0001104659-23-105653 | POS AM | XBRL Viewer

Schedule of activities of the Redeemable Convertible Preferred Shares


	Series Angel		Series A			Series A+		Series A++		Series B
	Preferred Shares		Preferred Shares			Preferred Shares		Preferred Shares		Preferred Shares
		Carrying		Carrying	Subscription		Carrying		Carrying		Carrying	Subscription
	Shares	amount	Shares	amount	receivable	Shares	amount	Shares	amount	Shares	amount	receivable	Total
		RMB		RMB	RMB		RMB		RMB		RMB	RMB	RMB
Balance as of January 1, 2020	—	—	—	—	—	—	—	—	—	—	—	—	—
Issuance of preferred shares	—	—	26,841,535	1,238,526	(1,032,104)	—	—	—	—	—	—	—	206,422
Issuance cost	—	—	—	(8,500)	—	—	—	—	—	—	—	—	(8,500)
Accretion of Redeemable Convertible Preferred Shares	—	—	—	101,286	—	—	—	—	—	—	—	—	101,286
Foreign currency translation adjustment	—	—	—	(66,733)	—	—	—	—	—	—	—	—	(66,733)
Balance as of December 31, 2020	—	—	26,841,535	1,264,579	(1,032,104)	—	—	—	—	—	—	—	232,475
Issuance of preferred shares	6,016,207	273,519	—	—	—	29,361,157	1,331,641	8,546,916	452,241	17,615,165	1,104,188	(159,215)	3,002,374
Issuance cost	—	—	—	—	—	—	(10,000)	—	—	—	—	—	(10,000)
Re-designation of ordinary shares into Series A Preferred Shares	—	—	2,343,309	97,660	—	—	—	—	—	—	—	—	97,660
Subscription contributions from shareholders	—	—	—	—	1,032,104	—	—	—	—	—	—	—	1,032,104
Accretion of Redeemable Convertible Preferred Shares	—	13,655	—	99,161	—	—	79,336	—	23,005	—	28,407	—	243,564
Foreign currency translation adjustment	—	(3,589)	—	(32,087)	—	—	(14,306)	—	167	—	(15,278)	(177)	(65,270)
Balance as of December 31, 2021	6,016,207	283,585	29,184,844	1,429,313	—	29,361,157	1,386,671	8,546,916	475,413	17,615,165	1,117,317	(159,392)	4,532,907
Subscription contributions from shareholders	—	—	—	—	—	—	—	—	—	—	—	159,485	159,485
Accretion of Redeemable Convertible Preferred Shares	—	21,916	—	100,884	—	—	106,959	—	36,732	—	88,387	—	354,878
Foreign currency translation adjustment	—	26,949	—	135,409	—	—	131,767	—	45,179	—	106,268	(93)	445,479
Conversion of Preferred Shares to Ordinary Shares upon the completion of the IPO	(6,016,207)	(332,450)	(29,184,844)	(1,665,606)	—	(29,361,157)	(1,625,397)	(8,546,916)	(557,324)	(17,615,165)	(1,311,972)	—	(5,492,749)
Balance as of December 31, 2022	—	—	—	—	—	—	—	—	—	—	—	—	—

Property and equipment, net (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of property and equipment, net


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Machinery and electronic equipment	180,264	189,052
Transportation vehicles	3,897	5,214
Office and other equipment	15,510	18,338
Leasehold improvements	43,440	46,572
Construction in progress	332	394
Property and equipment	243,443	259,570
Less: accumulated depreciation	(103,836)	(129,154)
Property and equipment, net	139,607	130,416


	As of December 31,
	2021	2022
	RMB	RMB
Machinery and electronic equipment	160,141	180,264
Transportation vehicles	8,589	3,897
Office and other equipment	7,219	15,510
Leasehold improvements	39,166	43,440
Construction in progress	10,478	332
Property and equipment	225,593	243,443
Less: accumulated depreciation	(115,808)	(103,836)
Property and equipment, net	109,785	139,607

Schedule of depreciation expenses on property and equipment allocated to expense items


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Cost of revenues	—	375
Selling and marketing expenses	324	380
General and administrative expenses	15,735	14,654
Research and development expenses	8,301	11,675
Total depreciation	24,360	27,084


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Cost of revenues	1,684	1,401	1,022
Selling and marketing expenses	355	290	727
General and administrative expenses	23,148	26,544	31,204
Research and development expenses	13,293	15,038	17,574
Total depreciation	38,480	43,273	50,527

Accounts receivable, net

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Accounts receivable, net

3.	Accounts receivable, net

Accounts receivable, net consisted of the following:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Accounts receivable - third parties	422,743	296,449
Less: Allowance for doubtful accounts, third parties	(4,521)	(8,216)
Accounts receivable - third parties, net	418,222	288,233

Accounts receivable - related parties	837,686	807,621
Less: Allowance for doubtful accounts, related parties	(2,366)	(3,354)
Accounts receivable - related parties, net	835,320	804,267

The movement of the allowance for doubtful accounts is as follows:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Balance at the beginning of the period	—	6,887
Additions	6,887	7,097
Reversal	—	(2,142)
Write-off	—	(272)
Balance at the end of the period	6,887	11,570

4.	Accounts receivable, net

Accounts receivable, net consisted of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Accounts receivable – third parties	184,546	422,743
Less: Allowance for doubtful accounts, third parties	—	(4,521)
Accounts receivable – third parties, net	184,546	418,222

Accounts receivable – related parties	768,747	837,686
Less: Allowance for doubtful accounts	—	(2,366)
Accounts receivable – related parties, net	768,747	835,320

The movement of the allowance for doubtful accounts receivables is as follows:


	As of December 31,
	2020	2021	2022
	RMB	RMB	RMB
Balance at the beginning of the year	—	—	—
Additions	360	—	6,887
Write-off	(360)	—	—
Balance at the end of the year	—	—	6,887

Cash and restricted cash (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of reconciliation of cash and restricted cash


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Cash at bank	860,472	850,373
Restricted cash	40,957	74,975
Cash and restricted cash shown in the consolidated statements of cash flows	901,429	925,348


	As of December 31,
	2021	2022
	RMB	RMB
Cash at bank	966,128	860,472
Restricted cash	23,004	40,957
Cash and restricted cash shown in the consolidated statements of cash flows	989,132	901,429

Schedule of cash and restricted cash are deposited in financial institutions

	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Financial institutions in the mainland of the PRC
– Denominated in RMB	595,559	811,100
– Denominated in US$	258,475	34,424
– Denominated in Hong Kong dollars (“HKD”)	—	92
Total cash balances held in the mainland of the PRC	854,034	845,616
Financial institutions in Hong Kong
– Denominated in US$	9,402	10,240
– Denominated in HKD	14	14
Total cash balances held in Hong Kong	9,416	10,254
Financial institutions in Sweden
– Denominated in Swedish Krona (“SEK”)	14,473	26,514
– Denominated in US$	555	210
Total cash balances held in Sweden	15,028	26,724
Financial institutions in the United Kingdom
– Denominated in Great Britain Pound (“GBP”)	22,934	42,155
Total cash balances held in the United Kingdom	22,934	42,155
Financial institutions in the United States
– Denominated in US$	17	599
Total cash balances held in the United States	17	599
Total cash balances held at financial institutions in RMB	901,429	925,348


	As of December 31,
	2021	2022
	RMB	RMB
Financial institutions in the mainland of the PRC
– Denominated in RMB	755,855	595,559
– Denominated in US$	182,141	258,475
Total cash balances held in the mainland of the PRC	937,996	854,034
Financial institutions in Hong Kong
– Denominated in US$	—	9,402
– Denominated in Hong Kong dollars (“HKD”)	—	14
Total cash balances held in Hong Kong	—	9,416
Financial institutions in Sweden
– Denominated in Swedish Krona (“SEK”)	28,986	14,473
– Denominated in US$	—	555
Total cash balances held in Sweden	28,986	15,028
Financial institutions in the United Kingdom
– Denominated in Great Britain Pounds (“GBP”)	22,150	22,934
Total cash balances held in the United Kingdom	22,150	22,934
Financial institutions in the United States
– Denominated in US$	—	17
Total cash balances held in the United States	—	17
Total cash balances held at financial institutions in RMB	989,132	901,429

Cash and restricted cash

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Cash and restricted cash

2.	Cash and restricted cash

A reconciliation of cash and restricted cash in the unaudited condensed consolidated balance sheets to the amounts in the unaudited condensed consolidated statements of cash flows is as follows:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Cash at bank	860,472	850,373
Restricted cash	40,957	74,975
Cash and restricted cash shown in the consolidated statements of cash flows	901,429	925,348

Cash and restricted cash are deposited in financial institutions at the locations noted below:

	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Financial institutions in the mainland of the PRC
– Denominated in RMB	595,559	811,100
– Denominated in US$	258,475	34,424
– Denominated in Hong Kong dollars (“HKD”)	—	92
Total cash balances held in the mainland of the PRC	854,034	845,616
Financial institutions in Hong Kong
– Denominated in US$	9,402	10,240
– Denominated in HKD	14	14
Total cash balances held in Hong Kong	9,416	10,254
Financial institutions in Sweden
– Denominated in Swedish Krona (“SEK”)	14,473	26,514
– Denominated in US$	555	210
Total cash balances held in Sweden	15,028	26,724
Financial institutions in the United Kingdom
– Denominated in Great Britain Pound (“GBP”)	22,934	42,155
Total cash balances held in the United Kingdom	22,934	42,155
Financial institutions in the United States
– Denominated in US$	17	599
Total cash balances held in the United States	17	599
Total cash balances held at financial institutions in RMB	901,429	925,348

As of December 31, 2022, the Group’s restricted cash of RMB40,957 were pledged for notes payable. As of June 30, 2023, the Group had restricted cash of RMB29,607 pledged for notes payable, RMB21,755 pledged for a framework agreement of foreign exchange swaps, and RMB23,613 restricted due to litigation.

3.	Cash and restricted cash

A reconciliation of cash and restricted cash in the consolidated balance sheets to the amounts in the consolidated statement of cash flows is as follows:


	As of December 31,
	2021	2022
	RMB	RMB
Cash at bank	966,128	860,472
Restricted cash	23,004	40,957
Cash and restricted cash shown in the consolidated statements of cash flows	989,132	901,429

Cash and restricted cash are deposited in financial institutions at the locations noted below:


	As of December 31,
	2021	2022
	RMB	RMB
Financial institutions in the mainland of the PRC
– Denominated in RMB	755,855	595,559
– Denominated in US$	182,141	258,475
Total cash balances held in the mainland of the PRC	937,996	854,034
Financial institutions in Hong Kong
– Denominated in US$	—	9,402
– Denominated in Hong Kong dollars (“HKD”)	—	14
Total cash balances held in Hong Kong	—	9,416
Financial institutions in Sweden
– Denominated in Swedish Krona (“SEK”)	28,986	14,473
– Denominated in US$	—	555
Total cash balances held in Sweden	28,986	15,028
Financial institutions in the United Kingdom
– Denominated in Great Britain Pounds (“GBP”)	22,150	22,934
Total cash balances held in the United Kingdom	22,150	22,934
Financial institutions in the United States
– Denominated in US$	—	17
Total cash balances held in the United States	—	17
Total cash balances held at financial institutions in RMB	989,132	901,429

As of December 31, 2021 and 2022, the Group’s restricted cash of RMB23,004 and RMB40,957 were pledged for notes payable.

Commitments and contingencies

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

19.

Commitments and contingencies

Purchase commitments

As of June 30, 2023, the Group has future minimum purchase commitment related to the purchase of research and development services. Total purchase obligations contracted but not yet reflected in the unaudited condensed consolidated financial statements as of June 30, 2023 were as follows:


		Less than
	Total	one year	1-2 Years	2-3 Years	3-5 Years
Purchase commitments	61,713	45,046	6,667	6,667	3,333

Capital commitments

Total capital expenditures contracted but not yet reflected in the unauditd condensed consolidated financial statements as of June 30, 2023 were as follows:


	Total	Less than one year
	RMB	RMB
Capital commitments	18,994	18,994

27.

Commitments and contingencies

Purchase commitments

As of December 31, 2022, the Group has future minimum purchase commitment related to the purchase of research and development services. Total purchase obligations contracted but not yet reflected in the consolidated financial statements as of December 31, 2022 were as follows:


		Less than				Over 5
	Total	one year	1-2 Years	2-3 Years	3-5 Years	Years
Purchase commitments	99,907	79,906	6,667	6,667	6,667	—

Capital commitments

Total capital expenditures contracted but not yet reflected in the consolidated financial statements as of December 31, 2022 were as follows:


	Total	Less than one year
Capital commitments	15,872	15,872

Accrued expenses and other liabilities

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Accrued expenses and other liabilities

12.

Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consisted of the following:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Salaries and benefits payables	246,189	165,238
Taxes payable	103,067	59,318
Product warranties	61,432	69,915
Accrued costs of the Merger	136,756	68,922
Other payables and accrued charges*	237,690	148,355
Accrued expenses and other current liabilities	785,134	511,748

*	Other payables and accrued charges primarily include accrual for research and development expenses.

14.Accrued expenses and other liabilities

Accrued expenses and other liabilities, current and non-current consisted of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Salaries and benefits payables	230,985	246,189
Taxes payable	39,286	103,067
Product warranties	40,263	61,432
Accrued costs of the Merger	—	136,756
Other payables and accrued charges*	150,730	237,690
Accrued expenses and other current liabilities	461,264	785,134

*Other payables and accrued charges primarily include accrual for research and development expenses.

Intangible assets, net - Estimated amortization expenses for intangible assets (Details) ¥ in Thousands	Dec. 31, 2022 CNY (¥)
Intangible assets, net
2023	¥ 22,911
2024	14,524
2025	6,847
2026	579
2027	¥ 0

Inventories - Additional Information (Details) ¥ in Thousands, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023 CNY (¥)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Inventories
Inventory write-down	¥ 9,535	¥ 5,162	¥ 35,406	$ 4,883	¥ 49,485	¥ 44,134

Subsequent events (Tables)

12 Months Ended

Dec. 31, 2022

Subsequent events

Schedule of results of operations and net assets acquired in consolidated financial statements

	As of December 31,
	2021	2022
	RMB	RMB
ASSETS
Current assets	135,525	572,259
Non-current assets	6,726	43,655
Total assets	142,251	615,914

LIABILITIES
Current liabilities	2,286	486,351
Non-current liabilities	—	9,229
Total liabilities	2,286	495,580

	Year ended December 31,
	2021	2022
	RMB	RMB
Revenues	—	5,138
Cost of revenues	(130)	(1,475)
Gross (loss) profit	(130)	3,663

Loss from operations	(18,493)	(167,952)
Profit (loss) before income taxes	13,380	(136,512)
Net profit (loss)	9,965	(144,005)

Risks and Concentration (Details)	6 Months Ended		12 Months Ended
Risks and Concentration (Details)	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounts receivable - third parties, net \| Customer concentration risk \| Customer A, a related party
Risks and Concentration
Concentration risk percentage	79.20%		92.10%	95.80%
Accounts receivable - third parties, net \| Customer concentration risk \| Customer A, a related party
Risks and Concentration
Concentration risk percentage	79.20%		48.90%	51.10%
Accounts receivable - third parties, net \| Customer concentration risk \| Customer B, a third party
Risks and Concentration
Concentration risk percentage			30.40%	11.00%
Accounts receivable - third parties, net \| Customer concentration risk \| Customer C, a third party
Risks and Concentration
Concentration risk percentage	40.40%		48.90%	10.60%
Revenue Benchmark \| Customer concentration risk \| Customer A, a related party
Risks and Concentration
Concentration risk percentage	73.70%	73.60%
Revenue Benchmark \| Customer concentration risk \| Customer C, a third party
Risks and Concentration
Concentration risk percentage	10.00%	11.40%
Accounts payable \| Customer concentration risk \| Supplier C, a related party
Risks and Concentration
Concentration risk percentage			10.00%	10.30%
Accounts payable \| Customer concentration risk \| Supplier A, a third party
Risks and Concentration
Concentration risk percentage			10.00%	15.50%
Accounts payable \| Customer concentration risk \| Supplier B, a third party
Risks and Concentration
Concentration risk percentage			19.00%	13.80%
Accounts payable \| Customer concentration risk \| Supplier D, a third party
Risks and Concentration
Concentration risk percentage			19.10%	10.00%
Accounts payable \| Customer concentration risk \| Supplier E, a third party
Risks and Concentration
Concentration risk percentage			10.90%	10.00%
Accounts payable \| Supplier concentration risk \| Supplier A, a third party
Risks and Concentration
Concentration risk percentage	18.50%		19.00%
Accounts payable \| Supplier concentration risk \| Supplier B, a third party
Risks and Concentration
Concentration risk percentage	10.00%		10.90%
Accounts payable \| Supplier concentration risk \| Supplier C, a third party
Risks and Concentration
Concentration risk percentage	17.60%		19.10%
Liabilities, Total \| Customer concentration risk \| Supplier C, a related party
Risks and Concentration
Concentration risk percentage			10.00%	10.00%	10.00%
Liabilities, Total \| Customer concentration risk \| Supplier A, a third party
Risks and Concentration
Concentration risk percentage			10.00%	23.60%	35.20%
Liabilities, Total \| Customer concentration risk \| Supplier B, a third party
Risks and Concentration
Concentration risk percentage			17.40%	10.00%	10.00%
Liabilities, Total \| Customer concentration risk \| Supplier D, a third party
Risks and Concentration
Concentration risk percentage			12.70%	10.00%	10.00%
Liabilities, Total \| Supplier concentration risk \| Supplier A, a third party
Risks and Concentration
Concentration risk percentage	23.30%	14.50%
Liabilities, Total \| Supplier concentration risk \| Supplier C, a third party
Risks and Concentration
Concentration risk percentage	13.30%
Liabilities, Total \| Supplier concentration risk \| Supplier D, a third party
Risks and Concentration
Concentration risk percentage	10.00%	12.50%
Liabilities, Total \| Supplier concentration risk \| Customer C, a third party
Risks and Concentration
Concentration risk percentage		10.00%
Total revenues \| Customer concentration risk \| Customer A, a related party
Risks and Concentration
Concentration risk percentage	73.70%	73.60%	67.00%	70.40%	74.10%
Total revenues \| Customer concentration risk \| Customer A, a related party
Risks and Concentration
Concentration risk percentage			12.60%	10.00%	10.00%
Total revenues \| Customer concentration risk \| Customer B, a third party
Risks and Concentration
Concentration risk percentage			12.50%	10.00%	10.00%

Cash and restricted cash - Deposits in financial institutions (Details) - CNY (¥) ¥ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash and restricted cash
Cash balances held at financial institutions	¥ 925,348	¥ 901,429	¥ 989,132
Restricted cash pledged for notes payable	29,607	40,957	23,004
US
Cash and restricted cash
Cash balances held at financial institutions	599	17
PRC
Cash and restricted cash
Cash balances held at financial institutions	845,616	854,034	937,996
PRC \| RMB
Cash and restricted cash
Cash balances held at financial institutions	811,100	595,559	755,855
PRC \| HKD
Cash and restricted cash
Cash balances held at financial institutions	92
PRC \| US
Cash and restricted cash
Cash balances held at financial institutions	34,424	258,475	182,141
Hong Kong
Cash and restricted cash
Cash balances held at financial institutions	10,254	9,416
Hong Kong \| HKD
Cash and restricted cash
Cash balances held at financial institutions	14	14
Hong Kong \| US
Cash and restricted cash
Cash balances held at financial institutions	10,240	9,402
Sweden
Cash and restricted cash
Cash balances held at financial institutions	26,724	15,028	28,986
Sweden \| US
Cash and restricted cash
Cash balances held at financial institutions	210	555
Sweden \| SEK
Cash and restricted cash
Cash balances held at financial institutions	26,514	14,473	28,986
United Kingdom
Cash and restricted cash
Cash balances held at financial institutions	42,155	22,934	22,150
United Kingdom \| GBP
Cash and restricted cash
Cash balances held at financial institutions	42,155	22,934	¥ 22,150
United States
Cash and restricted cash
Cash balances held at financial institutions		17
United States \| US
Cash and restricted cash
Cash balances held at financial institutions	¥ 599	¥ 17

Intangible assets, net

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

9.	Intangible assets, net

Intangible assets, net consisted of the following:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Software	103,509	109,495
Less: accumulated amortization	(58,648)	(70,656)
Intangible assets, net	44,861	38,839

Amortization of intangible assets was allocated as follows:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Selling and marketing expenses	254	3
General and administrative expenses	4,670	4,899
Research and development expenses	6,840	7,105
Total amortization	11,764	12,007

10. Intangible assets, net

Intangible assets, net consisted of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Software	69,840	103,509
Less: accumulated amortization	(38,718)	(58,648)
Intangible assets, net	31,122	44,861

Amortization of intangible assets was allocated as follows:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Cost of revenues	96	77	—
Selling and marketing expenses	1,027	876	257
General and administrative expenses	2,535	5,845	9,730
Research and development expenses	16,820	15,089	14,045
Total amortization	20,478	21,887	24,032

The estimated amortization for existing intangible assets in each of the next five years is RMB22,911, RMB14,524, RMB6,847, RMB579 and nil, respectively.

Convertible notes payable (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands	Dec. 20, 2022 $ / shares	Jun. 30, 2023 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Oct. 25, 2022 CNY (¥)	Oct. 25, 2022 USD ($)
Convertible notes payable
Issuance costs		¥ 7,041	¥ 8,449	$ 1,225
Convertible notes payable
Convertible notes payable
Aggregate principal amount					¥ 459,410	$ 65,000
Interest rate (in percent)					5.00%	5.00%
Conversion price	$ 11.50
Internal rate of return (in percent)	9.00%

Share based compensation - Activities of options (Details) - 2021 Option Plan - $ / shares	1 Months Ended		5 Months Ended	6 Months Ended	12 Months Ended
	Jan. 31, 2023	Jul. 31, 2021	Dec. 31, 2021	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Number of options
Outstanding at January 1, 2023	12,853,364			12,853,364	13,281,043
Granted			13,575,733	63,464	2,354,744		13,575,733
Forfeited				(1,527,342)	(2,782,423)	(294,690)
Outstanding at June 30, 2023			13,281,043	11,389,486	12,853,364	13,281,043
Vested and expected to vest as of June 30, 2023			12,853,364	11,389,486		12,853,364
Exercisable as of June 30, 2023				8,311,048	6,843,970
Weighted Average Exercise Price
Outstanding at January 1, 2023	$ 9.70			$ 9.70	$ 9.70
Exercise price per share	9.70	$ 9.70		9.70	9.70		$ 9.70
Forfeited				9.70	9.70	$ 9.70
Outstanding at June 30, 2023			$ 9.70	9.70	9.70	9.70
Vested and expected to vest as of June 30, 2023			9.70	9.70		9.70
Exercisable as of June 30, 2023				9.70	9.70
Weighted Average Fair value at grant date
Outstanding at January 1, 2023	$ 3.14			3.14	2.92
Granted				3.80	3.39		$ 2.92
Forfeited				3.26	2.31	2.92
Outstanding at June 30, 2023			2.92	3.13	3.14	2.92
Vested and expected to vest as of June 30, 2023			$ 3.14	3.13		$ 3.14
Exercisable as of June 30, 2023				$ 2.94	$ 2.92
Weighted remaining contractual years
Vested and expected to vest as of June 30, 2023				8 years 2 months 23 days		8 years 9 months 4 days
Exercisable as of June 30, 2023				8 years 2 months 8 days	8 years 9 months 4 days

Income taxes - Income tax expense recognized in the consolidated statements of comprehensive loss (Details) ¥ in Thousands, $ in Thousands	6 Months Ended			12 Months Ended
	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Income taxes
Current income tax expense	¥ 326	$ 45	¥ 7,925	¥ 29,065	$ 4,008	¥ 6,861	¥ 228

Related party balances and transactions

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Non-controlling interests - Additional Information (Details) ¥ in Thousands, $ in Thousands	1 Months Ended					6 Months Ended	12 Months Ended
	Jan. 31, 2022 CNY (¥)	Oct. 31, 2021 CNY (¥)	Sep. 30, 2021 CNY (¥)	Aug. 31, 2021 CNY (¥)	May 31, 2021 CNY (¥)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Non-controlling interests
Accretion of redeemable non-controlling interests (Note 20(b))			¥ 1,000			¥ (714)	¥ (714)	$ (98)	¥ (1,306)
Total cash consideration							161,940			¥ 131,199	$ 18,093
Percentage of equity interest			2.00%
Decrease in paid-in capital									202,000
Percentage of redeemable noncontrolling interest per annum			49.00%
Non-redeemable non-controlling interests			¥ 14,335				161,940		197,280			$ 22,333
Carrying amount of relevant non-redeemable non-controlling interests derecognized upon deconsolidation						¥ 7,178			14,335
Redeemable non-controlling interests							¥ 40,750		30,500
JICA Intelligent Robotics Co., Ltd. \| Subsequent events
Non-controlling interests
Percentage of ownership interest after acquisition										70.00%	70.00%
Suzhou Photon-Matrix
Non-controlling interests
Percentage of equity interest					60.00%
Accretion of redeemable non-controlling interests (Note 20(b))	¥ 10,000
Percentage of equity interest	3.45%
Redemption price	¥ 10,000	¥ 30,000
Group
Non-controlling interests
Ownership interest			49.17%
Carrying amount of relevant non-redeemable non-controlling interests derecognized upon deconsolidation			¥ (7,178)
Geely Auto \| JICA Intelligent Robotics Co., Ltd. \| Subsequent events
Non-controlling interests
Percentage of equity interest										30.00%	30.00%
Mezzanine equity
Non-controlling interests
Redeemable non-controlling interests		30,000							30,500
Suzhou Photon-Matrix
Non-controlling interests
Accretion of redeemable non-controlling interests (Note 20(b))		¥ 30,000		¥ 520	¥ 6,000
Total cash consideration					¥ 4,000				¥ 2,000
Percentage of equity interest		10.71%		2.97%
Decrease in paid-in capital				¥ 105
Percentage of redeemable noncontrolling interest per annum					40.00%

Revenue information - Additional information (Details) - CNY (¥) ¥ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Revenue information
Percentage of revenue from contract with customer	98.30%	98.90%
Revenue recognized from contract liabilities	¥ 101,443	¥ 107,949
Aggregated amounts of the transaction price allocated to the remaining performance obligation	¥ 596,405		¥ 603,523	¥ 839,036

Related party balances and transactions

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

20.

Related party balances and transactions

(a)	Related Parties

Names of the major related parties		Nature of relationship
Zhejiang Geely Holding Group (“Geely Group”) and its subsidiaries		Entity controlled by the controlling shareholder of the Company
Proton Holdings Berhad and its subsidiaries		Entity that the controlling shareholder of the Company has significant influence
Anhui Xinzhi Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Zhejiang Huanfu Technology Co., Ltd., (“Zhejiang Huanfu”, formerly known as Zhejiang Yikatong Technology Co., Ltd.,”Zhejiang Yikatong”)		Entity controlled by the controlling shareholder of the Company
Xi’an Liansheng Intelligent Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Hubei Xingji Meizu Group Co., Ltd. (formerly known as Hubei Yuanshidai Technology Co., Ltd.)		Entity controlled by the controlling shareholder of the Company
Hubei Xingji Meizu Technology Co., Ltd (formerly known as Hubei Xingji Times Technology Co., Ltd.)		Entity controlled by the controlling shareholder of the Company
Hubei ECARX Technology Co., Ltd (“Hubei ECARX”)		Entity controlled by the controlling shareholder of the Company
Arteus Group Limited (“Arteus”)		Entity controlled by the controlling shareholder of the Company
DreamSmart Technology Pte. Ltd. (“DreamSmart”)		Entity controlled by the controlling shareholder of the Company
Apollo Intelligent Connectivity (Beijing) Technology Co., Ltd.		Entity that one board of director of the Company has significant influence
SiEngine Technology Co., Ltd. (“SiEngine”)		Entity which is under significant influence of the Company
Suzhou Tongjie Automotive Electronics Co., Ltd.		Entity which is under significant influence of the controlling shareholder of the Company
Hubei Dongjun Automotive Electronic Technology Co., Ltd. and its subsidiary		Entity which is under significant influence of the Company
Suzhou Photon-Matrix Optoelectronics Technology Co., Ltd		Entity which is under significant influence of the Company
HaleyTek AB		Entity which is under significant influence of the Company

(b)	Significant transactions with related parties:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Revenues (i):
Sales of goods revenues	613,655	1,018,256
Automotive computing platform	603,112	1,013,860
SoC Core Modules	22	140
Automotive merchandise and other products	10,521	4,256
Software licence revenues	15,481	164,995
Service revenues	376,720	237,263
Automotive computing platform – Design and development service	241,090	119,291
Connectivity service	107,752	99,254
Other services	27,878	18,718
Total	1,005,856	1,420,514


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Purchase of products and services ⁽ⁱⁱ⁾	261,495	197,760
Rental of office space, and administrative services ⁽ⁱⁱ⁾	3,421	2,400
Other income ^(viii)	—	7,055
Interest income on loans due from related parties ^(iv)	2,759	6,771
Interest expense on borrowings and the Note due to related parties ⁽ⁱⁱⁱ⁾	1,622	6,116
Loans to related parties ^(iv)	8,060	12,000
Repayment received of loans to related parties ^(iv)	25,000	8,500
Financial support to Anhui Xinzhi ^(vii)	28,500	—
Repayment of borrowings from related parties ⁽ⁱⁱⁱ⁾	200,000	—
Borrowings from related parties ⁽ⁱⁱⁱ⁾	700,000	300,000
Transfer of property and equipment to Zhejiang Huanfu ^(v)	1,604	—

(c)	Balances with related parties:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Accounts receivable - related parties, net ⁽ⁱ⁾	835,320	804,267
Amounts due from related parties ^{(ii)(iv)(viii)}	911,729	140,225
Other non-current assets - related parties ^(vi)	213,695	218,899
Accounts payable - related parties ⁽ⁱⁱ⁾	241,773	101,098
Amounts due to related parties ^(iii)(ix)	42,843	341,202

Note:

(i)

The Group sold automotive computing platform products and provided related technology development services, merchandise and other products, connectivity service, software licenses and other consulting services to a number of related parties. Accounts receivable, net, due from related parties arising from sales of products and provision of services were RMB835,320 and RMB804,267 as of December 31, 2022 and June 30, 2023, respectively.

(ii)

The Group purchased raw materials, technology development services and other consulting services from a number of related parties, of which RMB47,209 and RMB24,014 of purchase of raw materials were recorded as inventories as of June 30, 2022 and 2023, respectively. RMB186,997 and RMB168,405 were recorded in cost of revenues for the six months ended June 30, 2022 and 2023, respectively, RMB27,289 and RMB5,341 were recorded in operating expenses for the six months ended June 30, 2022 and 2023, respectively.

Accounts payable to related parties includes payables arising from purchase of raw materials and services of RMB241,773 and RMB101,098, amount due from related parties includes prepayments arising from purchase of raw materials and services of RMB29,595 and RMB13,548 as of December 31, 2022 and June 30, 2023, respectively.

The Group has rented office space from related parties, pursuant to which, the Group recorded rental expenses of RMB3,421 and RMB2,400 in operating expenses during the six months ended June 30, 2022 and 2023, respectively.

(iii)

In January 2023, ECARX (Hubei) Tech entered into an unsecured loan agreement with Geely Group in an amount of RMB300,000 with an interest rate of 4.1% per annum, which was repayable on June 30, 2024.

Interest expenses on borrowings from related parties were RMB1,622 and RMB6,116 for the six months ended June 30, 2022 and 2023, respectively. The borrowings and the interest payable on borrowings from related parties was included in the amounts due to related parties and was RMB13,800 and RMB319,916 as of December 31, 2022 and June 30, 2023, respectively.

(iv)

For the six months ended June 30, 2023, the Group provided loans of RMB12,000 to related parties, and received repayment of RMB8,500 from related parties. Interest incomes on loans due from related parties were RMB2,759 and RMB6,771, respectively, for the six months ended June 30, 2022 and 2023. As of December 31, 2022 and June 30, 2023, loans and interest receivables due from related parties was RMB63,091 and RMB68,158, respectively.

As of December 31, 2022, the Group recorded amounts due from Volvo Cars for its disposal of Zenseact, an equity security. The consideration of the disposal was US$115,000 (equivalent to RMB792,063) and the amount was settled in January 2023; and the amounts due from Arteus were GBP3,082 (equivalent to RMB25,866) as of December 31, 2022 and the amounts due from DreamSmart were GBP6,400 (equivalent to RMB58,519) as of June 30, 2023 (see below Note (viii)).

(v)	In February 2022, Hubei ECARX disposed certain property and equipment to Zhejiang Huanfu at RMB1,697 and recorded a gain of RMB93 as a result of the disposal.

(vi)

As of December 31, 2022 and June 30, 2023, the balance of other non-current assets due from related parties included the amounts due from its former VIE, Hubei ECARX in the amount of RMB213,695 and RMB218,899, respectively, which represented the net present value of an interest free loan provided by the Group to Hubei ECARX with the principal of RMB252,287 and an effective annual interest rate of 5.0%.

(vii)

In February and March 2022, the Group provided cash in the amount of RMB28,500 to Anhui Xinzhi as financial support. The investment was derecognized as part of the Restructuring.

(viii)

Other income from related parties represents the amounts due from Arteus for recharges of expenses including those in relation to management service, sharing of office space, consultancy and other expenses paid by the Group on behalf of Arteus. The amounts outstanding as of December 31, 2022 were fully settled in March 2023. In June 2023, ECARX signed an assignment of rights agreement with Arteus and DreamSmart. The amounts due from Arteus were assigned to DreamSmart, all of which shall be repayable on or before September 29, 2023.

(ix)	As a result of the purchase of technical services and logistics services from related parties, the Group recorded balances due to related parties of RMB29,043 and RMB21,286 as of December 31, 2022 and June 30, 2023, respectively.

28.

Related party balances and transactions

(a)	Related Parties


Names of the major related parties		Nature of relationship
Zhejiang Geely Holding Group (“Geely Group”) and its subsidiaries		Entity controlled by the controlling shareholder of the Company
Proton Holdings Berhad and its subsidiaries		Entity that the controlling shareholder of the Company has significant influence
Anhui Xinzhi Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Zhejiang Huanfu Technology Co., Ltd., (“Zhejiang Huanfu”, formerly known as Zhejiang Yikatong Technology Co., Ltd.,”Zhejiang Yikatong”)		Entity controlled by the controlling shareholder of the Company
Xi’an Liansheng Intelligent Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Hubei Yuanshidai Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Hubei Xingji Times Technology Co., Ltd		Entity controlled by the controlling shareholder of the Company
Hubei ECARX Technology Co., Ltd		Entity controlled by the controlling shareholder of the Company
Arteus Group Limited		Entity controlled by the controlling shareholder of the Company
Apollo Intelligent Connectivity (Beijing)Technology Co., Ltd.		Entity that one board of director of the Company has significant influence
SiEngine Technology Co., Ltd.		Entity which is under significant influence of the Company
Suzhou Tongjie Automotive Electronics Co., Ltd.		Entity which is under significant influence of the controlling shareholder of the Company
Hubei Dongjun Automotive Electronic Technology Co., Ltd. and its subsidiary		Entity which is under significant influence of the Company
Suzhou Photon-Matrix Optoelectronics Technology Co., Ltd		Entity which is under significant influence of the Company

(b)	Significant transactions with related parties:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Revenues(i):
Sales of goods revenues	1,275,777	1,466,340	1,663,076
Automotive computing platform	1,231,429	1,410,566	1,651,512
SoC Core Modules	—	—	77
Automotive merchandise and other products	44,348	55,774	11,487
Software license revenues	18,168	24,788	133,450
Service revenues	444,709	532,625	721,206
Automotive computing platform – Design and development service	251,471	306,027	466,747
Connectivity service	172,490	187,781	212,406
Other services	20,748	38,817	42,053
Total	1,738,654	2,023,753	2,517,732


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Purchase of products and services (ii)	8,186	293,552	677,775
Rental of office space (ii)	3,391	1,093	6,395
Other income (ix)	—	—	22,846
Interest income on loans due from related parties (iv)	—	717	9,069
Interest expense on borrowings due to related parties (iii)	872	131	12,215
Loans to related parties (iv)	—	28,850	57,260
Repayment received of loans to related parties (iv)	—	—	29,360
Advances to Zhejiang Huanfu (iv)	103,024	19,806	—
Collection of advances to Zhejiang Huanfu (iv)	81,026	90,155	—
Repayment of borrowings from related parties (iii)	—	65,152	700,000
Borrowings from related parties (iii)	—	45,152	700,000
Transfer of property and equipment to Zhejiang Huanfu (v)	—	707	1,604
Financial support to Anhui Xinzhi (viii)	—	—	28,500


	As of December 31,
	2021	2022
	RMB	RMB
Accounts receivable – related parties, net (i)	768,747	835,320
Amounts due from related parties (ii)(iv)(ix)	41,298	911,729
Accounts payable – related parties (ii)	111,531	241,773
Amounts due to related parties (iii)(vi)(x)	106,825	42,843
Other non-current assets – related parties (vii)	1,929	213,695

(i)

The Group sold automotive computing platform products and provided related technology development services, merchandise and other products, connectivity service, software licenses and other consulting services to a number of related parties. Accounts receivable, net due from related parties arising from sales of products and provision of services were RMB768,747 and RMB835,320 as of December 31, 2021 and 2022, respectively. The balance as of December 31, 2021 was fully received in 2022. Of the balance as of December 31, 2022, RMB538,867 was subsequently received by March 2023.

(ii)

The Group purchased raw materials, technology development services and other consulting services from a number of related parties, of which, RMB747, RMB51,171 and RMB29,717 of purchase of raw materials were recorded as inventories as of December 31, 2020, 2021 and 2022, respectively, RMB6,073, RMB220,062 and RMB591,613 were recorded in cost of revenues for the years ended December 31, 2020, 2021 and 2022, respectively, RMB1,366, RMB23,412 and RMB62,840 were recorded in operating expenses for the years ended December 31, 2020, 2021 and 2022, respectively.

Accounts payable to related parties includes payables arising from purchase of raw materials and services of RMB111,531 and RMB241,773, amount due from related parties includes prepayments arising from purchase of raw materials and services of RMB41,298 and RMB29,595 as of December 31, 2021 and 2022, respectively.

The Group has rented office space from related parties, pursuant to which, the Group recorded rental expenses of RMB3,391, RMB1,093 and RMB6,395 in operating expenses during the years ended December 31, 2020, 2021 and 2022.

(iii)

On March 29, 2018, Hubei ECARX entered into an unsecured loan agreement with Geely Group in an amount of RMB20,000 with an interest rate of 4.35% per annum, which was repayable on demand. The loan has been fully repaid on February 25, 2021. On August 25, 2021, the Company entered into an unsecured loan agreement with the controlling shareholder of the Company to obtain a loan of US$7,000 (equivalent to RMB45,152), which was fully repaid on October 8, 2021.

On March 28, 2022, ECARX (Hubei) Tech entered into an unsecured loan agreement with Hubei Xingji Times Technology Co., Ltd. in an amount of RMB200,000 with an interest rate of 2.25% per annum, which was repaid at the maturity date on September 30, 2022. On June 27, 2022, ECARX (Hubei) Tech entered into an unsecured loan agreement with Geely in an amount of RMB500,000 with an interest rate of 4.35% per annum, which was repayable on December 26, 2022. RMB500,000 has been repaid on December 26, 2022.

Interest expenses on borrowings from related parties were RMB872, RMB131 and RMB12,215 for the years ended December 31, 2020, 2021 and 2022, respectively. The borrowings and the interest payable on borrowings from related parties was included in the amounts due to related parties and was RMB2,743 and RMB138,000 as of December 31, 2021 and 2022, respectively.

(iv)	In 2020 and 2021, the Group respectively paid advances of RMB103,024 and RMB19,806, and received collection of RMB81,026 and RMB90,155, from Zhejiang Huanfu. The payments were interest-free and due on demand. The amounts due from Zhejiang Huanfu as of December 31, 2020 was fully collected in 2021.

In 2021, the Group provided loans of RMB28,850 to related parties. Interest incomes on loans due from related parties were RMB717 for the year ended December 31, 2021.

In 2022, the Group provided loans of RMB57,260 to related parties, and received repayment of RMB29,360 from related parties. Interest incomes on loans due from related parties were nil, RMB717 and RMB9,069, respectively, in 2020, 2021 and 2022. As of December 31, 2022, loans and interest receivables due from related parties was RMB63,091.

As of December 31, 2022, the Group recorded amounts due from Volvo Cars for its disposal of Zenseact, an equity security. The consideration of the dispoal was US$115,000 (equivalent to RMB793,177) and the amount was settled in January 2023 (see Note 8); and the amounts due from Arteus Group Limited were GBP3,082 (equivalent to RMB25,866) (see below Note (ix)).

(v)

In October 2021, Hubei ECARX disposed certain property and equipment to Zhejiang Huanfu at RMB745 and recorded a gain of RMB38 as a result of the disposal. In February 2022, Hubei ECARX disposed certain property and equipment to Zhejiang Huanfu at RMB1,697 and recorded a gain of RMB93 as a result of the disposal.

(vi)

As disclosed in the Note 8, in July 2021, the Group acquired 34.61% equity interest of SiEngine from the controlling shareholder of the Company. As of December 31, 2021, the Group recorded the consideration of US$10,649 payable in amounts due to the controlling shareholder. The amounts were fully settled in January 2022.

(vii)

As of December 31, 2021, the Group recorded RMB1,929 in other non-current assets due from related parties, which included deposits and advances for purchase of long-term assets from such related parties; as of December 31, 2022, the balance of other non-current assets due from related parties also included the amounts due from its former VIE, Hubei ECARX in the amount of RMB213,695, which represented the net present value of a loan provided by the Group to Hubei ECARX with the principal of RMB252,287 and an effective annual interest rate of 5.0%.

(viii)

In February and March 2022, the Group provided cash in the amount of RMB28,500 to Anhui Xinzhi as financial support. The investment was derecognized as part of the Restructuring. See the Note 1(d) and Note 8 for details.

(ix)

Other income from related parties represents the amounts due from Arteus Group Limited for recharges of expenses including those in relation to management service, sharing of office space, consultancy and other expenses paid by the Group on behalf of Arteus Group Limited. The amounts were outstanding at December 31, 2022 and were fully settled in March 2023.

(x)	As a result of the purchase of technical services and logistics services from related parties in each of the reporting periods specified in the Note (ii), the Group recorded balances due to related parties of RMB36,186 and RMB29,043 as of December 31, 2021 and 2022, respectively.

