This annual report contains statements that are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management’s beliefs and expectations as well as on assumptions made by and data currently available to management, appear in a number of places throughout this document and include statements regarding, amongst other things, results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate. The use of words “expects,” “intends,” “anticipates,” “estimates,” “predicts,” “believes,” “should,” “potential,” “may,” “preliminary,” “forecast,” “objective,” “plan,” or “target,” and other similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including, but not limited to statements regarding our intentions, beliefs or current expectations concerning, among other things, results of operations, financial condition, liquidity, prospects, growth, strategies, future market conditions or economic performance and developments in the capital and credit markets and expected future financial performance, and the markets in which we operate.
| ● | our unproven ability to compete in the highly competitive automotive market; |
| ● | our reliance on a variety of arrangements with Geely Holding; |
| ● | our unproven ability to maintain and strengthen the “Lotus” brand; |
| ● | our limited operating history and unproven ability to develop, manufacture and deliver high quality automobiles; |
| ● | our historical negative net cash flows from operations and its unproven ability to adequately control the costs; |
| ● | the limited number of orders for our vehicle models; |
| ● | potential delays in the manufacturing and launch of our vehicles; |
| ● | the complexity, uncertainties and changes in global regulations on automotive as well as internet-related businesses and companies, including regulations on homologations, safety, data protection and privacy, automated driving, environmental protection, recall, distribution, government incentives, batteries regulations, and end-of-life regulations; |
| ● | consumer’s demand and willingness to adopt luxury electric vehicles; |
| ● | the rapidly evolving technology in automotive industry, and ongoing development and safety of intelligent driving technology; |
| ● | cost increases, disruptions or shortage in supply of raw materials, semiconductor chips or other components, and our dependence on suppliers; |
| ● | our unproven ability to expand physical sales network cost-efficiently; |
| ● | our unproven ability to perform in line with customer expectations; |
| ● | challenges in providing charging solutions; |
| ● | business, regulatory, political, operational and financial risk in jurisdictions we operate; and |
| ● | all other risks and uncertainties described in “Item 3. Key Information—D. Risk Factors.” |
We would like to caution you not to place undue reliance on these forward-looking statements and you should read these statements in conjunction with the risk factors disclosed in “Item 3. Key Information—D. Risk Factors.” Those risks are not exhaustive. We operate in a rapidly evolving environment. New risks emerge from time to time and it is impossible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking statement. We do not undertake any obligation to update or revise the forward-looking statements except as required under applicable law.
