33,641
Payment of lease liabilities			5,131	9,196
Short term lease cost			4,673	4,066
Related party transactions			11,297	17,854
Intangible assets			116,372		116,475
Related party
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Borrowings from banks			863,776		784,288
Interest expenses			23,183	$ 13,799
Operating lease liabilities-related parties			1,661		1,636
Operating lease liabilities, non-current			2,219		3,105
Term of investment	1 year
Payment for purchase of a short-term investment	$ 10,000
Conversion price \| $ / shares	$ 9.5
Fair value of listed equity securities			1,358		1,811
Prepayments and other current assets, net			112,784		111,886
Other non-current assets			$ 587		569
Related party \| Minimum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Interest rate				3.70%
Related party \| Maximum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Interest rate				6.00%
Related party \| Loans payable \| Minimum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Interest rate			3.45%
Related party \| Loans payable \| Maximum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Interest rate			7.91%
Related party \| Zhejiang Geely Automobile Co., Ltd
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Borrowing from related party			$ 261,003	$ 342,633
Related party \| Geely Auto Wuhan Branch and Wuhan Geely Auto Parts
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Term of manufacturing agreement			10 years
Related party \| Geely holding
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Short Term Borrowings Secured By Intellectual Property			$ 84,640		79,664
Related party \| Unsecured loan from a related party
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Interest rate on debt (as a percent)		3.00%	3.65%	4.50%
Related party \| Lease agreements
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Payment of lease liabilities			$ 935	$ 922
Operating lease liabilities-related parties			1,661		1,636
Operating lease liabilities, non-current			2,219		3,105
Related party \| Service fee for entrusted daily operation and maintenance service \| Wuhan Quanqing
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Related party transactions			0		0
Related party \| Payment of deposits
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Other non-current assets			587		569
Related party \| Disposal Of Equipment
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Related party transactions			331	10,162
Prepayments and other current assets, net			2,297		2,666
Related party \| Short-Term Loan
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Borrowings from banks			863,776		784,288
Interest expenses			18,763	$ 10,090
Outstanding loan principal and interest was secured by equity interests			$ 187,178		$ 178,414
Equity interest owned by subsidiary (in percent)			45.00%		45.00%
Short Term Borrowings Secured By Intellectual Property			$ 433,852		$ 374,501
Related party \| Short-Term Loan \| Intellectual Property \| Asset Pledged as Collateral
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Intangible assets			0		0
Related party \| Short-Term Loan \| Geely holding
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Short term borrowings secured by potential share settlement			242,136		$ 231,328
Related party \| LGIL Put Option \| Geely HK And Etika
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Consideration							$ 0
Number of vehicles to be sold, pre-agreed condition \| item							5,000
Exercise price \| $ / shares						$ 0
Ordinary shares issued \| shares						0
Related party \| Refund of license fee in connection with adjustments to the product pipeline from a related party
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Related party transactions			$ 99,114

DESCRIPTION OF BUSINESS AND ORGANIZATION - Merger and recapitalization (Details) $ / shares in Units, $ in Thousands				1 Months Ended	6 Months Ended	12 Months Ended
	Sep. 05, 2025 shares	Feb. 22, 2024 USD ($) $ / shares shares	Feb. 21, 2024 shares	Aug. 31, 2025 shares	Jun. 30, 2026 shares	Dec. 31, 2024 shares
DESCRIPTION OF BUSINESS AND ORGANIZATION
Shares repurchased	32,500,000			17,500,000
Lotus Technology Inc
DESCRIPTION OF BUSINESS AND ORGANIZATION
Number of ordinary shares to PIPE investors		35,849,458
Lotus E V \| Lotus Technology Inc
DESCRIPTION OF BUSINESS AND ORGANIZATION
Number of shares issued		474,621,603
Recapitalization factor		0.2215
Initial conversion ratio		1
Number of shares recapitalized into ordinary shares		68,228,526
Number of ordinary shares to PIPE investors		94,277,279
Consideration for shares issued to PIPE investors \| $		$ 858,495
Lotus E V \| Lotus Technology Inc \| Meritz Securities Co., Ltd
DESCRIPTION OF BUSINESS AND ORGANIZATION
Number of shares issued		50,000,000
Value of shares issued \| $		$ 500,000
Lotus E V \| Lotus Technology Inc \| Lotus Technology International Investment Limited
DESCRIPTION OF BUSINESS AND ORGANIZATION
Number of ordinary shares to PIPE investors		12,750,000
Lotus E V \| Lotus Technology Inc \| Etika
DESCRIPTION OF BUSINESS AND ORGANIZATION
Number of ordinary shares to PIPE investors		12,250,000
Lotus E V \| Lotus Technology Inc \| LCAA
DESCRIPTION OF BUSINESS AND ORGANIZATION
Number of shares issued		8,427,821
Percentage of shares held by Sponsor remain unvested			20
Number of unvested shares.			1,417,544		1,417,544
Exercise price of warrants \| $ / shares		$ 11.5
Lotus E V \| Lotus Technology Inc \| Public shareholders
DESCRIPTION OF BUSINESS AND ORGANIZATION
Number of shares issued		1,265,103
Number of warrants issued		9,550,246
Lotus E V \| Lotus Technology Inc \| LCA Acquisition Sponsor LP
DESCRIPTION OF BUSINESS AND ORGANIZATION
Number of shares issued		7,087,718
Warrants exercised						495,724
Number of warrants issued		5,486,784
Lotus E V \| Lotus Technology Inc \| Directors and officers
DESCRIPTION OF BUSINESS AND ORGANIZATION
Number of shares issued		75,000
Lotus E V \| Lotus Technology Inc \| WFOE Exchangeable Notes
DESCRIPTION OF BUSINESS AND ORGANIZATION
Number of shares agreed to be issued following the settlement of debt		36,597,038
Lotus E V \| Lotus Technology Inc \| Momenta Note and Pre-IPO Note
DESCRIPTION OF BUSINESS AND ORGANIZATION
Conversion to ordinary shares (in shares)		3,011,368
Lotus E V \| Lotus Technology Inc \| Momenta Note
DESCRIPTION OF BUSINESS AND ORGANIZATION
Conversion to ordinary shares (in shares)		577,456
Lotus E V \| Lotus Technology Inc \| Pre-IPO Note
DESCRIPTION OF BUSINESS AND ORGANIZATION
Conversion to ordinary shares (in shares)		2,433,912