Ordinary Shares (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)	Jun. 30, 2023 $ / shares shares	Dec. 31, 2022 CNY (¥) shares	Dec. 31, 2022 $ / shares	Dec. 20, 2022 $ / shares	Dec. 27, 2021 $ / shares shares	Dec. 20, 2021 $ / shares shares	Jan. 16, 2020 $ / shares shares	Nov. 12, 2019 $ / shares shares
Ordinary Shares
Total shares authorized						10,000,000,000		10,000,000,000	500,000,000
Par value \| $ / shares						$ 0.000005		$ 0.000005	$ 0.0001
Shares issued									10,000,000
Cost of treasury shares \| ¥			¥ 1
Amount of shares authorized \| $	$ 50,000
Ordinary shares authorized			10,000,000,000
Par value per share of shares sold back by four members of the Group's management \| $ / shares					$ 0.000005
Four members from Group's management who are also ordinary shareholders of the Group
Ordinary Shares
Par value \| $ / shares							$ 0.000005
Shares issued							5,010,420
Ordinary Shares
Ordinary Shares
Shares issued						9,909,275,711		9,973,158,465
Preferred Shares
Ordinary Shares
Shares issued						90,724,289		26,841,535
Class A Ordinary Shares
Ordinary Shares
Ordinary shares authorized		8,000,000,000	8,000,000,000
Par value per share of shares sold back by four members of the Group's management \| $ / shares		$ 0.000005		$ 0.000005
Ordinary shares, shares issued		288,434,474	288,434,474
Ordinary shares, shares outstanding		288,434,474	288,434,474
Class B Ordinary Shares
Ordinary Shares
Ordinary shares authorized		1,000,000,000	1,000,000,000
Par value per share of shares sold back by four members of the Group's management \| $ / shares		$ 0.000005		0.000005
Ordinary shares, shares issued		48,960,916	48,960,916
Ordinary shares, shares outstanding		48,960,916	48,960,916
Designated Shares
Ordinary Shares
Ordinary shares authorized			1,000,000,000
Par value per share of shares sold back by four members of the Group's management \| $ / shares				$ 0.000005

Subsequent events - Results of operations and net assets acquired in consolidated financial statements (Details) ¥ in Thousands, $ in Thousands	6 Months Ended			12 Months Ended
	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
ASSETS
Current assets	¥ 3,100,363			¥ 3,853,333		¥ 2,592,163		$ 427,560	$ 531,398
Non-current assets	901,725			877,699		1,315,417		124,354	121,041
Total assets	4,002,088			4,731,032		3,907,580		551,914	652,439
LIABILITIES
Current liabilities	3,522,606			3,927,441		2,754,861		485,789	541,617
Non-current liabilities	824,043			838,047		489,358		113,642	115,574
Total liabilities	4,346,649			4,765,488		3,244,219		$ 599,431	$ 657,191
Operating Income (Loss)
Cost of revenues	(1,209,902)	$ (166,853)	¥ (886,040)	(2,568,115)	$ (354,159)	(1,962,000)	¥ (1,689,675)
Gross profit	507,535	69,992	427,952	993,879	137,063	817,063	551,388
Loss from operation	(381,972)	(52,677)	(677,752)	(1,628,221)	(224,541)	(1,000,178)	(430,481)
Income / (loss) before income taxes	(411,001)	(56,681)	(586,733)	(1,578,081)	(217,626)	(1,169,897)	(439,776)
Net loss	¥ (411,327)	$ (56,726)	¥ (594,658)	(1,607,146)	$ (221,634)	(1,176,758)	¥ (440,004)
JICA Intelligent Robotics Co., Ltd.
ASSETS
Current assets				572,259		135,525
Non-current assets				43,655		6,726
Total assets				615,914		142,251
LIABILITIES
Current liabilities				486,351		2,286
Non-current liabilities				9,229
Total liabilities				495,580		2,286
Operating Income (Loss)
Revenues				5,138
Cost of revenues				(1,475)		(130)
Gross profit				3,663		(130)
Loss from operation				(167,952)		(18,493)
Income / (loss) before income taxes				(136,512)		13,380
Net loss				¥ (144,005)		¥ 9,965

Convertible notes payable (Tables)

6 Months Ended

Jun. 30, 2023

Convertible notes payable

Schedule of convertible notes payable


	Principal	Unamortized debt	Net carrying
	amount	issuance costs	amount
	RMB	RMB	RMB

5% Investor Notes due on November 8, 2025	448,318	(8,449)	439,869


	Principal	Unamortized debt	Net carrying	Fair value
	amount	issuance costs	amount	Amount	Leveling
	RMB	RMB	RMB

5% Investor Notes due on November 8, 2025	471,335	(7,041)	464,294	440,879	Level 3

Related party balances and transactions - Revenues (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Revenues, related parties	¥ 1,420,514	¥ 1,005,856	¥ 2,517,732	¥ 2,023,753	¥ 1,738,654
Sales of goods
Related Party Transaction [Line Items]
Revenues, related parties	1,018,256	613,655	1,663,076	1,466,340	1,275,777
Automotive computing platform
Related Party Transaction [Line Items]
Revenues, related parties	1,013,860	603,112	1,651,512	1,410,566	1,231,429
SoC Core Modules
Related Party Transaction [Line Items]
Revenues, related parties	140	22	77
Automotive merchandise and other products
Related Party Transaction [Line Items]
Revenues, related parties	4,256	10,521	11,487	55,774	44,348
Software license revenues
Related Party Transaction [Line Items]
Revenues, related parties	164,995	15,481	133,450	24,788	18,168
Service revenues
Related Party Transaction [Line Items]
Revenues, related parties	237,263	376,720	721,206	532,625	444,709
Automotive computing platform - Design and development service
Related Party Transaction [Line Items]
Revenues, related parties	119,291	241,090	466,747	306,027	251,471
Connectivity service
Related Party Transaction [Line Items]
Revenues, related parties	99,254	107,752	212,406	187,781	172,490
Other services
Related Party Transaction [Line Items]
Revenues, related parties	¥ 18,718	¥ 27,878	¥ 42,053	¥ 38,817	¥ 20,748

Revenue information (Details) ¥ in Thousands, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023 CNY (¥)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Disaggregation of Revenue [Line Items]
Total revenues	¥ 1,717,437	¥ 1,313,992	¥ 3,561,994	$ 491,222	¥ 2,779,063	¥ 2,241,063
Revenue			98.10%	98.10%	97.10%	97.80%
Point in time
Disaggregation of Revenue [Line Items]
Total revenues	1,617,929	1,206,043	¥ 3,349,256		¥ 2,590,714	¥ 2,068,222
Over time
Disaggregation of Revenue [Line Items]
Total revenues	99,508	107,949	212,738		188,349	172,841
Sales of goods
Disaggregation of Revenue [Line Items]
Total revenues	1,264,263	858,080	2,433,964	$ 335,659	1,983,817	1,678,234
Automotive computing platform
Disaggregation of Revenue [Line Items]
Total revenues	1,053,901	608,078	1,690,569		1,423,548	1,265,227
SoC Core Modules
Disaggregation of Revenue [Line Items]
Total revenues	200,255	188,338	660,554		333,421	203,402
Automotive merchandise and other products
Disaggregation of Revenue [Line Items]
Total revenues	10,107	61,664	82,841		226,848	209,605
Software license revenues .
Disaggregation of Revenue [Line Items]
Total revenues	215,641	78,995	404,469		261,265	71,297
Service revenues
Disaggregation of Revenue [Line Items]
Total revenues	237,533	376,917	723,561	$ 99,784	533,981	491,532
Automotive computing platform - Design and development service
Disaggregation of Revenue [Line Items]
Total revenues	119,291	241,090	468,770		306,358	297,801
Connectivity service
Disaggregation of Revenue [Line Items]
Total revenues	99,508	107,949	212,738		188,349	172,841
Other services
Disaggregation of Revenue [Line Items]
Total revenues	¥ 18,734	¥ 27,878	¥ 42,053		¥ 39,274	¥ 20,890

Subsequent events - Financial support to an equity method investee (Details) ¥ in Thousands	Jun. 30, 2023 CNY (¥)
JICA Intelligent Robotics Co., Ltd.
Subsequent events
Ownership percentage	70.00%
Subsequent events \| JICA Intelligent Robotics Co., Ltd.
Subsequent events
Additional capital injection	¥ 266,667
Consideration paid	1,000
Consideration payable	¥ 265,667
Period for payment of consideration	3 years
Percentage of ownership interest held before acquisition	50.00%
Percentage of ownership interest after acquisition	70.00%
Subsequent events \| JICA Intelligent Robotics Co., Ltd. \| Geely Auto
Subsequent events
Ownership percentage	50.00%
Subsequent events \| JICA Intelligent Robotics Co., Ltd. \| Geely Auto
Subsequent events
Percentage of non-controlling interest	30.00%

Short-term borrowings (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of short-term borrowings


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Unsecured bank loans	870,000	870,000


	As of December 31,
	2021	2022
	RMB	RMB
Unsecured bank loans	932,000	870,000

Long-term investments (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Summary of long-term investments


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Equity method investments	284,536	262,338
Equity securities measured at fair value	69,319	101,293
Total long-term investments	353,855	363,631


	As of December 31,
	2021	2022
	RMB	RMB
Equity method investments	476,853	284,536
Equity securities	675,824	69,319
Total long-term investments	1,152,677	353,855

Summary of combined financial information for investee companies



		Year Ended December 31,
		2022
		RMB
Fair value of the consideration received		—
Add: Fair value of retained equity interest in Suzhou Photon-Matrix		64,000
Add: Carrying amount of redeemable noncontrolling interest		40,750
Less: Carrying amount of non-redeemable noncontrolling interest		(7,178)
Less: Carrying amount of Suzhou Photon-Matrix’s net assets		(25,598)
Gains on deconsolidation of Suzhou Photon-Matrix		71,974


	As of December 31,
	2021	2022
	RMB	RMB
Financial position:
Current assets	1,068,323	1,216,042
Non-current assets	1,252,988	999,573
Total assets	2,321,311	2,215,615
Current liabilities	675,372	942,899
Non-current liabilities	956,934	1,056,274
Total liabilities	1,632,306	1,999,173
Shareholders’ equity	689,005	216,442
Total liabilities and shareholders’ deficit	2,321,311	2,215,615


	Year ended December 31,
	2021	2022
	RMB	RMB
Results of operations:
Total revenues	711,800	1,134,152
Loss from operation	(482,095)	(636,240)
Net loss	(392,337)	(641,401)

Leases - Summary of the effect on consolidated balance sheet as a result of ASC 842 (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Jan. 01, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Assets [Abstract]
Prepayments and other current assets	¥ 678,089	$ 93,513	¥ 424,918	$ 58,598	¥ 240,647	¥ 247,411
Operating lease right-of-use assets	121,305	16,729	99,652	13,743	95,108
Liabilities [Abstract]
Operating lease liabilities, current	(30,189)	(4,163)	(31,110)	(4,290)	(42,094)
Operating lease liabilities, non-current	¥ (108,311)	$ (14,937)	¥ (68,768)	$ (9,484)	¥ (46,250)
Adjustments due to adoption of ASC 842
Assets [Abstract]
Prepayments and other current assets						(6,764)
Operating lease right-of-use assets						95,108
Liabilities [Abstract]
Operating lease liabilities, current						(42,094)
Operating lease liabilities, non-current						¥ (46,250)

Long-term investments (Details) ¥ in Thousands, $ in Thousands	6 Months Ended			12 Months Ended
	Jun. 30, 2023 CNY (¥) shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2021 CNY (¥)
Long-term investments
Equity method investments	¥ 262,338			¥ 284,536			¥ 476,853
Equity securities measured at fair value	101,293			69,319		$ 13,969
Total long-term investments	¥ 363,631			353,855			¥ 1,152,677
Impairment loss \| $		$ 0	$ 0
Number of shares \| shares	2,030,374	2,030,374
Fair value of securities	¥ 101,293			69,319		$ 13,969
Fair value change	¥ 27,722	$ 3,823		¥ (16,843)	$ (2,323)

Warrant liabilities

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Warrant liabilities

Warrant liabilities

14.

Warrant liabilities

ECARX Warrants in connection with the Merger

The Binomial Option Pricing Model with the following key assumptions is used for estimating the fair value of ECARX Private Warrants.


	As of December 31,		As of June 30,
	2022		2023
Risk-free rate of return (%)	3.99	%	4.22	%
Volatility	6.99	%	11.01	%
Expected dividend yield	0.0	%	0.0	%
Expected term	5.0 years		4.5 years
Fair value of the underlying ordinary shares	US$7.99 (equivalent to RMB55.11)		US$6.96 (equivalent to RMB50.47 )

The risk-free rate of return was based on the yield of US Treasury Notes for the expected remaining life of the warrant liabilities. The Company estimates the volatility of its common stock using a binomial lattice model based on the price of public warrant as of the valuation date. Expected dividend yield is zero as the Company does not anticipate any dividend payments in the foreseeable future. Expected term to exercise the warrant liabilities is up to December 2027. The fair value of the Company’s ordinary shares was obtained from the listed trading price of ECX.

The table below reflects the movement of ECARX Warrants for the six months ended June 30, 2023:

Change in fair

Foreign

January 1,

value included

exchange

June 30,

2023

Addition

in losses

translation

Settlement

2023

RMB

Liabilities

ECARX Public Warrants

10,346

—

(3,183)

451

—

7,614

ECARX Private Warrants

6,198

—

(1,598)

279

—

4,879

Total

16,544

—

(4,781)

730

—

12,493

13.Warrant liabilities

Government Warrants

In April 2017, Hubei ECARX entered into an investment arrangement with a government fund (“Government Warrants”). The arrangement, as subsequently amended, entitled Hubei ECARX to borrow interest-free loans in an aggregate amount of RMB1,125,310 over a three-year drawdown period. In conjunction with the arrangement, ECARX issued warrants to the government fund, which entitled the government fund to purchase 2% of total equity interests of Hubei ECARX at the time of exercise in the total consideration of RMB81,950. The warrants were exercisable from the date of issuance of the loan facility to the maturity date of the last tranche of the drawdown of the loan.

Since the number of shares to be issued upon the exercise of the Government Warrants cannot be determined until the exercise date, the settlement provision of the Government Warrants did not meet the fixed-for-fixed requirement; therefore, the warrants were classified as a liability measured at fair value with all changes recognized in the statement of comprehensive loss.

The warrants are remeasured utilizing the Black-Scholes Option Pricing Model as of December 31, 2020 with the following key assumptions:


	As of December 31,
	2020
Risk-free rate of return (%)	3.34	%
Volatility	46.85	%
Expected dividend yield	0.0	%
Expected term	3.6	years
Fair value of the underlying ordinary shares	RMB31.34

The risk-free rate of return was based on China Government Bond for the expected remaining life of the warrant liabilities. 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 warrant liabilities. Expected dividend yield is zero as the Company does not anticipate any dividend payments in the foreseeable future. Expected term to exercise the warrant liabilities is up to July 2024. The fair value of the Company’s ordinary shares was estimated by management involving assumptions including discount rate, risk free interest rate and subjective judgments regarding projected financial and operating results, its unique business risks, the liquidity and operating history and prospects.

Upon settlement in 2021, the backsolve method, a market approach, was utilized in estimating the Company’s equity value with reference to the Company’s equity transactions close to the settlement. Based on the estimated equity value, the option-pricing method was applied in equity allocation in determining the fair value of warrant liabilities, which involved a number of complex variables and subjective judgements not be observable in the market.

The warrant liability is measured at fair value using unobservable inputs and categorized in Level 3 of the fair value hierarchy. The tables below reflect the movement of the warrant liability for the years ended December 31, 2020 and 2021:

Change in

fair value

January 1,

included

Foreign exchange

December 31,

2020

Addition

in losses

translation

Settlement

2020

RMB

Liabilities

Warrant liabilities

40,635

—

39,635

—

80,270

Change in

fair value

January 1,

included

Foreign exchange

Settlement

December 31,

2021

Addition

in losses

translation

(See Note 19)

2021

RMB

Liabilities

Warrant liabilities

80,270

—

111,299

—

(191,569)

—

ECARX Warrants in connection with the Merger

As is stated in Note 1(b), pursuant to the Closing of the Merger in December 2022, COVA Public Shares and COVA Public Warrants ceased trading upon consummation of the Merger and were delisted from Nasdaq and deregistered under the Exchange Act. Concurently, the Company issued 23,871,971 ECARX warrants, including 14,999,971 public warrants that the Company applied for listing on Nasdaq with the symbol “ECXWW” (“ECARX Public Warrants”) and 8,872,000 private warrants (“ECARX Private Warrants”, collectively referred to as “ECARX Warrants”) to the then holders of COVA Public Warrants and COVA Private Warrants.

ECARX Public Warrants are exercisable commencing thirty (30) days after the completion of the Merger, provided that the Company has an effective registration statement under the Securities Act covering the shares of Class A Ordinary Shares issuable upon exercise of ECARX Public Warrants and a current prospectus relating to them is available (or the Company permits holders to exercise ECARX Public Warrants held by them on a cashless basis and such cashless exercise is exempt from registration under the Securities Act). The warrants have an exercise price of US$11.50 per whole share, subject to adjustments, and will expire five (5) years after the completion of the Merger or earlier upon redemption or liquidation.

ECARX Private Warrants are identical to the ECARX Public Warrants, except that ECARX Private Warrants and the shares of Class A common stock issuable upon exercise of the ECARX Private Warrants will not be transferable, assignable or saleable. Additionally, ECARX Private Warrants are non-redeemable so long as they are held by permitted transferees. If ECARX Private Warrants are held by someone other than permitted transferees as stipulated in the warrant agreement, the ECARX Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as ECARX Public Warrants.

ECARX Warrants are recorded as liability-classified financial instruments in accordance with ASC Topic 815 (“ASC 815”), Derivatives and Hedging as the Company may be required to net settle the liability outside of the Company’s control. As such, ECARX Warrants are recognized at fair value at the issuance date and measured subsequently at fair value with changes in fair value recognized in earnings or losses.

Given ECARX 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, while ECARX Private Warrant liability is measured at fair value using unobservable

inputs and categorized in Level 3 of the fair value hierarchy. The Binomial Option Pricing Model with the following key assumptions is used for estimating the fair value of ECARX Private Warrants.


	As of December 31,
	2022
Risk-free rate of return (%)	3.99	%
Volatility	6.99	%
Expected dividend yield	0.0	%
Expected term	5.0	years
Fair value of the underlying ordinary shares	US$7.99 (equivalent to RMB55.11)

The table below reflects the movement of ECARX Warrants for the year ended December 31, 2022:

Change in fair

January 1,

value included

Foreign exchange

December

2022

Addition

in losses

translation

Settlement

31, 2022

RMB

Liabilities

ECARX Public Warrants

—

8,277

1,991

—

10,346

ECARX Private Warrants

—

4,895

1,254

—

6,198

Total

—

13,172

3,245

127

—

16,544

CONSOLIDATED BALANCE SHEETS
¥ in Thousands, $ in Thousands

Dec. 31, 2022

CNY (¥)

Dec. 31, 2022

USD ($)

Dec. 31, 2021

CNY (¥)

Restricted cash (including restricted cash of VIEs that can only be used to settle the VIEs' obligation of RMB23,004 and nil as of December 31, 2021 and 2022, respectively)

Cash

¥ 860,472

$ 118,665

¥ 966,128

40,957

5,648

23,004

Accounts receivable - third parties, net

418,222

57,675

184,546

Accounts receivable - related parties, net

835,320

115,196

768,747

Notes receivable (including notes receivable of VIEs that can only be used to settle the VIEs' obligation of RMB110,550 and nil as of December 31, 2021 and 2022, respectively)

179,143

24,705

137,710

182,572

25,178

223,319

911,729

125,733

41,298

424,918

58,598

247,411

3,853,333

531,398

2,592,163

353,855

48,799

1,152,677

139,607

19,253

109,785

Operating lease right-of-use assets

44,861

6,187

31,122

99,652

13,743

Other non-current assets - third parties

26,029

3,589

19,904

Other non-current assets - related parties

213,695

29,470

1,929

877,699

121,041

1,315,417

4,731,032

652,439

3,907,580

Short-term borrowings (including short-term borrowings of the VIEs without recourse to the Company of RMB932,000 and nil as of December 31, 2021 and 2022, respectively)

870,000

119,978

932,000

Accounts payable - third parties (including accounts payable - third parties of the VIEs without recourse to the Company of RMB622,867 and nil as of December 31, 2021 and 2022, respectively)

1,445,193

199,301

649,967

Accounts payable - related parties (including accounts payable - related parties of the VIEs without recourse to the Company of RMB99,906 and nil as of December 31, 2021 and 2022, respectively)

241,773

33,342

111,531

Notes payable (including notes payable of the VIEs without recourse to the Company of RMB127,304 and nil as of December 31, 2021 and 2022, respectively)

168,405

23,224

127,304

Amounts due to related parties (including amounts due to related parties of the VIEs without recourse to the Company of RMB309,010 and nil as of December 31, 2021 and 2022, respectively)

42,843

5,908

106,825

Current liabilities - third parties

4,706

649

2,685

Contract liabilities, current - related parties (including contract liabilities, current - related parties of the VIEs without recourse to the Company of RMB363,285 and nil as of December 31, 2021 and 2022, respectively)

316,667

43,670

363,285

Operating lease liabilities

31,110

4,290

Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the VIEs without recourse to the Company of RMB442,588 and nil as of December 31, 2021 and 2022, respectively)

785,134

108,275

461,264

Income tax payable

21,610

2,980

3,927,441

541,617

2,754,861

Non-current liabilities - third parties

317

Contract liabilities, non-current - related parties (including contract liabilities, non-current - related parties of the VIEs without recourse to the Company of RMB472,749 and nil as of December 31, 2021 and 2022, respectively)

282,080

38,901

472,749

Operating lease liabilities, non-current

439,869

60,661

68,768

9,484

Warrant liabilities, non-current

16,544

2,282

Other non-current liabilities (including other non-current liabilities of the VIEs without recourse to the Company of RMB16,292 and nil as of December 31, 2021 and 2022, respectively)

30,716

4,236

16,292

838,047

115,574

489,358

4,765,488

657,191

3,244,219

Redeemable non-controlling interests

40,750

30,500

Total mezzanine equity

4,563,407

^[1]

5,919,660

816,358

Accumulated other comprehensive income (loss)

(5,730,180)

(790,228)

(4,103,381)

(385,886)

(53,216)

6,048

Total deficit attributable to ordinary shareholders

(196,396)

(27,085)

(4,097,326)

Non-redeemable non-controlling interests

161,940

22,333

197,280

Total shareholders' deficit

(34,456)

(4,752)

(3,900,046)

4,731,032

652,439

3,907,580

Class A Ordinary Shares

$ 1

^[1]

Class B Ordinary Shares

Series Angel Redeemable Convertible Preferred Shares

^[1]

¥ 1

Series A Redeemable Convertible Preferred Shares

^[1]

283,585

Series A+ Redeemable Convertible Preferred Shares

^[1]

1,429,313

Series A2+ Redeemable Convertible Preferred Shares

^[1]

1,386,671

Series B Redeemable Convertible Preferred Shares

^[1]

475,413

^[1]

1,117,317

Subscription receivable

¥ (159,392)

[1]	Shares outstanding for all periods reflect the adjustment for Recapitalization.

Share based compensation - Fair value of RSUs granted estimated Using binomial model (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2023 $ / shares	Jun. 30, 2022 $ / shares	Dec. 31, 2022 $ / shares	Dec. 31, 2021 $ / shares	Dec. 31, 2020 $ / shares	Jun. 30, 2023 ¥ / shares	Dec. 31, 2022 ¥ / shares	Jun. 30, 2022 ¥ / shares	Dec. 31, 2021 ¥ / shares	Dec. 31, 2020 ¥ / shares
Share based compensation
Expected dividend yield			0.00%	0.00%	0.00%
Expected terms				10 years
RSU
Share based compensation
Risk-free rate of return, minimum	2.65%	1.61%	1.61%	0.35%	0.17%
Risk-free rate of return, maximum	3.85%	2.36%	4.12%	2.70%	2.91%
Volatility	44.73%
Volatility, minimum		44.15%	44.15%	41.13%	44.68%
Volatility, maximum		44.38%	48.12%	50.60%	54.39%
Expected dividend yield	0.00%	0.00%	0.00%
Fair value of underlying ordinary share \| (per share)	$ 6.91					¥ 49.90
Expected terms	10 years	10 years	10 years	10 years	10 years
RSU \| Minimum
Share based compensation
Fair value of underlying ordinary share \| (per share)		$ 7.57	$ 7.57	$ 4.26	$ 3.16		¥ 48.29	¥ 48.29	¥ 27.97	¥ 21.76
RSU \| Maximum
Share based compensation
Fair value of underlying ordinary share \| (per share)		$ 7.67	$ 9.05	$ 7.45	$ 4.03		¥ 64.98	¥ 48.88	¥ 47.51	¥ 26.27

Revenue information

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Revenue information

16.

Revenue information

Revenues are disaggregated as follow:

Major products/services lines:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Sales of goods revenues	858,080	1,264,263
Automotive computing platform	608,078	1,053,901
SoC Core Modules	188,338	200,255
Automotive merchandise and other products	61,664	10,107
Software license revenues	78,995	215,641
Service revenues	376,917	237,533
Automotive computing Platform – Design and development service	241,090	119,291
Connectivity service	107,949	99,508
Other services	27,878	18,734
Total revenues	1,313,992	1,717,437

Timing of revenue recognition:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Point in time	1,206,043	1,617,929
Over time	107,949	99,508
Total revenues	1,313,992	1,717,437

For the six months ended June 30, 2022 and 2023, 98.9% and 98.3% of the Group’s revenues were generated in the PRC.

Contract liabilities

Contract liabilities consisted of the following:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Current liabilities - third parties	4,706	6,073
Current liabilities - related parties	316,667	386,344
Non-current liabilities - third parties	70	12
Non-current liabilities - related parties	282,080	203,976
Contract liabilities, current and non-current	603,523	596,405

The amount of revenue recognized that was included in the contract liabilities balance at the beginning of the period was RMB107,949 and RMB101,443 for the six months ended June 30, 2022 and 2023, respectively.

As of December 31, 2022 and June 30, 2023, the aggregated amounts of the transaction price allocated to the remaining performance obligation under the Group’s existing contracts is RMB603,523 and RMB596,405, respectively.

The Group has elected the practical expedient not to disclose the information about remaining performance obligations which are part of contracts that have an original duration of one year or less.

23.

Revenue information

Revenues are disaggregated as follow:

Major products/services lines:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Sales of goods revenues	1,678,234	1,983,817	2,433,964
Automotive computing platform	1,265,227	1,423,548	1,690,569
SoC Core Modules	203,402	333,421	660,554
Automotive merchandise and other products	209,605	226,848	82,841
Software license revenues	71,297	261,265	404,469
Service revenues	491,532	533,981	723,561
Automotive computing Platform – Design and development service	297,801	306,358	468,770
Connectivity service	172,841	188,349	212,738
Other services	20,890	39,274	42,053
Total revenues	2,241,063	2,779,063	3,561,994

Timing of revenue recognition:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Point in time	2,068,222	2,590,714	3,349,256
Over time	172,841	188,349	212,738
Total revenues	2,241,063	2,779,063	3,561,994

For the years ended December 31, 2020, 2021 and 2022, 97.8%, 97.1% and 98.1% of the Group’s revenues were generated in the PRC.

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.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Mezzanine equity - Activities of the Redeemable Convertible Preferred Shares (Details)
¥ in Thousands, $ in Thousands

1 Months Ended

12 Months Ended

Jan. 16, 2020

Jul. 31, 2021

Dec. 31, 2022

CNY (¥)

Dec. 31, 2022

USD ($)

Dec. 31, 2021

CNY (¥)

Dec. 31, 2021

USD ($)

Dec. 31, 2020

CNY (¥)

Balance as of beginning, Total

¥ 4,532,907

¥ 232,475

Re-designation of ordinary shares into Series A Preferred Shares

3,002,374

¥ 206,422

Issuance cost

(10,000)

(8,500)

97,660

Subscription contributions from shareholder

159,485

1,032,104

Conversion of Preferred Shares to Ordinary Shares upon the completion of the IPO

(5,492,749)

Accretion of Redeemable Convertible Preferred Shares

354,878

243,564

101,286

Balance as of ending, Total

¥ 445,479

(65,270)

(66,733)

¥ 4,532,907

¥ 232,475

Series Angel Convertible Redeemable Preferred Shares

6,016,207

^[1]

¥ 283,585

6,016,207

Conversion of Preferred Shares to Ordinary Shares upon the completion of the IPO (in shares) | shares

¥ 273,519

(6,016,207)

Conversion of Preferred Shares to Ordinary Shares upon the completion of the IPO

¥ (332,450)

Accretion of Redeemable Convertible Preferred Shares

21,916

13,655

¥ 26,949

¥ (3,589)

6,016,207

Series A Convertible Redeemable Preferred Shares

^[1]

¥ 283,585

29,184,844

26,841,535

^[1]

¥ 1,429,313

Re-designation of ordinary shares into Series A Preferred Shares, Shares | shares

26,841,535

2,343,309

Conversion of Preferred Shares to Ordinary Shares upon the completion of the IPO (in shares) | shares

(29,184,844)

29,184,844

26,841,535

Series A Convertible Redeemable Preferred Shares | Subscription receivable

^[1]

¥ 1,429,313

Balance as of beginning, Subscription receivable

1,032,104

Subscription contributions from shareholder

¥ (1,032,104)

1,032,104

Balance as of ending, Subscription receivable

(1,032,104)

Series A Convertible Redeemable Preferred Shares | Carrying amount

¥ 1,429,313

1,264,579

Re-designation of ordinary shares into Series A Preferred Shares

1,238,526

Issuance cost

(8,500)

97,660

Conversion of Preferred Shares to Ordinary Shares upon the completion of the IPO

(1,665,606)

Accretion of Redeemable Convertible Preferred Shares

100,884

99,161

101,286

¥ 135,409

(32,087)

(66,733)

Series A+ Convertible Redeemable Preferred Shares

¥ 1,429,313

¥ 1,264,579

29,361,157

^[1]

¥ 1,386,671

29,361,157

Conversion of Preferred Shares to Ordinary Shares upon the completion of the IPO (in shares) | shares

¥ 1,331,641

Issuance cost

(10,000)

(29,361,157)

Conversion of Preferred Shares to Ordinary Shares upon the completion of the IPO

¥ (1,625,397)

Accretion of Redeemable Convertible Preferred Shares

106,959

79,336

¥ 131,767

¥ (14,306)

29,361,157

Series A++ Convertible Redeemable Preferred Shares

^[1]

¥ 1,386,671

8,546,916

^[1]

¥ 475,413

8,546,916

Conversion of Preferred Shares to Ordinary Shares upon the completion of the IPO (in shares) | shares

¥ 452,241

(8,546,916)

Conversion of Preferred Shares to Ordinary Shares upon the completion of the IPO

¥ (557,324)

Accretion of Redeemable Convertible Preferred Shares

36,732

23,005

¥ 45,179

¥ 167

8,546,916

Series B Convertible Redeemable Preferred Shares

^[1]

¥ 475,413

17,615,165

Balance as of beginning, Subscription receivable

^[1]

¥ 1,117,317

¥ 159,392

$ 25,000

Conversion of Preferred Shares to Ordinary Shares upon the completion of the IPO (in shares) | shares

9,882,082

17,615,165

(17,615,165)

17,615,165

Balance as of ending, Subscription receivable

^[1]

¥ 1,117,317

(159,392)

$ (25,000)

Series B Convertible Redeemable Preferred Shares | Subscription receivable

Balance as of beginning, Subscription receivable

¥ 159,392

Subscription contributions from shareholder

(159,215)

159,485

Balance as of ending, Subscription receivable

(93)

(177)

(159,392)

Series B Convertible Redeemable Preferred Shares | Carrying amount

1,117,317

Conversion of Preferred Shares to Ordinary Shares upon the completion of the IPO

1,104,188

(1,311,972)

Accretion of Redeemable Convertible Preferred Shares

88,387

28,407

¥ 106,268

(15,278)

Summary of effect on the consolidated balance sheet as a result of adopting ASC 842

¥ 1,117,317

[1]	Shares outstanding for all periods reflect the adjustment for Recapitalization.

Description of business and organization - Reorganization and VIE (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands		1 Months Ended	6 Months Ended			12 Months Ended
	Mar. 05, 2020 CNY (¥) item	Apr. 30, 2022 item	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥) ¥ / shares	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jan. 01, 2022 CNY (¥)	Nov. 12, 2019 USD ($) $ / shares shares
Description of business and organization
Authorized capital amount \| $													$ 50
Authorized capital \| shares													10,000,000,000
Par value of Authorized shares \| $ / shares													$ 0.000005
Number of equity method investments transferred \| item		3
Number of investment and consulting companies \| item		2
Current assets
Cash			¥ 850,373			¥ 860,472		¥ 966,128		$ 117,272	$ 118,665
Restricted cash			74,975			40,957		23,004		10,340	5,648
Accounts receivable - third parties, net			288,233			418,222		184,546		39,749	57,675
Accounts receivable - related parties, net			804,267			835,320		768,747
Notes receivable			77,975			179,143		137,710		10,753	24,705
Inventories			186,226			182,572		223,319		25,682	25,178
Amounts due from related parties			140,225			911,729		41,298		19,338	125,733
Prepayments and other current assets			678,089			424,918		247,411		93,513	58,598	¥ 240,647
Total current assets			3,100,363			3,853,333		2,592,163		427,560	531,398
Non-current assets
Long-term investments			363,631			353,855		1,152,677		50,147	48,799
Property and equipment, net			130,416			139,607		109,785		17,985	19,253
Intangible assets, net			38,839			44,861		31,122		5,356	6,187
Other non-current assets - third parties			28,635			26,029		19,904		3,949	3,589
Other non-current assets - related parties			218,899			213,695		1,929		30,188	29,470
Total non-current assets			901,725			877,699		1,315,417		124,354	121,041
Total assets			4,002,088			4,731,032		3,907,580		551,914	652,439
Current liabilities
Short-term borrowings			870,000			870,000		932,000		119,978	119,978
Accounts payable - third parties			1,138,043			1,445,193		649,967		156,943	199,301
Accounts payable - related parties			101,098			241,773		111,531		13,942	33,342
Notes payable			116,442			168,405				16,058
Amounts due to related parties			341,202			42,843		106,825		47,054	5,908
Current liabilities - third parties			6,073			4,706		2,685		838	649
Contract liabilities - related parties			386,344			316,667		363,285		53,279	43,670
Accrued expenses and other current liabilities			511,748			785,134		461,264		70,574	108,275
Total current liabilities			3,522,606			3,927,441		2,754,861		485,789	541,617
Non-current liabilities
Contract liabilities - third parties			12			70		317		2	10
Non-current liabilities - related parties			203,976			282,080		472,749		28,130	38,901
Other non-current liabilities			34,957			30,716		16,292		4,821	4,236
Total non-current liabilities			824,043			838,047		489,358		113,642	115,574
Total liabilities			4,346,649			4,765,488		3,244,219		599,431	657,191
Restricted cash pledged for notes payable			29,607			40,957		23,004
Notes receivable pledged for notes payable			26,126		¥ 25,034	25,034		110,550
Consolidated revenues, net loss and cash flow information
Revenues			1,717,437		1,313,992	3,561,994	$ 491,222	2,779,063	¥ 2,241,063
Net loss			(380,586)	$ (52,487)	(581,481)	(1,564,164)	(215,706)	(1,173,955)	(439,659)
Net cash used in operating activities			962,893	132,789	337,722	461,337	63,620	907,283	368,046
Net cash (used in)/provided by investing activities			740,559	102,127	(192,720)	(313,039)	(43,171)	(1,198,234)	(91,112)
Net cash provided by financing activities			231,972	31,991	265,356	657,767	90,711	2,122,792	1,138,126
Net increase in cash and restricted cash			23,919	3,299	(260,719)	(87,703)	(12,095)	(14,744)	668,945
Cash and restricted cash at the beginning of the period			901,429	124,313	989,132	989,132	136,408	1,003,876	334,931
Cash and restricted cash at the end of the period			925,348	$ 127,612	728,413	901,429	$ 124,313	989,132	1,003,876
Paid-in-capital			¥ 5,971,886			¥ 5,919,660				$ 823,561	$ 816,358
VIE's
Description of business and organization
Percentage of ownership interest in VIE						100.00%	100.00%
Consideration for purchase of equity interest in VIE						¥ 0		0
Working Capital	¥ 20,000
Number of equity method investments spun off \| item	3
Current assets
Cash								642,293
Restricted cash						0		23,004
Accounts receivable - third parties, net								184,546
Accounts receivable - related parties, net								813,364
Notes receivable								137,710
Inventories								223,319
Amounts due from related parties								42,604
Prepayments and other current assets								182,589
Total current assets								2,249,429
Non-current assets
Long-term investments								441,586
Property and equipment, net								94,387
Intangible assets, net								31,026
Other non-current assets - third parties								19,904
Other non-current assets - related parties								1,929
Total non-current assets								588,832
Total assets								2,838,261
Current liabilities
Short-term borrowings						0		932,000
Accounts payable - third parties						0		622,867
Accounts payable - related parties								159,528
Notes payable								127,304
Amounts due to related parties								2,452,787
Current liabilities - third parties						0		2,685
Contract liabilities - related parties						0		363,285
Accrued expenses and other current liabilities						0		442,588
Total current liabilities								5,103,044
Non-current liabilities
Contract liabilities - third parties						0		317
Non-current liabilities - related parties						0		472,749
Other non-current liabilities						0		16,292
Total non-current liabilities								489,358
Total liabilities								5,592,402
Restricted cash pledged for notes payable								23,004
Amount of intercompany accounts receivable								57,039
Amount of intercompany accounts payable								59,622
Notes receivable pledged for notes payable								110,550
Amount of intercompany due from related parties								1,326
Amount of intercompany due to related parties								2,143,777
Consolidated revenues, net loss and cash flow information
Revenues						936,520		2,755,780	2,241,536
Net loss						2,793,301		(1,106,865)	(495,741)
Net cash used in operating activities						224,031		(817,989)	(312,311)
Net cash (used in)/provided by investing activities						165,672		(436,280)	(91,112)
Net cash provided by financing activities						(1,055,000)		1,047,854	940,204
Net increase in cash and restricted cash						(665,297)		(206,415)	536,781
Cash and restricted cash at the beginning of the period					¥ 665,297	665,297		871,712	334,931
Cash and restricted cash at the end of the period								665,297	871,712
Amount of intercompany revenue						265,452		26,290	31,394
Amount of net cash used in operating activities from intercompany transactions						228,428		33,405	75,361
Amount of net cash provided by financing activities from intercompany transactions						157,000		2,067,268	0
Amount of intercompany net income (loss)						¥ 2,981,707		(44,361)	¥ 21,950
Paid-in-capital								¥ 10,000
Mr. Shufu Li
Description of business and organization
Par value of Authorized shares \| ¥ / shares						¥ 1.00

Share based compensation - Compensation expense recognized (Details) ¥ in Thousands, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023 CNY (¥)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Share based compensation
Total compensation expense recognized			¥ 524,553	¥ 163,481		¥ 11,410
Research and development expenses
Share based compensation
Total compensation expense recognized			42,986	80,872		6,501
Selling and marketing expenses
Share based compensation
Total compensation expense recognized			8,297	7,321		723
General and administrative expenses
Share based compensation
Total compensation expense recognized			473,270	68,764		¥ 4,186
2021 Option Plan
Share based compensation
Total compensation expense recognized	¥ 169		201,098
2021 Option Plan \| Research and development expenses
Share based compensation
Total compensation expense recognized	84		93,824
2021 Option Plan \| Selling and marketing expenses
Share based compensation
Total compensation expense recognized	392		8,554
2021 Option Plan \| General and administrative expenses
Share based compensation
Total compensation expense recognized	(307)		¥ 98,720
RSU
Share based compensation
Total compensation expense recognized	52,057	¥ 195,037
RSU \| Research and development expenses
Share based compensation
Total compensation expense recognized	19,577	23,492
RSU \| Selling and marketing expenses
Share based compensation
Total compensation expense recognized	4,547	3,969
RSU \| General and administrative expenses
Share based compensation
Total compensation expense recognized	¥ 27,933	¥ 167,576
RSU \| 2021 Option Plan
Share based compensation
Total compensation expense recognized				¥ 105,211	$ 16,311

Short-term borrowings (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Short-term borrowings
Short-term borrowings	¥ 870,000	$ 119,978	¥ 870,000	$ 119,978	¥ 932,000
Unsecured bank loans
Short-term borrowings
Short-term borrowings	¥ 870,000		¥ 870,000		¥ 932,000

Leases - components of lease cost (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Leases
Operating lease cost	¥ 22,854	¥ 23,502	¥ 47,163
Short-term lease cost	1,660	2,679	4,234
Total	¥ 24,514	¥ 26,181	¥ 51,397

Warrant liabilities - ECARX Warrants in connection with the Merger - Movements (Details) - CNY (¥) ¥ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Warrant liabilities
Liability at the beginning	¥ 16,544
Change in fair value included in losses	(4,781)
Foreign exchange translation	730
Liability at the end	12,493	¥ 16,544
ECARX Warrants
Warrant liabilities
Liability at the beginning	16,544
Addition		13,172
Change in fair value included in losses		3,245
Foreign exchange translation		127
Liability at the end		16,544
ECARX Public Warrants
Warrant liabilities
Liability at the beginning	10,346
Addition		8,277
Change in fair value included in losses	(3,183)	1,991
Foreign exchange translation	451	78
Liability at the end	7,614	10,346
ECARX Private Warrants
Warrant liabilities
Liability at the beginning	6,198
Addition		4,895
Change in fair value included in losses	(1,598)	1,254
Foreign exchange translation	279	49
Liability at the end	¥ 4,879	¥ 6,198

Accrued expenses and other liabilities (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Accrued expenses and other liabilities
Salaries and benefits payables .	¥ 165,238		¥ 246,189		¥ 230,985
Taxes payable	59,318		103,067		39,286
Product warranties	69,915		61,432		40,263
Accrued costs of the Merger	68,922		136,756
Other payables and accrued charges	148,355		237,690		150,730
Accrued expenses and other current liabilities	¥ 511,748	$ 70,574	¥ 785,134	$ 108,275	¥ 461,264

Leases (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Leases


		Adjustments
	As of December 31,	due to adoption of		As of January 1,
	2021	ASC 842		2022
	RMB	RMB		RMB
ASSETS
Prepayments and other current assets	247,411	(6,764)	(a)	240,647
Operating lease right-of-use assets	—	95,108	(b)	95,108

LIABILITIES
Operating lease liabilities, current	—	(42,094)	(c)	(42,094)
Operating lease liabilities, non-current	—	(46,250)	(c)	(46,250)

(a)	Represents prepaid rent reclassified to operating lease right-of-use assets.

(b)	Represents operating lease right-of-use assets, which is made up of present value of operating lease payments, and the reclassification of prepaid rent from prepayments and other current assets.

(c)	Represents the recognition of operating lease liabilities, current and non-current.

Summary of components of lease cost


	Six Months Ended June 30,
	2022	2023
	RMB	RMB

Operating lease cost	23,502	22,854
Short-term lease cost	2,679	1,660
Total	26,181	24,514


	Six Months Ended June 30,
	2022	2023
	RMB	RMB

Selling and marketing expenses	662	456
General and administrative expenses	9,541	12,512
Research and development expenses	15,978	11,546
Total	26,181	24,514


		Year Ended
		December 31, 2022
		RMB

Operating lease cost		47,163
Short-term lease cost		4,234
Total		51,397


		Year Ended
		December 31, 2022
		RMB

Selling and marketing expenses		1,525
General and administrative expenses		18,834
Research and development expenses		31,038
Total		51,397

Summary of operating lease right-of-use assets and the amortization


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB

Operating lease right-of-use assets	141,627	167,317
Less: accumulated amortization	(41,975)	(46,012)
Total	99,652	121,305


		As of December 31,
		2022
		RMB

Operating lease right-of-use assets		141,627
Less: accumulated amortization		(41,975)
Total		99,652

Summary of weighted average remaining lease term and weighted average discount rate


	As of June 30,
	2023

Weighted average remaining lease term (years):
Operating leases	6.46
Weighted average discount rate:
Operating leases	8.61	%


	As of December 31,
	2022

Weighted average remaining lease term (years):
Operating leases	5.68

Weighted average discount rate:
Operating leases	6.70	%

Schedule of future minimum lease payments


		As of June 30,
		2023
		RMB

2023		17,210
2024		23,552
2025		29,663
2026		22,237
2027		18,604
2028 and thereafter		77,857
Total lease payments		189,123
Less imputed interest		(50,623)
Present value of lease liabilities		138,500
Current portion		30,189
Operating lease liabilities, non-current		108,311


		As of December 31,
		2022
		RMB

2023		35,354
2024		19,413
2025		19,222
2026		12,268
2027		8,644
2028 and thereafter		36,162
Total lease payments		131,063
Less imputed interest		(31,185)
Present value of lease liabilities		99,878
Current portion		31,110
Operating lease liabilities, non-current		68,768

Summary of supplemental cash flow information


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	17,928	6,484
Right-of-use assets obtained in exchange for lease obligations
Operating leases	45,887	31,832


		Year Ended
		December 31, 2022
		RMB
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		40,173
Right-of-use assets obtained in exchange for lease obligations
Operating leases		51,621

Mezzanine equity

12 Months Ended

Dec. 31, 2022

Description of business and organization

Mezzanine equity

19.