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 80,378	$ 73,431
Restricted cash	269,593	375,865
Inventories	170,371	121,361
Total current assets	809,369	911,089
Non-current assets
Restricted cash	209,490	100,981
Loan receivable from a related party	$ 368,584	$ 351,486
Financing Receivable, after Allowance for Credit Loss, Noncurrent, Related Party [Extensible Enumeration]	Related party	Related party
Property, equipment and software, net	$ 177,600	$ 226,891
Intangible assets	116,372	116,475
Long-term investments	58,298	48,004
Operating lease right-of-use assets	96,879	118,845
Total non-current assets	1,094,677	1,041,659
Total assets	1,904,046	1,952,748
Current liabilities
Shortterm borrowings	1,266,520	1,263,707
Total current liabilities	2,519,041	2,398,078
Noncurrent liabilities
Contract liabilities - third parties	7,578	7,458
Warrant liabilities	845	800
Exchangeable notes		128,852
Long-term borrowings	204,644	98,254
Deferred income	330,334	311,912
Deferred tax liabilities		698
Total noncurrent liabilities	713,772	884,916
Total liabilities	3,232,813	3,282,994
Commitments and contingencies (Note 23)
SHAREHOLDERS' DEFICIT
Ordinary shares (US$0.00001 par value per share, 5,000,000,000 shares authorized as of June 30, 2026 and December 31, 2025; 711,576,295 and 707,196,733 shares issued as of June 30, 2026 and December 31, 2025, respectively; 646,893,910 and 640,672,331 shares outstanding as of June 30, 2026 and December 31, 2025, respectively)	7	7
Treasury stock	(130,921)	(138,397)
Additional paid-in capital	2,118,617	1,933,992
Accumulated other comprehensive income	(4,772)	39,818
Accumulated deficit	(3,308,860)	(3,157,918)
Total shareholders' deficit attributable to ordinary shareholders	(1,325,929)	(1,322,498)
Noncontrolling interests	(2,838)	(7,748)
Total shareholders' deficit	(1,328,767)	(1,330,246)
Total liabilities and shareholders' deficit	1,904,046	1,952,748
Nonrelated Party
Current assets
Accounts receivable, net	30,584	36,850
Prepayments and other current assets, net	85,925	77,570
Non-current assets
Other non-current assets	66,867	78,408
Current liabilities
Shortterm borrowings	402,744	479,419
Accounts payable	23,666	55,032
Contract liabilities - third parties	26,598	18,459
Operating lease liabilities - third parties	9,146	11,598
Accrued expenses and other current liabilities	215,523	251,361
Noncurrent liabilities
Contract liabilities - third parties	7,578	7,458
Operating lease liabilities	47,653	57,576
Convertible notes	61,972	73,226
Other non-current liabilities	58,527	125,004
Related party
Current assets
Accounts receivable, net	59,734	114,126
Prepayments and other current assets, net	112,784	111,886
Non-current assets
Loan receivable from a related party	368,584	351,486
Other non-current assets	587	569
Current liabilities
Shortterm borrowings	863,776	784,288
Accounts payable	633,627	458,189
Accrued expenses and other current liabilities	136,886	213,529
Convertible notes	207,075	126,203
Noncurrent liabilities
Operating lease liabilities	$ 2,219	3,105
Convertible notes		77,175
Other non-current liabilities		$ 856

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disposal of subsidiaries (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Jun. 16, 2026
Kingway Technology
Disposal of subsidiaries
Gain on disposal of a subsidiary under common control	$ 90,227
Fair value of equity method investments	12,239
Gain (loss) from remeasurement of equity interest	$ 6,660
Hangzhou Lightning Speed Technology Co. Ltd \| Disposed by sale, not discontinued operations
Disposal of subsidiaries
Percentage of equity interest disposed		73.00%
Gain on disposal of a subsidiary under common control		$ 92,003

LEASES - Lease cost (Details) - USD ($) $ in Thousands	6 Months Ended
LEASES - Lease cost (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Jun. 30, 2025
LEASES
Operating lease cost	$ 4,429	$ 9,850
Short-term lease cost	4,673	4,066
Total	$ 9,102	$ 13,916

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Total revenues	$ 268,099	$ 218,326
Cost of revenues:
Total cost of revenues	(241,807)	(200,460)
Gross profit	26,292	17,866
Operating expenses:
Research and development (credit) expenses (including related parties amounts of US$(39,744) and US$49,415 for the six months ended June 30, 2026 and 2025, respectively)	1,565	(92,305)
Selling and marketing expenses (including related parties amounts of US$8,099 and US$14,059 for the six months ended June 30, 2026 and 2025, respectively)	(82,932)	(78,995)
General and administrative expenses (including related parties amounts of US$999 and US$2,343 for the six months ended June 30, 2026 and 2025, respectively)	(46,176)	(63,356)
Other operating income	3,839	4,866
Impairment of long-lived assets		(51,504)
Total operating expenses	(123,704)	(281,294)
Operating loss	(97,412)	(263,428)
Interest expenses (including related parties amounts of US$23,183 and US$13,799 for the six months ended June 30, 2026 and 2025, respectively)	(34,300)	(33,641)
Interest income (including related parties amounts of US$11,765 and US$9,317 for the six months ended June 30, 2026 and 2025, respectively)	15,202	13,157
Investment (loss) income, net	(453)	9,400
Foreign currency exchange (losses) gains, net	(21,817)	40,525
Changes in fair values of liabilities, excluding impact of instrument-specific credit risk	(9,948)	(68,084)
Loss before income taxes and share of results of equity method investments	(148,728)	(302,071)
Income tax credit (expense)	664	(15,043)
Share of results of equity method investments	(2,878)	4,074
Net loss	(150,942)	(313,040)
Less: Net loss attributable to noncontrolling interests		(2)
Net loss attributable to ordinary shareholders	$ (150,942)	$ (313,038)
Loss per ordinary share - Basic	$ (0.23)	$ (0.47)
Loss per ordinary share - Diluted	$ (0.23)	$ (0.47)
Weighted average number of ordinary shares outstanding used in computing net loss per ordinary share - Basic	645,541,822	659,335,966
Weighted average number of ordinary shares outstanding used in computing net loss per ordinary share - Diluted	645,541,822	659,335,966
Net loss	$ (150,942)	$ (313,040)
Other comprehensive (loss) income:
Fair value changes of liabilities due to instrument-specific credit risk, net of nil income taxes	13,664	16,427
Foreign currency translation adjustment, net of nil income taxes	(45,552)	(6,332)
Total other comprehensive (loss) income	(31,888)	10,095
Total comprehensive loss	(182,830)	(302,945)
Less: Total comprehensive loss attributable to noncontrolling interests		(2)
Total comprehensive loss attributable to ordinary shareholders	(182,830)	(302,943)
Goods
Revenues:
Total revenues	263,256	197,485
Cost of revenues:
Total cost of revenues	(238,119)	(184,885)
Service
Revenues:
Total revenues	4,843	20,841
Cost of revenues:
Total cost of revenues	$ (3,688)	$ (15,575)

INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2026

INTANGIBLE ASSETS

INTANGIBLE ASSETS

7.	INTANGIBLE ASSETS

Intangible assets consisted of the following:


		As of June 30,		As of December 31,
		2026		2025
		US$		US$
Trademark licenses with indefinite useful lives		116,083		116,083
Others		289		392
Total		116,372		116,475

SHARE-BASED COMPENSATION - Schedule of assumptions of share options granted (Details) - Options - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2026	Dec. 31, 2025
SHARE-BASED COMPENSATION
Risk-free interest rate, Minimum	4.46%	4.20%
Risk-free interest rate, Maximum	4.47%	4.53%
Expected volatility, Minimum	58.91%	55.58%
Expected volatility, Maximum	59.18%	56.22%
Expected dividend yield	0.00%	0.00%
Expected terms	10 years	10 years
Minimum
SHARE-BASED COMPENSATION
Exercise multiple	2.2	2.2
Fair value of underlying ordinary share	$ 1.33	$ 1.87
Maximum
SHARE-BASED COMPENSATION
Exercise multiple	2.8	2.8
Fair value of underlying ordinary share		$ 3.61

BORROWINGS (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
BORROWINGS (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2026	Dec. 31, 2025	Jun. 30, 2025
Short-term borrowings:
Borrowings from banks		$ 402,744	$ 479,419
Borrowings from related parties		863,776	784,288
Total		1,266,520	1,263,707
Long-term borrowings:
Borrowings from bank		$ 204,644	$ 98,254
Loan term	5 years
Interest rate on short-term borrowings		3.92%	4.65%
Total line of credit		$ 387,614	$ 347,143
Unused portion		$ 91,031	82,091
Long-term borrowings
Long-term borrowings:
Loan term		2 years
Principal amount of debt		$ 101,839
Interest rate		2.40%
Long-term borrowings \| Due In August 2027
Long-term borrowings:
Borrowings from bank		$ 105,419
Short term debt \| Restricted cash
Long-term borrowings:
Collateral amount		475,922	387,185
Third parties
Short-term borrowings:
Total		$ 402,744	479,419
Third parties \| Loans payable
Long-term borrowings:
Loan term		1 year
Principal amount of debt		$ 356,782
Third parties \| Loans payable \| Minimum
Long-term borrowings:
Interest rate		2.20%
Third parties \| Loans payable \| Maximum
Long-term borrowings:
Interest rate		3.75%
Related parties
Short-term borrowings:
Total		$ 863,776	$ 784,288
Related parties \| Minimum
Long-term borrowings:
Interest rate				3.70%
Related parties \| Maximum
Long-term borrowings:
Interest rate				6.00%
Related parties \| Loans payable \| Minimum
Long-term borrowings:
Interest rate		3.45%
Related parties \| Loans payable \| Maximum
Long-term borrowings:
Interest rate		7.91%