Mezzanine equity

The activities of the Redeemable Convertible Preferred Shares for the years ended December 31, 2020, 2021, and 2022 consist of the following. All Preferred Shares were converted into ordinary shares as noted in the Recapitalization Note 1(b) and have been adjusted below to reflect the effect of Recapitalization:


	Series Angel		Series A			Series A+		Series A++		Series B
	Preferred Shares		Preferred Shares			Preferred Shares		Preferred Shares		Preferred Shares
		Carrying		Carrying	Subscription		Carrying		Carrying		Carrying	Subscription
	Shares	amount	Shares	amount	receivable	Shares	amount	Shares	amount	Shares	amount	receivable	Total
		RMB		RMB	RMB		RMB		RMB		RMB	RMB	RMB
Balance as of January 1, 2020	—	—	—	—	—	—	—	—	—	—	—	—	—
Issuance of preferred shares	—	—	26,841,535	1,238,526	(1,032,104)	—	—	—	—	—	—	—	206,422
Issuance cost	—	—	—	(8,500)	—	—	—	—	—	—	—	—	(8,500)
Accretion of Redeemable Convertible Preferred Shares	—	—	—	101,286	—	—	—	—	—	—	—	—	101,286
Foreign currency translation adjustment	—	—	—	(66,733)	—	—	—	—	—	—	—	—	(66,733)
Balance as of December 31, 2020	—	—	26,841,535	1,264,579	(1,032,104)	—	—	—	—	—	—	—	232,475
Issuance of preferred shares	6,016,207	273,519	—	—	—	29,361,157	1,331,641	8,546,916	452,241	17,615,165	1,104,188	(159,215)	3,002,374
Issuance cost	—	—	—	—	—	—	(10,000)	—	—	—	—	—	(10,000)
Re-designation of ordinary shares into Series A Preferred Shares	—	—	2,343,309	97,660	—	—	—	—	—	—	—	—	97,660
Subscription contributions from shareholders	—	—	—	—	1,032,104	—	—	—	—	—	—	—	1,032,104
Accretion of Redeemable Convertible Preferred Shares	—	13,655	—	99,161	—	—	79,336	—	23,005	—	28,407	—	243,564
Foreign currency translation adjustment	—	(3,589)	—	(32,087)	—	—	(14,306)	—	167	—	(15,278)	(177)	(65,270)
Balance as of December 31, 2021	6,016,207	283,585	29,184,844	1,429,313	—	29,361,157	1,386,671	8,546,916	475,413	17,615,165	1,117,317	(159,392)	4,532,907
Subscription contributions from shareholders	—	—	—	—	—	—	—	—	—	—	—	159,485	159,485
Accretion of Redeemable Convertible Preferred Shares	—	21,916	—	100,884	—	—	106,959	—	36,732	—	88,387	—	354,878
Foreign currency translation adjustment	—	26,949	—	135,409	—	—	131,767	—	45,179	—	106,268	(93)	445,479
Conversion of Preferred Shares to Ordinary Shares upon the completion of the IPO	(6,016,207)	(332,450)	(29,184,844)	(1,665,606)	—	(29,361,157)	(1,625,397)	(8,546,916)	(557,324)	(17,615,165)	(1,311,972)	—	(5,492,749)
Balance as of December 31, 2022	—	—	—	—	—	—	—	—	—	—	—	—	—

Series A Preferred Shares

On January 16, 2020, the Company issued 26,841,535 Series A redeemable convertible preferred shares (“Series A Preferred Shares”) at US$6.71 per share to two investors with a total consideration of US$180,000 (equivalent to RMB1,238,526). The issuance costs were RMB8,500. Since one of the investors is a PRC domestic institution that has not completed the foreign exchange registration procedures of overseas direct investments (“ODI”) and obtained the government approval on such investment, the Company agreed to issue 22,367,946 Series A redeemable convertible preferred shares to a foreign affiliate of the investor at par value and concurrently the investor made deposits of RMB1,032,104 (equivalent to US$150,000) to Hubei ECARX for 22,367,946 Series A Preferred Shares subscribed. Once the investor obtains the ODI approval, the deposits should be refunded by Hubei ECARX to the investor and the subscription amount for 22,367,946 Series A Preferred Shares should be paid by the investor to the Company after the investor received the refunded deposits.

In January 2020, US$30,000 (equivalent to RMB206,422) of the consideration were received by the Company and RMB1,032,104 of refundable deposits for 22,367,946 Series A Preferred Shares were received by Hubei ECARX.

In June 2021, the investor completed the ODI procedures. The refundable deposits were returned by Hubei ECARX and concurrently subscription receivables of the Company were settled in full by the investor.

On February 26, 2021, the Company entered into an agreement with one of its ordinary shareholders, who is also a member of management, pursuant to which the Company shall redesignate 2,343,309 ordinary shares held by the ordinary shareholder to Series A Preferred Shares. On March 10, 2021, the ordinary shares were redesignated as Series A Preferred Shares, and the ordinary shareholder became a Series A Preferred Shareholder. The Company considered the redesignation, in substance, was effectively a repurchase and retirement of the ordinary shares and simultaneously an issuance of Series A Preferred Shares. The excess of the ordinary shares’ fair value over their par value in the amount of RMB81,208 was credited to additional paid-in capital. The excess of the preferred shares’ fair value over the ordinary shares’ fair value in the amount of RMB16,452 was recognized as share-based compensation.

Series Angel Preferred Shares

On March 5, 2021, the Company, Hubei ECARX and the government fund agreed that the warrants disclosed in Note 13, could be exercised to purchase 6,016,207 Series Angel Redeemable Convertible Preferred Shares (“Series Angel Preferred Shares”), representing 2% of total outstanding shares of the Company on a fully diluted basis, at US$2.11 (equivalent to RMB13.62) per share, for a cash consideration of RMB81,950. On May 17, 2021, the government fund exercised the warrants to purchase 6,016,207 Series Angel Preferred Shares.

The Company involved an independent valuation firm to estimate the fair value of Series Angel Preferred Shares on the issuance date, which was also the warrant exercise date. Considering the equity transactions close to that date, the Company estimated the fair value of Series Angel Preferred Shares as RMB273,519, based on the estimation of the Company’s equity value using the backsolve method, a market approach. The fair value of Series Angel Preferred Shares equaled to the total of the fair value of warrant liabilities of RMB191,569 as of the date, and the cash consideration of RMB81,950 that government fund agreed to pay. On June 29,2021, the government fund paid the consideration of RMB81,950 to the Company.

Series A+ Preferred Shares

Between February and March 2021, the Company entered into share purchase agreements with certain investors, to issue 29,361,157 shares of Series A+ Redeemable Convertible Preferred Shares (“Series A+ Preferred Shares”) at the issuance price of US $7.04 per share, for a total consideration of US$206,741 (equivalent to RMB1,331,641). The issuance costs were RMB10,000.

Series A++ Preferred Shares

Between March and July 2021, the Company, Hubei ECARX entered into share purchase agreements with four investors, to issue 8,546,916 shares of Series A++ Redeemable Convertible Preferred Shares (“Series A++ Preferred Shares”) at the issuance price of US$8.31 per share, for a total consideration of US$71,000.

The four investors are PRC domestic institution, which shall complete their ODI procedures before the issuance of the Series A++ Preferred Shares to them. The investors made deposits of RMB461,849 (equivalent to US$71,000) in total to Hubei ECARX for the 8,546,916 Series A++ Preferred Shares subscribed. Once the investor obtained the ODI approval, the deposits should be refunded by Hubei ECARX to the investors and the subscription amount for the 8,546,916 Series A++ Preferred Shares should be paid by the investors to the Company within five (5) business days after it received the deposits.

In December 2021, the four investors completed the ODI procedures, and as a result, the refundable deposits of RMB461,849 were returned by Hubei ECARX to the four investors. Concurrently, the 8,546,916 shares of Series A++ Preferred Shares were issued by the Company to the investors, with the subscription amount of US$71,000 (equivalent to RMB452,241) settled in full.

Series B Preferred Shares

As disclosed in Note 8, in July 2021, the Group issued 9,882,082 Series B Redeemable Convertible Preferred Shares (“Series B Preferred Shares”) at the issuance price of US$9.70 per share, or US$95,800 in total (equivalent to RMB620,703), plus cash in the amount of US$10,649, in exchange for an equity method investment.

Between September and December 2021, the Company entered into share purchase agreements with two investors to issue 7,733,083 shares of Series B Preferred Shares at the issuance price of US$9.70 per share, for a total consideration of US$75,000.

In December 2021, the consideration of US$50,000 (equivalent to RMB324,270) was received by the Company. As of December 31, 2021, the subscription receivable of US$25,000 (equivalent to RMB159,392) was recorded as a reduction of mezzanine equity on the consolidated balance sheets. On January 4, 2022, the subscription receivable was settled in full.

The rights, preferences and privileges of all tranches of preferred shares are as follows:

Redemption Rights

The investors of Preferred Shares have the right to require the Company to redeem their investments, at any time upon the earlier occurrence of:

●

the failure by the Company to complete a qualified IPO on or before January 16, 2027;

●

any material breach as defined in the Preferred Shares agreement by the Company, which has not been cured within thirty (30) days after being requested by relevant Preferred Shares holder;

●

any material illegal act by the Group or by any direct or indirect owners of the ordinary shares of any of their respective representations which has not been cured within thirty (30) days after being requested by relevant Preferred Shares holder;

●

the Group fails to retain or renew any indispensable approval or license in connection with the principal business or the revocation of any aforesaid approval or license by any governmental authority, or any principal business is prohibited or imposed of material restrictions by applicable jurisdiction laws.

●

upon the Company’s failure to nominate and appoint a successor of Mr. Ziyu Shen recognized as proper and competent by at least two thirds (2/3) of the investor directors, within thirty (30) days after the resignation of Mr. Ziyu Shen from the Group Companies, or the dismissal of Mr. Ziyu Shen by the Group Companies due to any material breach of the transaction documents (as confirmed by the judgment of a competent court or the decision of a competent arbitration institution) or any other conducts that are detrimental to the benefits and interests of the Company.

The redemption price for each Preferred Share shall be one hundred percent (100%) of the issuance price plus interest on issuance price at a simple rate of eight percent (8%) per annum from the issuance date to the redemption payment date plus any declared but unpaid distributions.

Conversion Rights

Each Preferred Share may, at the option of the holders, be converted at any time after the original issuance date into fully-paid and non-assessable ordinary shares at an initial conversion ratio of 1:1 subject to adjustment for share division, share combination, share dividend, reorganization, mergers, consolidations, reclassifications, exchanges, substitutions, recapitalization or similar events. Each Preferred Share shall automatically be converted into ordinary shares, at the applicable then-effective conversion price upon the closing of a qualified IPO.

Voting Rights

Each Preferred Share has voting rights equivalent to the number of ordinary shares into which such Preferred Shares could be then convertible.

Dividend Rights

All the Preference Shareholders are entitled to receive the dividends on pro-rata basis according to the relative number of shares held by them on an as-converted basis. The dividends shall not be cumulative and shall be paid when, as and if declared by the Board of Directors.

Liquidation Preferences

In the event of any liquidation, 1) holders of the Preferred Shares shall be entitled to receive, prior and in preference to any distribution or payment shall be made to the holders of any ordinary shares, the liquidation preference amount per share is equal to one hundred percent (100%) of the original issuance price on each Preferred Share, plus any declared but unpaid dividends (the “Preferred Preference Amount”); provided that, if the Company’s assets and funds are insufficient for the full payment of the Preferred Preference Amount to all the holders of the Preferred Shares, then the entire assets and funds of the Company legally available for distribution shall be distributed ratably among the holders of the Preferred Shares in proportion to the aggregate Preferred Preference Amount each such holder of the Preferred Shares is otherwise entitled to receive; 2) after the full Preferred Preference Amount has been paid, the holders of the ordinary shares shall be entitled to receive, on a pro-rata and pari passu basis, for each outstanding ordinary share held, an amount equal to one hundred percent (100%) of the ordinary purchase price (the “Ordinary Preference Amount”); and 3) after the full Preferred Preference Amount and Ordinary Preference Amount have been paid, the remaining assets and funds of the Company legally available for distribution to the shareholders shall be distributed ratably among all shareholders (including preferred shareholders) in proportion to the relative number of ordinary shares held by such shareholders on an as converted basis.

Liquidation preference from the highest to the lowest is as follows in sequence: Series B Preferred Shares, Series A++ Preferred Shares, Series A+ Preferred Shares, Series A Preferred Shares, Series Angel Preferred Shares and ordinary shares.

Accounting of Redeemable Convertible Preferred Shares

The Company has classified the Preferred Shares as mezzanine equity in the consolidated balance sheets as they were contingently redeemable upon the occurrence of certain events outside of the Company’s control.

The Company concluded that the embedded conversion and redemption option of the Preferred Shares did not need to be bifurcated as a derivative as they lacked essential characteristics of being a derivative.

Prior to the early adoption of ASU 2020-06, the Company determined that there was no beneficial conversion feature attributable to the Preferred Shares because the initial effective conversion prices of these Preferred Shares were higher than the fair value of the Company’s ordinary shares at the relevant commitment dates. The fair value of the Company’s ordinary shares on the commitment date was estimated by management with the assistance of an independent valuation firm.

The Preferred Shares were recorded initially at fair value, net of issuance cost. The Company recognized changes in the redemption value immediately as they occur and adjust the carrying value of the Preferred Shares to their maximum redemption amount at the end of each reporting period, as if it were also the redemption date for the Preferred Shares.

Warrant liabilities - ECARX Warrants in connection with the Merger (Details)	1 Months Ended
	Dec. 31, 2022 Y ¥ / shares $ / shares shares	Jun. 30, 2023 Y	Jun. 30, 2023 $ / shares	Jun. 30, 2023 ¥ / shares	Jun. 30, 2023
ECARX Warrants
Warrant liabilities
Number of warrants issued	23,871,971
ECARX Public Warrants
Warrant liabilities
Number of warrants issued	14,999,971
Number of days after the completion of the Merger for commencement of exercise of warrants	30 days
Exercise price of warrants \| $ / shares	$ 11.50
Warrant term	5 years
ECARX Private Warrants
Warrant liabilities
Number of warrants issued	8,872,000
Risk-free rate of return (%) \| Level 3 \| ECARX Private Warrants
Warrant liabilities
Warrants measurement input	3.99				4.22
Volatility \| Level 3 \| ECARX Private Warrants
Warrant liabilities
Warrants measurement input	6.99
Expected dividend yield \| Level 3 \| ECARX Private Warrants
Warrant liabilities
Warrants measurement input	0.0				0.0
Expected term \| Level 3 \| ECARX Private Warrants
Warrant liabilities
Warrants measurement input \| Y	5.0	4.5
Fair value of the underlying ordinary shares \| Level 3 \| ECARX Private Warrants
Warrant liabilities
Warrants measurement input	55.11		6.96	50.47

CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥) shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2021 $ / shares
Restricted cash	¥ 40,957	$ 5,648	¥ 23,004
Notes receivable	179,143	24,705	137,710
Short-term borrowings	870,000	119,978	932,000
Accounts payable - third parties	1,445,193	199,301	649,967
Accounts payable - related parties	241,773	33,342	111,531
Notes payable	168,405	23,224	127,304
Amounts due to related parties	42,843	5,908	106,825
Current liabilities - third parties	4,706	649	2,685
Contract liabilities - related parties	316,667	43,670	363,285
Accrued expenses and other current liabilities	785,134	108,275	461,264
Contract liabilities - third parties	70	10	317
Non-current liabilities - related parties	282,080	38,901	472,749
Other non-current liabilities	¥ 30,716	$ 4,236	¥ 16,292
Ordinary shares, shares authorized \| shares	10,000,000,000	10,000,000,000
Treasury shares held \| shares	0	0	5,010,420
VIE's
Restricted cash \| ¥	¥ 0		¥ 23,004
Notes receivable \| ¥			137,710
Short-term borrowings \| ¥	0		932,000
Accounts payable - third parties \| ¥	0		622,867
Accounts payable - related parties \| ¥			159,528
Notes payable \| ¥	0		127,304
Amounts due to related parties \| ¥			2,452,787
Current liabilities - third parties \| ¥	0		2,685
Contract liabilities - related parties \| ¥	0		363,285
Accrued expenses and other current liabilities \| ¥	0		442,588
Contract liabilities - third parties \| ¥	0		317
Non-current liabilities - related parties \| ¥	0		472,749
Other non-current liabilities \| ¥	0		16,292
VIE's \| Nonrecourse [Member]
Accounts payable - related parties \| ¥	0		99,906
Amounts due to related parties \| ¥	0		309,010
VIE's \| Notes Receivable of VIEs for settling Vies obligation only [Member]
Notes receivable \| ¥	¥ 0		¥ 110,550
Series Angel Redeemable Convertible Preferred Shares
Redeemable convertible preferred shares, par value per share \| $ / shares		$ 0.000005		$ 0.000005
Redeemable convertible preferred shares, shares authorized \| shares	0	0	6,016,207
Redeemable convertible preferred shares, shares issued \| shares	0	0	6,016,207
Redeemable convertible preferred shares, shares outstanding \| shares	0	0	6,016,207
Redeemable convertible preferred shares, redemption value \| ¥	¥ 0		¥ 283,585
Redeemable convertible preferred shares, liquidation preference \| ¥	¥ 0		¥ 273,519
Series A Redeemable Convertible Preferred Shares
Redeemable convertible preferred shares, par value per share \| $ / shares		$ 0.000005		0.000005
Redeemable convertible preferred shares, shares authorized \| shares	0	0	29,184,844
Redeemable convertible preferred shares, shares issued \| shares	0	0	29,184,844
Redeemable convertible preferred shares, shares outstanding \| shares	0	0	29,184,844
Redeemable convertible preferred shares, redemption value \| ¥	¥ 0		¥ 1,429,313
Redeemable convertible preferred shares, liquidation preference \| ¥	¥ 0		¥ 1,336,186
Series A+ Redeemable Convertible Preferred Shares
Redeemable convertible preferred shares, par value per share \| $ / shares		$ 0.000005		0.000005
Redeemable convertible preferred shares, shares authorized \| shares	0	0	29,361,157
Redeemable convertible preferred shares, shares issued \| shares	0	0	29,361,157
Redeemable convertible preferred shares, shares outstanding \| shares	0	0	29,361,157
Redeemable convertible preferred shares, redemption value \| ¥	¥ 0		¥ 1,386,671
Redeemable convertible preferred shares, liquidation preference \| ¥	¥ 0		¥ 1,331,641
Series A2+ Redeemable Convertible Preferred Shares
Redeemable convertible preferred shares, par value per share \| $ / shares		$ 0.000005		0.000005
Redeemable convertible preferred shares, shares authorized \| shares	0	0	8,546,916
Redeemable convertible preferred shares, shares issued \| shares	0	0	8,546,916
Redeemable convertible preferred shares, shares outstanding \| shares	0	0	8,546,916
Redeemable convertible preferred shares, redemption value \| ¥	¥ 0		¥ 475,413
Redeemable convertible preferred shares, liquidation preference \| ¥	¥ 0		¥ 452,241
Series B Redeemable Convertible Preferred Shares
Redeemable convertible preferred shares, par value per share \| $ / shares		$ 0.000005		0.000005
Redeemable convertible preferred shares, shares authorized \| shares	0	0	17,615,165
Redeemable convertible preferred shares, shares issued \| shares	0	0	17,615,165
Redeemable convertible preferred shares, shares outstanding \| shares	0	0	17,615,165
Redeemable convertible preferred shares, redemption value \| ¥	¥ 0		¥ 1,117,317
Redeemable convertible preferred shares, liquidation preference \| ¥	¥ 0		¥ 1,104,188
Ordinary Shares
Ordinary shares, par value per share \| $ / shares				$ 0.000005
Ordinary shares, shares authorized \| shares			9,909,275,711
Ordinary shares, shares issued \| shares			231,237,692
Ordinary shares, shares outstanding \| shares			231,237,692
Class A Ordinary Shares
Ordinary shares, par value per share \| $ / shares		$ 0.000005
Ordinary shares, shares authorized \| shares	8,000,000,000	8,000,000,000
Ordinary shares, shares issued \| shares	288,434,474	288,434,474
Ordinary shares, shares outstanding \| shares	288,434,474	288,434,474
Class B Ordinary Shares
Ordinary shares, par value per share \| $ / shares		$ 0.000005
Ordinary shares, shares authorized \| shares	1,000,000,000	1,000,000,000
Ordinary shares, shares issued \| shares	48,960,916	48,960,916
Ordinary shares, shares outstanding \| shares	48,960,916	48,960,916

Subsequent events

12 Months Ended

Dec. 31, 2022

Subsequent events

Subsequent events

29.

Subsequent events

(a)New grants of share options

In January 2023, the Company approved to grant a total number of 63,464 share options to certain employees at an exercise price of US$9.70 per option.

On March 6, 2023, the board of directors resolved to approve the appointment of Mr. Jun Hong Heng, an independent director of the Company, as an additional member of the audit committee, since then, the audit committee has been consisted of three members, namely Ms. Grace Hui Tang, Mr. Jim Zhang (Zhang Xingsheng) and Mr. Jun Hong Heng with Ms. Grace Hui Tang being the chairman. The board also resolved to approve the grants of options, which are share-settleable for a fixed monetary amount of US$160,000, to each of the three audit committee members on March 30, 2023 (“Grant date”). All the options will vest one year after the Grant Date.

(b) A combination between entities under common control

On June 30, 2023, Ecarx (Hubei) Tech Co. Ltd. (“Ecarx Hubei”) made additional capital injection amounting to RMB266,667 to JICA, of which RMB1,000 was paid on June 30, 2023 and the remaining RMB265,667 is payable within the next 3 years. Previously, Ecarx Hubei held 50% ownership interest in JICA, with the other 50% owned by Geely Automotive Group Co., Ltd. (“Geely Auto”), an entity under common control. Following the additional investment in JICA, Ecarx Hubei now owns a controlling interest of 70% in JICA, and the remaining 30% equity interest in JICA is recorded as non-redeemable non-controlling interests. As the acquisition of JICA was a combination between entities under common control, these consolidated financial statements have been presented by combining assets, liabilities, revenues, expenses and equity of the Group and JICA using the pooling-of-interests method as if the transaction occurred when JICA was established on April 28, 2021. All intercompany transactions and balances between the combining entities have been eliminated.

The following table summarizes the results of operations and net assets of JICA consolidated in these consolidated financial statements. The amounts are after eliminating transactions between the Group and JICA.

	As of December 31,
	2021	2022
	RMB	RMB
ASSETS
Current assets	135,525	572,259
Non-current assets	6,726	43,655
Total assets	142,251	615,914

LIABILITIES
Current liabilities	2,286	486,351
Non-current liabilities	—	9,229
Total liabilities	2,286	495,580

	Year ended December 31,
	2021	2022
	RMB	RMB
Revenues	—	5,138
Cost of revenues	(130)	(1,475)
Gross (loss) profit	(130)	3,663

Loss from operations	(18,493)	(167,952)
Profit (loss) before income taxes	13,380	(136,512)
Net profit (loss)	9,965	(144,005)

Description of business and organization

12 Months Ended

Dec. 31, 2022

Description of business and organization

1.	Description of business and organization

(a)

Description of business

ECARX Holdings Inc. (“Ecarx” or the “Company’) was incorporated as an exempted company with limited liability in the Cayman Islands on November 12, 2019. The Company along with its subsidiaries, consolidated variable interest entity (“VIE”) and VIE’s subsidiaries is collectively referred to as “the Group”. The terms “we,” “our,” and “us” refer to the Group, unless the context indicates otherwise. Historically, we conducted our operations in China through such subsidiaries as well as through Hubei ECARX Technology Co., Ltd (“Hubei ECARX”), our former VIE based in mainland China. Since early 2022, we have been implementing the Restructuring, which is detailed below. Upon the consummation of the Restructuring, we do not have any VIE in China. We are a global mobility-tech company partnering with original equipment manufacturers (“OEM”s) to reshape the automotive landscape as the industry transitions to an all-electric future. As OEMs develop new vehicle platforms from the ground up, we are developing a full-stack solution — central computer, system on a chip (“SoC”) and software to help continuously improve the in-car user experience. Our products continue to shape the interaction between people and vehicles by rapidly advancing the technology at the heart of smart mobility. We are engaged in the sales of SOC core modules, automotive computing platform products, software stacks as well as the provision of research and development services primarily in the People’s Republic of China (“PRC”).

(b)

Merger and recapitalization

On December 20, 2022, (the “Closing Date”), the Company consummated its merger with COVA Acquisition Corp. (“COVA”) pursuant to a merger agreement dated May 26, 2022 (the “Merger Agreement”) by and among COVA, Ecarx, Ecarx Temp Limited, a wholly-owned subsidiary of Ecarx (“Merger Sub 1”), and Ecarx&Co Limited, a wholly-owned subsidiary of Ecarx ( “Merger Sub 2”). Pursuant to the Merger Agreement, (i) Merger Sub 1 was merged with and into COVA (the “First Merger”), with COVA surviving the First Merger as a wholly owned subsidiary of ECARX Holdings Inc. (such company, as the surviving entity of the First Merger, “Surviving Entity 1”), 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 ECARX Holdings Inc. (such company, as the surviving entity of the Second Merger, “Surviving Entity 2”) (collectively, the “Merger”).

On the Closing Date:

(i)

the amended and restated memorandum and articles of association the Company became effective;

(ii)

90,724,289 of the preferred shares of the Company that were issued and outstanding immediately prior to the First Effective Time (i.e. effective time of the First Merger) were re-designated and reclassified into one ordinary share of the Company on a one-for-one basis (the “Preferred Share Conversion”);

(iii)

immediately following the Preferred Share Conversion but immediately prior to the Recapitalization (as defined below), the authorized share capital of the Company was re-designated as follows (“Re-designation”):

(A)

each of the issued and outstanding ordinary shares of the Company (other than the Co-Founder Shares, defined as all of the Ecarx shares held by Mr. Ziyu Shen and 20,520,820 Ecarx shares held by Mr. Eric Li (Shufu Li) immediately prior to the Re-designation) and each of 7,766,956,008 authorized but unissued ordinary shares of the Company was re-designated as one Class A Ordinary Share;

(B)

each of the issued and outstanding Co-Founder Shares and each of the 958,958,360 authorized but unissued ordinary shares of the Company was re-designated as one Class B Ordinary Share; and

(C)

1,000,000,000 authorized but unissued ordinary shares of the Company were re-designated as shares of par value of US$0.000005 each of such class or classes (however designated) as the board of directors of the Company may determine in accordance with the Amended Articles; and

(iv)

Recapitalization

(A)

each of the issued and outstanding ordinary shares of Ecarx immediately following the Re-designation was recapitalized by way of a repurchase in exchange for issuance of such number of Class A Ordinary Shares and Class B Ordinary Shares, in each case, equal to the Recapitalization Factor (as defined below) (i.e., one such Company Class A Ordinary Share or Company Class B Ordinary Share, as the case may be, multiplied by the Recapitalization Factor);

(B)

each Ecarx restricted share unit and option issued and outstanding immediately prior to the Recapitalization was adjusted to give effect to the foregoing transactions, such that each Ecarx restricted share unit and option shall be exercisable for that number of Class A Ordinary Shares equal to the product of (a) the number of shares of the Company subject to such Ecarx restricted share unit and option immediately prior to the Recapitalization multiplied by (b) the Recapitalization Factor (such product rounded down to the nearest whole number), and the per share exercise price for each Class A Ordinary Share issuable upon exercise of the Ecarx restricted share unit and options, as adjusted, shall be equal to the quotient (rounded up to the nearest whole cent) obtained by dividing (y) the per share exercise price for each share of the Company subject to such Ecarx restricted share unit and option by (z) the Recapitalization Factor.

“Recapitalization Factor” is 1.19295710, representing the number resulting from dividing (i) US$3,400,000,000, being the pre-money equity value of Ecarx as agreed between Ecarx and COVA, by (ii) the product of (x) the Fully-Diluted Company Shares, and (y) US$10.00.

“Fully-Diluted Company Shares” means, without duplication, (a) the aggregate number of shares of ECARX Holdings Inc. (i) that are issued and outstanding immediately prior to the Re-designation and (ii) that are issuable upon the exercise of all ECARX Options and other equity securities of ECARX Holdings that are issued and outstanding immediately prior to the Re-designation (whether or not then vested or exercisable as applicable), minus (b) the shares of ECARX Holdings held by it or any subsidiary of ECARX Holdings Inc. (if applicable) as treasury shares.

On the Closing Date, the Company issued:

(i)

5,870,357 Class A Ordinary Shares to then holders of Class A ordinary shares of COVA, including 5,250,000 Class A Ordinary Shares issued to COVA Acquisition Sponsor LLC (the “Sponsor”);

(ii)

23,871,971 Warrants to then holders of COVA Public Warrants and COVA Private Warrants;

(iii)

282,564,117 Class A Ordinary Shares, consisted of (a) 2,000,000 Class A Ordinary Shares to Geely Investment Holding Ltd. and 1,500,000 Class A Ordinary Shares to Luminar Technologies, Inc. (collectively referred to as “Strategic Investors”), (b) 1,052,632 Class A Ordinary Shares issued to Lotus Technology Inc., the holder of the Note (defined in the Note 15), and (c) 84,795,039 Class A Ordianry Shares to then existing preferred shareholders and 193,216,446 Class A Ordianry Shares to then existing ordinary shareholders of the Company.

(iv)

48,960,916 Class B Ordinary Shares to the then existing shareholders of the Company.

Pursuant to the mergers above stated, COVA was considered as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the financial statements of Ecarx represented a continuation of its operations with the Merger treated as the equivalent of Ecarx issuing shares for the net assets of COVA, accompanied by a recapitalization. The net assets of Ecarx are stated at historical cost, with no goodwill or other intangible assets recorded. This determination was primarily based on the following:

●

Ecarx is the larger of the combining entities and is the operating company.

●

Ecarx will have control of the board as it will hold a majority of the seats on the board of directors with COVA only taking two seats on the board after the mergers.

●

Ecarx’s senior management will be continuing as senior management of the combined company.

●

In addition, a larger portion of the voting rights in the combined entity will be held by existing Ecarx’s shareholders.

The equity structure has been recast in all comparative periods up to the Closing to reflect the number of the Company’s preferred shares and ordinary shares issued and outstanding in history. As such, the shares and corresponding capital amounts and earnings per share prior to the Merger have been retroactively recast.

The Class A Ordinary Shares and ECARX Public Warrants (defined in the Note 13) of the Company are listed on the Nasdaq Stock Market LLC, or “Nasdaq,” under the trading symbols “ECX” and “ECXWW,” respectively.

In connection with the Merger, we raised aggregared proceeds of US$38,870 (equivalent to RMB270,539), including (i) cash proceeds consisted of US$6,282 (equivalent to RMB43,724) in connection with the Merger, US$20,000 (equivalent to RMB139,200) from Geely Investment Holding Ltd. (referred to as “Geely strategic investment”) and (ii) US$12,588 (equivalent to RMB87,615) worth of shares from Luminar Technologies, Inc., a strategic investor (referred to as “Luminar strategic investment”, collectively referred to as “Strategic Investments”). We incurred transaction costs of US$42,122 (equivalent to RMB293,168). Any excess of these costs over the proceeds amounting to US$3,252 (equivalent to RMB22,629) were recorded in general and administrative expenses of the statement of comprehensive loss.

(c)Reorganization

The Group’s history began in March 2017 with the commencement of operation of Hubei ECARX and its subsidiaries. All of the equity interests of Hubei ECARX were beneficially held by Mr. Shufu Li, the founder and controlling shareholder of the Company, and Mr. Ziyu Shen, the co-founder, chairman of Board of Directors and chief executive officer of the Company.

The Company was incorporated in the Cayman Islands with authorized share capital of US$50 divided into 10,000,000,000 shares with a par value of US$0.000005 per share.

After the incorporation of the Company, the Group undertook a series of reorganization transactions described below (“the Reorganization”) to establish the Company as the parent company of the Group in preparation for its Initial Public Offering (“IPO”). In November 2019, ECARX Group Limited (“ECARX BVI”) and ECARX Technology Limited (“ECARX HK”) were established by the Company in the British Virgin Islands and Hong Kong respectively, as the intermediate holding companies within the Group. In December 2019, ECARX (Wuhan) Technology Co., Ltd. (“ECARX WH” or “WFOE”) was established in the PRC as a wholly owned subsidiary of ECARX HK. In January 2020, ECARX WH entered into a series of contractual agreements (collectively, the “VIE agreements”) with Hubei ECARX and its equity interest holders. Those arrangements effectively resulted in the Company, through ECARX WH, obtaining the controlling financial interest of Hubei ECARX. Hubei ECARX and its subsidiaries are collectively referred to as VIEs hereafter. On January 10, 2020, upon consummation of the Reorganization, the ownership structure of the Company was identical to the ownership structure of Hubei ECARX.

Since the shares and equity holding percentages were identical in the Company and Hubei ECARX, and the rights of each shareholder and equity interest holder were identical immediately before and after the Reorganization, the establishment of corporate structure of the Company was treated as a recapitalization of Hubei ECARX, and the Company is deemed as a continuation of Hubei ECARX. The Reorganization was accounted for in a manner similar to a pooling-of-interests method and these consolidated financial statements have been prepared as if the corporate structure of the Company had been in existence since the beginning of the periods presented.

(d)

VIE Reorganization

Historically, the Company conducted its operation in China through its PRC consolidated subsidiaries as well as through the VIE and VIE’s subsidiaries based in China. Since early 2022, the Company implemented a series of transactions to restructure its organization and business operations (the “Restructuring”). In connection with the Restructuring, in April 2022, the Company, Hubei ECARX and shareholders of Hubei ECARX entered into a VIE Termination Agreement to terminate the VIE Agreements with

immediate effect. In addition, ECARX (Hubei) Tech Co., Ltd. (“ECARX (Hubei) Tech”), a wholly-owned PRC subsidiary of the Company, and Hubei ECARX reached an agreement, pursuant to which:

●

All of the business and operations, excluding a contract on AI voice products signed by Hubei ECARX on March 5, 2020, and the working capital of Hubei ECARX of approximately RMB20,000, which are not subject to restrictions on the foreign investments, including the sales of automotive computing platforms, SoC core modules, automotive merchandise or other products, software licensing and the provision of automotive computing platform design and development service and other services of Hubei ECARX, and related assets and liabilities, contracts, intellectual properties and employees, were transferred from Hubei ECARX to ECARX (Hubei) Tech, at nil consideration.

●

Other business and operations, which include the above-mentioned contract entered into by Hubei ECARX on March 5, 2020 and the working capital of approximately RMB20,000 as well as the business and operations that are subject to the restrictions on foreign investments, including (i) map surveying and mapping qualification (referring to Grade A Surveying and Mapping Qualification of Navigation Electronic Map and Grade B Surveying and Mapping Qualification of Internet Map Service of Hubei ECARX), (ii) mapping activities (including relevant assets, contracts, intellectual property rights and employees), and (iii) ICP license, were retained by Hubei ECARX and spun off from the Group upon the completion of the Restructuring. The operating results of the remaining business operations in 2020 and 2021 were inconsequential.

●

In addition, the Group also spun off three equity method investments, primarily including the equity method investment in Suzhou Chenling Investment LLP (“Suzhou Chenling”) to Hubei ECARX.

The Company also temporarily transferred three of its equity method investments to two investment and consulting companies, including Hubei Dongjun Automotive Electronic Technology Co., Ltd (“Hubei Dongjun”) and Suzhou Photon-Matrix Optoelectronics Technology Co., Ltd (“Suzhou Photon-Matrix”). The three equity method investments were transferred out in April 2022 and transferred back to ECARX (Hubei) Tech, a wholly-owned subsidiary of the Company, before the consummation of the Restructuring. Since there was no substantial change in economic substance before and after the Restructuring to these equity interests and considering the short lapse of time between the equity interests having been transferred to third parties and the same being transferred back to the Company, the Company determined that there is no accounting impact as a result of such temporary transfers. Hubei Dongjun and Suzhou Photon-Matrix were deconsolidated in September 2021 and January 2022, respectively, before the temporary transfers, as a result of the Company’s loss of control of such entities. Therefore, the temporary transfers to the two investment and consulting companies that were returned to the Company did not include the equity interests that led to the deconsolidation of Hubei Dongjun and Suzhou Photon-Matrix.

Pursuant to the Restructuring, the following assets of Hubei ECARX were derecognized by the Group:


		RMB
Assets
Cash		20,000
Long-term investments		211,908
Property and equipment, net		34,873
Intangible assets, net		1,094

In addition, the Group recognized amounts due from Hubei ECARX in the amount of RMB205,954, which represented the net present value of a loan provided by the Group in June 2021 to Hubei ECARX in the amount of RMB252,287. The loan is interest free and will be settled in cash no later than May 2026. The present value of the loan is discounted at an effective annual interest rate of 5%.

The excess of the assets derecognized over the amounts due from the VIE in the amount of RMB61,921 was treated as deemed distribution to shareholders and recorded in accumulated deficit.

The Restructuring does not represent a strategic shift, nor will it have a major effect on the Group’s operations and financial results.

(e)

VIE

The Group operated all of its business in the PRC through Hubei ECARX, a limited liability company established under the laws of the PRC prior to the Restructuring in April 2022 as described in Note 1(d). The recognized and unrecognized revenue-producing assets of the VIE and VIE’s subsidiaries primarily consisted of property and equipment, internally developed software and intellectual property, patents and trademarks and other licenses necessary for the operation and assembled workforce.

The equity interests of Hubei ECARX were legally held by Mr. Shufu Li and Mr. Ziyu Shen, who acted as the nominee equity holders of Hubei ECARX on behalf of ECARX WH. A series of VIE agreements, including the Power of Attorney, the Exclusive Business Cooperation Agreement, the Exclusive Purchase Option Agreement, the Equity Interest Pledge Agreement and Spousal Consent, as amended, were entered among the VIE, the WFOE and the nominee equity holders of the VIE. Through the VIE Agreements, the nominee equity holders of the VIE had granted all their legal rights including voting rights and disposition rights of their equity interests in the VIE to the WFOE. The nominee equity holders of the VIE did not participate significantly in income and loss and did not have the power to direct the activities of the VIE that most significantly impact their economic performance. Accordingly, the VIE was considered a variable interest entity.

In accordance with Accounting Standards Codification (“ASC”) 810-10-25-38A, the Company, through the WFOE, had a controlling financial interest in the VIE because the WFOE had (i) the power to direct activities of the VIE that most significantly impact the economic performance of the VIE; and (ii) the right to receive benefits from the VIE that could potentially be significant to the VIE. Thus, the Company, through the WFOE, is the primary beneficiary of the VIE.

Under the terms of the VIE Agreements, the Company, through the WFOE, had (i) the right to receive economic benefits that could potentially be significant to the VIE in the form of service fees under the Exclusive Business Cooperation Agreement; (ii) the right to receive all dividends declared by the VIEs and the right to all undistributed earnings of the VIE under the Power of Attorney; (iii) the right to receive the residual benefits of the VIE through its exclusive option to acquire 100% of the equity interests and assets in the VIE, to the extent permitted under PRC law, under the Exclusive Purchase Option Agreement. Accordingly, the financial statements of the VIE were consolidated in the Company’s consolidated financial statements.

Under the terms of the VIE Agreements, the VIE’s nominee equity holders had no rights to the net assets nor had the obligations to fund the deficit, and such rights and obligations had been vested to the Company. All of the deficit (net liabilities) and net loss of the VIE were attributed to the Company.

The principal terms of the VIE Agreements are as follows:

Power of Attorney

Pursuant to the power of attorney agreement entered into among WFOE and each of the equity holders of VIE, the equity holders of VIE unconditionally and irrevocably appointed WFOE as their sole attorney-in-fact to exercise all equity holder rights, including, but not limited to, the right to convene and attend equity holders’ meeting, to exercise voting rights and sign any resolution and minutes of the meetings as a shareholder or director, the rights to sale, transfer, pledge or disposal of all or any part of the equity interests in VIE, to appoint the legal representative, director, supervisor and other senior management personnel, of VIE and to exercise all other equity holders’ rights stipulated by PRC laws and regulations and the articles of association of VIE. The powers of attorney will remain effective until such equity holders cease to be equity holders of the VIE.

Exclusive Business Cooperation Agreement

Pursuant to the Exclusive Business Cooperation Agreement, WFOE has agreed to provide to the VIEs with comprehensive technical support, consulting services and other services, including but not limited to software licensing legally owned by WFOE; development, maintenance and update of software involved in VIEs’ business; design, installation, daily management, maintenance and updating of network system, hardware and database design; technical support and training for employees of VIEs; assisting VIEs in consultancy, collection and research of technology and market information; providing business management consultation, marketing and promotion services, customer order management, customer services, leasing of equipment or properties and other

related services. The VIEs shall pay WFOE service fees determined by WFOE in its sole discretion. WFOE has the right to determine the level of service fees paid and therefore receives substantially all of the economic benefits of its VIEs in the form of service fees. WFOE, as appropriate, will exclusively own any intellectual property rights arising from the performance of these agreements. The aforementioned agreement will terminate automatically when WFOE terminates it by written notice.

Exclusive Purchase Option Agreements

Under the exclusive purchase option agreements, Mr. Shufu Li and Mr. Ziyu Shen granted WFOE or its designee an option to purchase their equity interest in VIE at RMB1.00 or a price equal to the minimum amount of consideration permitted by PRC law. Mr. Shufu Li and Mr. Ziyu Shen should remit to the VIE any amount that is paid by the WFOE or its designated person(s) in connection with the purchased equity interest. Mr. Shufu Li and Mr. Ziyu Shen also granted WFOE or its designee an option to purchase all or a portion of the assets of VIE for the minimum amount of consideration permitted by PRC law. Mr. Shufu Li and Mr. Ziyu Shen also agreed not to transfer or mortgage any equity interest in or dispose of or cause the management to dispose of any material assets of VIE without the prior written consent of WFOE. The Exclusive Purchase Option Agreement shall remain in effect until all of the equity interests in VIE have been acquired by WFOE or its designee.

Equity Interest Pledge Agreements

Under the Equity Interest Pledge Agreement, Mr. Shufu Li and Mr. Ziyu Shen pledged their respective equity interest in VIE to WFOE to secure obligations under the Power of Attorney, Exclusive Business Cooperation Agreement, and Exclusive Purchase Option Agreement. Mr. Shufu Li and Mr. Ziyu Shen further agreed not to transfer or pledge their equity interests in VIE without the prior written consent of WFOE. The Equity Interest Pledge Agreement will remain binding until the pledgers, Mr. Shufu Li and Mr. Ziyu Shen, as the case may be, discharge all of their obligations under the above-mentioned agreements. On January 10, 2020, the equity pledges under the Equity Interest Pledge Agreement were registered with competent PRC regulatory authority.

Spousal Consents

The spouses of Mr. Shufu Li and Mr. Ziyu Shen, have each signed a spousal consent. Under the spousal consent, the signing spouse unconditionally and irrevocably agreed that the equity interest in VIE which is held by and registered under the name of her spouse will be disposed of pursuant to the abovementioned Equity Interest Pledge Agreements, Exclusive Purchase Option Agreements, the Exclusive Business Cooperation Agreement and the Power of Attorney. Moreover, the spouse confirmed she has no rights, and will not assert in the future any right, over the equity interests in VIE held by her spouse. In addition, in the event that the spouse obtains any equity interest in VIE held by her spouse for any reason, she agrees to be bound by and sign any legal documents substantially similar to the contractual arrangements entered into by her spouse, as may be amended from time to time.

The Company relied on the VIE Agreements to operate and control VIEs. All of the VIE Agreements are governed by PRC laws and provide for the resolution of disputes through arbitration in China. Accordingly, these contracts would be interpreted in accordance with PRC laws and any disputes would be resolved in accordance with PRC legal procedures. The legal environment in the PRC is not as developed as in some other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements. In the event that the Company is unable to enforce these contractual arrangements, or if the Company suffers significant time delays or other obstacles in the process of enforcing these contractual arrangements, it would be difficult to exert effective control over VIEs, and the Company’s ability to conduct its business and the results of operations and financial condition may be materially and adversely affected.

Based on the legal opinion obtained from the Company’s mainland PRC legal counsel, management is of the view that the above contractual arrangements were legally binding and enforceable and did not violate current mainland PRC laws and regulations. However, there were uncertainties regarding the interpretation and application of existing and future PRC laws and regulations. Accordingly, the Company could not be assured that PRC regulatory authorities would not ultimately take a contrary view to its opinion. If the Company’s corporate structure and contractual arrangements are found to be in violation of any existing or future PRC laws or regulations, the relevant regulatory authorities would have broad discretion in dealing with such violations, including:

●

revoking the business license and/or operating license of such entities;

●

placing restrictions on the operations or the Company’s right to collect revenues;

●

imposing fines, confiscating the income from the WFOE or VIEs, or imposing other requirements with which the Company or the VIEs may not be able to comply;

●

requiring the Company to restructure the ownership structure or operations, including terminating the contractual arrangements and deregistering equity pledges made by the equity holders of the VIEs, which in turn would affect the ability to consolidate, derive economic interests from, or exert effective control over the VIEs;

●

restricting or prohibiting the Company’s use of the proceeds of public offerings to finance the business and operations in China; or

●

taking other regulatory or enforcement actions that could be harmful to the business.

If the imposition of any of these penalties or requirement to restructure the Company’s corporate structure causes it to lose the rights to direct the activities of the VIEs or the Company’s right to receive its economic benefits, the Company would no longer be able to consolidate the financial results of the VIEs in its consolidated financial statements.

The Company’s involvement with the VIE under the VIE Agreements affected the Company’s consolidated financial position, results of operations and cash flows as indicated below.

Pursuant to the VIE Restructuring, the Group did not consolidate Hubei ECARX as of December 31, 2022.

The following consolidated assets and liabilities information of the Group’s VIEs as of December 31, 2021, and consolidated revenues, net loss and cash flow information for the years then ended and for the period between January 1, 2022 and the completion

of the Restructuring, have been included in the accompanying consolidated financial statements. All intercompany transactions and balances with the Company, and its wholly-owned subsidiaries, prior to the Restructuring, have been eliminated upon consolidation.


		As of December 31,
		2021
		RMB
Current assets
Cash		642,293
Restricted cash⁽ⁱ⁾		23,004
Accounts receivable – third parties, net		184,546
Accounts receivable – related parties, net⁽ⁱⁱ⁾		813,364
Notes receivable⁽ⁱⁱⁱ⁾		137,710
Inventories		223,319
Amounts due from related parties^(iv)		42,604
Prepayments and other current assets		182,589
Total current assets		2,249,429
Non-current assets
Long-term investments		441,586
Property and equipment, net		94,387
Intangible assets, net		31,026
Other non-current assets – third parties		19,904
Other non-current assets – related parties		1,929
Total non-current assets		588,832
Total assets		2,838,261
Current liabilities
Short-term borrowings		932,000
Accounts payable – third parties		622,867
Accounts payable – related parties⁽ⁱⁱ⁾		159,528
Notes payable		127,304
Amounts due to related parties ^(iv)		2,452,787
Contract liabilities, current – third parties		2,685
Contract liabilities, current – related parties		363,285
Accrued expenses and other current liabilities		442,588
Total current liabilities		5,103,044
Non-current liabilities
Contract liabilities, non-current – third parties		317
Contract liabilities, non-current – related parties		472,749
Other non-current liabilities		16,292
Total non-current liabilities		489,358
Total liabilities		5,592,402

(i)	Restricted cash of RMB23,004 was pledged for notes payable.

(ii)	Accounts receivable — related parties, net, include amounts of RMB57,039 due from the Company and its subsidiaries, and accounts payable — related parties include RMB59,622 due to the Company and its subsidiaries, all of which are eliminated upon consolidation.

(iii)

Notes receivable of RMB110,550 was pledged for notes payable.

(iv)	Amounts due from related parties include RMB1,326 due from the Company and its subsidiaries; and amounts due to related parties include RMB2,143,777 due to the Company and its subsidiaries. All of the amounts are eliminated upon consolidation.


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Revenues ^(v)	2,241,536	2,755,780	936,520
Net (loss) income ^(vi)	(495,741)	(1,106,865)	2,793,301
Net cash (used in) provided by operating activities ^(vii)	(312,311)	(817,989)	224,031
Net cash (used in) provided by investing activities	(91,112)	(436,280)	165,672
Net cash provided by (used in) financing activities ^(viii)	940,204	1,047,854	(1,055,000)
Net increase (decreased) in cash and restricted cash	536,781	(206,415)	(665,297)
Cash and restricted cash at the beginning of the year	334,931	871,712	665,297
Cash and restricted cash at the end of the year	871,712	665,297	—

(v)	For the years ended December 31, 2020, 2021 and 2022, revenues include RMB31,394, RMB26,290 and RMB265,452, respectively, from the Company and its subsidiaries, which are eliminated upon consolidation.

(vi)	For the years ended December 31, 2020, 2021 and 2022, net income (loss) includes RMB21,950, RMB(44,361) and RMB2,981,707, respectively, from the Company and its subsidiaries, which are eliminated upon consolidation.

(vii)

Net cash used in operating activities respectively includes RMB75,361, RMB33,405 and RMB228,428 generated from the Company and its subsidiaries for the years ended December 31, 2020, 2021 and 2022, which are eliminated upon consolidation.

(viii)

Net cash provided by financing activities respectively includes nil, RMB2,067,268 and RMB157,000 provided by the Company and its subsidiaries for the years ended December 31, 2020, 2021 and 2022, which are eliminated upon consolidation.

The Company considers that there are no assets in the VIEs that can be used only to settle obligations of the VIEs, except for restricted cash of RMB23,004, notes receivables of RMB110,550 that were pledged for notes payable, and paid-in-capital of RMB10,000 as of December 31, 2021. The creditors of VIEs do not have recourse to the general credit of the Company and its wholly-owned subsidiaries.

The unrecognized revenue-producing assets that are held by the VIEs consist of internally developed software and intellectual property, patents and trademarks and other licenses, which were not recorded on the Company’s consolidated balance sheets as they do not meet all the capitalization criteria.

Warrant liabilities (Details) - Government Warrants $ in Thousands	1 Months Ended
	Apr. 30, 2017 USD ($)	Dec. 31, 2020 Y ¥ / shares
Warrant liabilities
Aggregate principal amount	$ 1,125,310
Drawdown period	3 years
Percentage of equity shares on exercise of warrants to government fund	2.00%
Consideration for issuance of warrants	$ 81,950
Risk-free rate of return (%)
Warrant liabilities
Warrants measurement input		3.34
Volatility
Warrant liabilities
Warrants measurement input		46.85
Expected dividend yield
Warrant liabilities
Warrants measurement input		0.0
Expected term
Warrant liabilities
Warrants measurement input \| Y		3.6
Fair value of the underlying ordinary shares
Warrant liabilities
Warrants measurement input \| ¥ / shares		31.34

Warrant liabilities - ECARX Warrants in connection with the Merger - Movements (Details) - CNY (¥) ¥ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Warrant liabilities
Liability at the beginning	¥ 16,544
Change in fair value included in losses	(4,781)
Foreign exchange translation	730
Liability at the end	12,493	¥ 16,544
ECARX Warrants
Warrant liabilities
Liability at the beginning	16,544
Addition		13,172
Change in fair value included in losses		3,245
Foreign exchange translation		127
Liability at the end		16,544
ECARX Public Warrants
Warrant liabilities
Liability at the beginning	10,346
Addition		8,277
Change in fair value included in losses	(3,183)	1,991
Foreign exchange translation	451	78
Liability at the end	7,614	10,346
ECARX Private Warrants
Warrant liabilities
Liability at the beginning	6,198
Addition		4,895
Change in fair value included in losses	(1,598)	1,254
Foreign exchange translation	279	49
Liability at the end	¥ 4,879	¥ 6,198

Commitments and contingencies (Details) - CNY (¥) ¥ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Purchase commitment
Purchase commitment, Less than one year	¥ 45,046	¥ 79,906
Purchase commitments, 1-2 Years	6,667	6,667
Purchase commitments, 2-3 Years	6,667	6,667
Purchase commitments, 3-5 Years	3,333	6,667
Purchase commitment	61,713	99,907
Capital commitment
Capital commitment, Less than one year	18,994	15,872
Capital commitment	¥ 18,994	¥ 15,872

Leases - lease cost allocated expense items (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Leases
Total	¥ 24,514	¥ 26,181	¥ 51,397
Selling and marketing expenses
Leases
Total	456	662	1,525
General and administrative expenses
Leases
Total	12,512	9,541	18,834
Research and development expenses
Leases
Total	¥ 11,546	¥ 15,978	¥ 31,038

Income taxes

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Income taxes

Income taxes

17.

Income taxes

The statutory income tax rate for the Group is 25% for the six months ended June 30, 2022 and 2023. The effective income tax rate for the six months ended June 30, 2022 and 2023 was 1% and nil. The effective income tax rate for the six months ended June 30, 2022 and 2023 differs from the PRC statutory income tax rate of 25%, primarily due to the recognition of full valuation allowance for deferred income tax assets of loss-making entities.

24.

Income taxes

Cayman Islands

Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders.

British Virgin Islands

Under the current laws of the British Virgin Islands, ECARX BVI is not subject to income or capital gains taxes. Additionally, the British Virgin Islands does not impose a withholding tax on payments of dividends to shareholders.

Hong Kong

Under the current Hong Kong Inland Revenue Ordinance, ECARX HK is subject to Hong Kong profits tax at a rate of 16.5%. A Two-tiered Profits Tax rates regime was introduced since year 2018 where the first HK$2,000 of assessable profits earned by a company will be taxed at half the current tax rate (8.25%) whilst the remaining profits will continue to be taxed at 16.5%. Additionally, upon payments of dividends to the shareholders, no Hong Kong withholding tax will be imposed.

Mainland PRC

Under the Enterprise Income Tax Law (“EIT Law”) in mainland PRC, domestic companies are subject to Enterprise Income Tax (“EIT”) at a uniform rate of 25%. The Company’s PRC subsidiaries and VIEs are subject to the statutory income tax rate at 25%, unless a preferential EIT rate is otherwise stipulated.

In November 2019, Hubei ECARX received the High and New Technology Enterprise (“HNTE”) certificate from the Hubei provincial government. This certificate entitled Hubei ECARX to enjoy a preferential income tax rate of 15% for a period of three years from 2019 to 2021 if all the criteria for HNTE status could be satisfied in the relevant year. As is stated in the Note 1(d), Hubei ECARX was deconsolidated pursuant to the Restructuring. Since then no consolidated entities of the Group ever received the HNTE certificate in 2022.

The components of income / (loss) before income taxes are as follows:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
The Cayman Islands	55,644	(4,811)	(57,261)
British Virgin Islands	—	—	(2)
Hong Kong S.A.R	93	(53,347)	(27,262)
Sweden	—	(310)	7,015
United Kingdom	—	(11,164)	(348,872)
The PRC, excluding Hong Kong S.A.R.	(495,513)	(1,100,265)	(1,151,699)
Total	(439,776)	(1,169,897)	(1,578,081)

Withholding tax on undistributed dividends

Dividends paid to non-PRC-resident corporate investor from profits earned by the PRC subsidiaries are subject to a withholding tax. The EIT Law and its relevant regulations impose a withholding tax at 10%, unless reduced by a tax treaty or agreement, for dividends distributed by a PRC-resident enterprise to its non-PRC-resident corporate investor for earnings generated beginning on January 1, 2008.

The Company’s subsidiaries and VIEs located in the PRC were in accumulated loss status as of December 31, 2020, 2021 and 2022. Accordingly, no deferred tax liability had been accrued for the Chinese dividend withholding taxes as of December 31, 2021 and 2022.

The Group does not file combined or consolidated tax returns, therefore, losses from individual subsidiaries or the VIEs may not be used to offset other subsidiaries’ or the VIEs’ earnings within the Group.

(a)	Income taxes

Income tax expense recognized in the consolidated statements of comprehensive loss consisted of the following:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Current income tax expense	228	6,861	29,065

(b)	Tax reconciliation

Reconciliation of the differences between PRC statutory income tax rate and the Group’s effective income tax rates for the years ended December 31, 2020, 2021, and 2022 are as follows:


	Year ended December 31,
	2020		2021		2022
Computed expected income tax benefit	(25)	%	(25)	%	(25)	%
Effect of preferential tax rate	11	%	10	%	(17)	%
Effect of different tax jurisdiction	(3)	%	(1)	%	2	%
Non-deductible expenses	4	%	5	%	40	%
Research and development expenses additional deduction	(8)	%	(6)	%	(5)	%
Change in valuation allowance	21	%	17	%	7	%
Actual income tax expense	—		—		2	%

According to the PRC Tax Administration and Collection Law, the statute of limitation is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitation is extended to five years under special circumstances where the underpayment of taxes is more than RMB100. In the case of transfer pricing issues, the statute of limitation is 10 years. There is no statute of limitation in the case of tax evasion. The income tax returns of the Company’s PRC subsidiary and the VIEs for the years from establishment (i.e., 2017) to 2022 are open to examination by the PRC tax authorities.

(c)	Deferred taxes

The principal components of the deferred tax assets and liabilities are as follows:


	As of December 31,
	2021	2022
	RMB	RMB
Deferred tax assets:
Inventories	6,431	7,654
Allowance for doubtful accounts	487	2,049
Intangible assets	—	268,381
Accrued product warranties	8,483	23,037
Accrued salaries and benefits	8,704	10,961
Accrued expenses and other liabilities	48,520	14,494
Unrealized investment loss of equity method investments	3,600	7,326
Donation	450	503
Operating lease liabilities	—	22,781
Net operating loss carryforwards	473,845	201,812
Total deferred tax assets	550,520	558,998
Less: valuation allowance	(550,520)	(537,172)
Deferred tax assets, net of valuation allowance	—	21,826
Deferred tax liabilities:
Operating lease right-of-use assets	—	(21,826)
Total deferred tax liabilities	—	(21,826)
Net deferred tax assets	—	—

The following table presents the movement of the valuation allowance for the deferred tax assets:


	As of December 31,
	2020	2021	2022
	RMB	RMB	RMB
Balance as of January 1,	268,702	362,371	550,520
Increase during the year	93,669	188,149	121,245
Reversal of net operating loss carryforwards due to the Restructuring	—	—	(134,593)
Balance as of December 31	362,371	550,520	537,172

Net operating loss carryforwards of the Company’s subsidiaries and VIEs in jurisdictions other than the PRC do not expire. As of December 31, 2021 and 2022, the balance of net operating loss carryforwards of the Company’s subsidiaries and VIEs in jurisdictions other than the PRC amounted to RMB11,893 and RMB87,051, respectively.

As of December 31, 2022, the net operating loss carryforwards by the PRC companies will expire during the period from year 2026 to year 2027, if unused by the following year-end:


Year ending December 31,		Amount
		RMB
2026		8,118
2027		733,746
Total		741,864

The recoverability of these net operating loss carryfowards is evaluated by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. To the extent the Company does not consider it more-likely-than-not that a deferred tax asset will be recovered, a valuation allowance is generally established. To the extent that a valuation allowance was established, and it is subsequently determined that it is more-likely-than-not that the deferred tax assets will be recovered, the change in the valuation allowance is recognized in the consolidated statements of comprehensive loss.

As of December 31, 2022, the valuation allowances were related to the deferred income tax assets of subsidiaries of the Company which were in loss position. These entities were in a cumulative loss position, which is a significant negative indicator to overcome that sufficient income will be generated over the periods in which the deferred income tax assets are deductible or utilized. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Warrant liabilities

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Warrant liabilities

Warrant liabilities

14.

Warrant liabilities

ECARX Warrants in connection with the Merger

The Binomial Option Pricing Model with the following key assumptions is used for estimating the fair value of ECARX Private Warrants.


	As of December 31,		As of June 30,
	2022		2023
Risk-free rate of return (%)	3.99	%	4.22	%
Volatility	6.99	%	11.01	%
Expected dividend yield	0.0	%	0.0	%
Expected term	5.0 years		4.5 years
Fair value of the underlying ordinary shares	US$7.99 (equivalent to RMB55.11)		US$6.96 (equivalent to RMB50.47 )

The table below reflects the movement of ECARX Warrants for the six months ended June 30, 2023:

Change in fair

Foreign

January 1,

value included

exchange

June 30,

2023

Addition

in losses

translation

Settlement

2023

RMB

Liabilities

ECARX Public Warrants

10,346

—

(3,183)

451

—

7,614

ECARX Private Warrants

6,198

—

(1,598)

279

—

4,879

Total

16,544

—

(4,781)

730

—

12,493

13.Warrant liabilities

Government Warrants

The warrants are remeasured utilizing the Black-Scholes Option Pricing Model as of December 31, 2020 with the following key assumptions:


	As of December 31,
	2020
Risk-free rate of return (%)	3.34	%
Volatility	46.85	%
Expected dividend yield	0.0	%
Expected term	3.6	years
Fair value of the underlying ordinary shares	RMB31.34

Change in

fair value

January 1,

included

Foreign exchange

December 31,

2020

Addition

in losses

translation

Settlement

2020

RMB

Liabilities

Warrant liabilities

40,635

—

39,635

—

80,270

Change in

fair value

January 1,

included

Foreign exchange

Settlement

December 31,

2021

Addition

in losses

translation

(See Note 19)

2021

RMB

Liabilities

Warrant liabilities

80,270

—

111,299

—

(191,569)

—

ECARX Warrants in connection with the Merger

inputs and categorized in Level 3 of the fair value hierarchy. The Binomial Option Pricing Model with the following key assumptions is used for estimating the fair value of ECARX Private Warrants.


	As of December 31,
	2022
Risk-free rate of return (%)	3.99	%
Volatility	6.99	%
Expected dividend yield	0.0	%
Expected term	5.0	years
Fair value of the underlying ordinary shares	US$7.99 (equivalent to RMB55.11)

The table below reflects the movement of ECARX Warrants for the year ended December 31, 2022:

Change in fair

January 1,

value included

Foreign exchange

December

2022

Addition

in losses

translation

Settlement

31, 2022

RMB

Liabilities

ECARX Public Warrants

—

8,277

1,991

—

10,346

ECARX Private Warrants

—

4,895

1,254

—

6,198

Total

—

13,172

3,245

127

—

16,544

Revenue information (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Summary of disaggregation of revenue

Major products/services lines:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Sales of goods revenues	858,080	1,264,263
Automotive computing platform	608,078	1,053,901
SoC Core Modules	188,338	200,255
Automotive merchandise and other products	61,664	10,107
Software license revenues	78,995	215,641
Service revenues	376,917	237,533
Automotive computing Platform – Design and development service	241,090	119,291
Connectivity service	107,949	99,508
Other services	27,878	18,734
Total revenues	1,313,992	1,717,437

Timing of revenue recognition:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Point in time	1,206,043	1,617,929
Over time	107,949	99,508
Total revenues	1,313,992	1,717,437


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Sales of goods revenues	1,678,234	1,983,817	2,433,964
Automotive computing platform	1,265,227	1,423,548	1,690,569
SoC Core Modules	203,402	333,421	660,554
Automotive merchandise and other products	209,605	226,848	82,841
Software license revenues	71,297	261,265	404,469
Service revenues	491,532	533,981	723,561
Automotive computing Platform – Design and development service	297,801	306,358	468,770
Connectivity service	172,841	188,349	212,738
Other services	20,890	39,274	42,053
Total revenues	2,241,063	2,779,063	3,561,994


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Point in time	2,068,222	2,590,714	3,349,256
Over time	172,841	188,349	212,738
Total revenues	2,241,063	2,779,063	3,561,994

Summary of significant accounting policies - Property and equipment and Intangible assets (Details)	12 Months Ended
	Dec. 31, 2022
Summary of significant accounting policies
Intangible assets, estimated useful life	3 years
Machinery and electronic equipment \| Minimum
Summary of significant accounting policies
Estimated Useful Life	3 years
Machinery and electronic equipment \| Maximum
Summary of significant accounting policies
Estimated Useful Life	10 years
Transportation vehicles
Summary of significant accounting policies
Estimated Useful Life	4 years
Office and other equipment
Summary of significant accounting policies
Estimated Useful Life	5 years

Summary of significant accounting policies (Policies)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

A combination between entities under common control

Basis of presentation

(a)

Basis of presentation

The accompanying unaudited condensed consolidated financial statements of ECARX Holdings Inc. (“the Company”), its consolidated subsidiaries, variable interest entity (“VIE”) and VIE’s subsidiaries (the “VIEs”, collectively referred to as “the Group”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by rules and regulations of the United States Securities and Exchange Commission. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Group as of and for the year ended December 31, 2022.

The accompanying unaudited condensed consolidated financial statements were prepared assuming the Group will continue as a going concern. The Group generated a net loss of RMB411,327 and net cash outflows from operations of RMB962,893 for the six months ended June 30, 2023. As of June 30, 2023, the Group’s consolidated current liabilities exceeded current assets in the amount of RMB422,243. The Group plans to obtain additional loan facilities from banks and financial support from its controlling shareholder, as well as renew its existing bank loans when they fall due, as necessary, although such plans are contingent upon many factors out of the control of the Group.

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, 2023, the results of operations and cash flows for the six months ended June 30, 2022 and 2023, have been made.

The preparation of 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, related disclosures of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and reported revenues and expenses during the periods presented in the unaudited condensed consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, service period of connectivity services, allowance for doubtful accounts receivables, other non-current assets and amounts due from related parties, realizability of inventories, accrual for warranty obligations, useful lives and recoverability of property, equipment and intangible assets and right-of-use assets, recoverability of long-term investments, valuation allowance of deferred tax assets, fair values of share-based compensation awards, warrant liabilities, incremental borrowing rates of leases. Changes in facts and circumstances may result in these estimates to be revised. Actual results could differ from those estimates, and as such, differences may be material to the unaudited condensed consolidated financial statements.

(a)

Basis of presentation

These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).

The consolidated financial statements are presented in Renminbi (“RMB”), rounded to the nearest thousand.

These consolidated financial statements have been prepared 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.

Historically, the Group had relied principally on proceeds from the issuance of redeemable convertible preferred shares and bank borrowings to finance its operations and business expansion. Considering the planned merger and listing of its shares during the year ended December 31, 2022, the Company’s financing needs included non-routine expenditure coupled with the uncertainty around the Merger with COVA and listing of its shares. These factors cast substantial doubt over the Company’s ability to continue as a going concern at the end of the year ended December 31, 2021. This uncertainty was partially alleviated by consummation of the Merger and the financing transactions as referred to in Note 1(b).

As of December 31, 2022, the Group had an accumulated deficit of RMB5,730,180 and its consolidated current liabilities exceeded current assets in the amount of RMB74,108. In addition, the Group recorded net cash used in operating activities in the

amount of RMB461,337 for the year ended December 31, 2022. The Group has evaluated plans to continue as a going concern which include receiving proceeds from the disposal of an equity security in the amount of US$115,000 in January 2023 and proceeds from a long-term related party loan in the amount of RMB300,000 in January 2023, which is due on June 30, 2024. On such basis, management concludes that there is no substantial doubt about the Group’s ability to continue as a going concern.

(b)

A combination between entities under common control

On June 30, 2023, Ecarx (Hubei) Tech Co. Ltd. (“Ecarx Hubei”) made additional capital injection amounting to RMB266,667 to JICA Intelligent Robotics Co., Ltd. (“JICA”), of which RMB1,000 was paid on June 30, 2023 and the remaining RMB265,667 is payable within the next 3 years. Previously, Ecarx Hubei held 50% ownership interest in JICA, with the other 50% owned by Geely Automotive Group Co., Ltd. (“Geely Auto”), an entity under common control. Following the additional investment in JICA, Ecarx Hubei now owns a controlling interest of 70% in JICA. As the acquisition of JICA was a combination between entities under common control, these consolidated financial statements have been presented by combining assets, liabilities, revenues, expenses and equity of Ecarx and JICA using the pooling-of interests method as if the transaction occurred at the beginning of the comparative period presented. All intercompany transactions and balances between the combining entities have been eliminated.

The following table summarizes the results of operations and net assets of JICA consolidated in these unaudited condensed consolidated financial statements. The amounts are after eliminating transactions between the Group and JICA.


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
ASSETS
Current assets	572,259	519,803
Non-current assets	43,655	45,941
Total assets	615,914	565,744

LIABILITIES
Current liabilities	486,351	384,556
Non-current liabilities	9,229	9,602
Total liabilities	495,580	394,158


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Revenues	1,422	12,614
Cost of revenues	(117)	(5,563)
Gross profit	1,305	7,051

Loss from operations	(64,065)	(102,651)
Loss before income taxes	(33,389)	(100,278)
Net loss	(40,882)	(100,278)

Risks and Concentration

(c)

Risks and concentration

Concentration of credit risk

Financial instruments that potentially expose the Group to concentrations of credit risk consist principally of cash, restricted cash, accounts receivables, amounts due from related parties, notes receivable and non-current assets.

The Group’s policy requires cash and restricted cash to be placed with high quality financial institutions. The Group regularly evaluates the credit standing of the counterparties or financial institutions.

The Group conducts credit evaluations on its customers prior to delivery of goods or services. The assessment of customer creditworthiness is primarily based on historical collection records, research of publicly available information and customer on site visits by senior management. Based on this analysis, the Group determines what credit terms, if any, to offer to each customer individually. If the assessment indicates a likelihood of collection risk, the Group will not deliver the services or sell the products to the customer or require the customer to pay cash to secure payment or to make significant down payments.

Concentration of customers and suppliers

The Group currently has a concentrated customer base with a limited number of key customers, particularly Geely Group and its subsidiaries. Geely Group and its subsidiaries represents 92.1% and 79.2% of the Group’s accounts receivable - related parties, net, as of December 31, 2022 and June 30, 2023, respectively. During the six months ended June 30, 2022 and 2023, Geely Group and its subsidiaries contributed 73.6% and 73.7% of the Group’s total revenues, respectively, which excluded the sales of SoC core modules or software licenses by the Group to its third-party customers that were integrated into infotainment and cockpit products and sold by such third-party customers to Geely Group and its subsidiaries.

The following table summarizes customers with greater than 10.0% of the accounts receivable - related parties, net:


	As of December 31,		As of June 30,
	2022		2023
Customer A, a related party	92.1	%	79.2	%
Customer B, a related party	Less than 10.0	%	10.5	%

The following table summarizes customers with greater than 10.0% of the accounts receivable - third parties, net:


	As of December 31,		As of June 30,
	2022		2023
Customer C, a third party	48.9	%	40.4	%
Customer D, a third party	30.4	%	29.7	%
Customer E, a third party	Less than 10.0	%	10.6	%
Customer F, a third party	Less than 10.0	%	12.6	%

Customers contributing more than 10.0% of total revenues were as follows:


	Six Months Ended June 30,
	2022		2023
Customer A, a related party	73.6	%	73.7	%
Customer C, a third party	11.4	%	Less than 10.0	%

The following table summarizes suppliers with greater than 10.0% of the accounts payable:


	As of December 31,		As of June 30,
	2022		2023
Supplier A, a third party	19.0	%	18.5	%
Supplier B, a third party	10.9	%	Less than 10.0	%
Supplier C, a third party	19.1	%	17.6	%

Suppliers contributing more than 10.0% of total purchases were as follows:


	Six Months Ended June 30,
	2022		2023
Supplier D, a third party	12.5	%	Less than 10.0	%
Supplier A, a third party	14.5	%	23.3	%
Supplier E, a related party	10.7	%	Less than 10.0	%
Supplier C, a third party	Less than 10.0	%	13.3	%

(x)

Leases

The Group leases premises for offices under non-cancellable operating leases. There are no capital improvement funding, lease concessions, escalated rent provisions or contingent rent in the lease agreements. The Group has no legal or contractual asset retirement obligations at the end of the lease term.

Right-of-use assets and lease liabilities are recognized upon lease commencement for operating leases based on the present value of lease payments over the lease term. As the rate implicit in the lease cannot be readily determined, the Group uses different incremental borrowing rates for subsidiaries in different countries at the lease commencement date in determining the present value of lease payments. The incremental borrowing rates were determined based on the rates of interest that each subsidiary would be expected to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term.

The Group has elected not to recognize right-of-use assets or lease liabilities for leases with an initial term of 12 months or less and recognizes a single lease cost on a straight-line basis over the lease term.

Prior to the adoption of ASC Topic 842, operating leases were not recognized on the balance sheet of the Group, but payments made for those leases were charged to the consolidated statements of comprehensive loss on a straight-line basis over the term of underlying lease.

Credit losses

(d)

Credit losses

The Group adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, and subsequent amendments to the initial guidance within ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-11 and ASU 2020-02, collectively referred to as “ASC 326” on January 1, 2023 using the modified retrospective approach. ASC 326 requires the measurement and recognition of expected credit losses using the current expected credit loss model for financial assets held at amortized cost, which includes the Group’s accounts receivable, notes receivable, amounts due from related parties and other financial assets. It replaces the existing incurred loss impairment model with an expected loss methodology. The recorded credit losses are adjusted each period for changes in expected lifetime credit losses. On adoption of ASC 326, there is no change to accumulated deficit as of January 1, 2023.

Revenue recognition

(q)

Revenue recognition

The Group accounts for revenue in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (“ASC 606”) since January 1, 2018. In accordance with ASC 606, the Group recognizes revenue upon the transfer of control of promised products or services to the Group’s customers, in the amount of consideration the Group expects to receive for those products or services (excluding VAT collected on behalf of government authorities).

The Group generates revenues from sales of goods, software license and services.

Sales of goods

Sales of goods include the following products:

Automotive computing platform, which Tier 1 automotive suppliers or the Original Equipment Manufacturers (“OEM”) purchase from the Group and assemble on cars with infotainment head unit or digital cockpit;

SoC core modules, where the Group sells standardized computing board, which integrates SoC with core integrated circuits and peripherals to Tier 1 automotive suppliers or the OEMs; and

Automotive merchandise and other products, which are primarily basic electronic components such as resistor, capacitor and circuit board sold to automotive suppliers.

The Group is mainly engaged by the related parties to manufacture and sell automotive computing platforms. The Group also generates revenue from the sales of SoC core modules, automotive merchandise and other products. Revenues are recognized when the automotive computing platform, SoC core modules, automotive merchandise or other products are accepted by the customers, which is the point in time that control of the product is transferred to the customers. The selling price, which is specified in the purchase orders, is fixed. The Group determines that it is the principal of the contract and recognizes revenue generated from sales of products on a gross basis as the Group has control of products before they are transferred to the customers. Unless a product was defective, the Group does not provide customers any right of product return.

Software license revenues

Software license revenues include revenues from the sales of software stack, which incorporates the service software framework to connect the application layer to the operating system layer of the overall cockpit system.

The Group generates revenues from licensing its software to its customers, which are Tier 1 automotive suppliers, in two types of contracts. Customers may subscribe to term licenses or purchase perpetual licenses, which provide customer with the same functionality but for different duration.

For subscription to licenses, the Group licenses its software to its customers for a fixed period. The customers then indicate their acceptance upon receiving the software by providing a written notice. For perpetual licenses, the Group does not license customers for a specific period and it is accepted by customer with an acceptance notice.

The Group’s software licenses have significant standalone functionality which is not expected to substantively change during the license term. The nature of the software is functional and a right to use the Group’s intellectual property according to ASC 606. Revenues related to the fixed period software licenses, is fixed and are recognized at a point in time upon customers’ acceptance which is when the control is transferred to the customer. Revenues related to perpetual licenses are recognised when subsequent sale occurs using the sales-based royalties guidance under ASC 606 as this type of software is invoiced based on the subsequent sale made by Tier 1 automotive suppliers to the OEMs after the software has been configured into Tier 1 supplier’s auto parts. The license does not have a renewal term. Post-contract customer support, which includes technical support and unspecified minor bug fixes, are provided to all customers. The post-contract customer support is not material and not accounted for as a distinct performance obligation.

Service revenues

The Group generates revenues by provision of the following services:

Automotive computing platform design and development service;

Connectivity service, which enables end-users of automobiles access internet; and,

Other services, including technical consulting services provided to automotive companies. The performance obligations are satisfied, and revenues are recognised, at a point in time the customers accept the services, as the criteria for recognition of revenue over time are not met.

The Group provides design and development services on automotive computing platform for OEMs. The contracts for design and development services are separate from the contracts for manufacture of automotive computing platform because they are not entered into at or near the same time. The service contracts for design and development services are entered into with the customers near the end of the development process. The Group does not have any enforceable right to payment before the agreed deliverables are accepted by customers. Therefore, the Group recognizes revenue at a point in time when the agreed deliverables are accepted by customers.

Starting from January 1, 2022, the Group entered into a number of contracts with OEMs upon the commencement of design and development services on automotive computing platform. After the fulfilment of the design and development services, the Group delivers customized deliverables to the OEMs.

For such contracts, the Group recognizes revenue at a point in time because (1) the customer does not receive benefits until the delivery of deliverables; (2) the Company does not create or enhance assets which the customer controls as the assets are created or enhanced; and (3) the Group does not have any enforceable rights to payment for performance completed to date before the deliverables are accepted by the customers.

Costs incurred to fulfill such service contracts which are not within the scope of other guidance are recognized as contract cost assets, as the costs relate directly to the service contracts that the Group can specifically identify. The costs are expected to be recovered and generate or enhance resources of the Group that will be used in satisfying performance obligations of design and development services for the OEMs in the future.

In the process of executing the service contracts, the Group recognizes an impairment loss of contract cost assets in the statement of comprehensive loss to the extent that the carrying amount of the assets exceeds:

The amount of consideration that the Group expects to receive in the future and that the Group has received but not recognized as revenue, for providing the design and development services, less

The costs that relate directly to providing those services and that have not been recognized as expenses.

The Group purchases data traffic from its suppliers and maintains a data pool to provide connectivity service to its related parties with the provision of data service packs. The connectivity service commences upon activation of the data service packs and remains effective with agreed standard connectivity speed (1) over the duration of ownership under the first registered owner of the automobiles or (2) over the shorter of (i) an agreed fixed period or (ii) the duration of ownership under the first registered owner. Therefore, the Group estimates the period when the data service pack is activated and recognizes revenue over the estimated period on a straight-line basis. The Group determines that it is the principal in providing such connectivity service, as it has control over the services, including negotiating arrangement details with customers, establishing prices for service packs sold, selecting data traffic suppliers and management of the data traffic pool to fulfil users’ needs.

Fair value measurements

(e)

Fair value measurements

Financial assets and liabilities of the Group primarily consist of cash, restricted cash, accounts receivables, notes receivable, amounts due from related parties, foreign exchange swaps included in prepayments and other current assets, equity securities, short-term borrowings, accounts payable, amounts due to related parties, notes payable, warrant liabilities, convertible notes, and other payables included in accrued expenses and other current liabilities.

The Group measures the foreign currency swaps at fair value on a recurring basis using quoted prices with other observable inputs and categorized in Level 2 of the fair value hierarchy. The Group measures equity securities at fair value on a recurring basis using observable inputs in active markets and categorized in Level 1 of the fair value hierarchy. The Group measures warrant liabilities at fair value on a recurring basis using unobservable inputs and categorized in Level 3 of the fair value hierarchy. As of December 31, 2022 and June 30, 2023, the carrying values of other financial instruments approximate their fair values due to the short-term maturity of these instruments.

(p)

Fair value measurement

The Group measures certain assets and liabilities at fair value. Fair value is the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions.

The fair value hierarchy consists of the following three levels:

Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 — Includes other inputs that are directly or indirectly observable in the marketplace.

Level 3 — Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable.

Financial assets and liabilities of the Group primarily consist of cash, restricted cash, accounts receivables, amounts due from related parties, notes receivable, short-term borrowings, accounts payable, amounts due to related parties, notes payable and warrant liabilities, convertible notes, and other payables included in accrued expenses and other current liabilities. The Group measures warrant liabilities at fair value on a recurring basis using unobservable inputs and categorized in Level 3 of the fair value hierarchy. As of December 31, 2021 and 2022, the carrying values of other financial instruments approximate their fair values due to the short-term maturity of these instruments.

Convenience translation

(f)

Convenience translation

The United States dollar (“US$”) amounts disclosed in the accompanying unaudited condensed consolidated financial statements are presented solely for the convenience of the readers. Translations of amounts from RMB into US$ for the convenience of the reader were calculated at the rate of US$1.00=RMB7.2513, the certified noon buying rate set forth in the H.10 statistical release of the Federal Reserve Board on June 30, 2023. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on June 30, 2023, or at any other rate.

Disclosure of accounting policy for credit loss on financial instrument measured at amortized cost basis, net investment in lease, off-balance sheet credit exposure, and available-for-sale debt security. Includes, but is not limited to, methodology used to estimate allowance for credit loss, how writeoff of uncollectible amount is recognized, and determination of past due status and nonaccrual status.

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Disclosure of accounting policy for revenue from contract with customer.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Long-term investments

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

7.	Long-term investments


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Equity method investments	284,536	262,338
Equity securities measured at fair value	69,319	101,293
Total long-term investments	353,855	363,631

Management evaluated whether there was other-than-temporary impairment based on the facts for the long-term investments, including recent financing activities, projected and historical financial performance of investees. No impairment loss was recognized for the six months ended June 30, 2022 and 2023.

Equity securities measured at fair value

The fair value of 2,030,374 shares of Luminar Technologies, Inc. increased to US$13,969 as at June 30, 2023. The fair value change of US$3,919 (equivalent to RMB27,722) was recorded as change in fair value of an equity security in the unaudited condensed consolidated statements of comprehensive loss.

8.	Long-term investments


	As of December 31,
	2021	2022
	RMB	RMB
Equity method investments	476,853	284,536
Equity securities	675,824	69,319
Total long-term investments	1,152,677	353,855

Equity method investments

As of December 31, 2020, the Group had a number of equity method investments, which were individually and in aggregate immaterial to the Group’s financial condition or results of operations.

The Group made several equity method investments during the years ended December 2021 and 2022, which included:

●

On April 28, 2021, Hubei ECARX entered into an investment agreement with a related party, Zhejiang Geely Holding Group (“Geely Group”), to establish an investee, JICA Intelligent Robotics Co., Ltd. (“JICA”) in the PRC, in which the Group owns 50% equity interest. The Group contributed RMB200,000 in cash to the investment. As disclosed in Note 29(b), the Group’s equity interest in JICA increased to 70% and JICA became a subsidiary of the Group since June 30, 2023. The transaction was a combination between entities under common control, the financial information presented for prior years have been retrospectively adjusted accordingly.

●

In May 2021, Hubei ECARX entered into a limited partnership agreement to subscribe 9.416% equity interest of Suzhou Chenling, a private equity fund which is focused on new energy and biotechnology industries, with the cash consideration of RMB200,000. The Group accounted for the investment in the limited partnership as equity method investment, as its investment is not deemed so minor that it can exert virtually no influence on the investee.

●

In July 2021, ECARX HK entered into an investment agreement with Volvo Car Corporation (“Volvo Cars”), a related party, to establish a joint venture, HaleyTek AB, with cash consideration of SEK360,000 (equivalent to RMB269,813), in which the Group owns 40% equity interest. In December 2022, Volvo Cars and ECARX HK made additional investments in cash of SEK25,620 (equivalent to RMB17,478) and SEK17,080 (equivalent to RMB11,652), respectively, to HaleyTeK AB. The investments were made in proportion to their equity interests of 60% and 40%.

●

On July 26, 2021, the Group acquired 34.61% equity interest of SiEngine Technology Co., Ltd. (“SiEngine”) from the controlling shareholder of the Company, at the cash consideration of US$10,600 (equivalent to RMB68,967) plus the issuance of 9,882,082 Series B Redeemable Convertible Preferred Shares at the issuance price of US$9.70 per share valuing US$95,800 (equivalent to RMB620,703). The Group initially recognized the investment at the carrying amount of the Company’s controlling shareholder, which was nil, as a transaction between companies under common control. The excess of consideration over the carrying amount of the equity investment was recorded as a deemed dividend in the amount of RMB689,670 to the controlling shareholder.

●

On September 1, 2021, the Group sold 2% equity interest of a PRC subsidiary, Hubei Dongjun, at the cash consideration of RMB1,000. As a result of the transaction, the Group’s equity interest in the subsidiary decreased from 51% to 49% and the Group lost control over the subsidiary. On the date when the Group lost control in the subsidiary, the Group remeasured its retained equity interest at fair value of RMB24,500 and recorded a gain of RMB10,579 on deconsolidation. The Group accounts for the retained interest as an equity method investment.

●

In January 2022, Suzhou Photon-Matrix, a majority-owned subsidiary of the Group, entered into financing agreements with third party investors, pursuant to which these investors contributed, in aggregate, RMB10,000 in cash in exchange for 3.45% of equity interests of Suzhou Photon-Matrix. As a result of the transaction, the Group’s equity interest in the subsidiary decreased from 50.92% to 49.17%, and the Group lost control in Suzhou Photon-Matrix. On the date the Group lost control in the subsidiary, the Group remeasured its retained equity interest in Suzhou Photon-Matrix at fair value of RMB64,000 using the backsolve method, a market approach. A gain of RMB71,974 was recorded on deconsolidation which was calculated as follows. The Group retains significant influence over the investment and accounts for it as an equity method investment.



		Year Ended December 31,
		2022
		RMB
Fair value of the consideration received		—
Add: Fair value of retained equity interest in Suzhou Photon-Matrix		64,000
Add: Carrying amount of redeemable noncontrolling interest		40,750
Less: Carrying amount of non-redeemable noncontrolling interest		(7,178)
Less: Carrying amount of Suzhou Photon-Matrix’s net assets		(25,598)
Gains on deconsolidation of Suzhou Photon-Matrix		71,974

●

In February and March 2022, the Group provided cash in the amount of RMB28,500 to an equity method investment, Anhui Xinzhi Technology Co., Ltd. (“Anhui Xinzhi”) as financial support. The investment was derecognized as part of the Restructuring. Since then, Anhui Xinzhi has been a related party of the Group, which is disclosed in the Note 28.

In April 2022, as part of the Restructuring, the Group spun off three equity method investments, including the equity method investment in Suzhou Chenling to Hubei ECARX. See Note 1(d).

Summary combined financial information for the investee companies as of and for the years ended December 31, 2021 and 2022 is as follows:


	As of December 31,
	2021	2022
	RMB	RMB
Financial position:
Current assets	1,068,323	1,216,042
Non-current assets	1,252,988	999,573
Total assets	2,321,311	2,215,615
Current liabilities	675,372	942,899
Non-current liabilities	956,934	1,056,274
Total liabilities	1,632,306	1,999,173
Shareholders’ equity	689,005	216,442
Total liabilities and shareholders’ deficit	2,321,311	2,215,615


	Year ended December 31,
	2021	2022
	RMB	RMB
Results of operations:
Total revenues	711,800	1,134,152
Loss from operation	(482,095)	(636,240)
Net loss	(392,337)	(641,401)

Management evaluated whether there was other-than-temporary impairment based on the facts, including recent financing activities, projected and historical financial performance of the investees. No impairment loss was recognized for the years ended December 31, 2020, 2021 and 2022.

Equity securities

On July 1, 2021, the Group subscribed 8,834 newly issued common shares of Zenseact AB (“Zenseact”), representing 15% equity interest of Zenseact, at the cash consideration of US$106,000 (equivalent to RMB675,824). Zenseact is a private-owned entity and a related party of the Group.

As of December 31, 2021, the Group held 8,834 common shares of Zenseact, representing 15% equity interest of the investee. Zenseact is a private-owned entity and a related party of the Group. The investment was accounted for as an equity security without a readily determinable fair value and measured at cost less any impairments.

In April 2022, Volvo Cars, the controlling interest holder of Zenseact, made capital contribution of SEK800,000 to Zenseact to obtain 6,447 newly issued common shares. As a result of the transaction, the Group’s equity interest in Zenseact decreased to 13.5%. The Group evaluated its investment’s carrying amount based on the observable price, and recognized a gain of US$5,297 (equivalent to RMB35,153). In December 2022, the Group disposed of its investment in Zenseact for a consideration of US$115,000 (equivalent to RMB763,192) at a gain of US$3,703 (equivalent to RMB24,575); the cash consideration of US$115,000 was received in January 2023.

In May 2022, the Group entered into strategic investment agreements with Luminar Technologies, Inc., (“Luminar”) a Delaware corporation. Pursuant to the strategic investment agreement, Luminar was to fulfil the agreement obligation by electing on its sole discretion to (1) pay cash in the amount of US$15,000 to the Group, or (2) issue shares to the Group in the number equal to the quotient of US$15,000 divided by the volume-weighted average price of Luminar’s shares listed on Nasdaq for twenty (20) consecutive trading days immediately preceding the closing date of the Group’s merger with COVA, at the par value of US$0.0001 per share, provided that no fractional shares will be issued, upon the completion of the Group’s mergers with COVA. Pursuant to this agreement, upon the Group’s Merger with COVA, Luminar settled its obligation by issuing 2,030,374 shares to the Company worth

US$12,588. The fair value of these shares decreased to US$10,050 as at December 31, 2022. The fair value change of US$2,538 (equivalent to RMB16,843) was recorded in the consoldiated statements of comprehensive loss.

No impairment loss was recognized for the years ended December 31, 2020, 2021 and 2022.