EXCHANGEABLE NOTES - Additional information (Details) ¥ in Thousands, $ in Thousands		1 Months Ended								6 Months Ended
	Sep. 29, 2024 CNY (¥)	Apr. 30, 2025 USD ($)	Apr. 30, 2025 CNY (¥)	Jan. 31, 2025 USD ($)	Jan. 31, 2025 CNY (¥)	Sep. 30, 2024 USD ($)	Sep. 30, 2024 CNY (¥)	Dec. 31, 2022 CNY (¥)	Jun. 30, 2022	Jun. 30, 2026 USD ($)	Jun. 30, 2025 USD ($)	Jun. 16, 2026
EXCHANGEABLE NOTES
Issuance of exchangeable notes \| $										$ 719,624	$ 809,735
Loan term									5 years
Hangzhou Lightning Speed Technology Co. Ltd \| Disposed by sale, not discontinued operations
EXCHANGEABLE NOTES
Percentage of equity interest disposed												73.00%
Lightning Speed Exchangeable Notes
EXCHANGEABLE NOTES
Issuance of exchangeable notes								¥ 500,000
Loan term								5 years
Kingway Exchangeable Note
EXCHANGEABLE NOTES
Issuance of exchangeable notes		$ 13,932	¥ 100,000	$ 13,910	¥ 100,000	$ 28,541	¥ 200,000
Loan term	5 years
Principal amount of debt	¥ 600,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

PREPAYMENTS AND OTHER CURRENT ASSETS - THIRD PARTIES

6 Months Ended

Jun. 30, 2026

PREPAYMENTS AND OTHER CURRENT ASSETS - THIRD PARTIES

PREPAYMENTS AND OTHER CURRENT ASSETS - THIRD PARTIES

5.	PREPAYMENTS AND OTHER CURRENT ASSETS - THIRD PARTIES

Prepayments and other current assets – third parties consisted of the following:


		As of June 30,		As of December 31,
		2026		2025
		US$		US$
Deductible VAT		53,949		46,287
Prepayments to third-party suppliers		14,524		16,554
Contract costs		4,851		2,569
Deposits		2,204		2,726
Interest receivable		2,914		4,721
Others		7,513		4,727
Less: Allowance for credit losses		(30)		(14)
Total		85,925		77,570

SHAREHOLDERS' DEFICIT - Treasury shares (Details) - shares		1 Months Ended	6 Months Ended
	Sep. 05, 2025	Aug. 31, 2025	Jun. 30, 2026
Equity, Class of Treasury Stock [Line Items]
Shares repurchased	32,500,000	17,500,000
ADR
Equity, Class of Treasury Stock [Line Items]
Shares repurchased	50,000,000
Conversion of convertible notes to ordinary shares (in shares)			1,842,017
Number of treasury stock			47,375,141

CONVERTIBLE NOTES

6 Months Ended

Jun. 30, 2026

CONVERTIBLE NOTES

CONVERTIBLE NOTES

14.	CONVERTIBLE NOTES


		Subsidiary		2025		ATW		2026
		Convertible Note		Convertible Notes		Convertible Note		Convertible Note		Total
		US$	* *	US$	* *	US$		US$	* *	US$
Balance as of December 31, 2025		62,439		203,378		10,787		—		276,604
Issuance of convertible notes		—		—		—		128,325		128,325
Interest paid		(4,670)		—		(361)		—		(5,031)
Changes in fair values of convertible notes, excluding impact of instrument-specific credit risk		3,144		3,125		(1,010)		572		5,831
Changes in fair values of convertible notes due to the instrument-specific credit risk		(8,415)		—		351		—		(8,064)
Repayment		—		(128,325)		—		—		(128,325)
Conversions to ordinary shares		—		—		(2,236)		—		(2,236)
Foreign currency translation adjustment		1,943		—		—		—		1,943
Balance as of June 30, 2026		54,441		78,178		7,531		128,897		269,047
Including:
– Current portion		—		78,178		—		128,897		207,075
– Non-current portion		54,441		—		7,531		—		61,972

Subsidiary Convertible Note

In June 2022, the Company’s subsidiary, Ningbo Lotus Robotics Co., Ltd. (“Ningbo Robotics”), issued a seven-year convertible note (the “Subsidiary Convertible Note”) with the principal amount of RMB500,000 to an investor (the “Subsidiary Convertible Note Holder”). The Subsidiary Convertible Note Holder is entitled to receive annual interest equal to the outstanding principal multiplied by the latest five-year loan prime rate (“LPR”) published by China Foreign Exchange Trade System plus 79.8% per annum, i.e., LPR*(1+79.8%) (“interest rate”) on June 30 every year until the expiration of the Subsidiary Convertible Note. The Subsidiary Convertible Note Holder has the right to convert the Subsidiary Convertible Note to the subsidiary’s equity within 7 years from the issuance date (i.e., convertible before June 8, 2029), if the agreed financial performance of Ningbo Robotics achieved. All outstanding interest shall be paid in cash immediately before the conversion. The conversion price is RMB 135 per ordinary share of Ningbo Robotics (1 paid in capital equal to 1 share), subject to anti-dilution adjustment. Ningbo Lotus, the immediate parent company of Ningbo Robotics, shall redeem all outstanding principal amount of Subsidiary Convertible Note at maturity (i.e., June 8, 2029).

The Group elected the fair value option for the Subsidiary Convertible Note, including the component related to accrued interest. The Group believes the fair value option best reflects the economics of the underlying transaction. The Subsidiary Convertible Note was recognized at fair value at the issuance date and is measured subsequently at fair value. The changes in fair values due to the instrument-specific credit risk were charged to other comprehensive income (loss) and all other changes in fair values were recognized as “Changes in fair values of liabilities, excluding impact of instrument-specific credit risk” in the consolidated statements of comprehensive loss.

The Group adopted a scenario-weighted average method to estimate the fair value of the Subsidiary Convertible Note, based on an analysis of future values of the settlement of the obligation, assuming various outcomes. The probability weightings assigned to certain potential scenarios were based on management’s assessment of the probability of settlement of the liability in cash or shares and an assessment of the timing of settlement. In each scenario, the obligation valuation was based on the contractually agreed cash payment or equivalent equity discounted to each valuation date. The fair value of the Subsidiary Convertible Note as of June 30, 2026 was estimated with the following key assumptions used:


		As of June 30, 2026
Risk-free interest rates		1.27	%
Probability of conversion		10	%
Bond yields		21.16%-22.82	%

2025 Convertible Notes

On February 28 and June 20, 2025, the Company entered into unsecured convertible notes (“2025 Convertible Notes”) agreements with a related party, Geely HK (“2025 Convertible Notes Holder”) and issued convertibles notes with principal amounts of US$70,000 and US$119,263. The 2025 Convertible Notes were issued on April 28 and June 20, 2025, respectively, and will be due on April 28, 2027 and June 18, 2026, respectively. The 2025 Convertible Notes Holder is entitled to receive interest at coupon rate of SOFR published on the New York Federal Reserve website plus 3.35% per annum. The 2025 Convertible Notes Holder has the right, at its option, to convert all or any portion of the notes, to the Company’s fully paid ordinary shares at any time during the conversion period. The conversion price equals to the volume-weighted average of the last reported sale price of the Company’s ADSs over the 10 consecutive trading days immediately preceding the applicable conversion date, subject to adjustment. In addition, in connection with 2025 Convertible Notes issued on April 28, 2025, 2025 Convertible Notes Holder entered into equity pledge agreements with Ningbo Lotus, a wholly-owned subsidiary of the Company, pursuant to which Ningbo Lotus agreed to pledge to the 2025 Convertible Notes Holder 50% equity interests held by Ningbo Lotus in Ningbo Robotics. On June 18, 2026, convertible note with principal amounts of US$119,263 was fully repaid.

The Group elected the fair value option to account for 2025 Convertible Notes, including the component related to accrued interest. The Group believes the fair value option best reflects the economics of the underlying transaction. The 2025 Convertible Notes were recognized at fair value at the issuance date and is measured subsequently at fair value. The changes in fair values due to the instrument-specific credit risk were charged to other comprehensive income (loss) and reclassified to profit or loss upon termination of related convertible notes. All other changes in fair values were recognized as “Changes in fair values of liabilities, excluding impact of instrument-specific credit risk” in the unaudited condensed consolidated statements of comprehensive loss.

The Group adopted a binomial option-pricing model to estimate the fair value of the 2025 Convertible Notes, based on assumptions related to risk-free interest rate, expected share-price volatility, bond yield and dividend yield. On each node of the binomial lattice, the obligation valuation was based on the contractually agreed cash payment or equivalent equity discounted to each valuation date. The fair values of the 2025 Convertible Notes as of June 30, 2026 were estimated with the following key assumptions used:


		As of June 30, 2026
Risk‑free interest rate		3.95	%
Volatilities		42.69	%
Bond yield		26.40	%

ATW Convertible Note

On August 19, 2025, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with ATW Partners, pursuant to which the Company agreed to issue and sell convertible notes for up to an aggregate principal amount of US$300,000 (the “ATW Note”). Pursuant to the Securities Purchase Agreement, the Company issued an ATW Note in the original principal amount of US$10,000 on August 19, 2025.

Each of ATW Notes bears interest at a rate of SOFR plus 6.75% per annum. If certain equity conditions are satisfied, the Company is entitled to settle a portion of interest, i.e. 4.25% per annum, either in cash or in ADSs. Interest is payable in arrears on the first calendar day of each calendar quarter, beginning October 1, 2025. Unless earlier converted or redeemed, the ATW Note will mature on the two-year anniversary of their respective issuance dates, subject to extension at the option of the holders in certain circumstances as provided in the ATW Notes.

Each holder of ATW Note may convert all, or any part, of the outstanding principal of the ATW Note, together with accrued and unpaid interest, and any late charges thereon, at any time, at such holder’s option, into the Company’s ordinary shares represented by ADSs at a conversion price that is initially set at US$2.19 per ADS or ordinary share, subject to adjustment including for anti-dilution events and proportional adjustment upon the occurrence of any share split or subdivision, share dividend, share consolidation or combination and/or similar transactions, recapitalization or similar event.

Accounting of ATW Note

The Group elected the fair value option to account for the ATW Note, including the component related to accrued interest. The Group believes the fair value option best reflects the economics of the underlying transaction. The ATW Note was recognized at fair value at the issuance date and is measured subsequently at fair value. The changes in fair values due to the instrument-specific credit risk were charged to other comprehensive income (loss) and reclassified to profit or loss upon termination of related convertible notes. All other changes in fair values were recognized as “Changes in fair values of liabilities, excluding impact of instrument-specific credit risk” in the consolidated statements of comprehensive loss.

The Group adopted a binomial option-pricing model to estimate the fair value of the ATW Note, based on assumptions related to risk-free interest rate, expected volatility and bond yield. On each node of the binomial lattice, the obligation valuation was based on the contractually agreed cash payment or equivalent equity discounted to each valuation date. The fair value of the ATW Note as of June 30, 2026 was estimated with the following key assumptions used:


		As of June 30, 2026
Risk‑free interest rate		3.96	%
Volatilities		43.32	%
Bond yield		26.14	%

2026 Convertible Note

On June 12, 2026, the Company entered into unsecured convertible note (“2026 Convertible Note”) agreements with a related party, Geely HK (“2026 Convertible Note Holder”) and issued convertibles note with principal amounts of US$128,325. The 2026 Convertible Note was issued on June 17, 2026, and will be due on June 15, 2027. The 2026 Convertible Notes Holder is entitled to receive interest at coupon rate of SOFR published on the New York Federal Reserve website plus 3.35% per annum. The 2026 Convertible Notes Holder has the right, at its option, to convert all or any portion of the notes, to the Company’s fully paid ordinary shares at any time during the conversion period. The conversion price equals to the volume-weighted average of the last reported sale price of the Company’s ADSs over the 10 consecutive trading days immediately preceding the applicable conversion date, subject to adjustment.

The Group elected the fair value option to account for 2026 Convertible Note, including the component related to accrued interest. The Group believes the fair value option best reflects the economics of the underlying transaction. The Convertible Notes were recognized at fair value at the issuance date and is measured subsequently at fair value. The changes in fair values due to the instrument-specific credit risk were charged to other comprehensive income (loss) and reclassified to profit or loss upon termination of related convertible notes. All other changes in fair values were recognized as “Changes in fair values of liabilities, excluding impact of instrument-specific credit risk” in the unaudited condensed consolidated statements of comprehensive loss. The fair value of the 2026 Convertible Note as of June 30, 2026 was estimated with the following key assumptions used:


		As of June 30, 2026
Risk‑free interest rate		3.94	%
Volatilities		43.38	%
Bond yield		26.30	%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment reporting (Details)	6 Months Ended
	Jun. 30, 2026 segment
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of operating segment	1
Number of reportable segments	1

PREPAYMENTS AND OTHER CURRENT ASSETS - THIRD PARTIES (Tables)

6 Months Ended

Jun. 30, 2026

PREPAYMENTS AND OTHER CURRENT ASSETS - THIRD PARTIES

Schedule of prepayments and other current assets


		As of June 30,		As of December 31,
		2026		2025
		US$		US$
Deductible VAT		53,949		46,287
Prepayments to third-party suppliers		14,524		16,554
Contract costs		4,851		2,569
Deposits		2,204		2,726
Interest receivable		2,914		4,721
Others		7,513		4,727
Less: Allowance for credit losses		(30)		(14)
Total		85,925		77,570

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2026

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

(a)	Basis of Presentation

Use of estimates

(b)	Use of estimates

Warranties

(c)	Warranties

The following table shows the movements of product warranty reserve:


		Six Months Ended June 30,
		2026		2025
		US$		US$
Accrued warranty at the beginning of the period		32,278		24,048
Additions		8,089		5,244
Utilization		(8,279)		(6,034)
Foreign currency translation adjustment		1,351		1,315
Accrued warranty at the end of the period		33,439		24,573
Including:
- Current portion		5,030		4,207
- Non-current portion		28,409		20,366

Disposal of subsidiaries

(d)	Disposal of subsidiaries

Long-term investments

(e)	Long-term investments

The Group’s long-term investments mainly include equity investments.

Long-term investments consisted of the following:


	As of June 30,		As of December 31,
	2026		2025
	US$		US$
Investment securities – related party (note 24(vi))	1,358		1,811
Equity method investments (note 24(v))	20,234		10,625
Equity security without readily determinable fair values using the measurement alternative – related party	36,706		35,568
Total	58,298		48,004

Concentration and risk

(f)	Concentration and Risk

Concentration of customers and suppliers

No third-party customer contributed more than 10.0% of the Group’s total revenues for the six months ended June 30, 2026 and 2025.