Loss per share - Anti-dilutive securities (Details) - shares	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Redeemable convertible preferred shares
Anti-dilutive securities
Anti-dilutive securities		90,724,289		90,724,289	26,841,535
Warrants
Anti-dilutive securities
Anti-dilutive securities	23,871,971		23,871,971		6,016,207

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
¥ in Thousands, $ in Thousands

Jun. 30, 2023

CNY (¥)

Jun. 30, 2023

USD ($)

Dec. 31, 2022

CNY (¥)

Accounts receivable - third parties, net

Cash

¥ 850,373

$ 117,272

¥ 860,472

Restricted cash

74,975

10,340

40,957

288,233

39,749

418,222

Accounts receivable - related parties, net

804,267

110,913

835,320

77,975

10,753

179,143

186,226

25,682

182,572

140,225

19,338

911,729

678,089

93,513

424,918

3,100,363

427,560

3,853,333

363,631

50,147

353,855

130,416

17,985

139,607

Operating lease right-of-use assets

38,839

5,356

44,861

121,305

16,729

99,652

Other non-current assets - third parties

28,635

3,949

26,029

Other non-current assets - related parties

218,899

30,188

213,695

901,725

124,354

877,699

4,002,088

551,914

4,731,032

Accounts payable - third parties

Short-term borrowings

870,000

119,978

870,000

1,138,043

156,943

1,445,193

Accounts payable - related parties

101,098

13,942

241,773

Notes payable

116,442

16,058

168,405

Amounts due to related parties

341,202

47,054

42,843

Contract liabilities - third parties

6,073

838

4,706

Contract liabilities - related parties

386,344

53,279

316,667

Operating lease liabilities

30,189

4,163

31,110

Accrued expenses and other current liabilities

511,748

70,574

785,134

Taxes Payable, Current

21,467

2,960

21,610

3,522,606

485,789

3,927,441

Contract liabilities - third parties

Non-current liabilities - related parties

203,976

28,130

282,080

Operating lease liabilities

464,294

64,029

439,869

108,311

14,937

68,768

Warrant liabilities

12,493

1,723

16,544

Other non-current liabilities

34,957

4,821

30,716

824,043

113,642

838,047

4,346,649

599,431

4,765,488

5,971,886

823,561

5,919,660

Accumulated other comprehensive loss

(6,110,766)

(842,713)

(5,730,180)

(336,890)

(46,459)

(385,886)

Total deficit attributable to ordinary shareholders

(475,760)

(65,610)

(196,396)

Non-redeemable non-controlling interests

131,199

18,093

161,940

Total shareholders' deficit

(344,561)

(47,517)

(34,456)

4,002,088

551,914

4,731,032

Class A Ordinary Shares

$ 1

Class B Ordinary Shares

¥ 1

^[1]

[1]	Shares outstanding for all periods reflect the adjustment for Recapitalization.

Warrant liabilities (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of warrants are remeasured utilizing key assumptions


	As of December 31,
	2020
Risk-free rate of return (%)	3.34	%
Volatility	46.85	%
Expected dividend yield	0.0	%
Expected term	3.6	years
Fair value of the underlying ordinary shares	RMB31.34

Schedule of changes in warrant liability measured at fair value using unobservable inputs

Change in

fair value

January 1,

included

Foreign exchange

December 31,

2020

Addition

in losses

translation

Settlement

2020

RMB

Liabilities

Warrant liabilities

40,635

—

39,635

—

80,270

Change in

fair value

January 1,

included

Foreign exchange

Settlement

December 31,

2021

Addition

in losses

translation

(See Note 19)

2021

RMB

Liabilities

Warrant liabilities

80,270

—

111,299

—

(191,569)

—

Schedule of movement of ECARX warrants

Change in fair

Foreign

January 1,

value included

exchange

June 30,

2023

Addition

in losses

translation

Settlement

2023

RMB

Liabilities

ECARX Public Warrants

10,346

—

(3,183)

451

—

7,614

ECARX Private Warrants

6,198

—

(1,598)

279

—

4,879

Total

16,544

—

(4,781)

730

—

12,493

Change in fair

January 1,

value included

Foreign exchange

December

2022

Addition

in losses

translation

Settlement

31, 2022

RMB

Liabilities

ECARX Public Warrants

—

8,277

1,991

—

10,346

ECARX Private Warrants

—

4,895

1,254

—

6,198

Total

—

13,172

3,245

127

—

16,544

ECARX Private Warrants

Schedule of warrants are remeasured utilizing key assumptions


	As of December 31,		As of June 30,
	2022		2023
Risk-free rate of return (%)	3.99	%	4.22	%
Volatility	6.99	%	11.01	%
Expected dividend yield	0.0	%	0.0	%
Expected term	5.0 years		4.5 years
Fair value of the underlying ordinary shares	US$7.99 (equivalent to RMB55.11)		US$6.96 (equivalent to RMB50.47 )


	As of December 31,
	2022
Risk-free rate of return (%)	3.99	%
Volatility	6.99	%
Expected dividend yield	0.0	%
Expected term	5.0	years
Fair value of the underlying ordinary shares	US$7.99 (equivalent to RMB55.11)

Intangible assets, net

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

9.	Intangible assets, net

Intangible assets, net consisted of the following:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Software	103,509	109,495
Less: accumulated amortization	(58,648)	(70,656)
Intangible assets, net	44,861	38,839

Amortization of intangible assets was allocated as follows:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Selling and marketing expenses	254	3
General and administrative expenses	4,670	4,899
Research and development expenses	6,840	7,105
Total amortization	11,764	12,007

10. Intangible assets, net

Intangible assets, net consisted of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Software	69,840	103,509
Less: accumulated amortization	(38,718)	(58,648)
Intangible assets, net	31,122	44,861

Amortization of intangible assets was allocated as follows:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Cost of revenues	96	77	—
Selling and marketing expenses	1,027	876	257
General and administrative expenses	2,535	5,845	9,730
Research and development expenses	16,820	15,089	14,045
Total amortization	20,478	21,887	24,032

The estimated amortization for existing intangible assets in each of the next five years is RMB22,911, RMB14,524, RMB6,847, RMB579 and nil, respectively.

Leases - Future minimum lease payments (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Jan. 01, 2022 CNY (¥)
Future minimum lease payments
2023	¥ 17,210		¥ 35,354
2024	23,552		19,413
2025	29,663		19,222
2026	22,237		12,268
2027	18,604		8,644
2028 and thereafter	77,857		36,162
Total lease payments	189,123		131,063
Less imputed interest	(50,623)		(31,185)
Present value of lease liabilities	138,500		99,878
Current portion	(30,189)	$ (4,163)	(31,110)	$ (4,290)	¥ (42,094)
Operating lease liabilities, non-current	¥ 108,311	$ 14,937	¥ 68,768	$ 9,484	¥ 46,250

Cash and restricted cash (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of reconciliation of cash and restricted cash


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Cash at bank	860,472	850,373
Restricted cash	40,957	74,975
Cash and restricted cash shown in the consolidated statements of cash flows	901,429	925,348


	As of December 31,
	2021	2022
	RMB	RMB
Cash at bank	966,128	860,472
Restricted cash	23,004	40,957
Cash and restricted cash shown in the consolidated statements of cash flows	989,132	901,429

Schedule of cash and restricted cash are deposited in financial institutions

	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Financial institutions in the mainland of the PRC
– Denominated in RMB	595,559	811,100
– Denominated in US$	258,475	34,424
– Denominated in Hong Kong dollars (“HKD”)	—	92
Total cash balances held in the mainland of the PRC	854,034	845,616
Financial institutions in Hong Kong
– Denominated in US$	9,402	10,240
– Denominated in HKD	14	14
Total cash balances held in Hong Kong	9,416	10,254
Financial institutions in Sweden
– Denominated in Swedish Krona (“SEK”)	14,473	26,514
– Denominated in US$	555	210
Total cash balances held in Sweden	15,028	26,724
Financial institutions in the United Kingdom
– Denominated in Great Britain Pound (“GBP”)	22,934	42,155
Total cash balances held in the United Kingdom	22,934	42,155
Financial institutions in the United States
– Denominated in US$	17	599
Total cash balances held in the United States	17	599
Total cash balances held at financial institutions in RMB	901,429	925,348


	As of December 31,
	2021	2022
	RMB	RMB
Financial institutions in the mainland of the PRC
– Denominated in RMB	755,855	595,559
– Denominated in US$	182,141	258,475
Total cash balances held in the mainland of the PRC	937,996	854,034
Financial institutions in Hong Kong
– Denominated in US$	—	9,402
– Denominated in Hong Kong dollars (“HKD”)	—	14
Total cash balances held in Hong Kong	—	9,416
Financial institutions in Sweden
– Denominated in Swedish Krona (“SEK”)	28,986	14,473
– Denominated in US$	—	555
Total cash balances held in Sweden	28,986	15,028
Financial institutions in the United Kingdom
– Denominated in Great Britain Pounds (“GBP”)	22,150	22,934
Total cash balances held in the United Kingdom	22,150	22,934
Financial institutions in the United States
– Denominated in US$	—	17
Total cash balances held in the United States	—	17
Total cash balances held at financial institutions in RMB	989,132	901,429

Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2023
Cover [Abstract]
Document Type	POS AM
Entity Registrant Name	ECARX Holdings Inc.
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Central Index Key	0001861974
Amendment Flag	true
Amendment Description	On June 20, 2023, ECARX Holdings Inc. (the "Registrant") filed Amendment No. 1 to a Registration Statement on Form F-1 (File No. 333-271861) (as amended, the "Registration Statement"), which was subsequently declared effective by the U.S. Securities and Exchange Commission (the "SEC") on June 30, 2023. The Registrant is filing this post-effective amendment No. 1 to the Registration Statement to include its unaudited condensed consolidated financial statements as of June 30, 2023 and for the six months ended June 30, 2023 and to update certain other information contained in the Registration Statement. The Registrant is also restating its consolidated financial statements as of December 31, 2022 and 2021, and for each of the years in the two-year period ended December 31, 2022 as a result of its acquisition of JICA Intelligent Robotics Co., Ltd. ("JICA Intelligent"), an entity under common control, on June 30, 2023, which constituted a combination between entities under common control. Please see Note 29(b) of our consolidated financial statements included elsewhere in this prospectus. No additional securities are being registered by this post-effective amendment. All applicable registration fees were paid at the time of the original filing of the Registration Statement on Form F-1.

Share based compensation - Activities of options (Details) - 2021 Option Plan - $ / shares	1 Months Ended		5 Months Ended	6 Months Ended	12 Months Ended
	Jan. 31, 2023	Jul. 31, 2021	Dec. 31, 2021	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Number of options
Outstanding at January 1, 2023	12,853,364			12,853,364	13,281,043
Granted			13,575,733	63,464	2,354,744		13,575,733
Forfeited				(1,527,342)	(2,782,423)	(294,690)
Outstanding at June 30, 2023			13,281,043	11,389,486	12,853,364	13,281,043
Vested and expected to vest as of December 31, 2021			12,853,364	11,389,486		12,853,364
Exercisable as of December 31, 2021				8,311,048	6,843,970
Weighted Average Exercise Price
Outstanding at January 1, 2023	$ 9.70			$ 9.70	$ 9.70
Granted	9.70	$ 9.70		9.70	9.70		$ 9.70
Forfeited				9.70	9.70	$ 9.70
Outstanding at June 30, 2023			$ 9.70	9.70	9.70	9.70
Vested and expected to vest as of December 31, 2021			9.70	9.70		9.70
Exercisable as of December 31, 2021				9.70	9.70
Weighted Average Fair value at grant date
Outstanding at January 1, 2023	$ 3.14			3.14	2.92
Granted				3.80	3.39		$ 2.92
Forfeited				3.26	2.31	2.92
Outstanding at June 30, 2023			2.92	3.13	3.14	2.92
Vested and expected to vest as of December 31, 2021			$ 3.14	3.13		$ 3.14
Exercisable as of December 31, 2021				$ 2.94	$ 2.92
Weighted remaining contractual years
Vested and expected to vest as of December 31, 2021				8 years 2 months 23 days		8 years 9 months 4 days
Exercisable as of December 31, 2021				8 years 2 months 8 days	8 years 9 months 4 days

Leases - Future minimum lease payments (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Jan. 01, 2022 CNY (¥)
Future minimum lease payments
2023	¥ 17,210		¥ 35,354
2024	23,552		19,413
2025	29,663		19,222
2026	22,237		12,268
2027	18,604		8,644
2028 and thereafter	77,857		36,162
Total lease payments	189,123		131,063
Less imputed interest	(50,623)		(31,185)
Present value of lease liabilities	138,500		99,878
Current portion	30,189	$ 4,163	31,110	$ 4,290	¥ 42,094
Operating lease liabilities, non-current	¥ 108,311	$ 14,937	¥ 68,768	$ 9,484	¥ 46,250

Contract liabilities (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Contract liabilities
Current liabilities - third parties	¥ 4,706	¥ 2,685		¥ 6,073	$ 838	$ 649
Contract liabilities - related parties	316,667	363,285		386,344	53,279	43,670
Contract liabilities - third parties	70	317		12	2	10
Non-current liabilities - related parties	282,080	472,749		203,976	$ 28,130	$ 38,901
Contract liabilities, current and non-current .	603,523	839,036		596,405
Revenue recognized from contract liabilities	364,004	159,371	¥ 163,225
Transaction price allocated to the performance obligation	¥ 603,523	¥ 839,036		¥ 596,405

Accounts receivable, net (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Accounts receivable, net
Accounts receivable - third parties	¥ 296,449		¥ 422,743		¥ 184,546
Less: Allowance for doubtful accounts, third parties	(8,216)		(4,521)
Accounts receivable - third parties, net	288,233	$ 39,749	418,222	$ 57,675	184,546
Accounts receivable - related parties	807,621		837,686		768,747
Less: Allowance for doubtful accounts	(3,354)		(2,366)
Accounts receivable - related parties, net	¥ 804,267		¥ 835,320		¥ 768,747

Summary of significant accounting policies - JICA consolidated financial statements (Details) ¥ in Thousands, $ in Thousands	6 Months Ended			12 Months Ended
	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
ASSETS
Current assets	¥ 3,100,363			¥ 3,853,333		¥ 2,592,163		$ 427,560	$ 531,398
Non-current assets	901,725			877,699		1,315,417		124,354	121,041
Total assets	4,002,088			4,731,032		3,907,580		551,914	652,439
LIABILITIES
Current liabilities	3,522,606			3,927,441		2,754,861		485,789	541,617
Non-current liabilities	824,043			838,047		489,358		113,642	115,574
Total liabilities	4,346,649			4,765,488		3,244,219		$ 599,431	$ 657,191
Revenues	1,717,437		¥ 1,313,992	3,561,994	$ 491,222	2,779,063	¥ 2,241,063
Total cost of revenues	(1,209,902)	$ (166,853)	(886,040)	(2,568,115)	(354,159)	(1,962,000)	(1,689,675)
Gross profit	507,535	69,992	427,952	993,879	137,063	817,063	551,388
Loss from operations	(381,972)	(52,677)	(677,752)	(1,628,221)	(224,541)	(1,000,178)	(430,481)
Loss before income taxes	(411,001)	(56,681)	(586,733)	(1,578,081)	(217,626)	(1,169,897)	(439,776)
Net loss	(380,586)	$ (52,487)	(581,481)	(1,564,164)	$ (215,706)	¥ (1,173,955)	¥ (439,659)
JICA
ASSETS
Current assets	519,803			572,259
Non-current assets	45,941			43,655
Total assets	565,744			615,914
LIABILITIES
Current liabilities	384,556			486,351
Non-current liabilities	9,602			9,229
Total liabilities	394,158			¥ 495,580
Revenues	12,614		1,422
Total cost of revenues	(5,563)		(117)
Gross profit	7,051		1,305
Loss from operations	(102,651)		(64,065)
Loss before income taxes	(100,278)		(33,389)
Net loss	¥ (100,278)		¥ (40,882)

Income taxes - Withholding tax on undistributed dividends (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income taxes
Withholding tax rate (in percent)	10.00%
Deferred tax liability accrued for dividend withholding taxes	¥ 0	¥ 0

Leases - Components of lease cost (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Leases
Operating lease cost	¥ 22,854	¥ 23,502	¥ 47,163
Short-term lease cost	1,660	2,679	4,234
Total	¥ 24,514	¥ 26,181	¥ 51,397

Intangible assets, net (Details) - CNY (¥) ¥ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Intangible assets, net
Less: accumulated amortization	¥ (70,656)	¥ (58,648)	¥ (38,718)
Intangible assets, net	38,839	44,861	31,122
Software
Intangible assets, net
Intangible assets	¥ 109,495	¥ 103,509	¥ 69,840

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT (Parenthetical) - CNY (¥) ¥ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT
Foreign currency translation adjustments, tax	¥ 0	¥ 0	¥ 0	¥ 0	¥ 0
Net loss attributable to redeemable non-controlling interests		¥ 464	¥ 464	¥ 806

Short-term borrowings

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Short-term borrowings

10.

Short-term borrowings

Short-term borrowings consisted of the following:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Unsecured bank loans	870,000	870,000

As of December 31, 2022, the Group’s short-term borrowings bear interest rates of 4.30%, 4.35% and 4.38% per annum. As of June 30, 2023, the Group’s short-term borrowings bear interest rates of 4.30%, 4.35% and 3.80% per annum. As of December 31, 2022 and June 30, 2023, the Group had a total line of credit in the amount of RMB1,110,000 and RMB870,000, of which the unused portion was RMB140,000 and nil, respectively.

Short-term borrowings of RMB870,000 as of December 31, 2022 and June 30, 2023 were guaranteed by Hubei ECARX, which is a related party of the Group after the VIE Restructuring.

11.

Short-term borrowings

Short-term borrowings consisted of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Unsecured bank loans	932,000	870,000

As of December 31, 2021, the Group’s short-term borrowings bear an interest rate of 4.00% per annum. As of December 31, 2022, the Group’s short-term borrowings bear interest rates of 4.30%, 4.35% and 4.38% per annum. As of December 31, 2021 and 2022, the Group had a total line of credit in the amount of RMB1,000,000 and RMB1,110,000, of which the unused portion was RMB172,696 and RMB140,000, respectively.

Short-term borrowings of nil and RMB870,000 as of December 31, 2021 and 2022, respectively, were guaranteed by Hubei ECARX, which is a related party of the Group after the Restructuring as disclosed in the Note 1(d).

Notes receivable

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Notes receivable

Net loss available to ECARX Holdings Inc

4.	Notes receivable

The Group collects notes receivable from its customers for sales of automotive computing platform, SoC Core Modules and other products. Notes receivable as of December 31, 2022 and June 30, 2023 are bank acceptance notes, among which RMB25,034 and RMB26,126, respectively, are pledged as collateral to secure the Group’s liability for notes payable issued by China Merchants Bank and China Industrial Bank. The notes payables are used for settlement between the Group and its suppliers on the purchase of raw materials and other inventories.

5.	Notes receivable

The Group collects notes receivable from its customers for sales of automotive computing platform, SoC Core Modules and other products. Notes receivable as of December 2021 and 2022 are bank acceptance notes, among which, RMB110,550 and RMB25,034, respectively, are pledged as collateral to secure the Group’s liability for notes payable issued by China Merchants Bank and China Industrial Bank. The notes payables are used for settlement between the Group and its suppliers on the purchase of raw materials and other inventories.

Loss per share (Details)
¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands

6 Months Ended

12 Months Ended

Jun. 30, 2023

CNY (¥)

¥ / shares

Jun. 30, 2023

USD ($)

$ / shares

Jun. 30, 2022

CNY (¥)

¥ / shares

Dec. 31, 2022

CNY (¥)

¥ / shares

Dec. 31, 2022

USD ($)

$ / shares

Dec. 31, 2021

CNY (¥)

¥ / shares

Dec. 31, 2020

CNY (¥)

¥ / shares

Numerator:

¥ (380,586)

$ (52,487)

¥ (582,195)

¥ (1,564,878)

$ (215,804)

¥ (1,175,261)

¥ (439,659)

Accretion of Redeemable Convertible Preferred Shares

(177,842)

(354,878)

(48,940)

(243,564)

(101,286)

Numerator for basic and diluted net loss per share calculation

¥ (380,586)

$ (52,487)

¥ (760,037)

¥ (1,919,756)

$ (264,744)

¥ (1,418,825)

¥ (540,945)

Weighted average number of ordinary shares used in computing loss per ordinary share

Basic

337,395,390

236,248,112

239,296,386

^[1],[2]

239,296,386

^[1],[2]

236,691,093

^[1],[2]

238,591,421

^[1],[2]

Diluted

337,395,390

236,248,112

239,296,386

236,691,093

238,591,421

Loss per ordinary share - Basic | (per share)

¥ (1.13)

$ (0.16)

¥ (3.22)

¥ (8.02)

$ (1.11)

^[2]

¥ (5.99)

^[2]

¥ (2.27)

^[2]

Loss per ordinary share Diluted | (per share)

¥ (1.13)

$ (0.16)

¥ (3.22)

¥ (8.02)

$ (1.11)

¥ (5.99)

¥ (2.27)

[1]	Shares outstanding for all periods reflect the adjustment for Recapitalization.
[2]	Shares outstanding for all periods reflect the adjustment for Recapitalization.

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

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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: 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 7: http://www.xbrl.org/2003/role/disclosureRef
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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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Inventories - Additional Information (Details) ¥ in Thousands, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023 CNY (¥)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Inventories
Inventory write-down	¥ 9,535	¥ 5,162	¥ 35,406	$ 4,883	¥ 49,485	¥ 44,134

Cash and restricted cash

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Cash and restricted cash

2.	Cash and restricted cash

A reconciliation of cash and restricted cash in the unaudited condensed consolidated balance sheets to the amounts in the unaudited condensed consolidated statements of cash flows is as follows:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Cash at bank	860,472	850,373
Restricted cash	40,957	74,975
Cash and restricted cash shown in the consolidated statements of cash flows	901,429	925,348

Cash and restricted cash are deposited in financial institutions at the locations noted below:

	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Financial institutions in the mainland of the PRC
– Denominated in RMB	595,559	811,100
– Denominated in US$	258,475	34,424
– Denominated in Hong Kong dollars (“HKD”)	—	92
Total cash balances held in the mainland of the PRC	854,034	845,616
Financial institutions in Hong Kong
– Denominated in US$	9,402	10,240
– Denominated in HKD	14	14
Total cash balances held in Hong Kong	9,416	10,254
Financial institutions in Sweden
– Denominated in Swedish Krona (“SEK”)	14,473	26,514
– Denominated in US$	555	210
Total cash balances held in Sweden	15,028	26,724
Financial institutions in the United Kingdom
– Denominated in Great Britain Pound (“GBP”)	22,934	42,155
Total cash balances held in the United Kingdom	22,934	42,155
Financial institutions in the United States
– Denominated in US$	17	599
Total cash balances held in the United States	17	599
Total cash balances held at financial institutions in RMB	901,429	925,348

3.	Cash and restricted cash

A reconciliation of cash and restricted cash in the consolidated balance sheets to the amounts in the consolidated statement of cash flows is as follows:


	As of December 31,
	2021	2022
	RMB	RMB
Cash at bank	966,128	860,472
Restricted cash	23,004	40,957
Cash and restricted cash shown in the consolidated statements of cash flows	989,132	901,429

Cash and restricted cash are deposited in financial institutions at the locations noted below:


	As of December 31,
	2021	2022
	RMB	RMB
Financial institutions in the mainland of the PRC
– Denominated in RMB	755,855	595,559
– Denominated in US$	182,141	258,475
Total cash balances held in the mainland of the PRC	937,996	854,034
Financial institutions in Hong Kong
– Denominated in US$	—	9,402
– Denominated in Hong Kong dollars (“HKD”)	—	14
Total cash balances held in Hong Kong	—	9,416
Financial institutions in Sweden
– Denominated in Swedish Krona (“SEK”)	28,986	14,473
– Denominated in US$	—	555
Total cash balances held in Sweden	28,986	15,028
Financial institutions in the United Kingdom
– Denominated in Great Britain Pounds (“GBP”)	22,150	22,934
Total cash balances held in the United Kingdom	22,150	22,934
Financial institutions in the United States
– Denominated in US$	—	17
Total cash balances held in the United States	—	17
Total cash balances held at financial institutions in RMB	989,132	901,429

As of December 31, 2021 and 2022, the Group’s restricted cash of RMB23,004 and RMB40,957 were pledged for notes payable.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
¥ in Thousands, $ in Thousands

6 Months Ended

12 Months Ended

Jun. 30, 2023

CNY (¥)

¥ / shares

Jun. 30, 2023

USD ($)

$ / shares

Jun. 30, 2022

CNY (¥)

¥ / shares

Dec. 31, 2022

CNY (¥)

¥ / shares

Dec. 31, 2022

USD ($)

$ / shares

Dec. 31, 2021

CNY (¥)

¥ / shares

Dec. 31, 2020

CNY (¥)

¥ / shares

Revenues

¥ 1,717,437

$ 236,845

¥ 1,313,992

Research and development expenses (including related parties amounts of RMB29,642 and RMB5,610 for the six months ended June 30, 2022 and 2023, respectively)

(1,209,902)

(166,853)

(886,040)

¥ (2,568,115)

$ (354,159)

¥ (1,962,000)

¥ (1,689,675)

Gross profit

507,535

69,992

427,952

993,879

137,063

817,063

551,388

(481,600)

(66,416)

(643,991)

(1,332,800)

(183,802)

(1,209,580)

(706,018)

Selling and marketing expenses (including related parties amounts of RMB64 and nil for the six months ended June 30, 2022 and 2023, respectively)

(36,931)

(5,093)

(34,738)

(86,597)

(11,942)

(82,827)

(60,643)

General and administrative expenses (including related parties amounts of RMB1,004 and RMB2,131 for the six months ended June 30, 2022 and 2023, respectively)

(377,343)

(52,038)

(425,441)

(1,223,610)

(168,744)

(525,041)

(215,008)

Other income - related parties

7,055

973

22,846

3,151

Others, net

(688)

(95)

(1,534)

(1,939)

(267)

207

(200)

Total operating expenses

(889,507)

(122,669)

(1,105,704)

(2,622,100)

(361,604)

(1,817,241)

(981,869)

Loss from operation

(381,972)

(52,677)

(677,752)

(1,628,221)

(224,541)

(1,000,178)

(430,481)

Interest income (including related parties amounts of RMB2,759 and RMB6,771 for the six months ended June 30, 2022 and 2023, respectively)

17,885

2,466

5,257

13,820

1,906

13,655

28,480

Interest expenses (including related parties amounts of RMB1,622 and RMB6,116 for the six months ended June 30, 2022 and 2023, respectively)

(38,228)

(5,272)

(15,835)

(44,543)

(6,143)

(131,585)

(59,128)

Loss from equity method investments

(25,414)

(3,505)

(52,493)

(71,928)

(9,919)

(3,891)

148

Change in fair value of an equity security

27,722

3,823

(16,843)

(2,323)

Unrealized gains on equity securities

34,615

59,728

8,237

Gains on deconsolidation of a subsidiary

71,974

9,926

10,579

Change in fair value of warrant liabilities

4,781

659

(3,245)

(448)

(111,299)

(39,635)

Change in fair value of derivative financial assets

16,189

2,233

Government grants

2,695

372

58,157

59,393

8,191

34,507

5,998

Foreign currency exchange gain (loss), net

(34,659)

(4,780)

(10,656)

(18,216)

(2,512)

18,315

54,842

Loss before income taxes

(411,001)

(56,681)

(586,733)

(1,578,081)

(217,626)

(1,169,897)

(439,776)

Income tax expenses

(326)

(45)

(7,925)

(29,065)

(4,008)

(6,861)

(228)

Net loss attributable to non-redeemable non-controlling interests

(411,327)

(56,726)

(594,658)

(1,607,146)

(221,634)

(1,176,758)

(440,004)

30,741

4,239

12,713

42,518

5,864

1,997

345

Net loss attributable to redeemable non-controlling interests

464

806

Net loss attributable to ECARX Holdings Inc

(380,586)

(52,487)

(581,481)

(1,564,164)

(215,706)

(1,173,955)

(439,659)

Accretion of redeemable non-controlling interests

(714)

(98)

(1,306)

Net loss available to ECARX Holdings Inc

(380,586)

(52,487)

(582,195)

(1,564,878)

(215,804)

(1,175,261)

(439,659)

Accretion of Redeemable Convertible Preferred Shares

(177,842)

(354,878)

(48,940)

(243,564)

(101,286)

Net loss available to ECARX Holdings Inc. ordinary shareholders

¥ (380,586)

$ (52,487)

¥ (760,037)

¥ (1,919,756)

$ (264,744)

¥ (1,418,825)

¥ (540,945)

Loss per ordinary share

Basic | (per share)

¥ (1.13)

$ (0.16)

¥ (3.22)

¥ (8.02)

$ (1.11)

^[1]

¥ (5.99)

^[1]

¥ (2.27)

^[1]

Diluted | (per share)

¥ (1.13)

$ (0.16)

¥ (3.22)

¥ (8.02)

$ (1.11)

¥ (5.99)

¥ (2.27)

Weighted average number of ordinary shares used in computing loss per ordinary share

Basic

337,395,390

236,248,112

239,296,386

^[1],[2]

239,296,386

^[1],[2]

236,691,093

^[1],[2]

238,591,421

^[1],[2]

Diluted

337,395,390

236,248,112

239,296,386

236,691,093

238,591,421

Foreign currency translation adjustments, net of nil income taxes

¥ (411,327)

$ (56,726)

¥ (594,658)

¥ (1,607,146)

$ (221,634)

¥ (1,176,758)

¥ (440,004)

Other comprehensive loss:

48,996

6,757

(214,315)

(391,934)

(54,050)

4,551

1,497

Comprehensive loss

(362,331)

(49,969)

(808,973)

(1,999,080)

(275,684)

(1,172,207)

(438,507)

Comprehensive (income) loss attributable to non-redeemable non-controlling interests

30,741

4,239

12,713

42,518

5,864

1,997

345

Comprehensive loss attributable to redeemable non-controlling interests

464

806

Comprehensive loss attributable to ECARX Holdings Inc

(331,590)

(45,730)

(795,796)

(1,956,098)

(269,756)

(1,169,404)

(438,162)

Sales of goods

Revenues

1,264,263

174,350

858,080

(1,000,190)

(137,933)

(687,208)

(1,970,845)

(271,792)

(1,749,188)

(1,524,744)

Software license

Revenues

215,641

29,738

78,995

(37,210)

(5,131)

(29,577)

(126,807)

(17,487)

(32,164)

(27,926)

Service

Revenues

237,533

32,757

376,917

¥ (172,502)

$ (23,789)

¥ (169,255)

¥ (470,463)

$ (64,880)

¥ (180,648)

¥ (137,005)

[1]	Shares outstanding for all periods reflect the adjustment for Recapitalization.
[2]	Shares outstanding for all periods reflect the adjustment for Recapitalization.

Summary of significant accounting policies

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Summary of significant accounting policies

1.	Summary of significant accounting policies

(a)

Basis of presentation

(b)

A combination between entities under common control


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
ASSETS
Current assets	572,259	519,803
Non-current assets	43,655	45,941
Total assets	615,914	565,744

LIABILITIES
Current liabilities	486,351	384,556
Non-current liabilities	9,229	9,602
Total liabilities	495,580	394,158


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Revenues	1,422	12,614
Cost of revenues	(117)	(5,563)
Gross profit	1,305	7,051

Loss from operations	(64,065)	(102,651)
Loss before income taxes	(33,389)	(100,278)
Net loss	(40,882)	(100,278)

(c)

Risks and concentration

Concentration of credit risk

Concentration of customers and suppliers

The following table summarizes customers with greater than 10.0% of the accounts receivable - related parties, net:


	As of December 31,		As of June 30,
	2022		2023
Customer A, a related party	92.1	%	79.2	%
Customer B, a related party	Less than 10.0	%	10.5	%

The following table summarizes customers with greater than 10.0% of the accounts receivable - third parties, net:


	As of December 31,		As of June 30,
	2022		2023
Customer C, a third party	48.9	%	40.4	%
Customer D, a third party	30.4	%	29.7	%
Customer E, a third party	Less than 10.0	%	10.6	%
Customer F, a third party	Less than 10.0	%	12.6	%

Customers contributing more than 10.0% of total revenues were as follows:


	Six Months Ended June 30,
	2022		2023
Customer A, a related party	73.6	%	73.7	%
Customer C, a third party	11.4	%	Less than 10.0	%

The following table summarizes suppliers with greater than 10.0% of the accounts payable:


	As of December 31,		As of June 30,
	2022		2023
Supplier A, a third party	19.0	%	18.5	%
Supplier B, a third party	10.9	%	Less than 10.0	%
Supplier C, a third party	19.1	%	17.6	%

Suppliers contributing more than 10.0% of total purchases were as follows:


	Six Months Ended June 30,
	2022		2023
Supplier D, a third party	12.5	%	Less than 10.0	%
Supplier A, a third party	14.5	%	23.3	%
Supplier E, a related party	10.7	%	Less than 10.0	%
Supplier C, a third party	Less than 10.0	%	13.3	%

(d)

Credit losses

(e)

Fair value measurements

(f)

Convenience translation

2.	Summary of significant accounting policies

(a)

Basis of presentation

These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).

The consolidated financial statements are presented in Renminbi (“RMB”), rounded to the nearest thousand.

(b)

Principles of consolidation

The consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries. Prior to the completion of the VIE Reorganization, the consolidated financial statements also included the financial statements of the VIE in which the Company, through its WFOE, had a controlling financial interest, and the VIE’s subsidiaries. All intercompany transactions and balances among the Company, its subsidiaries and the VIEs have been eliminated upon consolidation. Noncontrolling interests are separately presented as a component of shareholders’ deficit in the consolidated financial statements.

(c)

Use of estimates

The preparation of the 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, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported period in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but not limited to, service period of connectivity services; allowance for doubtful accounts receivables, other non-current assets and amounts due from related parties; realizability of inventories; accrual for warranty obligations; useful lives and recoverability of property, equipment and intangible assets and right-of-use assets; recoverability of long-term investments; valuation allowance of deferred tax assets; fair values of share-based compensation awards, redeemable convertible preferred shares, warrant liabilities, and incremental borrowing rates of the Group’s leases. Changes in facts and circumstances may result in these estimates to be revised. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements.

(d)

Cash and restricted cash

Cash consists of cash at bank. Restricted cash represents cash that cannot be withdrawn without the permission of third parties. The Group’s restricted cash are bank deposits pledged for notes payable.

(e)

Contract liabilities

The timing of revenue recognition, billings and cash collections result in accounts receivable and contract liabilities. The Group’s contract liabilities consist of advance payments from clients and billings in excess of revenues recognized. The Group classifies contract liabilities as current or noncurrent based on the timing of when the Group expects to recognize the revenues.

(f)Accounts receivable

Accounts receivable represent those receivables derived in the ordinary course of business when the Group has sold the products or provided services to its customers and when its right to consideration is unconditional (i.e., only the passage of time is required before payment is due). Accounts receivable are presented net of allowance for doubtful accounts. The Group maintains a general and specific allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. Accounts receivable balances with large creditworthy customers are reviewed by management individually for collectability. All other balances are reviewed on a pooled basis. A percentage of general allowance is applied to the balances of accounts receivable in each aging category, excluding those which are assessed individually for collectability. Management considers various factors, including historical loss experience, current market conditions, the financial condition of its debtors, any receivables in dispute, the aging of receivables and current payment patterns of its debtors, in establishing the required allowance.

An allowance for doubtful accounts is recorded into general and administrative expenses. Accounts receivable which are deemed to be uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group does not have any off-balance-sheet credit exposure related to its customers.

(g)Notes receivable

Notes receivable are primarily bank acceptance notes issued by reputable financial institutions that entitle the Group to receive the full face value amount from the financial institutions at maturity, which is typically six months from the date of issuance. The Group accepts bank acceptance notes from customers for products sold or services performed in the ordinary course of business. Upon receipt of the bank acceptance notes, the Group’s accounts receivable from the customer is derecognized.

(h)Inventories

Inventories consist of raw materials, work-in-process, and finished goods, are accounted for using the first-in-first-out method and are valued at the lower of cost and net realizable value. Net realizable value is the estimated selling price of the inventory in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation.

Cost of work-in-process and finished goods comprise primarily direct materials and manufacturing charges from outsourced factories. The Group identifies potentially slow-moving and obsolete inventories through physical counts, monitoring of inventories on hand and specific identification. The Group records inventory write-downs for excess or obsolete inventories based upon assumptions on current and future demand forecasts. If the inventory on hand is in excess of future demand forecast, the excess amounts are written off. Write-downs to inventory are recorded in the cost of revenues to reduce the carrying amount of any obsolete and excess inventories to their estimated net realizable value.

(i)Long-term investments

Equity method 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 controls the investee otherwise.

Under the equity method of accounting, the Group’s share of the investees’ results of operations is reported as income (loss) from equity method investments in the consolidated statements of comprehensive loss. When the Group’s share of losses in the equity investee equals or exceeds its interest in the equity investee, the Group does not recognize further losses, unless the Group has incurred obligations or made payments or guarantees on behalf of the equity investee, or the Group holds other investments in the investee.

The Group recognizes an impairment loss when there is a decline in value below the carrying value of the equity method investment that is considered to be other-than-temporary. The process of assessing and determining whether impairment on an investment is other-than-temporary requires a significant amount of judgment. To determine whether an impairment is other-than-temporary, management considers whether it has the ability and intent to hold the investment until recovery and whether evidence indicating the carrying value of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the decline in value and any change in value subsequent to the period end.

Equity securities

Equity investments without readily determinable fair values which do not qualify for net asset value per share (or its equivalent) practical expedient and over which the Group does not have the ability to exercise significant influence through the investments in common stock, are initially measured at cost under the measurement alternative. Subsequently, these equity investments are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. All gains and losses on these investments, realized and unrealized, are recognized in the consolidated statements of comprehensive loss.

The Group makes a qualitative assessment considering impairment indicators to evaluate whether the equity investments without a readily determinable fair value is impaired at each reporting period and recognizes an impairment loss equal to the difference between the carrying value and fair value in earnings.

(j)

Property and equipment

Property and equipment are carried at cost less accumulated depreciation and impairment, if any.

Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets as below:


Category		Estimated useful life
Machinery and electronic equipment		3 – 10 years
Transportation vehicles		4 years
Office and other equipment		5 years
Leasehold improvement		Shorter of the lease term and the estimated useful lives of the assets

Construction in progress represents property and equipment under construction. Construction in progress is transferred to property and equipment and depreciation commences when an asset is ready for its intended use.

Gains or losses arising from the disposal of an item of property and equipment are determined based on the difference between the net disposal proceeds and the carrying amount of the item and are recognized in profit or loss on the date of disposal.

(k)

Intangible assets

Intangible assets primarily consist of purchased software, which are carried at cost less accumulated amortization and impairment, if any. Intangible assets are amortized using the straight-line method over the estimated useful lives of 3 years.

(l)

Impairment of long-lived assets

Long-lived assets, including property and equipment, intangible assets, and right-of-use assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Group first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary.

(m)

Product warranties

The Group provides product warranties on all applicable products based on the contracts with its customers at the time of sale of products. The Group accrues a warranty reserve for the products sold, which includes the best estimate of projected costs to settle indemnity for claims under warranties. Factors that affect the Group’s warranty obligation include product defect rates and costs of repair or replacement. These factors are estimates that may change based on new information that becomes available each period. The portion of the warranty reserve expected to be incurred within the next 12 months is included within accrued expense and other current liabilities while the remaining balance is included within other non- current liabilities on the consolidated balance sheets. Warranty cost is recorded as a component of cost of goods sold in the consolidated statements of comprehensive loss. The Group reevaluates the adequacy of the warranty accrual on a regular basis.

The Group recognizes the benefit from a recovery of the costs associated with the warranty when specifics of the recovery have been agreed with the Group’s suppliers and the amount of the recovery is virtually certain.

(n)

Value added taxes

The Company’s PRC subsidiaries and VIEs are subject to value added tax (“VAT”) on its products and services, less any deductible VAT the Group has already paid or borne. They are also subject to surcharges on VAT payments in accordance with PRC law. VAT is not included in the revenue recognized for the Group. Revenue from sales of products and provision of services are generally subject to VAT at the rate of 6% to 13%, and subsequently paid to PRC tax authorities after netting input VAT on purchases.

The excess of output VAT over input VAT is reflected in accrued expenses and other current liabilities, and the excess of input VAT over output VAT is reflected in prepayments and other current assets in the consolidated balance sheets.

(o)Commitments and contingencies

In the normal course of business, the Group is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, and non-income tax matters. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed.

(p)

Fair value measurement

The fair value hierarchy consists of the following three levels:

Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 — Includes other inputs that are directly or indirectly observable in the marketplace.

Level 3 — Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable.

(q)

Revenue recognition

The Group generates revenues from sales of goods, software license and services.

Sales of goods

Sales of goods include the following products:

SoC core modules, where the Group sells standardized computing board, which integrates SoC with core integrated circuits and peripherals to Tier 1 automotive suppliers or the OEMs; and

Automotive merchandise and other products, which are primarily basic electronic components such as resistor, capacitor and circuit board sold to automotive suppliers.

Software license revenues

Service revenues

The Group generates revenues by provision of the following services:

Automotive computing platform design and development service;

Connectivity service, which enables end-users of automobiles access internet; and,

The amount of consideration that the Group expects to receive in the future and that the Group has received but not recognized as revenue, for providing the design and development services, less

The costs that relate directly to providing those services and that have not been recognized as expenses.

(r)

Research and development expenses

Research and development expenses mainly consist of direct material cost, outsourced development expenses, payroll, share-based compensation related to research and development personnel, and expenses associated with the use of facilities and equipment by these functions, such as lease rental and depreciation. Research and development expenses are expensed as incurred.

(s)

Selling and marketing expenses

Selling and marketing expense mainly consists of payroll and share-based compensation related to the selling and marketing activities, advertising costs, rental, depreciation related to selling and marketing functions. Advertising costs are expensed as incurred. The advertising costs were RMB5,139, RMB13,674 and RMB11,800 for the years ended December 31, 2020, 2021 and 2022, respectively.

(t)

Government grants

Government grants are recognized when there is reasonable assurance that the Group will comply with the conditions attached to it and the grants will be received. Government grant with no future related costs is recognized as income in the Group’s consolidated statement of comprehensive loss when the grant becomes receivable.

(u)

Income tax

Current income taxes are provided on the basis of income before income taxes for financial reporting purposes and adjusted for income and expense items which are not taxable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions.

Deferred income taxes are provided using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the tax consequences attributable to differences between carrying amounts of assets and liabilities in the financial statements and their respective tax bases, and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive loss in the period that includes the enactment date.

A valuation allowance is provided to reduce the amount of deferred income tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred income tax assets will not be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of futures profitability, the duration of statutory carryforward periods, the Group’s operating history and tax credit carryforwards, if any, not expiring.

The Group applies a “more-likely-than-not” recognition threshold in the evaluation of uncertain tax positions. The Group recognizes the benefit of a tax position in its consolidated financial statements if the tax position is “more-likely-than-not” to prevail based on the facts and technical merits of the position. Tax positions that meet the “more-likely-than-not” recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. Unrecognized tax benefits may be affected by changes in interpretation of laws, rulings of tax authorities, tax audits, and expiry of statutory limitations. In addition, changes in facts, circumstances and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Accordingly, unrecognized tax benefits are periodically reviewed and re-assessed. Adjustments, if required, are recorded in the Group’s consolidated financial statements in the period in which the change that necessities the adjustments occur. The ultimate outcome for a particular tax position may not be determined with certainty prior to the conclusion of a tax audit and, in certain circumstances, a tax appeal or litigation process. The Group records interest and penalties related to unrecognized tax benefits (if any) in interest expense and general and administrative expenses, respectively.

(v)

Share-based compensation

The Group measures the cost of employee and non-employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes the cost over the period the employee and non-employee is required to provide service in exchange for the award, which generally is the vesting period. For graded vesting awards with only service condition, the Group recognizes compensation cost on a straight-line basis over the requisite service period for the entire award, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant-date value of such award that is vested at that date. For awards with performance conditions, compensation cost is recognized over the estimated vesting period if it is probable that the performance condition will be achieved.

The Group elects to recognize the effect of forfeitures in compensation costs when they occur. To the extent the required vesting conditions are not met resulting in the forfeiture of the share-based awards, previously recognized compensation expense relating to those awards is reversed.

(w)

Employee benefits

The Company’s subsidiaries and the VIEs in the PRC participate in a government mandated, multi- employers, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. PRC labor laws require the entities incorporated in the PRC to pay to the local labor bureau a monthly contribution calculated at a stated contribution rate on the monthly basic compensation of qualified employees. The Group has no further commitments beyond its monthly contribution. Employee social benefits included as expenses in the accompanying consolidated statements of comprehensive loss amounted to RMB95,913, RMB168,971 and RMB197,669 for the years ended December 31, 2020, 2021 and 2022, respectively. In response to the COVID-19 pandemic, the PRC government has implemented relief policies to exempt or reduce enterprises’ payments to certain social benefits provided to employees during 2020. The amount of exemption and reduction for employee social benefits for the Company’s PRC subsidiaries, the VIE and VIE’s subsidiaries for the year ended December 31, 2020 was RMB22,473.

(x)

Leases

(y)

Foreign currency

The Group uses RMB as its reporting currency. Functional currency of the entities consolidated within the Group is the currency of the primary economic environment in which the entity operates. Transactions denominated in currencies other than the functional currency are remeasured into the functional currency at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in a foreign currency are remeasured into the functional currency using the applicable exchange rate at the balance sheet date. The resulted exchange differences are recorded as foreign currency exchange gains (losses), net in the consolidated statements of comprehensive loss.