Accounts receivable balances with greater than 10.0% the Group’s accounts receivable balances as of June 30, 2026 and December 31, 2025 were as follows.


		As of June 30,		As of December 31,
		2026		2025

		proportion of total accounts receivable balance
Geely Group		65.9	%	72.7	%

Suppliers contributed more than 10.0% of total purchases for the six months ended June 30, 2026 and 2025 are as below.


		Six Months Ended June 30,
		2026		2025

		proportion of total costs and expenses
Geely Group		82.8	%	48.8	%

Payable balances with greater than 10.0% the Group’s amounts due to suppliers as of June 30, 2026 and December 31, 2025 were as follows:


		As of June 30,		As of December 31,
		2026		2025

		proportion of total payables balance
Geely Group		76.7	%	67.5	%

Concentration of credit risk

Segment Reporting

(g)	Segment Reporting

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

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- Definition

Disclosure of accounting policy for investment in financial asset.

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- Definition

Disclosure of accounting policy for segment reporting.

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+ Details

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - THIRD PARTIES (Details) - Third parties - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - THIRD PARTIES
Accrued salaries and benefits	$ 47,242	$ 55,135
Payables for R&D Expenses	28,412	30,124
Payables for marketing events	49,184	49,781
Payables for purchase of property, equipment and software	17,780	24,534
Advance from customers	4,550	3,881
Deposits from third parties suppliers	8,191	9,950
VAT and other taxes payables	6,628	11,782
Payables for service fees	19,593	31,754
Others	33,943	34,420
Total	$ 215,523	$ 251,361

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration and risk (Details) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2026 USD ($) customer	Jun. 30, 2025 USD ($) customer	Dec. 31, 2025	Dec. 31, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Related party transactions \| $	$ 11,297	$ 17,854
Number of customer \| customer	0	0
Revenue Benchmark \| Customer Concentration Risk \| Geely Group
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration risk (as a percent)	99.66%		96.20%	78.67%
Accounts receivable \| Credit concentration \| Geely Group
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration risk (as a percent)	65.90%		72.70%
Purchases \| Supplier concentration \| Geely Group
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration risk (as a percent)	82.80%	48.80%
Accounts Payable \| Supplier concentration \| Geely Group
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration risk (as a percent)	76.70%		67.50%

EXCHANGEABLE NOTES - Assumptions used in determining fair values of Exchangeable Notes (Details)	Jun. 30, 2026
Lightning Speed Exchangeable Notes \| Risk-free interest rate \| Minimum
EXCHANGEABLE NOTES
Measurement input	0.0106
Lightning Speed Exchangeable Notes \| Risk-free interest rate \| Maximum
EXCHANGEABLE NOTES
Measurement input	0.0118
Lightning Speed Exchangeable Notes \| Probability of conversion
EXCHANGEABLE NOTES
Measurement input	0.50
Lightning Speed Exchangeable Notes \| Bond yields
EXCHANGEABLE NOTES
Measurement input	0.2144
Kingway Exchangeable Note \| Risk-free interest rate \| Minimum
EXCHANGEABLE NOTES
Measurement input	0.0131
Kingway Exchangeable Note \| Risk-free interest rate \| Maximum
EXCHANGEABLE NOTES
Measurement input	0.0135
Kingway Exchangeable Note \| Probability of conversion
EXCHANGEABLE NOTES
Measurement input	0.75
Kingway Exchangeable Note \| Bond yields \| Minimum
EXCHANGEABLE NOTES
Measurement input	0.1965
Kingway Exchangeable Note \| Bond yields \| Maximum
EXCHANGEABLE NOTES
Measurement input	0.2096

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

ACCOUNT RECEIVABLES - THIRD PARTIES, NET

6 Months Ended

Jun. 30, 2026

ACCOUNT RECEIVABLES - THIRD PARTIES, NET

ACCOUNT RECEIVABLES - THIRD PARTIES, NET

3.	ACCOUNT RECEIVABLES - THIRD PARTIES, NET

Account receivables – third parties, net, consisted of the following:


		As of June 30,		As of December 31,
		2026		2025
		US$		US$
Accounts receivable-third parties		31,432		37,603
Less: Allowance for credit losses		(848)		(753)
Total		30,584		36,850

Provisions of allowance for credit losses recognized in general and administrative expenses were accrual of US$226 and reversal of US$2,479 for the six months ended June 30, 2026 and 2025, respectively.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT (Parenthetical) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Dec. 31, 2025
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT
Fair value changes of liabilities due to instrument-specific credit risk, income taxes	$ 0	$ 0
Foreign currency translation adjustment, income taxes	0	$ 0
Ordinary shares, Threshold immaterial value	$ 500		$ 500

OTHER NON-CURRENT LIABILITIES - THIRD PARTIES (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025	Jun. 30, 2025
OTHER NON-CURRENT LIABILITIES - THIRD PARTIES
Warranty provision	$ 28,409		$ 20,366
Nonrelated Party
OTHER NON-CURRENT LIABILITIES - THIRD PARTIES
Deposits from third parties	18,372	$ 18,442
Conditional and refundable government grants (i)	11,746	77,624
Warranty provision	28,409	28,938
Total	$ 58,527	$ 125,004

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT - USD ($)
$ in Thousands

Total shareholders' deficit attributable to ordinary shareholders

Westwood Capital Group LLC

Total shareholders' deficit attributable to ordinary shareholders

ECARX

Total shareholders' deficit attributable to ordinary shareholders

Ordinary shares

Westwood Capital Group LLC

Ordinary shares

ECARX

Ordinary shares

Treasury stock

Additional paid-in capital

Westwood Capital Group LLC

Additional paid-in capital

ECARX

Additional paid-in capital

Accumulated other comprehensive income

Accumulated deficit

Noncontrolling interests

Westwood Capital Group LLC

ECARX

Total

Beginning balance at Dec. 31, 2024

$ (852,862)

$ 7

^[1]

$ 1,785,664

$ 55,165

$ (2,693,698)

$ (7,364)

$ (860,226)

Beginning balance (in shares) at Dec. 31, 2024

676,826,794

Net loss

(313,038)

(2)

(313,040)

Fair value changes of liabilities due to instrument-specific credit risk, net of nil income taxes

16,427

Foreign currency translation adjustment, net of nil income taxes

(6,332)

Total comprehensive loss

(302,943)

10,095

(313,038)

(2)

(302,945)

Share-based compensation

2,215

Issuance of ordinary shares

$ 105

Issuance of ordinary shares (in shares)

51,000

Disposal of an equity investment under common control

58,671

Disposal of a subsidiary

(382)

Ending balance at Jun. 30, 2025

(1,094,814)

$ 7

^[1]

1,846,655

65,260

(3,006,736)

(7,748)

(1,102,562)

Ending balance (in shares) at Jun. 30, 2025

676,877,794

Beginning balance at Dec. 31, 2025

(1,322,498)

$ 7

^[1]

$ (138,397)

1,933,992

39,818

(3,157,918)

(7,748)

$ (1,330,246)

Beginning balance (in shares) at Dec. 31, 2025

640,672,331

707,196,733

Net loss

(150,942)

$ (150,942)

Fair value changes of liabilities due to instrument-specific credit risk, net of nil income taxes

13,664

Foreign currency translation adjustment, net of nil income taxes

(45,552)

Total comprehensive loss

(182,830)

(31,888)

(150,942)

(182,830)

Share-based compensation

1,635

Issuance of ordinary shares

$ 6,000

Issuance of ordinary shares (in shares)

4,379,562

Conversion of convertible notes to ordinary shares

2,236

7,476

(5,240)

2,236

Conversion of convertible notes to ordinary shares (in shares)

1,842,017

Disposal of an equity investment under common control

169,528

182,230

(12,702)

4,910

174,438

Ending balance at Jun. 30, 2026

$ (1,325,929)

$ 7

^[1]

$ (130,921)

$ 2,118,617

$ (4,772)

$ (3,308,860)

$ (2,838)

$ (1,328,767)

Ending balance (in shares) at Jun. 30, 2026

646,893,910

711,576,295

[1]	Amounts less than US$0.5.