The assets and liabilities of the Company’s foreign subsidiaries whose functional currency is not the RMB are translated into RMB from functional currencies at the current exchange rates while revenues and expenses are translated from functional currencies at average exchange rates. Equity accounts other than earnings (deficits) generated in the current period are translated into at the appropriate historical rates. The resulting foreign currency translation adjustments are recorded as a component of other comprehensive loss in the consolidated statements of comprehensive loss, and the accumulated foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in the consolidated statements of changes in shareholders’ deficit.

RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of the PRC government, controls the conversion of RMB to foreign currencies. The value of RMB is subject to changes of central government policies and international economic and political developments affecting supply and demand in the PRC foreign exchange trading system market.

(z)

Convenience translation

The United States dollar (“US$”) amounts disclosed in the accompanying financial statements are presented solely for the convenience of the readers. Translations of amounts from RMB into US$for the convenience of the reader were calculated at the rate of US$1.00=RMB7.2513, the certified noon buying rate set forth in the H.10 statistical release of the Federal Reserve Board on June 30, 2023. No representation is made that the RMB amounts could have been, or could be, converted into US$at that rate on December 31, 2022, or at any other rate.

(aa)Loss per share

Basic loss per share is computed by dividing net loss attributable to ordinary shareholders, taking into consideration the accretions to redemption value of redeemable convertible preferred shares, by the weighted average number of ordinary shares outstanding during the periods presented using the two-class method. Under the two-class method, any net income is allocated between ordinary shares and other participating securities based on their participating rights. ECARX Warrants (defined in the Note 13) are not participating securities, as they are not entitled to participating rights until exercised; Government Warrants (defined in the Note 13) and redeemable convertible preferred shares are participating securities, as they participate in undistributed earnings on an if-converted basis. A net loss is not allocated to participating securities when the participating securities do not have contractual obligations to share losses.

Diluted loss per share is calculated by dividing net loss attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the year. Ordinary equivalent shares consist of shares issuable upon the conversion of the redeemable convertible preferred shares and convertible notes, using the if-converted method, and ordinary shares issuable upon the exercise of warrants and share options using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted loss per share calculation when inclusion of such share would be anti-dilutive.

(bb) Segment reporting

The Group uses the management approach in determining its operating segments. The Group’s chief operating decision maker 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 Group’s chief executive officer does not segregate the Group’s business by product or service. Management has determined that the Group has one operating segment, which is automotive intelligence and networking segment.

The Group’s long-lived assets are substantially all located in the PRC and substantially all the Group’s revenues are derived from within the PRC, therefore, no geographical information is presented.

(cc) Statutory reserves

In accordance with the PRC Company Law, the paid-in capitals of the PRC subsidiaries and VIEs are not allowed to be transferred to the Company by way of cash dividends, loans or advances, nor can they be distributed except in the event of a liquidation.

In addition, in accordance with the PRC Company Law, the Group’s PRC subsidiaries and VIEs must make appropriations from their after-tax profits as determined under the generally accepted accounting principles in the PRC (“PRC GAAP”) to non-distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be 10% of the after-tax profits after offsetting any prior year losses as determined under PRC GAAP. Appropriation is not

required if the statutory surplus fund has reached 50% of the registered capital of the PRC companies. Appropriation to the discretionary surplus fund is made at the discretion of the PRC companies.

The statutory surplus fund and discretionary surplus fund are restricted for use. They may only be applied to offset losses or increase the registered capital of the respective companies. These reserves are not allowed to be transferred to the Company by way of cash dividends, loans or advances, nor can they be distributed except in the event of a liquidation.

During the years ended December 31, 2020 and 2021, the profit appropriation to statutory surplus fund for the Group’s entities incorporated in the PRC was RMB248 and RMB3,240, respectively. No appropriation to statutory surplus fund was made during the year ended December 31, 2022. As of December 31, 2020, 2021 and 2022, the balance of such statutory surplus fund amounted to RMB282, RMB3,240 and RMB3,240, respectively. The Group disposed of a PRC subsidiary in September 2021 (see Note 8).

No appropriation to the discretionary surplus fund was made by the Group’s PRC subsidiaries and VIEs.

(dd) Recently adopted accounting pronouncements

The Group early adopted ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815 — 40) from January 1, 2021. This guidance simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. ASU 2020-06 is effective for public companies for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, it is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Group early adopted ASU 2020-06 on January 1, 2021. The adoption of ASU 2020-06 did not have a material impact on the Group’s consolidated financial statements for the fiscal year ended December 31, 2021.

The Group adopted ASC Topic 842, Leases, as of January 1, 2022, using an effective date method following the modified retrospective transition approach for leases that existed on January 1, 2022, and has not recast the comparative periods presented in these consolidated financial statements. The adoption of ASC 842 did not have any impact to the accumulated deficit of the Group as of January 1, 2022. See Note 17 for further information.

(ee) New accounting pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The new standard requires the measurement and recognition of expected credit losses using the current expected credit loss model for financial assets held at amortized cost, which includes the Company’s accounts receivable, notes receivable, contract assets, amounts due from related parties and non-current assets. It replaces the existing incurred loss impairment model with an expected loss methodology. The recorded credit losses are adjusted each period for changes in expected lifetime credit losses. The standard requires a cumulative effect adjustment to the consolidated balance sheet as of the beginning of the first reporting period in which the guidance is effective. ASC 326, Financial Instruments — Credit Losses is effective for public companies for annual reporting periods, and interim periods within those years beginning after December 15, 2019. For all other entities, it is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The standard is effective for the Group from January 1, 2023. The Group is in the process of determining the impact of the adoption of this standard on its consolidated financial statements.

Inventories (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of inventories


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Raw materials	65,575	73,767
Work in process	2,999	1,095
Finished goods	113,998	111,364
Total	182,572	186,226


	As of December 31,
	2021	2022
	RMB	RMB
Raw material	117,845	65,575
Work-in-process	2,690	2,999
Finished goods	102,784	113,998
Total	223,319	182,572

Intangible assets, net (Details) - CNY (¥) ¥ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Intangible assets, net
Less: accumulated amortization	¥ (70,656)	¥ (58,648)	¥ (38,718)
Intangible assets, net	38,839	44,861	31,122
Software
Intangible assets, net
Intangible assets	¥ 109,495	¥ 103,509	¥ 69,840

Prepayments and other current assets

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

6.	Prepayments and other current assets

Prepayments and other current assets consisted of the following:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Prepayments to suppliers	210,819	351,354
Contract cost assets	192,848	285,040
Foreign exchange swaps *	—	16,247
Others	21,251	25,448
Prepayments and other current assets	424,918	678,089

A provision for RMB1,310 and nil were made for prepayments and other current assets as of December 31, 2022 and June 30, 2023, respectively.

The Group utilizes foreign currency swap contracts that are not designated as hedging instruments to manage foreign currency transaction exposure. As of June 30, 2023, the balance represents foreign exchange swaps with an aggregate notional amount of US$70,000, the fair value of which represents the estimated receipts or payments necessary to terminate the contracts. The changes in the fair value of foreign exchange swap were recorgnized in change in fair value of derivative financial assets in the unaudited condensed consolidated statements of comprehensive loss.

7.Prepayments and other current assets

Prepayments and other current assets consisted of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Prepayments to suppliers	179,744	210,819
Contract cost assets	—	192,848
Prepaid rental and deposits	7,597	—
Deferred offering costs	5,719	—
Government grants receivable	30,000	—
Others	24,351	21,251
Prepayments and other current assets	247,411	424,918

As of December 31, 2021, deferred offering costs consisted of legal expenses incurred through the balance sheet date that were directly related to the IPO. Such costs were deferred until the listing of the Company’s shares, at which time the deferred costs are offset against the offering proceeds.

As of December 31, 2021, government grants receivable represented the receivable recognized as the Group fulfilled certain operation targets pursuant to the government grants agreement. The Group received RMB30,000 in cash on July 1, 2022.

A provision for RMB3,245 and RMB1,310 was made for prepayments and other current assets as of December 31, 2021 and 2022, respectively.

Commitments and contingencies (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of future minimum lease commitments


		As of June 30,
		2023
		RMB

2023		17,210
2024		23,552
2025		29,663
2026		22,237
2027		18,604
2028 and thereafter		77,857
Total lease payments		189,123
Less imputed interest		(50,623)
Present value of lease liabilities		138,500
Current portion		30,189
Operating lease liabilities, non-current		108,311


		As of December 31,
		2022
		RMB

2023		35,354
2024		19,413
2025		19,222
2026		12,268
2027		8,644
2028 and thereafter		36,162
Total lease payments		131,063
Less imputed interest		(31,185)
Present value of lease liabilities		99,878
Current portion		31,110
Operating lease liabilities, non-current		68,768

Schedule of future minimum purchase commitments


		Less than
	Total	one year	1-2 Years	2-3 Years	3-5 Years
Purchase commitments	61,713	45,046	6,667	6,667	3,333

Purchase commitments


		Less than				Over 5
	Total	one year	1-2 Years	2-3 Years	3-5 Years	Years
Purchase commitments	99,907	79,906	6,667	6,667	6,667	—

Schedule of future minimum capital commitments

Capital commitments

Total capital expenditures contracted but not yet reflected in the unauditd condensed consolidated financial statements as of June 30, 2023 were as follows:


	Total	Less than one year
	RMB	RMB
Capital commitments	18,994	18,994

Capital commitments

Total capital expenditures contracted but not yet reflected in the consolidated financial statements as of December 31, 2022 were as follows:


	Total	Less than one year
Capital commitments	15,872	15,872

Share based compensation - Compensation expense recognized (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2023 CNY (¥)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Share based compensation
Total compensation expense recognized			¥ 524,553,000	¥ 163,481,000		¥ 11,410,000
Research and development expenses
Share based compensation
Total compensation expense recognized			42,986,000	80,872,000		6,501,000
Selling and marketing expenses
Share based compensation
Total compensation expense recognized			8,297,000	7,321,000		723,000
Cost of revenues
Share based compensation
Total compensation expense recognized				6,524,000
General and administrative expenses
Share based compensation
Total compensation expense recognized			473,270,000	68,764,000		¥ 4,186,000
2021 Option Plan
Share based compensation
Total compensation expense recognized	¥ 169,000		201,098,000
Total unrecognized compensation expense	¥ 24,873		¥ 54,976,000				$ 3,516	$ 8,284,000
Weighted-average period	2 years 2 months 23 days		2 years 9 months
2021 Option Plan \| Research and development expenses
Share based compensation
Total compensation expense recognized	¥ 84,000		¥ 93,824,000
2021 Option Plan \| Selling and marketing expenses
Share based compensation
Total compensation expense recognized	392,000		8,554,000
2021 Option Plan \| General and administrative expenses
Share based compensation
Total compensation expense recognized	(307,000)		¥ 98,720,000
RSU
Share based compensation
Total compensation expense recognized	52,057,000	¥ 195,037,000
Total unrecognized compensation expense	¥ 157,990,000						$ 22,333,000
Weighted-average period	1 year 4 months 24 days		1 year 10 months 24 days
RSU \| Research and development expenses
Share based compensation
Total compensation expense recognized	¥ 19,577,000	23,492,000
RSU \| Selling and marketing expenses
Share based compensation
Total compensation expense recognized	4,547,000	3,969,000
RSU \| General and administrative expenses
Share based compensation
Total compensation expense recognized	¥ 27,933,000	¥ 167,576,000
RSU \| 2021 Option Plan
Share based compensation
Total compensation expense recognized				¥ 105,211,000	$ 16,311,000

Short-term borrowings - Additional Information (Details) - Unsecured bank loans - CNY (¥) ¥ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Short-term borrowings
Interest rate			4.00%
Total line of credit	¥ 870,000	¥ 1,110,000	¥ 1,000,000
Unused portion of line of credit	¥ 0	140,000	172,696
Short-term borrowings guaranteed		¥ 870,000	¥ 0
Minimum
Short-term borrowings
Interest rate	4.30%	4.30%
Average
Short-term borrowings
Interest rate	4.35%	4.35%
Maximum
Short-term borrowings
Interest rate	3.80%	4.38%

Share based compensation - Additional Information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands															1 Months Ended					5 Months Ended		6 Months Ended			9 Months Ended		11 Months Ended	12 Months Ended
	Jun. 29, 2023 CNY (¥) shares	Jun. 29, 2023 USD ($) shares	Apr. 30, 2023 CNY (¥) shares	Apr. 30, 2023 USD ($) shares	Jan. 31, 2023 CNY (¥) shares	Jan. 31, 2023 USD ($) shares	Oct. 31, 2022 CNY (¥) shares	Oct. 31, 2022 USD ($) shares	Aug. 20, 2022 CNY (¥) shares	Aug. 20, 2022 USD ($) shares	Jan. 30, 2022 $ / shares	Jan. 20, 2022 $ / shares	Nov. 30, 2021 $ / shares	Mar. 31, 2021	Jun. 30, 2023 $ / shares shares	Jan. 31, 2023 $ / shares shares	Jan. 31, 2022	Jul. 31, 2021 $ / shares	Mar. 31, 2021 $ / shares	Dec. 31, 2021 shares	Dec. 31, 2020 $ / shares shares	Jun. 30, 2023 CNY (¥) shares	Jun. 30, 2023 $ / shares shares	Jun. 30, 2022 CNY (¥)	Sep. 30, 2022 $ / shares shares	Nov. 30, 2021 $ / shares shares	Nov. 30, 2022 shares	Dec. 31, 2022 CNY (¥) shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 CNY (¥) shares	Dec. 31, 2020 $ / shares shares	Dec. 31, 2019 shares	Dec. 31, 2022 USD ($) shares
Share based compensation
Total compensation expense recognized \| ¥																												¥ 524,553		¥ 163,481		¥ 11,410
Number of unvested awards																				18,995,595	16,224,217							24,431,761		18,995,595	18,995,595	16,224,217	16,224,217		24,431,761
Expected dividend yield																												0.00%	0.00%	0.00%	0.00%	0.00%
RSU
Share based compensation
Total compensation expense recognized \| ¥																						¥ 52,057		¥ 195,037
Number of unvested awards															23,719,510							23,719,510	23,719,510					24,431,761							24,431,761
Expected dividend yield																						0.00%		0.00%				0.00%	0.00%
Share-based expenses due to redesignation \| ¥																												¥ 0		¥ 16,452		¥ 0
Total unrecognized compensation expense																												¥ 209,898							$ 31,628
Weighted-average period																						1 year 4 months 24 days						1 year 10 months 24 days	1 year 10 months 24 days
RSU \| Tranche one
Share based compensation
Vesting percentage																												50.00%	50.00%
Service period																												5 years	5 years
RSU \| Tranche one \| Upon a qualified IPO
Share based compensation
Vesting percentage																												50.00%	50.00%
RSU \| Tranche two \| Upon a qualified IPO
Share based compensation
Vesting percentage																												20.00%	20.00%
Service period																												12 months	12 months
RSU \| Tranche two \| Before a qualified IPO is achieved
Share based compensation
Vesting percentage																												50.00%	50.00%
Service period																												5 years	5 years
RSU \| Tranche two \| After the completion of a qualified IPO
Share based compensation
Vesting percentage																												20.00%	20.00%
Service period																												12 months	12 months
RSU \| Tranche three
Share based compensation
Service period																												60 months	60 months
RSU \| Vesting upon the completion of Merger with COVA
Share based compensation
Total compensation expense recognized																												¥ 129,444	$ 19,505
2019 RSU Plan \| RSU
Share based compensation
Shares transferred																																		23,859,142
Percent of total outstanding shares																																		10.00%
Aggregate number of shares granted	1,312,253	1,312,253	1,073,662	1,073,662	1,789,437	1,789,437									600,000										6,680,560
Weighted average exercise price \| $ / shares											$ 0.32		$ 1.96												$ 0.56
Incremental compensation cost recognized immediately for the vested RSUs			¥ 10,430	$ 1,474	¥ 3,940	$ 557
Exercise price per share \| $ / shares															$ 0.48
2019 RSU Plan \| RSU \| Minimum
Share based compensation
Incremental compensation cost recognized immediately for the vested RSUs	¥ 538	$ 76
2019 RSU Plan \| RSU \| Maximum
Share based compensation
Incremental compensation cost recognized immediately for the vested RSUs	¥ 2,250	$ 318
2019 RSU Plan \| RSU \| Tranche one
Share based compensation
Vesting percentage					20.00%	20.00%
2019 RSU Plan \| RSU \| Tranche two
Share based compensation
Vesting percentage					50.00%	50.00%
2019 RSU Plan \| RSU \| Tranche three
Share based compensation
Vesting percentage					30.00%	30.00%
2019 RSU Plan \| RSU \| Employee and non employee
Share based compensation
Aggregate number of shares granted																					16,224,217
Weighted average exercise price \| $ / shares																					$ 0.34
2019 RSU Plan \| RSU \| Share-based payment arrangement employee
Share based compensation
Aggregate number of shares granted							4,771,828	4,771,828																		2,890,674
Weighted average exercise price \| $ / shares												$ 0.32							$ 2.96							$ 1.23
Service period															12 months		12 months
Number of awards modified									1,431,549	1,431,549
Incremental compensation cost to be recorded									¥ 19,904	$ 2,999
Period to record incremental compensation cost											3 years 6 months			3 years 3 months 18 days
Number of unvested awards							1,988,262	1,988,262
Vesting period							30 months	30 months
Incremental compensation cost recognized immediately for the vested RSUs							¥ 119,408	$ 17,993	¥ 4,976	$ 750
2019 RSU Plan \| RSU \| Share-based payment arrangement employee \| Vest every twelve-month service period since the service commencement of the employees
Share based compensation
Vesting percentage															20.00%		20.00%
Service period															12 months
2019 RSU Plan \| RSU \| Share-based payment arrangement employee \| Vest on April 1, 2022
Share based compensation
Vesting percentage																	0.50%
2019 RSU Plan \| RSU \| Share-based payment arrangement employee \| Vest on a monthly basis over thirty-six (36) months from May 2022
Share based compensation
Vesting percentage																	50.00%
2021 Option Plan
Share based compensation
Aggregate number of shares granted																63,464
Total compensation expense recognized \| ¥																						¥ 169						¥ 201,098
Aggregate number of share options granted																				13,575,733		63,464						2,354,744	2,354,744			13,575,733
Expected dividend yield																						0.00%		0.00%
Weighted-average period																						2 years 2 months 23 days						2 years 9 months	2 years 9 months
Exercise price per share \| $ / shares																$ 9.70		$ 9.70					$ 9.70						$ 9.70				$ 9.70
2021 Option Plan \| Upon a qualified IPO
Share based compensation
Vesting percentage																25.00%											25.00%
Service period																12 months											12 months
2021 Option Plan \| After the completion of a qualified IPO
Share based compensation
Vesting percentage																											25.00%
Service period																											12 months
2021 Option Plan \| Vesting upon the completion of Merger with COVA
Share based compensation
Shares vested																												6,818,048	6,818,048
Total compensation expense recognized																												¥ 201,645	$ 30,384
2021 Option Plan \| Share-based payment arrangement employee
Share based compensation
Aggregate number of share options granted																											2,354,744
2021 Option Plan \| RSU
Share based compensation
Shares vested																														5,101,085	5,101,085
Total compensation expense recognized																														¥ 105,211	$ 16,311
Remaining portion of awards to be vested over the service period following the modified vesting schedule																														2,607,277	2,607,277

Income taxes - Components of income / (loss) before income taxes (Details) ¥ in Thousands, $ in Thousands	6 Months Ended			12 Months Ended
	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Income taxes
Income / (loss) before income taxes	¥ (411,001)	$ (56,681)	¥ (586,733)	¥ (1,578,081)	$ (217,626)	¥ (1,169,897)	¥ (439,776)
The Cayman Islands
Income taxes
Income / (loss) before income taxes				(57,261)		(4,811)	55,644
British Virgin Islands
Income taxes
Income / (loss) before income taxes				(2)
Hong Kong
Income taxes
Income / (loss) before income taxes				(27,262)		(53,347)	93
Sweden
Income taxes
Income / (loss) before income taxes				7,015		(310)
United Kingdom
Income taxes
Income / (loss) before income taxes				(348,872)		(11,164)
PRC
Income taxes
Income / (loss) before income taxes				¥ (1,151,699)		¥ (1,100,265)	¥ (495,513)

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Income taxes - General (Details)	6 Months Ended		12 Months Ended
Income taxes - General (Details)	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income taxes
Statutory Tax rate	25.00%	25.00%	25.00%	25.00%	25.00%
Hong Kong \| first HK$2 million of assessable profits earned first HK$2 million of assessable profits earned
Income taxes
Statutory Tax rate			8.25%
Hong Kong \| after first HK$2 million of assessable profits earned
Income taxes
Statutory Tax rate			16.50%
PRC
Income taxes
Statutory Tax rate			25.00%
Preferential income tax rate			15.00%
High and new technology enterprise certificate term			3 years

Leases

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Leases

11.

Leases

The components of lease cost were as follows:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB

Operating lease cost	23,502	22,854
Short-term lease cost	2,679	1,660
Total	26,181	24,514

The lease cost was allocated as follows:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB

Selling and marketing expenses	662	456
General and administrative expenses	9,541	12,512
Research and development expenses	15,978	11,546
Total	26,181	24,514

The operating lease right-of-use assets and the amortization were as follows:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB

Operating lease right-of-use assets	141,627	167,317
Less: accumulated amortization	(41,975)	(46,012)
Total	99,652	121,305


	As of June 30,
	2023

Weighted average remaining lease term (years):
Operating leases	6.46
Weighted average discount rate:
Operating leases	8.61	%

Future minimum lease payments as of June 30, 2023, including rental payments for lease renewal options the Group is reasonably certain to exercise were as follows:


		As of June 30,
		2023
		RMB

2023		17,210
2024		23,552
2025		29,663
2026		22,237
2027		18,604
2028 and thereafter		77,857
Total lease payments		189,123
Less imputed interest		(50,623)
Present value of lease liabilities		138,500
Current portion		30,189
Operating lease liabilities, non-current		108,311

Supplemental cash flow information related to operating leases was as follows:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	17,928	6,484
Right-of-use assets obtained in exchange for lease obligations
Operating leases	45,887	31,832

17.Leases

On January 1, 2022, the Group adopted ASC Topic 842 by applying the effective date method under the modified retrospective approach to all lease contracts existing as of January 1, 2022. Under the effective date method, results for reporting periods beginning on or after January 1, 2022 are presented under ASC Topic 842. Prior period amounts are not adjusted and continue to be reported in accordance with the Group’s historical accounting policies. Additionally, the Group used the package of practical expedients that allows the Group not to reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any existing leases. The Group has elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases.

The following table summarizes the effect on the consolidated balance sheet as a result of adopting ASC Topic 842:


		Adjustments
	As of December 31,	due to adoption of		As of January 1,
	2021	ASC 842		2022
	RMB	RMB		RMB
ASSETS
Prepayments and other current assets	247,411	(6,764)	(a)	240,647
Operating lease right-of-use assets	—	95,108	(b)	95,108

LIABILITIES
Operating lease liabilities, current	—	(42,094)	(c)	(42,094)
Operating lease liabilities, non-current	—	(46,250)	(c)	(46,250)

(a)	Represents prepaid rent reclassified to operating lease right-of-use assets.

(b)	Represents operating lease right-of-use assets, which is made up of present value of operating lease payments, and the reclassification of prepaid rent from prepayments and other current assets.

(c)	Represents the recognition of operating lease liabilities, current and non-current.

The Group considers various factors such as market conditions and the terms of any renewal options that may exist to determine whether it will renew or replace the lease. In the event the Group is reasonably certain to exercise the option to extend a lease, the Group will include the extended terms in the measurement of operating lease right-of-use asset and operating lease liability.

The components of lease cost were as follows:


		Year Ended
		December 31, 2022
		RMB

Operating lease cost		47,163
Short-term lease cost		4,234
Total		51,397

The lease cost was allocated as follows:


		Year Ended
		December 31, 2022
		RMB

Selling and marketing expenses		1,525
General and administrative expenses		18,834
Research and development expenses		31,038
Total		51,397

The operating lease right-of-use assets and the amortization were as follows:


		As of December 31,
		2022
		RMB

Operating lease right-of-use assets		141,627
Less: accumulated amortization		(41,975)
Total		99,652


	As of December 31,
	2022

Weighted average remaining lease term (years):
Operating leases	5.68

Weighted average discount rate:
Operating leases	6.70	%

Future minimum lease payments as of December 31, 2022, including rental payments for lease renewal options the Group is reasonably certain to exercise were as follows:


		As of December 31,
		2022
		RMB

2023		35,354
2024		19,413
2025		19,222
2026		12,268
2027		8,644
2028 and thereafter		36,162
Total lease payments		131,063
Less imputed interest		(31,185)
Present value of lease liabilities		99,878
Current portion		31,110
Operating lease liabilities, non-current		68,768

Supplemental cash flow information related to operating leases was as follows:


		Year Ended
		December 31, 2022
		RMB
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		40,173
Right-of-use assets obtained in exchange for lease obligations
Operating leases		51,621

Convertible notes payable

12 Months Ended

Dec. 31, 2022

Convertible notes payable

16.Convertible notes payable

On October 25, 2022, the Company entered into a convertible note purchase agreement (the “Investor Note Purchase Agreement”) with certain institutional investors, pursuant to which the Company agreed to issue and sell US$65,000 (equivalent to RMB459,410) aggregate principal amount of unsecured convertible notes (the “Investor Notes”, each an “Investor Note”) due to mature on November 8, 2025 (the “Investor Note Maturity Date”). The Investor Notes bear interest at a rate of 5% per annum.

As the Merger with COVA was consummated on December 20, 2022, each holder of an Investor Note now has the right from time to time to convert all or any portion of the Investor Notes (plus any accrued but unpaid interest thereon) into fully paid and non-assessable Class A ordinary shares of the Company to such number which is equal to the quotient of (x) the outstanding principal and accrued but unpaid interest of such Note divided by (y) conversion price.

Purusuant to the Merger, all or any portion of the Investor Notes is convertible into fully paid and nonassessable ECARX Class A Ordinary Shares (the “Investor Note Conversion Shares”) at a conversion price equal to $11.50 per share, subject to customary anti-dilution adjustments and certain limitations on the conversion right as described in the Investor Note.

Each holder of an Investor Note also has the right to require the Company to redeem for cash all outstanding principal amount of such Investor Note prior to the Investor Note Maturity Date, upon occurrence of a Mandatory Redemption Event, at a redemption price equal to (i) the outstanding principal amount of the Investor Note, plus (ii) accrued and unpaid interest thereon, and plus (iii) an additional amount that shall, together with any interest paid to the holder of the Investor Note and any accrued and unpaid interest on the Investor Note, provide the holder of the Investor Note an internal rate of return of 9% per annum on such principal amount over the period starting from (and including) the note issue date (November 8, 2022) and ending on (and including) the date of redemption. “Mandatory Redemption Event” means the occurrence of any change of control, any sale, lease or other transfer of all or substantially all of the consolidated assets of the Company and its subsidiaries, taken as a whole, to any person other than a subsidiary, the Company’s shares ceasing to be listed on the stock exchange, any redemption event set forth in the current organization documents of the Company prior to the listing, an event of default, among other things.

The Company incurred issuance costs of US$1,225 which is presented on the balance sheet as a direct deduction from the Investor Notes. Investor Notes are classified as a long-term debt on balance sheet and measured at amortized cost; they do not meet the definition of a derivative; and not issued at a substantial premium or discount. None of the option features of the Investor Notes were determined to meet the definition of a derivative if they were a freestanding instrument as they do not permit net settlement, or, the feature was determined to be clearly and closely related to the debt host contract. The fair value of the Investor Notes approximates its carrying value as at the reporting date.

Intangible assets, net (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of intangible assets, net


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Software	103,509	109,495
Less: accumulated amortization	(58,648)	(70,656)
Intangible assets, net	44,861	38,839


	As of December 31,
	2021	2022
	RMB	RMB
Software	69,840	103,509
Less: accumulated amortization	(38,718)	(58,648)
Intangible assets, net	31,122	44,861

Schedule of amortization expenses on intangible assets allocated to expense items


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Selling and marketing expenses	254	3
General and administrative expenses	4,670	4,899
Research and development expenses	6,840	7,105
Total amortization	11,764	12,007


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Cost of revenues	96	77	—
Selling and marketing expenses	1,027	876	257
General and administrative expenses	2,535	5,845	9,730
Research and development expenses	16,820	15,089	14,045
Total amortization	20,478	21,887	24,032

Short-term borrowings - Additional Information (Details) - Unsecured bank loans - CNY (¥) ¥ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Short-term borrowings
Interest rate			4.00%
Total line of credit	¥ 870,000	¥ 1,110,000	¥ 1,000,000
Unused portion of line of credit	0	140,000	¥ 172,696
Short-term borrowings guaranteed by related party	¥ 870,000	¥ 870,000
Minimum
Short-term borrowings
Interest rate	4.30%	4.30%
Average
Short-term borrowings
Interest rate	4.35%	4.35%
Maximum
Short-term borrowings
Interest rate	3.80%	4.38%

Share split

12 Months Ended

Dec. 31, 2022

Share split

Share split

18.Share split

On August 18, 2020, a 20-for-1 share split of the Company’s issued and unissued ordinary shares and convertible preferred shares was affected with par value per share divided by 20. All information related to the Company’s ordinary shares, convertible preferred shares and share-based awards has been retroactively adjusted to give effect to the 20-for-1 share split. The par value per ordinary share and the par value per convertible preferred share also have been retroactively revised as if they had been adjusted in proportion to the share split.

Summary of significant accounting policies

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Summary of significant accounting policies

1.	Summary of significant accounting policies

(a)

Basis of presentation

(b)

A combination between entities under common control


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
ASSETS
Current assets	572,259	519,803
Non-current assets	43,655	45,941
Total assets	615,914	565,744

LIABILITIES
Current liabilities	486,351	384,556
Non-current liabilities	9,229	9,602
Total liabilities	495,580	394,158


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Revenues	1,422	12,614
Cost of revenues	(117)	(5,563)
Gross profit	1,305	7,051

Loss from operations	(64,065)	(102,651)
Loss before income taxes	(33,389)	(100,278)
Net loss	(40,882)	(100,278)

(c)

Risks and concentration

Concentration of credit risk

Concentration of customers and suppliers

The following table summarizes customers with greater than 10.0% of the accounts receivable - related parties, net:


	As of December 31,		As of June 30,
	2022		2023
Customer A, a related party	92.1	%	79.2	%
Customer B, a related party	Less than 10.0	%	10.5	%

The following table summarizes customers with greater than 10.0% of the accounts receivable - third parties, net:


	As of December 31,		As of June 30,
	2022		2023
Customer C, a third party	48.9	%	40.4	%
Customer D, a third party	30.4	%	29.7	%
Customer E, a third party	Less than 10.0	%	10.6	%
Customer F, a third party	Less than 10.0	%	12.6	%

Customers contributing more than 10.0% of total revenues were as follows:


	Six Months Ended June 30,
	2022		2023
Customer A, a related party	73.6	%	73.7	%
Customer C, a third party	11.4	%	Less than 10.0	%

The following table summarizes suppliers with greater than 10.0% of the accounts payable:


	As of December 31,		As of June 30,
	2022		2023
Supplier A, a third party	19.0	%	18.5	%
Supplier B, a third party	10.9	%	Less than 10.0	%
Supplier C, a third party	19.1	%	17.6	%

Suppliers contributing more than 10.0% of total purchases were as follows:


	Six Months Ended June 30,
	2022		2023
Supplier D, a third party	12.5	%	Less than 10.0	%
Supplier A, a third party	14.5	%	23.3	%
Supplier E, a related party	10.7	%	Less than 10.0	%
Supplier C, a third party	Less than 10.0	%	13.3	%

(d)

Credit losses

(e)

Fair value measurements

(f)

Convenience translation

2.	Summary of significant accounting policies

(a)

Basis of presentation

These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).

The consolidated financial statements are presented in Renminbi (“RMB”), rounded to the nearest thousand.

(b)

Principles of consolidation

(c)

Use of estimates

(d)

Cash and restricted cash

(e)

Contract liabilities

(f)Accounts receivable

(g)Notes receivable

(h)Inventories

(i)Long-term investments

Equity method investments

Equity securities

(j)

Property and equipment

Property and equipment are carried at cost less accumulated depreciation and impairment, if any.

Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets as below:


Category		Estimated useful life
Machinery and electronic equipment		3 – 10 years
Transportation vehicles		4 years
Office and other equipment		5 years
Leasehold improvement		Shorter of the lease term and the estimated useful lives of the assets

(k)

Intangible assets

(l)

Impairment of long-lived assets

(m)

Product warranties

(n)

Value added taxes

(o)Commitments and contingencies

(p)

Fair value measurement

The fair value hierarchy consists of the following three levels:

Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 — Includes other inputs that are directly or indirectly observable in the marketplace.

Level 3 — Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable.

(q)

Revenue recognition

The Group generates revenues from sales of goods, software license and services.

Sales of goods

Sales of goods include the following products:

SoC core modules, where the Group sells standardized computing board, which integrates SoC with core integrated circuits and peripherals to Tier 1 automotive suppliers or the OEMs; and

Automotive merchandise and other products, which are primarily basic electronic components such as resistor, capacitor and circuit board sold to automotive suppliers.

Software license revenues

Service revenues

The Group generates revenues by provision of the following services:

Automotive computing platform design and development service;

Connectivity service, which enables end-users of automobiles access internet; and,

The amount of consideration that the Group expects to receive in the future and that the Group has received but not recognized as revenue, for providing the design and development services, less

The costs that relate directly to providing those services and that have not been recognized as expenses.

(r)

Research and development expenses

(s)

Selling and marketing expenses

(t)

Government grants

(u)

Income tax

(v)

Share-based compensation

(w)

Employee benefits

(x)

Leases

(y)

Foreign currency

(z)

Convenience translation

(aa)Loss per share

(bb) Segment reporting

(cc) Statutory reserves

required if the statutory surplus fund has reached 50% of the registered capital of the PRC companies. Appropriation to the discretionary surplus fund is made at the discretion of the PRC companies.

No appropriation to the discretionary surplus fund was made by the Group’s PRC subsidiaries and VIEs.

(dd) Recently adopted accounting pronouncements

(ee) New accounting pronouncements

Parent only financial information - Condensed Balance Sheets (Details)
¥ in Thousands, $ in Thousands

Jun. 30, 2023

CNY (¥)

Jun. 30, 2023

USD ($)

Dec. 31, 2022

CNY (¥)

Dec. 31, 2022

USD ($)

Jan. 01, 2022

CNY (¥)

Dec. 31, 2021

CNY (¥)

Dec. 31, 2021

USD ($)

¥ 678,089

$ 93,513

¥ 424,918

$ 58,598

¥ 240,647

¥ 247,411

140,225

19,338

911,729

125,733

41,298

3,100,363

427,560

3,853,333

531,398

2,592,163

901,725

124,354

877,699

121,041

1,315,417

4,002,088

551,914

4,731,032

652,439

3,907,580

Accounts payable - third parties

1,138,043

156,943

1,445,193

199,301

649,967

Accrued Liabilities and Other Liabilities

511,748

70,574

785,134

108,275

461,264

Accrued expenses and other current liabilities

511,748

70,574

785,134

108,275

461,264

3,522,606

485,789

3,927,441

541,617

2,754,861

Convertible Notes Payable, Noncurrent

464,294

64,029

439,869

60,661

824,043

113,642

838,047

115,574

489,358

4,346,649

599,431

4,765,488

657,191

3,244,219

Total mezzanine equity

4,563,407

^[1]

5,971,886

823,561

5,919,660

816,358

Accumulated other comprehensive income (loss)

(6,110,766)

(842,713)

(5,730,180)

(790,228)

(4,103,381)

(336,890)

(46,459)

(385,886)

(53,216)

6,048

Total deficit attributable to ordinary shareholders

(475,760)

(65,610)

(196,396)

(27,085)

(4,097,326)

Series Angel Redeemable Convertible Preferred Shares

4,002,088

551,914

4,731,032

652,439

3,907,580

Redeemable convertible preferred shares, redemption value

283,585

Series A Redeemable Convertible Preferred Shares

Redeemable convertible preferred shares, redemption value

1,429,313

Series B Redeemable Convertible Preferred Shares

Redeemable convertible preferred shares, redemption value

1,117,317

Subscription receivable from Convertible Preferred Shares

159,392

$ 25,000

Class A Ordinary Shares

$ 1

^[1]

Class B Ordinary Shares

¥ 1

^[1]

Parent company

Cash

119,022

158,755

5,751

4,168,615

3,217,624

4,287,672

3,382,130

Investment securities

69,319

69,319

4,356,991

3,382,130

Accounts payable - third parties

108

Accrued Liabilities and Other Liabilities

146,507

Accrued expenses and other current liabilities

146,507

Amounts due to related parties

18,925

85,390

Share of losses in excess of investments in subsidiaries and VIEs

3,948,086

2,861,051

4,113,518

2,946,549

Convertible Notes Payable, Noncurrent

439,869

439,869

4,553,387

2,946,549

Subscription receivable from Convertible Preferred Shares

(159,392)

Total mezzanine equity

4,532,907

5,919,660

Accumulated other comprehensive income (loss)

(5,730,180)

(4,103,381)

(385,886)

6,048

Total deficit attributable to ordinary shareholders

(196,396)

(4,097,326)

Parent company | Series Angel Redeemable Convertible Preferred Shares

4,356,991

3,382,130

Redeemable convertible preferred shares, redemption value

283,585

Parent company | Series A Redeemable Convertible Preferred Shares

Redeemable convertible preferred shares, redemption value

1,429,313

Parent company | Series A+ Redeemable Convertible Preferred Shares

Redeemable convertible preferred shares, redemption value

1,386,671

Parent company | Series A++ Redeemable Convertible Preferred Shares

Redeemable convertible preferred shares, redemption value

475,413

Parent company | Series B Redeemable Convertible Preferred Shares

Redeemable convertible preferred shares, redemption value

¥ 1,117,317

Parent company | Class A Ordinary Shares

Parent company | Class B Ordinary Shares

¥ 1

[1]	Shares outstanding for all periods reflect the adjustment for Recapitalization.

Leases - Supplemental cash flow information related to operating leases (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Leases
Cash paid for amounts included in the measurement of lease liabilities, Operating cash flows from operating leases	¥ 6,484	¥ 17,928	¥ 40,173
Right-of-use assets obtained in exchange for lease obligations, Operating leases	¥ 31,832	¥ 45,887	¥ 51,621

Intangible assets, net (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of intangible assets, net


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Software	103,509	109,495
Less: accumulated amortization	(58,648)	(70,656)
Intangible assets, net	44,861	38,839


	As of December 31,
	2021	2022
	RMB	RMB
Software	69,840	103,509
Less: accumulated amortization	(38,718)	(58,648)
Intangible assets, net	31,122	44,861

Schedule of amortization of intangible assets was allocated as follows


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Selling and marketing expenses	254	3
General and administrative expenses	4,670	4,899
Research and development expenses	6,840	7,105
Total amortization	11,764	12,007


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Cost of revenues	96	77	—
Selling and marketing expenses	1,027	876	257
General and administrative expenses	2,535	5,845	9,730
Research and development expenses	16,820	15,089	14,045
Total amortization	20,478	21,887	24,032

Related party balances and transactions (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of significant related parties and their relationships

(a)	Related Parties

Names of the major related parties		Nature of relationship
Zhejiang Geely Holding Group (“Geely Group”) and its subsidiaries		Entity controlled by the controlling shareholder of the Company
Proton Holdings Berhad and its subsidiaries		Entity that the controlling shareholder of the Company has significant influence
Anhui Xinzhi Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Zhejiang Huanfu Technology Co., Ltd., (“Zhejiang Huanfu”, formerly known as Zhejiang Yikatong Technology Co., Ltd.,”Zhejiang Yikatong”)		Entity controlled by the controlling shareholder of the Company
Xi’an Liansheng Intelligent Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Hubei Xingji Meizu Group Co., Ltd. (formerly known as Hubei Yuanshidai Technology Co., Ltd.)		Entity controlled by the controlling shareholder of the Company
Hubei Xingji Meizu Technology Co., Ltd (formerly known as Hubei Xingji Times Technology Co., Ltd.)		Entity controlled by the controlling shareholder of the Company
Hubei ECARX Technology Co., Ltd (“Hubei ECARX”)		Entity controlled by the controlling shareholder of the Company
Arteus Group Limited (“Arteus”)		Entity controlled by the controlling shareholder of the Company
DreamSmart Technology Pte. Ltd. (“DreamSmart”)		Entity controlled by the controlling shareholder of the Company
Apollo Intelligent Connectivity (Beijing) Technology Co., Ltd.		Entity that one board of director of the Company has significant influence
SiEngine Technology Co., Ltd. (“SiEngine”)		Entity which is under significant influence of the Company
Suzhou Tongjie Automotive Electronics Co., Ltd.		Entity which is under significant influence of the controlling shareholder of the Company
Hubei Dongjun Automotive Electronic Technology Co., Ltd. and its subsidiary		Entity which is under significant influence of the Company
Suzhou Photon-Matrix Optoelectronics Technology Co., Ltd		Entity which is under significant influence of the Company
HaleyTek AB		Entity which is under significant influence of the Company

(b)	Significant transactions with related parties:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Revenues (i):
Sales of goods revenues	613,655	1,018,256
Automotive computing platform	603,112	1,013,860
SoC Core Modules	22	140
Automotive merchandise and other products	10,521	4,256
Software licence revenues	15,481	164,995
Service revenues	376,720	237,263
Automotive computing platform – Design and development service	241,090	119,291
Connectivity service	107,752	99,254
Other services	27,878	18,718
Total	1,005,856	1,420,514


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Purchase of products and services ⁽ⁱⁱ⁾	261,495	197,760
Rental of office space, and administrative services ⁽ⁱⁱ⁾	3,421	2,400
Other income ^(viii)	—	7,055
Interest income on loans due from related parties ^(iv)	2,759	6,771
Interest expense on borrowings and the Note due to related parties ⁽ⁱⁱⁱ⁾	1,622	6,116
Loans to related parties ^(iv)	8,060	12,000
Repayment received of loans to related parties ^(iv)	25,000	8,500
Financial support to Anhui Xinzhi ^(vii)	28,500	—
Repayment of borrowings from related parties ⁽ⁱⁱⁱ⁾	200,000	—
Borrowings from related parties ⁽ⁱⁱⁱ⁾	700,000	300,000
Transfer of property and equipment to Zhejiang Huanfu ^(v)	1,604	—

(c)	Balances with related parties:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Accounts receivable - related parties, net ⁽ⁱ⁾	835,320	804,267
Amounts due from related parties ^{(ii)(iv)(viii)}	911,729	140,225
Other non-current assets - related parties ^(vi)	213,695	218,899
Accounts payable - related parties ⁽ⁱⁱ⁾	241,773	101,098
Amounts due to related parties ^(iii)(ix)	42,843	341,202

Note:

(i)

(ii)

(iii)

In January 2023, ECARX (Hubei) Tech entered into an unsecured loan agreement with Geely Group in an amount of RMB300,000 with an interest rate of 4.1% per annum, which was repayable on June 30, 2024.

(iv)

(v)	In February 2022, Hubei ECARX disposed certain property and equipment to Zhejiang Huanfu at RMB1,697 and recorded a gain of RMB93 as a result of the disposal.

(vi)

(vii)

In February and March 2022, the Group provided cash in the amount of RMB28,500 to Anhui Xinzhi as financial support. The investment was derecognized as part of the Restructuring.

(viii)

(ix)	As a result of the purchase of technical services and logistics services from related parties, the Group recorded balances due to related parties of RMB29,043 and RMB21,286 as of December 31, 2022 and June 30, 2023, respectively.

(a)	Related Parties


Names of the major related parties		Nature of relationship
Zhejiang Geely Holding Group (“Geely Group”) and its subsidiaries		Entity controlled by the controlling shareholder of the Company
Proton Holdings Berhad and its subsidiaries		Entity that the controlling shareholder of the Company has significant influence
Anhui Xinzhi Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Zhejiang Huanfu Technology Co., Ltd., (“Zhejiang Huanfu”, formerly known as Zhejiang Yikatong Technology Co., Ltd.,”Zhejiang Yikatong”)		Entity controlled by the controlling shareholder of the Company
Xi’an Liansheng Intelligent Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Hubei Yuanshidai Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Hubei Xingji Times Technology Co., Ltd		Entity controlled by the controlling shareholder of the Company
Hubei ECARX Technology Co., Ltd		Entity controlled by the controlling shareholder of the Company
Arteus Group Limited		Entity controlled by the controlling shareholder of the Company
Apollo Intelligent Connectivity (Beijing)Technology Co., Ltd.		Entity that one board of director of the Company has significant influence
SiEngine Technology Co., Ltd.		Entity which is under significant influence of the Company
Suzhou Tongjie Automotive Electronics Co., Ltd.		Entity which is under significant influence of the controlling shareholder of the Company
Hubei Dongjun Automotive Electronic Technology Co., Ltd. and its subsidiary		Entity which is under significant influence of the Company
Suzhou Photon-Matrix Optoelectronics Technology Co., Ltd		Entity which is under significant influence of the Company

(b)	Significant transactions with related parties:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Revenues(i):
Sales of goods revenues	1,275,777	1,466,340	1,663,076
Automotive computing platform	1,231,429	1,410,566	1,651,512
SoC Core Modules	—	—	77
Automotive merchandise and other products	44,348	55,774	11,487
Software license revenues	18,168	24,788	133,450
Service revenues	444,709	532,625	721,206
Automotive computing platform – Design and development service	251,471	306,027	466,747
Connectivity service	172,490	187,781	212,406
Other services	20,748	38,817	42,053
Total	1,738,654	2,023,753	2,517,732


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Purchase of products and services (ii)	8,186	293,552	677,775
Rental of office space (ii)	3,391	1,093	6,395
Other income (ix)	—	—	22,846
Interest income on loans due from related parties (iv)	—	717	9,069
Interest expense on borrowings due to related parties (iii)	872	131	12,215
Loans to related parties (iv)	—	28,850	57,260
Repayment received of loans to related parties (iv)	—	—	29,360
Advances to Zhejiang Huanfu (iv)	103,024	19,806	—
Collection of advances to Zhejiang Huanfu (iv)	81,026	90,155	—
Repayment of borrowings from related parties (iii)	—	65,152	700,000
Borrowings from related parties (iii)	—	45,152	700,000
Transfer of property and equipment to Zhejiang Huanfu (v)	—	707	1,604
Financial support to Anhui Xinzhi (viii)	—	—	28,500


	As of December 31,
	2021	2022
	RMB	RMB
Accounts receivable – related parties, net (i)	768,747	835,320
Amounts due from related parties (ii)(iv)(ix)	41,298	911,729
Accounts payable – related parties (ii)	111,531	241,773
Amounts due to related parties (iii)(vi)(x)	106,825	42,843
Other non-current assets – related parties (vii)	1,929	213,695

(i)

The Group sold automotive computing platform products and provided related technology development services, merchandise and other products, connectivity service, software licenses and other consulting services to a number of related parties. Accounts receivable, net due from related parties arising from sales of products and provision of services were RMB768,747 and RMB835,320 as of December 31, 2021 and 2022, respectively. The balance as of December 31, 2021 was fully received in 2022. Of the balance as of December 31, 2022, RMB538,867 was subsequently received by March 2023.

(ii)

(iii)

(iv)	In 2020 and 2021, the Group respectively paid advances of RMB103,024 and RMB19,806, and received collection of RMB81,026 and RMB90,155, from Zhejiang Huanfu. The payments were interest-free and due on demand. The amounts due from Zhejiang Huanfu as of December 31, 2020 was fully collected in 2021.

In 2021, the Group provided loans of RMB28,850 to related parties. Interest incomes on loans due from related parties were RMB717 for the year ended December 31, 2021.

(v)

(vi)

(vii)

(viii)

(ix)

(x)	As a result of the purchase of technical services and logistics services from related parties in each of the reporting periods specified in the Note (ii), the Group recorded balances due to related parties of RMB36,186 and RMB29,043 as of December 31, 2021 and 2022, respectively.

Long-term investments (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of long-term investments


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Equity method investments	284,536	262,338
Equity securities measured at fair value	69,319	101,293
Total long-term investments	353,855	363,631


	As of December 31,
	2021	2022
	RMB	RMB
Equity method investments	476,853	284,536
Equity securities	675,824	69,319
Total long-term investments	1,152,677	353,855

Schedule of combined financial information for investee companies



		Year Ended December 31,
		2022
		RMB
Fair value of the consideration received		—
Add: Fair value of retained equity interest in Suzhou Photon-Matrix		64,000
Add: Carrying amount of redeemable noncontrolling interest		40,750
Less: Carrying amount of non-redeemable noncontrolling interest		(7,178)
Less: Carrying amount of Suzhou Photon-Matrix’s net assets		(25,598)
Gains on deconsolidation of Suzhou Photon-Matrix		71,974


	As of December 31,
	2021	2022
	RMB	RMB
Financial position:
Current assets	1,068,323	1,216,042
Non-current assets	1,252,988	999,573
Total assets	2,321,311	2,215,615
Current liabilities	675,372	942,899
Non-current liabilities	956,934	1,056,274
Total liabilities	1,632,306	1,999,173
Shareholders’ equity	689,005	216,442
Total liabilities and shareholders’ deficit	2,321,311	2,215,615


	Year ended December 31,
	2021	2022
	RMB	RMB
Results of operations:
Total revenues	711,800	1,134,152
Loss from operation	(482,095)	(636,240)
Net loss	(392,337)	(641,401)

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS DEFICIT (Parenthetical) - CNY (¥) ¥ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT
Foreign currency translation adjustments, tax	¥ 0	¥ 0	¥ 0	¥ 0	¥ 0
Net loss attributable to redeemable non-controlling interests		¥ 464	¥ 464	¥ 806

Notes receivable (Details) - CNY (¥) ¥ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Notes receivable
Notes receivable pledged for notes payable	¥ 26,126	¥ 25,034	¥ 25,034	¥ 110,550

Prepayments and other current assets (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of prepayments and other current assets


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Prepayments to suppliers	210,819	351,354
Contract cost assets	192,848	285,040
Foreign exchange swaps *	—	16,247
Others	21,251	25,448
Prepayments and other current assets	424,918	678,089


	As of December 31,
	2021	2022
	RMB	RMB
Prepayments to suppliers	179,744	210,819
Contract cost assets	—	192,848
Prepaid rental and deposits	7,597	—
Deferred offering costs	5,719	—
Government grants receivable	30,000	—
Others	24,351	21,251
Prepayments and other current assets	247,411	424,918

Description of business and organization (Tables)

12 Months Ended

Dec. 31, 2022

Description of business and organization

Schedule of assets derecognized


		RMB
Assets
Cash		20,000
Long-term investments		211,908
Property and equipment, net		34,873
Intangible assets, net		1,094

Schedule of assets and liabilities, consolidated revenues, net loss and cash flow information information of the VIE's


		As of December 31,
		2021
		RMB
Current assets
Cash		642,293
Restricted cash⁽ⁱ⁾		23,004
Accounts receivable – third parties, net		184,546
Accounts receivable – related parties, net⁽ⁱⁱ⁾		813,364
Notes receivable⁽ⁱⁱⁱ⁾		137,710
Inventories		223,319
Amounts due from related parties^(iv)		42,604
Prepayments and other current assets		182,589
Total current assets		2,249,429
Non-current assets
Long-term investments		441,586
Property and equipment, net		94,387
Intangible assets, net		31,026
Other non-current assets – third parties		19,904
Other non-current assets – related parties		1,929
Total non-current assets		588,832
Total assets		2,838,261
Current liabilities
Short-term borrowings		932,000
Accounts payable – third parties		622,867
Accounts payable – related parties⁽ⁱⁱ⁾		159,528
Notes payable		127,304
Amounts due to related parties ^(iv)		2,452,787
Contract liabilities, current – third parties		2,685
Contract liabilities, current – related parties		363,285
Accrued expenses and other current liabilities		442,588
Total current liabilities		5,103,044
Non-current liabilities
Contract liabilities, non-current – third parties		317
Contract liabilities, non-current – related parties		472,749
Other non-current liabilities		16,292
Total non-current liabilities		489,358
Total liabilities		5,592,402

(i)	Restricted cash of RMB23,004 was pledged for notes payable.

(ii)	Accounts receivable — related parties, net, include amounts of RMB57,039 due from the Company and its subsidiaries, and accounts payable — related parties include RMB59,622 due to the Company and its subsidiaries, all of which are eliminated upon consolidation.

(iii)

Notes receivable of RMB110,550 was pledged for notes payable.

(iv)	Amounts due from related parties include RMB1,326 due from the Company and its subsidiaries; and amounts due to related parties include RMB2,143,777 due to the Company and its subsidiaries. All of the amounts are eliminated upon consolidation.


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Revenues ^(v)	2,241,536	2,755,780	936,520
Net (loss) income ^(vi)	(495,741)	(1,106,865)	2,793,301
Net cash (used in) provided by operating activities ^(vii)	(312,311)	(817,989)	224,031
Net cash (used in) provided by investing activities	(91,112)	(436,280)	165,672
Net cash provided by (used in) financing activities ^(viii)	940,204	1,047,854	(1,055,000)
Net increase (decreased) in cash and restricted cash	536,781	(206,415)	(665,297)
Cash and restricted cash at the beginning of the year	334,931	871,712	665,297
Cash and restricted cash at the end of the year	871,712	665,297	—

(v)	For the years ended December 31, 2020, 2021 and 2022, revenues include RMB31,394, RMB26,290 and RMB265,452, respectively, from the Company and its subsidiaries, which are eliminated upon consolidation.

(vi)	For the years ended December 31, 2020, 2021 and 2022, net income (loss) includes RMB21,950, RMB(44,361) and RMB2,981,707, respectively, from the Company and its subsidiaries, which are eliminated upon consolidation.

(vii)

(viii)

Beginning balance at Dec. 31, 2019

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Operating activities:
Net loss	¥ (1,607,146)	$ (221,634)	¥ (1,176,758)	¥ (440,004)
Adjustments to reconcile net loss to net cash used in operating activities:
Allowance for doubtful accounts	6,887	950		360
Provision of prepayments and other current assets	(1,935)	(267)	3,245
Write-down of inventories	35,406	4,883	49,485	44,134
Share-based compensation	725,651	100,072	179,933	11,410
Depreciation and amortization	74,559	10,282	65,160	58,958
Lease expense to reduce right-of-use assets	41,975	5,789
(Income) loss from equity method investments	71,928	9,919	3,891	(148)
Gains on deconsolidation of a subsidiary	(71,974)	(9,926)	(10,579)
Gains on sale of an equity security	(59,728)	(8,237)
Change in fair value of an equity security	16,843	2,323
Amortization of debt issuance costs			99,923	55,351
Change in fair value of warrant liabilities	3,245	448	111,299	39,635
Loss on disposal of property, equipment and intangible assets	1,939	267	1,562	577
Unrealized exchange (gains)/losses	1,857	256	(12,478)	(55,213)
Changes in operating assets and liabilities, net of effects of deconsolidation of subsidiary:
Accounts receivable - third parties, net	(238,197)	(32,849)	(45,166)	499,485
Accounts receivable - related parties, net	(68,939)	(9,507)	(96,169)	(1,799)
Notes receivable	(41,433)	(5,714)	(19,406)	(3,991)
Inventories	5,341	737	(105,557)	(9,268)
Amounts due from related parties	(87,080)	(12,009)	(5,757)	(2,633)
Prepayments and other current assets	(189,669)	(26,157)	(157,371)	32,261
Accounts payable - third parties	795,226	109,667	18,699	(811,649)
Accounts payable - related parties	130,242	17,961	(218,143)	(21,235)
Notes payable	41,101	5,668	(144,529)	111,327
Contract liabilities - third parties	1,774	245	(4,565)	(2,391)
Contract liabilities - related parties	(237,287)	(32,723)	353,659	30,927
Amounts due to related parties	3,808	525	5,253	27,376
Accrued expenses and other current liabilities	204,830	28,247	188,317	69,834
Operating lease liabilities	(34,985)	(4,825)
Other non-current liabilities	14,424	1,989	8,769	(1,350)
Net cash used in operating activities	(461,337)	(63,620)	(907,283)	(368,046)
Investing activities:
Purchase of property, equipment and intangible assets	(157,286)	(21,691)	(85,736)	(69,114)
Proceeds from disposal of property, equipment and intangible assets	1,732	239
Cash paid for acquisition of equity investments	(79,442)	(10,956)	(1,145,637)
Cash received on deconsolidation of a subsidiary	1,000	138
Financial support to an equity method investee	(28,500)	(3,930)
Loans to related parties	(57,260)	(7,897)	(28,850)
Cash collection of loans to related parties	29,360	4,049
Advances to a related party			(19,806)	(103,024)
Cash collection of advances to a related party			90,155	81,026
Net cash (used in)/provided by investing activities	(313,039)	(43,171)	(1,198,234)	(91,112)
Financing activities:
Cash contributed by redeemable non-controlling shareholders	10,000	1,379	30,000
Cash contributed by non-redeemable non-controlling shareholders			202,000
Proceeds from short-term borrowings	1,270,000	175,141	947,000	76,000
Repayment of short-term borrowings	(1,332,000)	(183,691)	(91,000)	(167,900)
Proceeds from issuance of convertible notes	527,281	72,715
Payment for issuance of convertible notes	(2,938)	(405)
Borrowings from related parties	700,000	96,534	45,152
Repayment of borrowings from related parties	(700,000)	(96,534)	(65,152)
Repayment of long-term debt			(1,125,310)
Cash disposed in the Restructuring	(20,000)	(2,758)
Cash proceeds from COVA	43,724	6,030
Cash proceeds from Geely strategic investment	139,200	19,197
Cash paid for costs of the Merger	(136,985)	(18,891)
Net cash provided by financing activities	657,767	90,711	2,122,792	1,138,126
Effect of foreign currency exchange rate changes on cash and restricted cash	28,906	3,985	(32,019)	(10,023)
Net increase (decrease) in cash and restricted cash	(87,703)	(12,095)	(14,744)	668,945
Cash and restricted cash at the beginning of the period	989,132	136,408	1,003,876	334,931
Cash and restricted cash at the end of the period	901,429	124,313	989,132	1,003,876
Supplemental information:
Income tax paid			12,557	35
Interest paid	28,908	3,987	28,983	2,905
Non-cash investing and financing activities:
Payable for purchase of property, equipment and intangible assets	24,186	3,335	17,882	4,123
Re-designation of ordinary shares to Series A Preferred Shares			97,660
Issuance of Series B Convertible Redeemable Preferred Shares in connection with acquisition of an equity-method investment			620,703
Non-cash assets distributed to shareholders of the Company in the Restructuring	247,875	34,184
Payable for issuance cost of convertible notes payable	5,621	775
Amounts due from a related party for sale of Zenseact	763,192	105,249
Issuance of ordinary shares in exchange for an equity security	87,615	12,083
Payable for costs of the Merger	133,554	18,418
Conversion of Convertible Redeemable Preferred Shares to ordinary shares	5,492,749	757,485
Conversion of convertible notes payable to Class A Ordinary Shares	69,600	9,598
Hubei Dongjun Automotive Electronics Technology Co., Ltd.
Investing activities:
Cash disposed on deconsolidation of a subsidiary			(8,360)
Suzhou Photon-Matrix
Adjustments to reconcile net loss to net cash used in operating activities:
Gains on deconsolidation of a subsidiary	(71,974)
Investing activities:
Cash disposed on deconsolidation of a subsidiary	(22,643)	(3,123)
Series Angel Convertible Redeemable Preferred Shares
Financing activities:
Proceeds from issuance of Convertible Redeemable Preferred Shares			81,950
Series A Convertible Redeemable Preferred Shares
Financing activities:
Proceeds from issuance of Convertible Redeemable Preferred Shares			1,032,104	206,422
Payment for issuance cost and fees				(8,500)
Refundable deposits in connection with the issuance of Convertible Redeemable Preferred Shares				¥ 1,032,104
Repayment of refundable deposits in connection with the issuance of Series A Convertible Redeemable Preferred Shares			(1,032,104)
Series A+ Convertible Redeemable Preferred Shares
Financing activities:
Proceeds from issuance of Convertible Redeemable Preferred Shares			1,331,641
Payment for issuance cost and fees			(10,000)
Series A++ Convertible Redeemable Preferred Shares
Financing activities:
Proceeds from issuance of Convertible Redeemable Preferred Shares			452,241
Refundable deposits in connection with the issuance of Convertible Redeemable Preferred Shares			461,849
Repayment of refundable deposits in connection with the issuance of Series A Convertible Redeemable Preferred Shares			461,849
Series B Convertible Redeemable Preferred Shares
Financing activities:
Proceeds from issuance of Convertible Redeemable Preferred Shares	¥ 159,485	$ 21,994	¥ 324,270

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS DEFICIT
¥ in Thousands, $ in Thousands

Parent [Member]

Previously Reported [Member]

CNY (¥)

Parent [Member]

CNY (¥)

Common Stock [Member]

Common Class A [Member]

CNY (¥)

Common Stock [Member]

Common Class B [Member]

CNY (¥)

Common Stock [Member]

Previously Reported [Member]

CNY (¥)

Common Stock [Member]

Revision of Prior Period, Reclassification, Adjustment [Member]

Common Stock [Member]

CNY (¥)

Treasury Stock, Common [Member]

Additional Paid-in Capital [Member]

Previously Reported [Member]

CNY (¥)

Additional Paid-in Capital [Member]

CNY (¥)

Retained Earnings [Member]

Previously Reported [Member]

CNY (¥)

Retained Earnings [Member]

CNY (¥)

AOCI Attributable to Parent [Member]

CNY (¥)

Noncontrolling Interest [Member]

Previously Reported [Member]

CNY (¥)

Noncontrolling Interest [Member]

CNY (¥)

Previously Reported [Member]

CNY (¥)

USD ($)

¥ (1,547,512)

¥ 7

¥ 255,288

¥ (1,802,807)

¥ 11,852

¥ (1,535,660)

Beginning balance (in shares) at Dec. 31, 2019 | shares

200,000,000

38,591,421

238,591,421

(439,659)

(345)

(440,004)

Accretion of Redeemable Convertible Preferred Shares

11,410

(101,286)

Foreign currency translation adjustments, net of nil income taxes

1,497

¥ 1,497

1,497

Ending balance at Dec. 31, 2020

(2,075,550)

¥ 7

165,412

(2,242,466)

1,497

11,507

(2,064,043)

Ending balance (in shares) at Dec. 31, 2020 | shares

238,591,421

(1,173,955)

(1,997)

(1,175,952)

Accretion of Redeemable Convertible Preferred Shares

163,481

(243,564)

(247,580)

4,016

(243,564)

Re-designation of ordinary shares to Series A Preferred Shares (Note 19)

(81,208)

Re-designation of ordinary shares to Series A Preferred Shares, Shares(Note 19) | shares

(2,343,309)

Deemed dividend in association with acquisition of an equity-method investment (Note 8)

(689,670)

Deconsolidation of a subsidiary (Note 20)

(14,335)

Accretion of redeemable non-controlling interests (Note 20(b))

(1,306)

Contribution from non-controlling shareholders

(105)

202,105

202,000

Repurchase of ordinary shares, Shares (Note 21) | shares

(5,010,420)

5,010,420

Foreign currency translation adjustments, net of nil income taxes

4,551

Ending balance at Dec. 31, 2021

(4,097,326)

¥ 7

(4,103,381)

6,048

197,280

(3,900,046)

Ending balance (in shares) at Dec. 31, 2021 | shares

231,237,692

5,010,420

Total deficit attributable to ordinary shareholders of the Company

(4,097,326)

Accretion of Redeemable Convertible Preferred Shares

195,037

(177,842)

Deconsolidation of a subsidiary (Note 20)

(7,178)

Accretion of redeemable non-controlling interests (Note 20(b))

(714)

Foreign currency translation adjustments, net of nil income taxes

(214,315)

Ending balance at Jun. 30, 2022

(4,938,562)

¥ 7

17,195

(4,747,497)

(208,267)

191,745

(4,746,817)

Ending balance (in shares) at Jun. 30, 2022 | shares

236,248,112

Beginning balance at Dec. 31, 2021

(4,097,326)

¥ 7

(4,103,381)

6,048

197,280

(3,900,046)

Beginning balance (in shares) at Dec. 31, 2021 | shares

231,237,692

5,010,420

^[1]

(1,564,164)

(42,518)

(1,606,682)

Reissuance of ordinary shares (in shares) | shares

725,651

5,010,420

(5,010,420)

Accretion of Redeemable Convertible Preferred Shares

(354,878)

$ (48,940)

Deconsolidation of a subsidiary (Note 20)

7,178

Accretion of redeemable non-controlling interests (Note 20(b))

(714)

(98)

Deemed distribution to shareholders in the VIE restructuring (Note 1(d))

(61,921)

Re-designation of ordinary shares into Class A ordinary shares, value

¥ 6

¥ (6)

Re-designation of ordinary shares into Class A ordinary shares (in shares) | shares

193,216,446

(193,216,446)

Re-designation of ordinary shares into Class B ordinary shares, value

¥ 1

¥ (1)

Re-designation of ordinary shares into Class B ordinary shares (in shares) | shares

43,031,666

(43,031,666)

IPO cost capitalization

(270,539)

Conversion-Lotus convertible notes payable

69,600

Conversion-Lotus convertible notes payable (in shares) | shares

1,052,632

Geely strategic investment

139,200

Geely strategic investment (in shares) | shares

2,000,000

Luminar strategic investment

87,615

Luminar strategic investment (in shares) | shares

1,500,000

Conversion of Preferred Shares to Class A and Class B ordinary shares

5,492,749

¥ 3

5,492,746

5,492,749

Conversion of Preferred Shares to Class A and Class B ordinary shares (in shares) | shares

84,795,039

5,929,250

Issuance of Class A Ordinary Shares and warrants to COVA shareholders and warrant holders

30,265

Issuance of Class A Ordinary Shares and warrants to COVA shareholders and warrant holders (in shares) | shares

5,870,357

Foreign currency translation adjustments, net of nil income taxes

(391,934)

(54,050)

Ending balance at Dec. 31, 2022

(196,396)

¥ 9

¥ 1

5,919,660

(5,730,180)

(385,886)

161,940

(34,456)

(4,752)

Ending balance (in shares) at Dec. 31, 2022 | shares

288,434,474

48,960,916

Total deficit attributable to ordinary shareholders of the Company

(196,396)

(27,085)

Foreign currency translation adjustments, net of nil income taxes

52,226

48,996

6,757

Ending balance at Jun. 30, 2023

¥ (475,760)

¥ 9

¥ 1

¥ 5,971,886

¥ (6,110,766)

¥ (336,890)

¥ 131,199

(344,561)

(47,517)

Ending balance (in shares) at Jun. 30, 2023 | shares

288,434,474

48,960,916

Total deficit attributable to ordinary shareholders of the Company

¥ (475,760)

$ (65,610)

[1]	Excludes net loss attributable to redeemable non-controlling interests of RMB464 for the year ended December 31, 2022.

Summary of significant accounting policies (Details) ¥ in Thousands, $ in Thousands	6 Months Ended			12 Months Ended
	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Summary of significant accounting policies
Net loss	¥ (411,327)		¥ (594,194)	¥ (1,607,146)	$ (221,634)	¥ (1,176,758)	¥ (440,004)
Net cash used in operating activities	962,893	$ 132,789	¥ 337,722	461,337	$ 63,620	¥ 907,283	¥ 368,046
Working capital	¥ 422,243			¥ 74,108

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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Summary of significant accounting policies (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of estimated useful life of property and equipment


Category		Estimated useful life
Machinery and electronic equipment		3 – 10 years
Transportation vehicles		4 years
Office and other equipment		5 years
Leasehold improvement		Shorter of the lease term and the estimated useful lives of the assets

Schedule of concentration of customers and suppliers


	As of December 31,		As of June 30,
	2022		2023
Customer A, a related party	92.1	%	79.2	%
Customer B, a related party	Less than 10.0	%	10.5	%

The following table summarizes customers with greater than 10.0% of the accounts receivable - third parties, net:


	As of December 31,		As of June 30,
	2022		2023
Customer C, a third party	48.9	%	40.4	%
Customer D, a third party	30.4	%	29.7	%
Customer E, a third party	Less than 10.0	%	10.6	%
Customer F, a third party	Less than 10.0	%	12.6	%

Customers contributing more than 10.0% of total revenues were as follows:


	Six Months Ended June 30,
	2022		2023
Customer A, a related party	73.6	%	73.7	%
Customer C, a third party	11.4	%	Less than 10.0	%

The following table summarizes suppliers with greater than 10.0% of the accounts payable:


	As of December 31,		As of June 30,
	2022		2023
Supplier A, a third party	19.0	%	18.5	%
Supplier B, a third party	10.9	%	Less than 10.0	%
Supplier C, a third party	19.1	%	17.6	%

Suppliers contributing more than 10.0% of total purchases were as follows:


	Six Months Ended June 30,
	2022		2023
Supplier D, a third party	12.5	%	Less than 10.0	%
Supplier A, a third party	14.5	%	23.3	%
Supplier E, a related party	10.7	%	Less than 10.0	%
Supplier C, a third party	Less than 10.0	%	13.3	%

Summary of significant accounting policies (Policies)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Principles of consolidation

Basis of presentation

(a)

Basis of presentation

(a)

Basis of presentation

These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).

The consolidated financial statements are presented in Renminbi (“RMB”), rounded to the nearest thousand.

(b)

Principles of consolidation

Use of estimates

(c)

Use of estimates

Cash and restricted cash

(d)

Cash and restricted cash

Contract liabilities

(e)

Contract liabilities

Accounts receivable

(f)Accounts receivable

(g)Notes receivable

(h)Inventories

Impairment of long-lived assets

(i)Long-term investments

Equity method investments

Equity securities

Property and equipment

(j)

Property and equipment

Property and equipment are carried at cost less accumulated depreciation and impairment, if any.

Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets as below:


Category		Estimated useful life
Machinery and electronic equipment		3 – 10 years
Transportation vehicles		4 years
Office and other equipment		5 years
Leasehold improvement		Shorter of the lease term and the estimated useful lives of the assets

Intangible assets

(k)

Intangible assets

(l)

Impairment of long-lived assets

Product warranties

(m)

Product warranties

Value added taxes

(n)

Value added taxes

Research and development expenses

(o)Commitments and contingencies

Fair value measurement

(e)

Fair value measurements

(p)

Fair value measurement

The fair value hierarchy consists of the following three levels:

Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 — Includes other inputs that are directly or indirectly observable in the marketplace.

Level 3 — Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable.

Revenue recognition

(q)

Revenue recognition

The Group generates revenues from sales of goods, software license and services.

Sales of goods

Sales of goods include the following products:

SoC core modules, where the Group sells standardized computing board, which integrates SoC with core integrated circuits and peripherals to Tier 1 automotive suppliers or the OEMs; and

Automotive merchandise and other products, which are primarily basic electronic components such as resistor, capacitor and circuit board sold to automotive suppliers.

Software license revenues

Service revenues

The Group generates revenues by provision of the following services:

Automotive computing platform design and development service;

Connectivity service, which enables end-users of automobiles access internet; and,

The amount of consideration that the Group expects to receive in the future and that the Group has received but not recognized as revenue, for providing the design and development services, less

The costs that relate directly to providing those services and that have not been recognized as expenses.

(r)

Research and development expenses

Selling and marketing expenses

(s)

Selling and marketing expenses

Government grants

(t)

Government grants

Income tax

(u)

Income tax

Share-based compensation

(v)

Share-based compensation

Employee benefits

(w)

Employee benefits

Recently adopted accounting pronouncements and New accounting pronouncements

(x)

Leases

Foreign currency

(y)

Foreign currency

Convenience translation

(z)

Convenience translation

Loss per share

(aa)Loss per share

Segment reporting

(bb) Segment reporting

Statutory reserves

(cc) Statutory reserves

required if the statutory surplus fund has reached 50% of the registered capital of the PRC companies. Appropriation to the discretionary surplus fund is made at the discretion of the PRC companies.

No appropriation to the discretionary surplus fund was made by the Group’s PRC subsidiaries and VIEs.

(dd) Recently adopted accounting pronouncements

(ee) New accounting pronouncements

Share based compensation (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Summary of activities of Company's RSUs


			Weighted Average	Weighted
		Weighted Average	Fair value at grant	remaining	Aggregate intrinsic
	Number of RSUs	Exercise Price	date	contractual years	value
		US$	US$		US$
Outstanding at January 1, 2023	24,431,761	0.15	5.60
Granted (new RSUs)	600,000	0.48	4.41
Granted (replacement RSUs)	4,175,352	0.21	3.75
Forfeited	(1,312,251)	0.29	5.12
Replaced	(4,175,352)	0.63	4.11
Outstanding at June 30, 2023	23,719,510	0.08	5.54
Vested and expected to vest as of June 30, 2023	23,719,510	0.08	5.54	8.17	5.83
Exercisable as of June 30, 2023	21,847,960	0.04	5.77	8.08	5.85


			Weighted	Weighted
		Weighted	Average	remaining	Aggregate
	Number of	Average	Fair value at	contractual	intrinsic
	RSUs	Exercise Price	grant date	years	value
		US$	US$
Outstanding at January 1, 2021	16,224,217	0.05	3.66	—	—
Granted (new RSUs)	2,890,674	1.23	5.15	—	—
Granted (replacement RSUs)	7,708,362	0.28	6.88	—	—
Forfeited	(119,296)	0.01	3.71	—	—
Replaced	(7,708,362)	0.28	3.89	—	—
Outstanding at December 31, 2021	18,995,595	0.23	5.10	—	—
Granted (new RSUs)	6,680,560	0.56	6.92	—	—
Granted (replacement RSUs)	3,419,811	0.13	1.47	—	—
Forfeited	(1,244,394)	0.54	4.97	—	—
Replaced	(3,419,811)	1.24	1.47	—	—
Outstanding at December 31, 2022	24,431,761	0.15	5.60	—	—
Vested and expected to vest as of December 31, 2022	24,431,761	0.15	5.60	7.80	5.76
Exercisable as of December 31, 2022	21,191,690	0.06	5.79	7.91	5.83

Summary of fair value of RSUs granted that are estimated using the binomial model


	Six Months Ended June 30,
	2022		2023
Grant dates
Risk-free rate of return	1.61% - 2.36	%	2.65% - 3.85	%
Volatility	44.15% - 44.38	%	44.73	%
Expected dividend yield	0	%	0	%
Fair value of underlying ordinary share	US$7.57 - US$7.67 (equivalent to RMB48.29 - RMB48.88)		US$6.91 (equivalent to RMB49.90)
Expected terms	10 years		10 years


	Year ended December 31,
	2020	2021	2022
Risk-free rate of return	0.17% – 2.91%	0.35% – 2.70%	1.61% – 4.12%
Volatility	44.68% – 54.39%	41.13% – 50.60%	44.15% – 48.12%
Expected dividend yield	0.0%	0.0%	0.0%
Fair value of underlying ordinary share	US$3.16 – US$4.03 (equvalent to RMB21.76 – RMB26.27)	US$4.26 – US$7.45 (equvalent to RMB27.97 – RMB47.51)	US$7.57 – US$9.05 (equvalent to RMB48.29 – RMB64.98)
Expected terms	10 years	10 years	10 years

Summary of compensation expense recognized for RSUs


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Research and development expenses	—	84
Selling and marketing expenses	—	392
General and administrative expenses	—	(307)
Total	—	169

Summary of activities of options


			Weighted	Weighted
		Weighted	Average	remaining	Aggregate
	Number of	Average	Fair value at	contractual	intrinsic
	options	Exercise Price	grant date	years	value
		US$	US$		US$
Outstanding at January 1, 2023	12,853,364	9.70	3.14
Granted	63,464	9.70	3.80
Forfeited	(1,527,342)	9.70	3.26
Outstanding at June 30, 2023	11,389,486	9.70	3.13
Vested and expected to vest as of June 30, 2023	11,389,486	9.70	3.13	8.23	—
Exercisable as of June 30, 2023	8,311,048	9.70	2.94	8.19	—


			Weighted	Weighted
		Weighted	Average	remaining	Aggregate
	Number of	Average	Fair value at	contractual	intrinsic
	options	Exercise Price	grant date	years	value
		US$	US$
Outstanding at January 1, 2021	—	—	—
Granted	13,575,733	9.70	2.92
Forfeited	(294,690)	9.70	2.92
Outstanding at December 31, 2021	13,281,043	9.70	2.92
Granted	2,354,744	9.70	3.39
Forfeited	(2,782,423)	9.70	2.31
Outstanding at December 31, 2022	12,853,364	9.70	3.14
Vested and expected to vest as of December 31, 2021	12,853,364	9.70	3.14	8.76	—
Exercisable as of December 31, 2022	6,843,970	9.70	2.92	8.67	—

Summary of fair value of options granted that are estimated using the binomial model


	Six Months Ended June 30,
	2022		2023
Risk-free rate of return	1.63% - 3.05	%	3.79	%
Volatility	44.18% - 44.64	%	44.95	%
Expected dividend yield	0	%	0	%
Fair value of underlying ordinary share	US$7.57 - US$8.02		US$8.02
Expected terms	10 years		10 years


	Year ended December 31,
	2021		2022
Risk-free rate of return	1.20% – 1.65	%	1.63% - 3.83	%
Volatility	44.03% – 44.47	%	44.18% - 45.07	%
Expected dividend yield	0.0	%	0.0	%
Fair value of underlying ordinary share	US$6.99 - US$7.55		US$7.57 - US$9.30
Expected terms	10	years	10	years

2019 RSU Plan

Summary of compensation expense recognized for RSUs


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Research and development expenses	6,501	80,872	42,986
Selling and marketing expenses	723	7,321	8,297
Cost of revenues	—	6,524	—
General and administrative expenses	4,186	68,764	473,270
Total	11,410	163,481	524,553

2021 Option Plan

Summary of compensation expense recognized for RSUs


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Research and development expenses	23,492	19,577
Selling and marketing expenses	3,969	4,547
General and administrative expenses	167,576	27,933
Total	195,037	52,057


		Year ended December 31,
		2022
		RMB
Research and development expenses		93,824
Selling and marketing expenses		8,554
General and administrative expenses		98,720
Total		201,098

Summary of significant accounting policies (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of results of operations and net assets


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
ASSETS
Current assets	572,259	519,803
Non-current assets	43,655	45,941
Total assets	615,914	565,744

LIABILITIES
Current liabilities	486,351	384,556
Non-current liabilities	9,229	9,602
Total liabilities	495,580	394,158


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Revenues	1,422	12,614
Cost of revenues	(117)	(5,563)
Gross profit	1,305	7,051

Loss from operations	(64,065)	(102,651)
Loss before income taxes	(33,389)	(100,278)
Net loss	(40,882)	(100,278)

Schedule of concentration risk by customers and suppliers


	As of December 31,		As of June 30,
	2022		2023
Customer A, a related party	92.1	%	79.2	%
Customer B, a related party	Less than 10.0	%	10.5	%

The following table summarizes customers with greater than 10.0% of the accounts receivable - third parties, net:


	As of December 31,		As of June 30,
	2022		2023
Customer C, a third party	48.9	%	40.4	%
Customer D, a third party	30.4	%	29.7	%
Customer E, a third party	Less than 10.0	%	10.6	%
Customer F, a third party	Less than 10.0	%	12.6	%

Customers contributing more than 10.0% of total revenues were as follows:


	Six Months Ended June 30,
	2022		2023
Customer A, a related party	73.6	%	73.7	%
Customer C, a third party	11.4	%	Less than 10.0	%

The following table summarizes suppliers with greater than 10.0% of the accounts payable:


	As of December 31,		As of June 30,
	2022		2023
Supplier A, a third party	19.0	%	18.5	%
Supplier B, a third party	10.9	%	Less than 10.0	%
Supplier C, a third party	19.1	%	17.6	%

Suppliers contributing more than 10.0% of total purchases were as follows:


	Six Months Ended June 30,
	2022		2023
Supplier D, a third party	12.5	%	Less than 10.0	%
Supplier A, a third party	14.5	%	23.3	%
Supplier E, a related party	10.7	%	Less than 10.0	%
Supplier C, a third party	Less than 10.0	%	13.3	%

Summary of effect on the consolidated balance sheet as a result of adopting ASC 842


		Adjustments
	As of December 31,	due to adoption of		As of January 1,
	2021	ASC 842		2022
	RMB	RMB		RMB
ASSETS
Prepayments and other current assets	247,411	(6,764)	(a)	240,647
Operating lease right-of-use assets	—	95,108	(b)	95,108

LIABILITIES
Operating lease liabilities, current	—	(42,094)	(c)	(42,094)
Operating lease liabilities, non-current	—	(46,250)	(c)	(46,250)

(a)	Represents prepaid rent reclassified to operating lease right-of-use assets.

(b)	Represents operating lease right-of-use assets, which is made up of present value of operating lease payments, and the reclassification of prepaid rent from prepayments and other current assets.

(c)	Represents the recognition of operating lease liabilities, current and non-current.

Related party balances and transactions (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of significant related parties and their relationships

(a)	Related Parties

Names of the major related parties		Nature of relationship
Zhejiang Geely Holding Group (“Geely Group”) and its subsidiaries		Entity controlled by the controlling shareholder of the Company
Proton Holdings Berhad and its subsidiaries		Entity that the controlling shareholder of the Company has significant influence
Anhui Xinzhi Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Zhejiang Huanfu Technology Co., Ltd., (“Zhejiang Huanfu”, formerly known as Zhejiang Yikatong Technology Co., Ltd.,”Zhejiang Yikatong”)		Entity controlled by the controlling shareholder of the Company
Xi’an Liansheng Intelligent Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Hubei Xingji Meizu Group Co., Ltd. (formerly known as Hubei Yuanshidai Technology Co., Ltd.)		Entity controlled by the controlling shareholder of the Company
Hubei Xingji Meizu Technology Co., Ltd (formerly known as Hubei Xingji Times Technology Co., Ltd.)		Entity controlled by the controlling shareholder of the Company
Hubei ECARX Technology Co., Ltd (“Hubei ECARX”)		Entity controlled by the controlling shareholder of the Company
Arteus Group Limited (“Arteus”)		Entity controlled by the controlling shareholder of the Company
DreamSmart Technology Pte. Ltd. (“DreamSmart”)		Entity controlled by the controlling shareholder of the Company
Apollo Intelligent Connectivity (Beijing) Technology Co., Ltd.		Entity that one board of director of the Company has significant influence
SiEngine Technology Co., Ltd. (“SiEngine”)		Entity which is under significant influence of the Company
Suzhou Tongjie Automotive Electronics Co., Ltd.		Entity which is under significant influence of the controlling shareholder of the Company
Hubei Dongjun Automotive Electronic Technology Co., Ltd. and its subsidiary		Entity which is under significant influence of the Company
Suzhou Photon-Matrix Optoelectronics Technology Co., Ltd		Entity which is under significant influence of the Company
HaleyTek AB		Entity which is under significant influence of the Company

(b)	Significant transactions with related parties:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Revenues (i):
Sales of goods revenues	613,655	1,018,256
Automotive computing platform	603,112	1,013,860
SoC Core Modules	22	140
Automotive merchandise and other products	10,521	4,256
Software licence revenues	15,481	164,995
Service revenues	376,720	237,263
Automotive computing platform – Design and development service	241,090	119,291
Connectivity service	107,752	99,254
Other services	27,878	18,718
Total	1,005,856	1,420,514


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Purchase of products and services ⁽ⁱⁱ⁾	261,495	197,760
Rental of office space, and administrative services ⁽ⁱⁱ⁾	3,421	2,400
Other income ^(viii)	—	7,055
Interest income on loans due from related parties ^(iv)	2,759	6,771
Interest expense on borrowings and the Note due to related parties ⁽ⁱⁱⁱ⁾	1,622	6,116
Loans to related parties ^(iv)	8,060	12,000
Repayment received of loans to related parties ^(iv)	25,000	8,500
Financial support to Anhui Xinzhi ^(vii)	28,500	—
Repayment of borrowings from related parties ⁽ⁱⁱⁱ⁾	200,000	—
Borrowings from related parties ⁽ⁱⁱⁱ⁾	700,000	300,000
Transfer of property and equipment to Zhejiang Huanfu ^(v)	1,604	—

(c)	Balances with related parties:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Accounts receivable - related parties, net ⁽ⁱ⁾	835,320	804,267
Amounts due from related parties ^{(ii)(iv)(viii)}	911,729	140,225
Other non-current assets - related parties ^(vi)	213,695	218,899
Accounts payable - related parties ⁽ⁱⁱ⁾	241,773	101,098
Amounts due to related parties ^(iii)(ix)	42,843	341,202

Note:

(i)

(ii)

(iii)

In January 2023, ECARX (Hubei) Tech entered into an unsecured loan agreement with Geely Group in an amount of RMB300,000 with an interest rate of 4.1% per annum, which was repayable on June 30, 2024.

(iv)

(v)	In February 2022, Hubei ECARX disposed certain property and equipment to Zhejiang Huanfu at RMB1,697 and recorded a gain of RMB93 as a result of the disposal.

(vi)

(vii)

In February and March 2022, the Group provided cash in the amount of RMB28,500 to Anhui Xinzhi as financial support. The investment was derecognized as part of the Restructuring.

(viii)

(ix)	As a result of the purchase of technical services and logistics services from related parties, the Group recorded balances due to related parties of RMB29,043 and RMB21,286 as of December 31, 2022 and June 30, 2023, respectively.

(a)	Related Parties


Names of the major related parties		Nature of relationship
Zhejiang Geely Holding Group (“Geely Group”) and its subsidiaries		Entity controlled by the controlling shareholder of the Company
Proton Holdings Berhad and its subsidiaries		Entity that the controlling shareholder of the Company has significant influence
Anhui Xinzhi Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Zhejiang Huanfu Technology Co., Ltd., (“Zhejiang Huanfu”, formerly known as Zhejiang Yikatong Technology Co., Ltd.,”Zhejiang Yikatong”)		Entity controlled by the controlling shareholder of the Company
Xi’an Liansheng Intelligent Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Hubei Yuanshidai Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Hubei Xingji Times Technology Co., Ltd		Entity controlled by the controlling shareholder of the Company
Hubei ECARX Technology Co., Ltd		Entity controlled by the controlling shareholder of the Company
Arteus Group Limited		Entity controlled by the controlling shareholder of the Company
Apollo Intelligent Connectivity (Beijing)Technology Co., Ltd.		Entity that one board of director of the Company has significant influence
SiEngine Technology Co., Ltd.		Entity which is under significant influence of the Company
Suzhou Tongjie Automotive Electronics Co., Ltd.		Entity which is under significant influence of the controlling shareholder of the Company
Hubei Dongjun Automotive Electronic Technology Co., Ltd. and its subsidiary		Entity which is under significant influence of the Company
Suzhou Photon-Matrix Optoelectronics Technology Co., Ltd		Entity which is under significant influence of the Company

(b)	Significant transactions with related parties:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Revenues(i):
Sales of goods revenues	1,275,777	1,466,340	1,663,076
Automotive computing platform	1,231,429	1,410,566	1,651,512
SoC Core Modules	—	—	77
Automotive merchandise and other products	44,348	55,774	11,487
Software license revenues	18,168	24,788	133,450
Service revenues	444,709	532,625	721,206
Automotive computing platform – Design and development service	251,471	306,027	466,747
Connectivity service	172,490	187,781	212,406
Other services	20,748	38,817	42,053
Total	1,738,654	2,023,753	2,517,732


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Purchase of products and services (ii)	8,186	293,552	677,775
Rental of office space (ii)	3,391	1,093	6,395
Other income (ix)	—	—	22,846
Interest income on loans due from related parties (iv)	—	717	9,069
Interest expense on borrowings due to related parties (iii)	872	131	12,215
Loans to related parties (iv)	—	28,850	57,260
Repayment received of loans to related parties (iv)	—	—	29,360
Advances to Zhejiang Huanfu (iv)	103,024	19,806	—
Collection of advances to Zhejiang Huanfu (iv)	81,026	90,155	—
Repayment of borrowings from related parties (iii)	—	65,152	700,000
Borrowings from related parties (iii)	—	45,152	700,000
Transfer of property and equipment to Zhejiang Huanfu (v)	—	707	1,604
Financial support to Anhui Xinzhi (viii)	—	—	28,500


	As of December 31,
	2021	2022
	RMB	RMB
Accounts receivable – related parties, net (i)	768,747	835,320
Amounts due from related parties (ii)(iv)(ix)	41,298	911,729
Accounts payable – related parties (ii)	111,531	241,773
Amounts due to related parties (iii)(vi)(x)	106,825	42,843
Other non-current assets – related parties (vii)	1,929	213,695

(i)

The Group sold automotive computing platform products and provided related technology development services, merchandise and other products, connectivity service, software licenses and other consulting services to a number of related parties. Accounts receivable, net due from related parties arising from sales of products and provision of services were RMB768,747 and RMB835,320 as of December 31, 2021 and 2022, respectively. The balance as of December 31, 2021 was fully received in 2022. Of the balance as of December 31, 2022, RMB538,867 was subsequently received by March 2023.