LEASES - Weighted-average remaining lease term and discount rate (Details)	Jun. 30, 2026	Jun. 30, 2025
LEASES
Weighted-average remaining lease term - Operating leases	6 years 7 days	6 years 8 months 15 days
Weighted-average discount rate - Operating leases	6.37%	6.31%

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2026	Dec. 31, 2025
CONDENSED CONSOLIDATED BALANCE SHEETS
Common shares, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common shares, shares authorized	5,000,000,000	5,000,000,000
Common shares, shares issued	711,576,295	707,196,733
Common shares, shares outstanding	646,893,910	640,672,331

REVENUES

6 Months Ended

Jun. 30, 2026

REVENUES

REVENUES

20.

REVENUES

The Group’s revenues are disaggregated by product and service lines as follows:


	Six Months Ended June 30,
	2026	2025
	US$	US$
Sales of goods - third parties
- EV lifestyle models	209,541	143,966
- Sports cars	30,346	32,906
- Others	11,602	17,851
	251,489	194,723
Sales of goods - related parties
- EV lifestyle models	1,403	1,066
- Sports cars	—	227
- Others	10,364	1,469
	11,767	2,762
Subtotal	263,256	197,485

Services- third parties
- R&D service	365	1,087
- Others¹	4,247	3,069
	4,612	4,156
Services- related parties
- R&D service	231	13,666
- Others²	—	3,019
	231	16,685
Subtotal	4,843	20,841
Total revenues	268,099	218,326

¹ Others primarily include trainings, installed premium intelligent driving system upgrades, free battery charging services, maintenance services and vehicle internet connection services.

² Others primarily include commission service fee.

Contract Liabilities


	As of		As of
	June 30, 2026		December 31, 2025
	US$		US$
Current liabilities
- Contract liabilities - third parties	26,598		18,459
- Contract liabilities - related parties*	4,354		228
Non-current liabilities
- Contract liabilities – third parties	7,578		7,458
Contract liabilities, current and non-current	38,530		26,145

* This item is included in accrued expenses and other current liabilities – related parties in the unaudited condensed consolidated balance sheets.

Contract liabilities represent transaction price allocated to the performance obligations that are not yet satisfied or partially satisfied, which primarily arises from the undelivered vehicles, intelligent driving system, household charging piles, charging cards, free battery charging service, the extended lifetime warranty, maintenance service, vehicle internet connection services as well as technical research and development services. Amounts that are expected to recognize as revenues within one-year are included as current contract liabilities with the remaining balance recognized as other non-current liabilities.

Among the balance of contract liabilities of US$26,145 as of December 31, 2025, US$6,227 was recognized as revenue during the six months ended June 30, 2026. The Group expects that US$45,504 of transaction price allocated to unsatisfied performance obligation as of June 30, 2026 will be recognized as revenues within one year. The remaining US$14,145 will be recognized over the remaining contract periods over 1 to 10 years.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-7

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Section 50
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-URI https://asc.fasb.org/1943274/2147479806/606-10-50-10

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147479806/606-10-50-15

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details

INCOME TAX

6 Months Ended

Jun. 30, 2026

INCOME TAX

INCOME TAX

18.	INCOME TAX

The statutory income tax rate for the Group’s major operating entities is 25% for the six months ended June 30, 2026 and 2025. The effective income tax rate for the six months ended June 30, 2026 and 2025 was (0.44%) and (5.05%), respectively. Due to the Group’s continuous loss-making status, valuation allowance was fully provided for deferred tax assets as of June 30, 2026 and December 31, 2025.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 740
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

BORROWINGS

6 Months Ended

Jun. 30, 2026

BORROWINGS

BORROWINGS

10.	BORROWINGS

Short-term borrowings consisted of the following:


		As of June 30,		As of December 31,
		2026		2025
		US$		US$
Short-term borrowings:
Borrowings from banks (i)		402,744		479,419
Borrowings from related parties (note 24(vi))		863,776		784,288
Total		1,266,520		1,263,707
Long-term borrowings:
Borrowings from bank (ii)		204,644		98,254

(iii)The weighted average interest rate on short-term borrowings outstanding as of June 30, 2026 and December 31, 2025 was 3.92% and 4.65%, respectively.

As of June 30, 2026 and December 31, 2025, the Group had a total line of credit in the amount of US$387,614 and US$347,143, of which the unused portion was US$91,031 and US$82,091, respectively.

As of June 30, 2026 and December 31, 2025, certain of the Group’s borrowings were pledged with restricted cash of US$475,922 and US$387,185, respectively.

NET LOSS PER SHARE

6 Months Ended

Jun. 30, 2026

NET LOSS PER SHARE

NET LOSS PER SHARE

19.	NET LOSS PER SHARE

The following table sets forth the basic and diluted net loss per ordinary share computation and provides a reconciliation of the numerator and denominator for the periods presented:


	Six Months Ended June 30,
	2026	2025
	US$	US$
Numerator:
Net loss attributable to ordinary shareholders	(150,942)	(313,038)
Numerator for basic and diluted net loss per ordinary share calculation	(150,942)	(313,038)
Denominator:
Weighted average number of ordinary shares, basic and diluted¹	645,541,822	659,335,966
Denominator for basic and diluted net loss per ordinary share calculation	645,541,822	659,335,966
Net loss per ordinary share attributable to ordinary shareholders
—Basic and diluted	(0.23)	(0.47)

The calculation of basic loss per share excludes 1,417,544 unvested earn-out shares issued to the Sponsor which can only be vested upon meeting certain conditions.

The following outstanding potentially dilutive ordinary share have been excluded from the computation of diluted net loss per share attributable to ordinary shareholders for the periods presented:


		Six Months Ended June 30,
		2026		2025
Share options (i)		14,671,161		14,561,421
2025 Convertible Notes (ii) (note 14)		65,250,704		86,583,567
2026 Convertible Notes (iii) (note 14)		109,972,857		—
ATW Convertible Notes (iv) (note 14)		5,921,401		—
Meritz put option (v)		—		32,500,000
Public Warrant (vi) (note 12)		9,054,522		9,054,522
Sponsor Warrant (vi) (note 12)		5,486,784		5,486,784
Total		210,357,429		148,186,294

(vi)For the six months ended June 30, 2026 and 2025, public and sponsor warrants are not included in the calculation of diluted loss per share as their exercise price is above underlying stock price.

NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Numerator:
Net loss attributable to ordinary shareholders	$ (150,942)	$ (313,038)
Numerator for basic and diluted net loss per ordinary share calculation, basic (in shares)	(150,942)	(313,038)
Numerator for basic and diluted net loss per ordinary share calculation - diluted (in shares)	$ (150,942)	$ (313,038)
Denominator:
Weighted average number of ordinary shares, basic (in shares)	645,541,822	659,335,966
Weighted average number of ordinary shares, diluted (in shares)	645,541,822	659,335,966
Net loss per ordinary share attributable to ordinary shareholders - Basic (in dollars per share)	$ (0.23)	$ (0.47)
Net loss per ordinary share attributable to ordinary shareholders - Diluted (in dollars per share)	$ (0.23)	$ (0.47)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

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Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities, and addition from assumption of issuance of common shares for dilutive potential common shares; of income (loss) available to common shareholders.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Total revenues	$ 268,099	$ 218,326
Cost of revenues	241,807	200,460
Research and development (credit) expenses (including related parties amounts of US$(39,744) and US$49,415 for the six months ended June 30, 2026 and 2025, respectively)	(1,565)	92,305
Selling and marketing expenses (including related parties amounts of US$20,125, US$52,636 and US$40,531 for the years ended December 31, 2025, 2024 and 2023, respectively)	82,932	78,995
General and administrative expenses (including related parties amounts of US$4,227, US$10,873 and US$13,085 for the years ended December 31, 2025, 2024 and 2023, respectively)	46,176	63,356
Foreign currency translation adjustment, income taxes	0	0
Interest expenses (including related parties amounts of US$39,109, US$19,504 and nil for the years ended December 31, 2025, 2024 and 2023, respectively)	34,300	33,641
Interest income (including related parties amounts of US$11,765 and US$9,317 for the six months ended June 30, 2026 and 2025, respectively)	15,202	13,157
Net of income taxes	0	0
Goods
Total revenues	263,256	197,485
Cost of revenues	238,119	184,885
Service
Total revenues	4,843	20,841
Cost of revenues	3,688	15,575
Related party
Research and development (credit) expenses (including related parties amounts of US$(39,744) and US$49,415 for the six months ended June 30, 2026 and 2025, respectively)	(39,744)	49,415
Selling and marketing expenses (including related parties amounts of US$20,125, US$52,636 and US$40,531 for the years ended December 31, 2025, 2024 and 2023, respectively)	8,099	14,059
General and administrative expenses (including related parties amounts of US$4,227, US$10,873 and US$13,085 for the years ended December 31, 2025, 2024 and 2023, respectively)	999	2,343
Interest expenses (including related parties amounts of US$39,109, US$19,504 and nil for the years ended December 31, 2025, 2024 and 2023, respectively)	23,183	13,799
Interest income (including related parties amounts of US$11,765 and US$9,317 for the six months ended June 30, 2026 and 2025, respectively)	11,765	9,317
Related party \| Goods
Total revenues	11,767	2,762
Cost of revenues	198,294	158,085
Related party \| Service
Total revenues	$ 231	$ 16,685

WARRANT LIABILITIES - Narrative (Details)	6 Months Ended
WARRANT LIABILITIES - Narrative (Details)	Jun. 30, 2026 shares
Sponsor Warrants \| LCA Acquisition sponsor LP
Warrant liabilities
Number of warrants issued	5,486,784
Public Warrant \| Public shareholders
Warrant liabilities
Number of warrants issued	9,550,246

CONVERTIBLE NOTES - 2025 Convertible Notes (Details) - USD ($) $ in Thousands				6 Months Ended
	Jun. 18, 2026	Jun. 20, 2025	Feb. 28, 2025	Jun. 30, 2026	Jun. 30, 2025	Apr. 28, 2025
CONVERTIBLE NOTES
Repayment of convertible note				$ 128,325	$ 119,263
2025 Convertible Notes
CONVERTIBLE NOTES
Variable interest rate		3.35%	3.35%
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]		us-gaap:SecuredOvernightFinancingRateSofrMember	us-gaap:SecuredOvernightFinancingRateSofrMember
Repayment of convertible note	$ 119,263
2025 Convertible Notes \| Ningbo Robotics \| Asset Pledged as Collateral
CONVERTIBLE NOTES
Equity interest owned by subsidiary (in percent)						50.00%
2025 Convertible Notes \| Geely HK
CONVERTIBLE NOTES
Aggregate principal amount of loan		$ 119,263	$ 70,000

SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2026

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

25.	SUBSEQUENT EVENTS

On January 31, 2023, the Company issued put options to each of Geely HK and Etika at nil consideration. Pursuant to the put option agreements, each of Geely HK and Etika will have an option to require the Company to purchase the equity interests held by Geely HK and Etika in Lotus Advance Technologies Sdn Bhd, the immediate parent of LGIL, during the period from April 1, 2025 to June 30, 2025, at a pre-agreed price, i.e. 1.15 multiplied by the revenue of LGIL for the year ended December 31, 2024 plus the cash and cash equivalents of LGIL as of December 31, 2024, and minus the outstanding amount of indebtedness of LGIL as of December 31, 2024 (the “exercise price”), if the total number of vehicles sold by LGIL in 2024 exceeds 5,000 (the “exercise condition”). Geely HK and Etika are entitled to exercise the put option on an individual standalone basis. The exercise price will be settled with the Company’s newly issued ordinary shares.

On April 14 and June 30, 2025, Geely HK and Etika exercised their put options separately. In accordance with LGIL’s financial results for the year ended December 31, 2024, the exercise price of both Geely HK and Etika was calculated at nil, resulting in no shares to be issued by the Company to complete the acquisition.

The acquisition was consummated on August 21, 2026. Upon the completion, Lotus Advance Technologies Sdn Bhd and its subsidiaries became the Group’s wholly-owned subsidiaries. The acquisition is accounted for as a business combination of entities under common control and the Group is currently preparing consolidated financial statements in accordance with applicable accounting standards.

LEASES - Supplemental balance sheet information (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Operating Leases
Operating lease right-of-use assets	$ 96,879	$ 118,845
Total operating lease liabilities	60,679	73,915
Related party
Operating Leases
Operating lease liabilities-related parties	1,661	1,636
Operating lease liabilities, non-current	2,219	3,105
Nonrelated Party
Operating Leases
Operating lease liabilities, current	9,146	11,598
Operating lease liabilities, non-current	$ 47,653	$ 57,576

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basis of presentation (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Dec. 31, 2025
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accumulated deficit	$ (3,308,860)		$ (3,157,918)
Net current liabilities	(1,709,672)
Net cash used in operating activities	$ (53,728)	$ (150,905)

- Definition

Amount of accumulated undistributed earnings (deficit).

+ References + Details

COMMITMENTS AND CONTINGENCIES - Capital commitment (Details) $ in Thousands	Jun. 30, 2026 USD ($)
COMMITMENTS AND CONTINGENCIES
Less than one year	$ 9,925
Total	$ 9,925

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
INTANGIBLE ASSETS
Trademark licenses with indefinite useful lives	$ 116,083	$ 116,083
Others	289	392
Total	$ 116,372	$ 116,475

RELATED PARTY BALANCES AND TRANSACTIONS - Accrued expenses and other current liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Dec. 31, 2025
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Amount recorded as inventories	$ 170,371		$ 121,361
Interest expenses	34,300	$ 33,641
Short term lease cost	4,673	4,066
Related party
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Interest expenses	23,183	13,799
Repaid the loan principal to related parties	226,108	161,639
Related party \| Accrued expenses and other current liabilities
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Amounts due to related parties	882		397
Related party \| Purchase of products and services
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Purchases	334,976	178,224
Cost of goods sold	198,294	158,085
Interest expenses	$ 4,420	$ 3,709
Bearing interest rate	5.00%	6.95%
Related party \| Purchase of products and services \| Accrued expenses and other current liabilities
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Amount recorded as inventories	$ 94,940		52,917
Related party \| Purchase of products and services \| Accounts Payable
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Related parties for purchase	633,627		458,189
Related party \| Purchase of products and services for R&D activities
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Purchases	14,221	$ 49,264
Related party \| Purchase of products and services for R&D activities \| Accrued expenses and other current liabilities
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Amounts due to related parties	33,360		156,442
Related party \| Purchase of equipment and software
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Purchases	58	465
Related party \| Purchase of equipment and software \| Accrued expenses and other current liabilities
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Amounts due to related parties	591		1,603
Related party \| Purchase of R&D equipment and software
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Purchases	58	465
Related party \| Purchase of show cars for exhibition
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Deposits received from related party	943	0
Deposits included in other non-current liabilities - related parties	0		856
Related party \| Purchase of show cars for exhibition \| Accrued expenses and other current liabilities
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Amounts due to related parties	1,097		306
Related party \| Staff salary, social welfare and other travel expenses \| Accrued expenses and other current liabilities
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Amounts due to related parties	929	1,294
Related party \| Short-term lease
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Short term lease cost	81	$ 151
Related party \| Short-term lease \| Prepayments and other current assets
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Prepayments to related parties	$ 2		$ 9

CONVERTIBLE NOTES - ATW Convertible Note (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended
	Aug. 19, 2025	Jun. 30, 2022
CONVERTIBLE NOTES
Term of the debt instrument		5 years
ATW Convertible Notes
CONVERTIBLE NOTES
Aggregate principal amount of loan	$ 300,000
Oiginal principal amount	$ 10,000
Variable interest rate	6.75%
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]	us-gaap:SecuredOvernightFinancingRateSofrMember
Interest rate	4.25%
Term of the debt instrument	2 years
ATW Convertible Notes \| ADS
CONVERTIBLE NOTES
Debt instrument conversion price per share	$ 2.19

REVENUES (Details) - USD ($) $ in Thousands	6 Months Ended
REVENUES (Details) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Revenues
Contract liabilities	$ 38,530	$ 26,145
Contract liabilities, revenue recognized	6,227
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenues
Transaction price of remaining performance obligation	$ 45,504
Recognized revenue	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenues
Transaction price of remaining performance obligation	$ 14,145
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 \| Minimum
Revenues
Recognized revenue	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 \| Maximum
Revenues
Recognized revenue	10 years

REVENUES - Disaggregated by product and service (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Dec. 31, 2025
REVENUES
Total revenues	$ 268,099	$ 218,326	$ 218,326
Goods
REVENUES
Total revenues	263,256	197,485	197,485
Goods \| Third parties
REVENUES
Total revenues	251,489		194,723
Goods \| Related parties
REVENUES
Total revenues	11,767	2,762	2,762
EV lifestyle models \| Third parties
REVENUES
Total revenues	209,541		143,966
EV lifestyle models \| Related parties
REVENUES
Total revenues	1,403		1,066
Sports cars \| Third parties
REVENUES
Total revenues	30,346		32,906
Sports cars \| Related parties
REVENUES
Total revenues			227
Others \| Third parties
REVENUES
Total revenues	11,602		17,851
Others \| Related parties
REVENUES
Total revenues	10,364		1,469
Service
REVENUES
Total revenues	4,843	20,841	20,841
Service \| Third parties
REVENUES
Total revenues	4,612		4,156
Service \| Related parties
REVENUES
Total revenues	231	$ 16,685	16,685
R&D service \| Third parties
REVENUES
Total revenues	365		1,087
R&D service \| Related parties
REVENUES
Total revenues	231		13,666
Others \| Third parties
REVENUES
Total revenues	$ 4,247		3,069
Others \| Related parties
REVENUES
Total revenues			$ 3,019

COMMITMENTS AND CONTINGENCIES - Repurchase commitment (Details) $ in Thousands	Jun. 30, 2026 USD ($)
Repurchase obligation under floor financing programs
COMMITMENTS AND CONTINGENCIES
Purchase obligation	$ 62,981

EXCHANGEABLE NOTES

6 Months Ended

Jun. 30, 2026

EXCHANGEABLE NOTES

EXCHANGEABLE NOTES

13.	EXCHANGEABLE NOTES


		Lightning
		Speed		Kingway
		Exchangeable		Exchangeable
		Notes		Notes		Total
		US$		US$		US$
Balance as of December 31, 2025		73,046		55,806		128,852
Changes in fair values of exchangeable notes, excluding impact of instrument-specific credit risk		2,852		1,189		4,041
Changes in fair values of exchangeable notes due to the instrument-specific credit risk		(3,606)		(1,994)		(5,600)
Settlement of exchangeable notes		(74,628)		(56,780)		(131,408)
Foreign currency translation adjustment		2,336		1,779		4,115
Balance as of June 30, 2026		—		—		—

Lightning Speed Exchangeable Notes

In December 2022, the Company’s subsidiary, Lightning Speed issued the first tranche of exchangeable notes (the “Lightning Speed Exchangeable Notes”) with the principal amount of RMB500,000 to an investor (the “Lightning Speed Exchangeable Notes Holder”). Each tranche of Lightning Speed Exchangeable Notes is scheduled to mature on the five-year anniversary date of issuance and bearing a simple interest rate of loan prime rate published by China Foreign Exchange Trade System (“LPR”).

As mentioned in note 2(d), the Group disposed of a 73% equity interest in Lightning Speed and its subsidiaries. As a result, Lightning Speed Exchangeable Notes were fully settled. Within 90 working days of the Lightning Speed disposal, WFOE, the original ultimate shareholder of Lightning Speed in Chinese mainland, shall take the lead in coordinating all relevant agreement parties to complete the negotiation, finalization, and execution of the supplementary agreement to the original exchangeable note investment agreement entered into in November 2022. Prior to the execution of such supplementary agreement, WFOE shall continue to fulfill the unconditional joint and several liability guarantee as stipulated in the original exchangeable note investment agreement.

Kingway Exchangeable Note

On September 29, 2024, the Company’s subsidiary, Kingway entered into an exchangeable note agreement with an investor. Pursuant to the agreement, Kingway is entitled to issue exchangeable note (the “Kingway Exchangeable Notes”) of RMB600,000 to obtain financing from the investor (the “Kingway Exchangeable Notes Holder”). The repayments of the Kingway Exchangeable Notes were guaranteed by WFOE. Each tranche of Kingway Exchangeable Notes is scheduled to mature on the five-year anniversary date of issuance and bearing a simple interest rate of LPR.

In September 2024, January and April 2025, Kingway issued exchangeable notes with the principal amount of US$28,541 (equivalent to RMB200,000), US$13,910 (equivalent to RMB100,000) and US$13,932 (equivalent to RMB100,000) to Kingway Exchangeable Notes Holder, respectively.

As mentioned in note 2(d), the Group accounted for its investment in Kingway using equity method since June 30, 2026. As a result, Kingway Exchangeable Notes were fully settled. In addition, WFOE, the original ultimate shareholder of Kingway in Chinese mainland, shall continue to fulfill the unconditional joint and several liability guarantee as stipulated in the original exchangeable note investment agreement.

The Group elected the fair value option to account for both the Lightning Speed Exchangeable Notes and the Kingway Exchangeable Notes (“the Exchangeable Notes”), including the component related to accrued interest. The Group believes the fair value option best reflects the economics of the underlying transactions. The Exchangeable Notes were recognized at fair value at the issuance date and are measured subsequently at fair value. The changes in fair values due to the instrument-specific credit risk were charged to other comprehensive income (loss) and reclassified to profit or loss upon disposal. All other changes in fair values were recognized as “Changes in fair values of liabilities, excluding impact of instrument-specific credit risk” in the unaudited condensed consolidated statements of comprehensive loss.

The Group adopted a scenario-weighted average method to estimate the fair value of the Exchangeable Notes, based on an analysis of future values of the settlement of the obligation, assuming various outcomes. The probability weightings assigned to certain potential scenarios were based on management’s assessment of the probability of settlement of the liability in cash or shares and an assessment of the timing of settlement. In each scenario, the obligation valuation was based on the contractually agreed cash payment or equivalent equity discounted to each valuation date. The fair values of the Exchangeable Notes were estimated with the following key assumptions used:


		As of the settlement date
		Lightning Speed		Kingway
		Exchangeable		Exchangeable
		Notes		Notes
Risk‑free interest rates		1.06%-1.18	%	1.31%-1.35	%
Probability of conversion		50	%	75	%
Bond yield		21.44	%	19.65%-20.96	%