(ii)

(iii)

(iv)	In 2020 and 2021, the Group respectively paid advances of RMB103,024 and RMB19,806, and received collection of RMB81,026 and RMB90,155, from Zhejiang Huanfu. The payments were interest-free and due on demand. The amounts due from Zhejiang Huanfu as of December 31, 2020 was fully collected in 2021.

In 2021, the Group provided loans of RMB28,850 to related parties. Interest incomes on loans due from related parties were RMB717 for the year ended December 31, 2021.

(v)

(vi)

(vii)

(viii)

(ix)

(x)	As a result of the purchase of technical services and logistics services from related parties in each of the reporting periods specified in the Note (ii), the Group recorded balances due to related parties of RMB36,186 and RMB29,043 as of December 31, 2021 and 2022, respectively.

Inventories

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

5.	Inventories

Inventories consisted of the following:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Raw materials	65,575	73,767
Work in process	2,999	1,095
Finished goods	113,998	111,364
Total	182,572	186,226

The Group recorded inventory write-down of RMB5,162 and RMB9,535 for the six months ended June 30, 2022 and 2023, respectively.

6.	Inventories

Inventories consisted of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Raw material	117,845	65,575
Work-in-process	2,690	2,999
Finished goods	102,784	113,998
Total	223,319	182,572

The Group recorded inventory write-down of RMB44,134, RMB49,485 and RMB35,406 for the years ended December 31, 2020, 2021 and 2022, respectively.

Leases - Lease cost allocated expense items (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Leases
Lease, Cost	¥ 24,514	¥ 26,181	¥ 51,397
Selling and Marketing Expense [Member]
Leases
Lease, Cost	456	662	1,525
General and administrative expenses
Leases
Lease, Cost	12,512	9,541	18,834
Research and development expenses
Leases
Lease, Cost	¥ 11,546	¥ 15,978	¥ 31,038

Income taxes

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Income taxes

Income taxes

17.

Income taxes

24.

Income taxes

Cayman Islands

British Virgin Islands

Hong Kong

Mainland PRC

The components of income / (loss) before income taxes are as follows:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
The Cayman Islands	55,644	(4,811)	(57,261)
British Virgin Islands	—	—	(2)
Hong Kong S.A.R	93	(53,347)	(27,262)
Sweden	—	(310)	7,015
United Kingdom	—	(11,164)	(348,872)
The PRC, excluding Hong Kong S.A.R.	(495,513)	(1,100,265)	(1,151,699)
Total	(439,776)	(1,169,897)	(1,578,081)

Withholding tax on undistributed dividends

(a)	Income taxes

Income tax expense recognized in the consolidated statements of comprehensive loss consisted of the following:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Current income tax expense	228	6,861	29,065

(b)	Tax reconciliation

Reconciliation of the differences between PRC statutory income tax rate and the Group’s effective income tax rates for the years ended December 31, 2020, 2021, and 2022 are as follows:


	Year ended December 31,
	2020		2021		2022
Computed expected income tax benefit	(25)	%	(25)	%	(25)	%
Effect of preferential tax rate	11	%	10	%	(17)	%
Effect of different tax jurisdiction	(3)	%	(1)	%	2	%
Non-deductible expenses	4	%	5	%	40	%
Research and development expenses additional deduction	(8)	%	(6)	%	(5)	%
Change in valuation allowance	21	%	17	%	7	%
Actual income tax expense	—		—		2	%

(c)	Deferred taxes

The principal components of the deferred tax assets and liabilities are as follows:


	As of December 31,
	2021	2022
	RMB	RMB
Deferred tax assets:
Inventories	6,431	7,654
Allowance for doubtful accounts	487	2,049
Intangible assets	—	268,381
Accrued product warranties	8,483	23,037
Accrued salaries and benefits	8,704	10,961
Accrued expenses and other liabilities	48,520	14,494
Unrealized investment loss of equity method investments	3,600	7,326
Donation	450	503
Operating lease liabilities	—	22,781
Net operating loss carryforwards	473,845	201,812
Total deferred tax assets	550,520	558,998
Less: valuation allowance	(550,520)	(537,172)
Deferred tax assets, net of valuation allowance	—	21,826
Deferred tax liabilities:
Operating lease right-of-use assets	—	(21,826)
Total deferred tax liabilities	—	(21,826)
Net deferred tax assets	—	—

The following table presents the movement of the valuation allowance for the deferred tax assets:


	As of December 31,
	2020	2021	2022
	RMB	RMB	RMB
Balance as of January 1,	268,702	362,371	550,520
Increase during the year	93,669	188,149	121,245
Reversal of net operating loss carryforwards due to the Restructuring	—	—	(134,593)
Balance as of December 31	362,371	550,520	537,172

As of December 31, 2022, the net operating loss carryforwards by the PRC companies will expire during the period from year 2026 to year 2027, if unused by the following year-end:


Year ending December 31,		Amount
		RMB
2026		8,118
2027		733,746
Total		741,864

Parent only financial information

Cash and restricted cash (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Cash and restricted cash
Cash	¥ 850,373	$ 117,272	¥ 860,472	$ 118,665		¥ 966,128
Restricted cash	74,975	10,340	40,957	5,648		23,004
Cash and restricted cash shown in the consolidated statements of cash flows	¥ 925,348	$ 127,612	¥ 901,429	$ 124,313	¥ 728,413	¥ 989,132	$ 136,408	¥ 1,003,876	¥ 334,931

Accrued expenses and other liabilities (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Accrued expenses and other liabilities
Salaries and benefits payables	¥ 165,238		¥ 246,189		¥ 230,985
Taxes payable	59,318		103,067		39,286
Product warranties	69,915		61,432		40,263
Accrued costs of the Merger	68,922		136,756
Other payables and accrued charges	148,355		237,690		150,730
Accrued expenses and other current liabilities	¥ 511,748	$ 70,574	¥ 785,134	$ 108,275	¥ 461,264

Property and equipment, net (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Property and equipment, net
Property and equipment	¥ 259,570		¥ 243,443		¥ 225,593
Less: accumulated depreciation	(129,154)		(103,836)		(115,808)
Property and equipment, net	130,416	$ 17,985	139,607	$ 19,253	109,785
Machinery and electronic equipment
Property and equipment, net
Property and equipment	189,052		180,264		160,141
Transportation vehicles
Property and equipment, net
Property and equipment	5,214		3,897		8,589
Office and other equipment
Property and equipment, net
Property and equipment	18,338		15,510		7,219
Leasehold improvements
Property and equipment, net
Property and equipment	46,572		43,440		39,166
Construction in progress
Property and equipment, net
Property and equipment	¥ 394		¥ 332		¥ 10,478

Summary of significant accounting policies - Combination between entities (Details) ¥ in Thousands	6 Months Ended
	Jun. 30, 2023 CNY (¥)
JICA
Business combination
Ownership percentage	70.00%
JICA
Business combination
Ownership interest previously held (in percent)	50.00%
Geely Auto \| JICA
Business combination
Ownership percentage	50.00%
JICA
Business combination
Amount of capital injection	¥ 266,667
Amount paid	1,000
Remaining amount to be paid	¥ 265,667
Period for payment of remaining consideration	3 years

Parent only financial information

12 Months Ended

Dec. 31, 2022

Parent only financial information

30.

Parent only financial information

The following condensed financial statements of the Company have been prepared using the same accounting policies as set out in the accompanying consolidated financial statements. As of December 31, 2022, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of convertible redeemable preferred shares or guarantees of the Company, except for those, which have been separately disclosed in the consolidated financial statements.

(a)	Condensed Balance Sheets


	As of December 31,
	2021	2022
	RMB	RMB
ASSETS
Current assets
Cash	158,755	119,022
Prepayments and other assets	5,751	35
Amounts due from related parties	3,217,624	4,168,615
Total current assets	3,382,130	4,287,672

Non-current assets
Long-term investments	—	69,319
Total non-current assets	—	69,319
Total assets	3,382,130	4,356,991

Current Liabilities
Accounts payable	108	—
Accrued expenses and other current liabilities	—	146,507
Amounts due to related parties	85,390	18,925
Share of losses in excess of investments in subsidiaries and VIEs	2,861,051	3,948,086
Total current liabilities	2,946,549	4,113,518

Non-current liabilities
Convertible notes payable	—	439,869
Total non-current liabilities	—	439,869
Total liabilities	2,946,549	4,553,387

MEZZANINE EQUITY
Series Angel Redeemable Convertible Preferred Shares	283,585	—
Series A Redeemable Convertible Preferred Shares	1,429,313	—
Series A+ Redeemable Convertible Preferred Shares	1,386,671	—
Series A++ Redeemable Convertible Preferred Shares	475,413	—
Series B Redeemable Convertible Preferred Shares	1,117,317	—
Subscription receivable from a Series B Redeemable Convertible Preferred Shareholder	(159,392)	—
Total mezzanine equity	4,532,907	—

SHAREHOLDERS’ DEFICIT
Ordinary Shares	7	—
Class A Ordinary Shares	—	9
Class B Ordinary Shares	—	1
Treasury Shares	—	—
Additional paid-in capital	—	5,919,660
Accumulated deficit	(4,103,381)	(5,730,180)
Accumulated other comprehensive income (loss)	6,048	(385,886)
Total shareholders’ deficit	(4,097,326)	(196,396)
Total liabilities, mezzanine equity and shareholders’ deficit	3,382,130	4,356,991

(b) Condensed statements of comprehensive loss


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
General and administrative expenses	—	(17,660)	(26,005)
Interest income	431	885	6,565
Interest expenses	—	(514)	(3,132)
Foreign currency exchange gains (losses)	55,213	12,478	(14,459)
Change in fair value of an equity security	—	—	(16,843)
Share of losses from subsidiaries and VIEs	(495,303)	(1,170,450)	(1,511,004)
Loss before income taxes	(439,659)	(1,175,261)	(1,564,878)
Income tax expenses	—	—	—
Net loss	(439,659)	(1,175,261)	(1,564,878)


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Net cash used in operating activities	(266)	(22,741)	(22,893)
Net cash used in investing activities	(97,873)	(3,121,321)	(734,299)
Net cash provided by financing activities	206,422	3,222,206	729,767
Effect of foreign currency exchange rate changes on cash	(10,012)	(17,660)	(12,308)
Net increase in cash	98,271	60,484	(39,733)
Cash at beginning of the year	—	98,271	158,755
Cash at end of the year	98,271	158,755	119,022

Income taxes - Net operating loss carryforwards (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Other than PRC
Net operating loss carryforwards
Net operating loss carryforwards	¥ 87,051	¥ 11,893
PRC
Net operating loss carryforwards
2026	8,118
2027	733,746
Net operating loss carryforwards	¥ 741,864

Convertible notes payable

6 Months Ended

Jun. 30, 2023

Convertible notes payable

13.

Convertible notes payable

The following is a summary of the Company’s convertible notes payable as of December 31, 2022. The fair value of the Investor Notes approximates its carrying value as of December 31, 2022.


	Principal	Unamortized debt	Net carrying
	amount	issuance costs	amount
	RMB	RMB	RMB

5% Investor Notes due on November 8, 2025	448,318	(8,449)	439,869

The following is a summary of the Company’s convertible notes payable as of June 30, 2023.


	Principal	Unamortized debt	Net carrying	Fair value
	amount	issuance costs	amount	Amount	Leveling
	RMB	RMB	RMB

5% Investor Notes due on November 8, 2025	471,335	(7,041)	464,294	440,879	Level 3

Accounts receivable, net (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of accounts receivable, net


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Accounts receivable - third parties	422,743	296,449
Less: Allowance for doubtful accounts, third parties	(4,521)	(8,216)
Accounts receivable - third parties, net	418,222	288,233

Accounts receivable - related parties	837,686	807,621
Less: Allowance for doubtful accounts, related parties	(2,366)	(3,354)
Accounts receivable - related parties, net	835,320	804,267

Schedule of movement of the allowance for doubtful accounts of accounts receivables due from related parties


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Balance at the beginning of the period	—	6,887
Additions	6,887	7,097
Reversal	—	(2,142)
Write-off	—	(272)
Balance at the end of the period	6,887	11,570


	As of December 31,
	2020	2021	2022
	RMB	RMB	RMB
Balance at the beginning of the year	—	—	—
Additions	360	—	6,887
Write-off	(360)	—	—
Balance at the end of the year	—	—	6,887

Intangible assets, net - Amortization of intangible assets was allocated as follows (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Intangible assets, net
Total amortization	¥ 12,007	¥ 11,764	¥ 24,032	¥ 21,887	¥ 20,478
Selling and marketing expenses
Intangible assets, net
Total amortization	3	254	257	876	1,027
General and administrative expenses
Intangible assets, net
Total amortization	4,899	4,670	9,730	5,845	2,535
Research and development expenses
Intangible assets, net
Total amortization	¥ 7,105	¥ 6,840	¥ 14,045	¥ 15,089	¥ 16,820

Loss per share (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of basic and diluted net loss per share


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Numerator:
Net loss available to ECARX Holdings Inc.	(582,195)	(380,586)
Accretion of Redeemable Convertible Preferred Shares	(177,842)	—
Numerator for basic and diluted net loss per share calculation	(760,037)	(380,586)
Denominator:
Weighted average number of ordinary shares - basic and diluted	236,248,112	337,395,390
Denominator for basic and diluted net loss per share calculation	236,248,112	337,395,390
Loss per ordinary share
—Basic and diluted	(3.22)	(1.13)


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Numerator:
Net loss attributable to ECARX Holdings Inc.	(439,659)	(1,175,261)	(1,564,878)
Accretion of Redeemable Convertible Preferred Shares	(101,286)	(243,564)	(354,878)
Numerator for basic and diluted net loss per share calculation	(540,945)	(1,418,825)	(1,919,756)

Denominator:
Weighted average number of ordinary shares – basic and diluted	238,591,421	236,691,093	239,296,386
Net loss per share attributable to ordinary shareholders
— Basic and diluted	(2.27)	(5.99)	(8.02)

Schedule of potential dilutive instruments that have not been included in the calculation of diluted loss per share as their inclusion would be anti-dilutive


	Six Months Ended June 30,
	2022	2023
Redeemable convertible preferred shares	90,724,289	—
Warrants	—	23,871,971


	Year ended December 31,
	2020	2021	2022
Redeemable convertible preferred shares	26,841,535	90,724,289	—
Warrants	6,016,207	—	23,871,971

Non-controlling interests

12 Months Ended

Dec. 31, 2022

Non-controlling interests

Non-controlling interests

20.

Non-controlling interests

(a)	Non-redeemable non-controlling interests

In May 2021, Hubei ECARX and a third party established Suzhou Photon-Matrix, in which Hubei ECARX held 60% equity interest in exchange for total cash contribution of RMB6,000 and the non-controlling interest holder held 40% equity interest with a total cash consideration of RMB4,000, of which, RMB2,000 has not been received as of December 31, 2021.

In August 2021, a third-party investor made a capital contribution of RMB520 to Suzhou Photon-Matrix, as a result, the Group’s equity interest in Suzhou Photon-Matrix decreased by 2.97% while the Group continued to maintain control. The Group recorded the decrease of RMB105 in additional paid-in capital due to the change of its ownership percentage in Suzhou Photon-Matrix.

In September 2021, as stated in the Note 8, the Group sold 2% equity interest in Hubei Dongjun at a cash consideration of RMB1,000, with 49% equity interest retained. The relevant non-redeemable non-controlling interests in the amount of RMB14,335 was derecognized along with the sale of equity interests.

The Group lost control in Suzhou Photon-Matrix in January 2022 following its capital transactions with other shareholders as a consequence of which the Group’s ownership interest reduced to 49.17%. The carrying amount of relevant non-redeemable non-controlling interests in the amount of RMB (7,178) was derecognized upon deconsolidation.

In addition, as a result of the combination between entities under common control stated in the Note 29(b), the Group owns a controlling interest of 70% in JICA. The remaining 30% equity interest in JICA was recorded as non-redeemable non-controlling interests.

(b)	Redeemable non-controlling interests

In October 2021, Suzhou Photon-Matrix entered into financing agreements with third party investors, pursuant to which these investors contributed RMB30,000 in cash in exchange for 10.71% of equity interests of Suzhou Photon-Matrix. These investors have the right to request Suzhou Photon-Matrix to redeem all of the equity interest they hold if Suzhou Photon-Matrix does not achieve a qualified IPO within 7 years after their investment, at a redemption price of RMB30,000 plus 10% interest per annum.

The redeemable non-controlling interest was recorded outside permanent equity, as mezzanine equity- redeemable non-controlling interests, in the consolidated balance sheets, initially at RMB30,000. The amount presented in redeemable non-controlling interest should be higher of the non-controlling interest balance after attribution of net income or loss of the subsidiary and related dividends to the non-controlling interest, or the redemption amount. As of December 31, 2021, the balance of redeemable non-controlling interests was RMB30,500.

In January 2022, Suzhou Photon-Matrix entered into financing agreements with third party investors, pursuant to which these investors aggregately contributed RMB10,000 in cash in exchange for 3.45% of equity interests of Suzhou Photon-Matrix. These investors have the right to request Suzhou Photon-Matrix to redeem all of the equity interest they hold if Suzhou Photon-Matrix does not achieve a qualified IPO within 7 years after their investment, at a redemption price of RMB10,000 plus 10% interest per annum.

Before the deconsolidation of Suzhou Photon-Matrix as stated in the Note 8, the redeemable non-controlling interest was recorded outside of permanent equity, as mezzanine equity- redeemable non-controlling interests in the consolidated balance sheets. The amount presented in redeemable non-controlling interests should be higher of the non-controlling interests balance after attribution of net income or loss of the subsidiary and related dividends to the non-controlling interests, or the redemption amount.

During the years ended December 31, 2021 and 2022, changes of redeemable non-controlling interests were as follows:


		RMB
Balance as of January 1, 2021		—
Add: Capital contribution		30,000
Less: Comprehensive loss		(806)
Add: Accretion of redeemable non-controlling interests		1,306
Balance as of December 31, 2021		30,500
Add: Capital contribution		10,000
Less: Comprehensive loss		(464)
Add: Accretion of redeemable non-controlling interests before the deconsolidation of Suzhou Photon-Matrix		714
Less: Deconsolidation of Suzhou Photon-Matrix		(40,750)
Balance as of December 31, 2022		—

Share based compensation (Details)														1 Months Ended					5 Months Ended	6 Months Ended			9 Months Ended		11 Months Ended	12 Months Ended
Share based compensation (Details)	Jun. 29, 2023 CNY (¥) shares	Jun. 29, 2023 USD ($) shares	Apr. 30, 2023 CNY (¥) shares	Apr. 30, 2023 USD ($) shares	Jan. 31, 2023 CNY (¥) shares	Jan. 31, 2023 USD ($) shares	Oct. 31, 2022 CNY (¥) shares	Oct. 31, 2022 USD ($) shares	Aug. 20, 2022 CNY (¥)	Aug. 20, 2022 USD ($)	Jan. 30, 2022 $ / shares	Jan. 20, 2022 $ / shares	Nov. 30, 2021 $ / shares	Jun. 30, 2023 CNY (¥) $ / shares shares	Jan. 31, 2023 $ / shares shares	Jan. 31, 2022	Jul. 31, 2021 $ / shares	Mar. 31, 2021 $ / shares	Dec. 31, 2020 $ / shares shares	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 CNY (¥) $ / shares	Jun. 30, 2022 CNY (¥)	Sep. 30, 2022 $ / shares shares	Nov. 30, 2021 $ / shares shares	Nov. 30, 2022	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥) $ / shares	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2020 $ / shares	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Share based compensation
Expected dividend yield																										0.00%		0.00%	0.00%	0.00%
Total compensation expense recognized \| ¥																										¥ 524,553,000		¥ 163,481,000		¥ 11,410,000
RSU
Share based compensation
Expected dividend yield																				0.00%		0.00%				0.00%
Total compensation expense recognized \| ¥																				¥ 52,057,000		¥ 195,037,000
Unrecognized compensation expense														¥ 157,990,000						¥ 157,990,000	¥ 157,990,000											$ 22,333,000
Weighted-average period																				1 year 4 months 24 days						1 year 10 months 24 days
RSU \| Share-Based Payment Arrangement, Tranche One [Member]
Share based compensation
Vesting percentage																										50.00%
Service period																										5 years
RSU \| Share-Based Payment Arrangement, Tranche One [Member] \| Upon a qualified IPO
Share based compensation
Vesting percentage																										50.00%
RSU \| Share-Based Payment Arrangement, Tranche Two [Member] \| Upon a qualified IPO
Share based compensation
Vesting percentage																										20.00%
Service period																										12 months
RSU \| Share-Based Payment Arrangement, Tranche Two [Member] \| Before a qualified IPO is achieved
Share based compensation
Vesting percentage																										50.00%
Service period																										5 years
RSU \| Share-Based Payment Arrangement, Tranche Two [Member] \| After the completion of a qualified IPO
Share based compensation
Vesting percentage																										20.00%
Service period																										12 months
RSU \| Share-Based Payment Arrangement, Tranche Three [Member]
Share based compensation
Service period																										60 months
2019 RSU Plan \| RSU
Share based compensation
Aggregate number of shares granted \| shares	1,312,253	1,312,253	1,073,662	1,073,662	1,789,437	1,789,437								600,000									6,680,560
Incremental cost			¥ 10,430,000	$ 1,474,000	¥ 3,940,000	$ 557,000
Incremental cost recognized immediately					¥ 1,457,000	$ 206,000
Exercise price per share														¥ 0.48
Weighted average exercise price											$ 0.32		$ 1.96										$ 0.56
2019 RSU Plan \| RSU \| Minimum [Member]
Share based compensation
Incremental cost	¥ 538,000	$ 76,000
2019 RSU Plan \| RSU \| Maximum [Member]
Share based compensation
Incremental cost	¥ 2,250,000	$ 318,000
2019 RSU Plan \| RSU \| Share-Based Payment Arrangement, Tranche One [Member]
Share based compensation
Vesting percentage					20.00%	20.00%
2019 RSU Plan \| RSU \| Share-Based Payment Arrangement, Tranche One [Member] \| Vesting approach 1
Share based compensation
Vesting percentage	20.00%	20.00%
2019 RSU Plan \| RSU \| Share-Based Payment Arrangement, Tranche Two [Member]
Share based compensation
Vesting percentage					50.00%	50.00%
2019 RSU Plan \| RSU \| Share-Based Payment Arrangement, Tranche Two [Member] \| Vesting approach 1
Share based compensation
Vesting percentage	50.00%	50.00%
2019 RSU Plan \| RSU \| Share-Based Payment Arrangement, Tranche Three [Member]
Share based compensation
Vesting percentage					30.00%	30.00%
2019 RSU Plan \| RSU \| Share-Based Payment Arrangement, Tranche Three [Member] \| Vesting approach 1
Share based compensation
Vesting percentage	30.00%	30.00%
2019 RSU Plan \| RSU \| Vesting after twelve month service period, Trance 1 \| Vesting approach 2
Share based compensation
Vesting percentage	20.00%	20.00%
2019 RSU Plan \| RSU \| Vesting after twelve month service period, Trance 2 \| Vesting approach 2
Share based compensation
Vesting percentage	20.00%	20.00%
2019 RSU Plan \| RSU \| Vesting after twelve month service period, Trance 3 \| Vesting approach 2
Share based compensation
Vesting percentage	60.00%	60.00%
2019 RSU Plan \| RSU \| Employee and non employee
Share based compensation
Aggregate number of shares granted \| shares																			16,224,217
Weighted average exercise price																			$ 0.34
2019 RSU Plan \| RSU \| Share-based payment arrangement employee
Share based compensation
Aggregate number of shares granted \| shares							4,771,828	4,771,828																2,890,674
Incremental cost							¥ 119,408,000	$ 17,993,000	¥ 4,976,000	$ 750,000
Weighted average exercise price												$ 0.32						$ 2.96						$ 1.23
Service period														12 months		12 months
2019 RSU Plan \| RSU \| Share-based payment arrangement employee \| Vesting after twelve month service period
Share based compensation
Vesting percentage														20.00%		20.00%
Service period														12 months
2019 RSU Plan \| RSU \| Share-based payment arrangement employee \| Vesting after twelve month service period, Trance 1
Share based compensation
Vesting percentage														50.00%
2019 RSU Plan \| RSU \| Share-based payment arrangement employee \| Vesting after twelve month service period, Trance 2
Share based compensation
Vesting percentage														30.00%
2019 RSU Plan \| RSU \| Share-based payment arrangement employee \| Vesting after twelve month service period, Trance 3
Share based compensation
Vesting percentage														20.00%
2021 Option Plan
Share based compensation
Aggregate number of shares granted \| shares															63,464
Exercise price per share															$ 9.70		$ 9.70				¥ 9.70						$ 9.70				$ 9.70
Expected dividend yield																				0.00%		0.00%
Total compensation expense recognized \| ¥																				¥ 169,000						¥ 201,098,000
Unrecognized compensation expense														¥ 24,873						¥ 24,873	¥ 24,873					¥ 54,976,000	$ 54,976,000					$ 3,516	$ 8,284,000
Weighted-average period																				2 years 2 months 23 days						2 years 9 months
2021 Option Plan \| Upon a qualified IPO
Share based compensation
Vesting percentage															25.00%										25.00%
Service period															12 months										12 months
2021 Option Plan \| After the completion of a qualified IPO
Share based compensation
Vesting percentage																									25.00%
Service period																									12 months
2021 Option Plan \| RSU
Share based compensation
Total compensation expense recognized																												¥ 105,211,000	$ 16,311,000

Accounts receivable, net - Movement of the allowance for doubtful accounts of accounts receivables due from related parties (Details) - CNY (¥) ¥ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2020
Accounts receivable, net
Balance at the beginning of the year	¥ 6,887
Additions	7,097	¥ 6,887
Reversal	(2,142)
Write-off	(272)		¥ (360)
Balance at the end of the year	¥ 11,570	¥ 6,887

Long-term investments - Equity method investments, Summary combined financial information (Details) ¥ in Thousands, $ in Thousands	6 Months Ended			12 Months Ended
	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Financial position:
Current assets	¥ 3,100,363			¥ 3,853,333		¥ 2,592,163		$ 427,560	$ 531,398
Non-current assets	901,725			877,699		1,315,417		124,354	121,041
Total assets	4,002,088			4,731,032		3,907,580		551,914	652,439
Current liabilities	3,522,606			3,927,441		2,754,861		485,789	541,617
Non-current liabilities	824,043			838,047		489,358		113,642	115,574
Total liabilities	4,346,649			4,765,488		3,244,219		599,431	657,191
Total deficit attributable to ordinary shareholders of ECARX Holdings Inc	(475,760)			(196,396)		(4,097,326)		(65,610)	(27,085)
Liabilities and shareholders' deficit	4,002,088			4,731,032		3,907,580		$ 551,914	$ 652,439
Results of operations:
Total revenues	1,717,437		¥ 1,313,992	3,561,994	$ 491,222	2,779,063	¥ 2,241,063
Loss from operation	(381,972)	$ (52,677)	(677,752)	(1,628,221)	(224,541)	(1,000,178)	(430,481)
Net loss	¥ (380,586)	$ (52,487)	¥ (581,481)	(1,564,164)	$ (215,706)	(1,173,955)	(439,659)
Impairment loss recognized				0		0	¥ 0
Equity Method Investment, Nonconsolidated Investee or Group of Investees
Financial position:
Current assets				1,216,042		1,068,323
Non-current assets				999,573		1,252,988
Total assets				2,215,615		2,321,311
Current liabilities				942,899		675,372
Non-current liabilities				1,056,274		956,934
Total liabilities				1,999,173		1,632,306
Total deficit attributable to ordinary shareholders of ECARX Holdings Inc				216,442		689,005
Liabilities and shareholders' deficit				2,215,615		2,321,311
Results of operations:
Total revenues				1,134,152		711,800
Loss from operation				(636,240)		(482,095)
Net loss				¥ (641,401)		¥ (392,337)

Subsequent events - New grants of share options (Details) - USD ($)	1 Months Ended			5 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jan. 31, 2023	Jul. 31, 2021	Dec. 31, 2021	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2020
2021 Option Plan
Subsequent events
Aggregate number of share options granted				13,575,733	63,464	2,354,744	13,575,733
Exercise price per share		$ 9.70	$ 9.70		$ 9.70	$ 9.70	$ 9.70
Subsequent events
Subsequent events
Fixed monetary amount	$ 160,000
Subsequent events \| 2021 Option Plan
Subsequent events
Aggregate number of share options granted		63,464
Exercise price per share		$ 9.70

Warrant liabilities (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of warrants are remeasured utilizing key assumptions


	As of December 31,
	2020
Risk-free rate of return (%)	3.34	%
Volatility	46.85	%
Expected dividend yield	0.0	%
Expected term	3.6	years
Fair value of the underlying ordinary shares	RMB31.34

Schedule of movement of ECARX warrants

Change in fair

Foreign

January 1,

value included

exchange

June 30,

2023

Addition

in losses

translation

Settlement

2023

RMB

Liabilities

ECARX Public Warrants

10,346

—

(3,183)

451

—

7,614

ECARX Private Warrants

6,198

—

(1,598)

279

—

4,879

Total

16,544

—

(4,781)

730

—

12,493

Change in fair

January 1,

value included

Foreign exchange

December

2022

Addition

in losses

translation

Settlement

31, 2022

RMB

Liabilities

ECARX Public Warrants

—

8,277

1,991

—

10,346

ECARX Private Warrants

—

4,895

1,254

—

6,198

Total

—

13,172

3,245

127

—

16,544

ECARX Private Warrants

Schedule of warrants are remeasured utilizing key assumptions


	As of December 31,		As of June 30,
	2022		2023
Risk-free rate of return (%)	3.99	%	4.22	%
Volatility	6.99	%	11.01	%
Expected dividend yield	0.0	%	0.0	%
Expected term	5.0 years		4.5 years
Fair value of the underlying ordinary shares	US$7.99 (equivalent to RMB55.11)		US$6.96 (equivalent to RMB50.47 )


	As of December 31,
	2022
Risk-free rate of return (%)	3.99	%
Volatility	6.99	%
Expected dividend yield	0.0	%
Expected term	5.0	years
Fair value of the underlying ordinary shares	US$7.99 (equivalent to RMB55.11)

Accrued expenses and other liabilities (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of accrued expenses and other liabilities


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Salaries and benefits payables	246,189	165,238
Taxes payable	103,067	59,318
Product warranties	61,432	69,915
Accrued costs of the Merger	136,756	68,922
Other payables and accrued charges*	237,690	148,355
Accrued expenses and other current liabilities	785,134	511,748

*	Other payables and accrued charges primarily include accrual for research and development expenses.


	As of December 31,
	2021	2022
	RMB	RMB
Salaries and benefits payables	230,985	246,189
Taxes payable	39,286	103,067
Product warranties	40,263	61,432
Accrued costs of the Merger	—	136,756
Other payables and accrued charges*	150,730	237,690
Accrued expenses and other current liabilities	461,264	785,134

*Other payables and accrued charges primarily include accrual for research and development expenses.

Income taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income taxes

Schedule of components of income / (loss) before income taxes


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
The Cayman Islands	55,644	(4,811)	(57,261)
British Virgin Islands	—	—	(2)
Hong Kong S.A.R	93	(53,347)	(27,262)
Sweden	—	(310)	7,015
United Kingdom	—	(11,164)	(348,872)
The PRC, excluding Hong Kong S.A.R.	(495,513)	(1,100,265)	(1,151,699)
Total	(439,776)	(1,169,897)	(1,578,081)

Schedule of income tax expense recognized in the consolidated statements of comprehensive loss


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Current income tax expense	228	6,861	29,065

Schedule of reconciliation of the differences between PRC statutory income tax rate and the Group's effective income tax rates


	Year ended December 31,
	2020		2021		2022
Computed expected income tax benefit	(25)	%	(25)	%	(25)	%
Effect of preferential tax rate	11	%	10	%	(17)	%
Effect of different tax jurisdiction	(3)	%	(1)	%	2	%
Non-deductible expenses	4	%	5	%	40	%
Research and development expenses additional deduction	(8)	%	(6)	%	(5)	%
Change in valuation allowance	21	%	17	%	7	%
Actual income tax expense	—		—		2	%

Schedule of principal components of the deferred tax assets and liabilities


	As of December 31,
	2021	2022
	RMB	RMB
Deferred tax assets:
Inventories	6,431	7,654
Allowance for doubtful accounts	487	2,049
Intangible assets	—	268,381
Accrued product warranties	8,483	23,037
Accrued salaries and benefits	8,704	10,961
Accrued expenses and other liabilities	48,520	14,494
Unrealized investment loss of equity method investments	3,600	7,326
Donation	450	503
Operating lease liabilities	—	22,781
Net operating loss carryforwards	473,845	201,812
Total deferred tax assets	550,520	558,998
Less: valuation allowance	(550,520)	(537,172)
Deferred tax assets, net of valuation allowance	—	21,826
Deferred tax liabilities:
Operating lease right-of-use assets	—	(21,826)
Total deferred tax liabilities	—	(21,826)
Net deferred tax assets	—	—

Schedule of movement of the valuation allowance for the deferred tax assets


	As of December 31,
	2020	2021	2022
	RMB	RMB	RMB
Balance as of January 1,	268,702	362,371	550,520
Increase during the year	93,669	188,149	121,245
Reversal of net operating loss carryforwards due to the Restructuring	—	—	(134,593)
Balance as of December 31	362,371	550,520	537,172

Schedule of net operating loss carryforwards by the PRC companies will expire during the period from year 2022 to year 2031, if unused by the following year-end


Year ending December 31,		Amount
		RMB
2026		8,118
2027		733,746
Total		741,864

Long-term investments (Details) - CNY (¥) ¥ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Long-term investments
Equity method investments	¥ 262,338	¥ 284,536	¥ 476,853
Equity securities		69,319	675,824
Total long-term investments	¥ 363,631	¥ 353,855	¥ 1,152,677

Inventories

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

5.	Inventories

Inventories consisted of the following:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Raw materials	65,575	73,767
Work in process	2,999	1,095
Finished goods	113,998	111,364
Total	182,572	186,226

The Group recorded inventory write-down of RMB5,162 and RMB9,535 for the six months ended June 30, 2022 and 2023, respectively.

6.	Inventories

Inventories consisted of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Raw material	117,845	65,575
Work-in-process	2,690	2,999
Finished goods	102,784	113,998
Total	223,319	182,572

The Group recorded inventory write-down of RMB44,134, RMB49,485 and RMB35,406 for the years ended December 31, 2020, 2021 and 2022, respectively.

Mezzanine equity - Information related to the Redeemable Convertible Preferred Shares (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands						1 Months Ended			2 Months Ended	3 Months Ended	5 Months Ended		6 Months Ended	12 Months Ended
	Jun. 29, 2021 CNY (¥)	Mar. 05, 2021 CNY (¥) ¥ / shares shares	Feb. 26, 2021 CNY (¥) shares	Jan. 16, 2020 CNY (¥) shares	Jan. 16, 2020 USD ($) $ / shares shares	Jul. 31, 2021 CNY (¥) shares	Jul. 31, 2021 USD ($) $ / shares shares	Jan. 31, 2020 CNY (¥) shares	Mar. 31, 2021 CNY (¥) shares	Jun. 30, 2021 USD ($) shares	Jul. 31, 2021 CNY (¥) item D shares	Jul. 31, 2021 USD ($) item D $ / shares shares	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥) shares	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥) item shares	Dec. 31, 2021 USD ($) item shares	Dec. 31, 2020 CNY (¥) shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($)	May 17, 2021 shares	Mar. 31, 2021 USD ($) $ / shares shares	Mar. 05, 2021 $ / shares	Jan. 31, 2020 USD ($)
Mezzanine equity
Amount of excess of the ordinary shares' fair value over their par value																¥ 81,208
Cash contribution to acquire equity method investment													¥ 67,790	¥ 79,442	$ 10,956	1,145,637
Issuance of Series B Convertible Redeemable Preferred Shares in connection with acquisition of an equity-method investment																620,703
Series A Convertible Redeemable Preferred Shares
Mezzanine equity
Issuance of preferred shares (in shares) \| shares				26,841,535	26,841,535													26,841,535
Shares issued, price per share \| $ / shares					$ 6.71
Number of investors				2	2
Total consideration for shares issued																1,032,104		¥ 206,422
Issuance costs				¥ 8,500
Number of shares issuable \| shares					22,367,946
Amount of deposits received				¥ 1,032,104	$ 150,000			¥ 1,032,104
Number of shares subscribed \| shares				22,367,946	22,367,946			22,367,946
Consideration for shares issuable								¥ 206,422																$ 30,000
Re-designation of ordinary shares to Series A Preferred Shares, Shares(Note 19) \| shares			2,343,309
Amount of excess of the ordinary shares' fair value over their par value			¥ 81,208
Amount of excess of the preferred shares' fair value over the ordinary shares' fair value			¥ 16,452
Redeemable convertible preferred shares, liquidation preference														0		¥ 1,336,186
Series Angel Convertible Redeemable Preferred Shares
Mezzanine equity
Issuance of preferred shares (in shares) \| shares																6,016,207	6,016,207
Shares issued, price per share \| (per share)		¥ 13.62																					$ 2.11
Total consideration for shares issued	¥ 81,950															¥ 81,950
Number of shares issuable \| shares		6,016,207
Consideration for shares issuable		¥ 81,950
Shares issuable, percentage on outstanding shares		2.00%
Number of warrants to purchased shares exercised \| shares																					6,016,207
Redeemable convertible preferred shares, liquidation preference		¥ 273,519												0		¥ 273,519
Fair value of warrant liabilities		¥ 191,569
Series A+ Convertible Redeemable Preferred Shares
Mezzanine equity
Issuance of preferred shares (in shares) \| shares																29,361,157	29,361,157
Total consideration for shares issued				¥ 1,238,526	$ 180,000											¥ 1,331,641
Redeemable convertible preferred shares, liquidation preference														0		¥ 1,331,641
Series A+ Redeemable Convertible Preferred Shares
Mezzanine equity
Shares issued, price per share \| $ / shares																						$ 7.04
Issuance costs									¥ 10,000
Number of shares issuable \| shares									29,361,157													29,361,157
Consideration for shares issuable									¥ 1,331,641													$ 206,741
Series A++ Redeemable Convertible Preferred Shares
Mezzanine equity
Shares issued, price per share \| $ / shares							$ 8.31					$ 8.31
Number of investors \| item																4	4
Amount of deposits received											¥ 461,849	$ 71,000				¥ 461,849
Number of shares subscribed \| shares										8,546,916	8,546,916	8,546,916				8,546,916	8,546,916
Consideration for shares issuable										$ 71,000						¥ 452,241				$ 71,000
Number of investors with whom share purchase agreements were entered \| item											4	4
Number of business days after the company received the deposits, within which the subscription amount is to be paid by the investors \| D											5	5
Series B Convertible Redeemable Preferred Shares
Mezzanine equity
Issuance of preferred shares (in shares) \| shares						9,882,082	9,882,082									17,615,165	17,615,165
Shares issued, price per share \| $ / shares							$ 9.70					$ 9.70							$ 9.70
Total consideration for shares issued													¥ 159,485	¥ 159,485	$ 21,994	¥ 324,270	$ 50,000
Number of shares issuable \| shares														7,733,083					7,733,083
Consideration for shares issuable \| $																			$ 75,000
Cash contribution to acquire equity method investment \| $							$ 10,649
Redeemable convertible preferred shares, liquidation preference														¥ 0		1,104,188
Issuance of Series B Convertible Redeemable Preferred Shares in connection with acquisition of an equity-method investment						¥ 620,703	$ 95,800
Subscription receivable from Convertible Preferred Shares																¥ 159,392				$ 25,000

Inventories (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of inventories


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Raw materials	65,575	73,767
Work in process	2,999	1,095
Finished goods	113,998	111,364
Total	182,572	186,226


	As of December 31,
	2021	2022
	RMB	RMB
Raw material	117,845	65,575
Work-in-process	2,690	2,999
Finished goods	102,784	113,998
Total	223,319	182,572

Revenue information (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Summary of disaggregation of revenue

Major products/services lines:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Sales of goods revenues	858,080	1,264,263
Automotive computing platform	608,078	1,053,901
SoC Core Modules	188,338	200,255
Automotive merchandise and other products	61,664	10,107
Software license revenues	78,995	215,641
Service revenues	376,917	237,533
Automotive computing Platform – Design and development service	241,090	119,291
Connectivity service	107,949	99,508
Other services	27,878	18,734
Total revenues	1,313,992	1,717,437

Timing of revenue recognition:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Point in time	1,206,043	1,617,929
Over time	107,949	99,508
Total revenues	1,313,992	1,717,437


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Sales of goods revenues	1,678,234	1,983,817	2,433,964
Automotive computing platform	1,265,227	1,423,548	1,690,569
SoC Core Modules	203,402	333,421	660,554
Automotive merchandise and other products	209,605	226,848	82,841
Software license revenues	71,297	261,265	404,469
Service revenues	491,532	533,981	723,561
Automotive computing Platform – Design and development service	297,801	306,358	468,770
Connectivity service	172,841	188,349	212,738
Other services	20,890	39,274	42,053
Total revenues	2,241,063	2,779,063	3,561,994


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Point in time	2,068,222	2,590,714	3,349,256
Over time	172,841	188,349	212,738
Total revenues	2,241,063	2,779,063	3,561,994

Schedule of components of contract liabilties


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Current liabilities - third parties	4,706	6,073
Current liabilities - related parties	316,667	386,344
Non-current liabilities - third parties	70	12
Non-current liabilities - related parties	282,080	203,976
Contract liabilities, current and non-current	603,523	596,405

Long-term investments - Equity method investments (Details) $ / shares in Units, ¥ in Thousands, kr in Thousands, $ in Thousands					1 Months Ended									6 Months Ended			12 Months Ended
	Sep. 01, 2022 CNY (¥)	Jul. 26, 2021 CNY (¥) shares	Jul. 26, 2021 USD ($) $ / shares shares	Apr. 28, 2021 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 SEK (kr)	Apr. 30, 2022 item	Mar. 31, 2022 CNY (¥)	Feb. 28, 2022 CNY (¥)	Jan. 31, 2022 CNY (¥)	Jul. 31, 2021 CNY (¥)	Jul. 31, 2021 SEK (kr)	May 31, 2021 CNY (¥)	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Aug. 31, 2022
Long-term investments
Cash contribution to acquire equity method investment																¥ 67,790	¥ 79,442	$ 10,956	¥ 1,145,637
Excess of consideration over the carrying amount of the equity investment																			689,670
Cash consideration for sale of equity method investment														¥ 792,063	$ 109,230
Gain as a result of deconsolidation										¥ 71,974						¥ 71,974	¥ 71,974	$ 9,926	¥ 10,579
SiEngine Technology Co., Ltd
Long-term investments
Cash contribution to acquire equity method investment		¥ 68,967	$ 10,600
Value of shares issued to acquire equity method investment		620,703	$ 95,800
Excess of consideration over the carrying amount of the equity investment		¥ 689,670
SiEngine Technology Co., Ltd \| Series B Redeemable Convertible Preferred
Long-term investments
Number of shares issued to acquire equity method investment \| shares		9,882,082	9,882,082
Issuance price \| $ / shares			$ 9.70
Geely Group
Long-term investments
Equity interest (as a percent)				50.00%
Cash contribution to acquire equity method investment				¥ 200,000
Suzhou Chenling Investment LLP
Long-term investments
Equity interest (as a percent)													9.416%
Cash contribution to acquire equity method investment													¥ 200,000
Volvo Cars
Long-term investments
Equity interest (as a percent)					60.00%						40.00%	40.00%					60.00%
Cash contribution to acquire equity method investment					¥ 17,478	kr 25,620					¥ 269,813	kr 360,000
SiEngine Technology Co., Ltd
Long-term investments
Equity interest (as a percent)			34.61%								34.61%	34.61%
Cash contribution to acquire equity method investment \| $																				$ 10,649
Hubei Dongjun Automotive Electronics Technology Co., Ltd.
Long-term investments
Equity interest (as a percent)	2.00%																				51.00%
Cash consideration for sale of equity method investment	¥ 1,000
Remeasured equity interest at fair value	24,500
Gain as a result of deconsolidation	¥ 10,579
Hubei Dongjun Automotive Electronics Technology Co., Ltd. \| Maximum
Long-term investments
Equity interest (as a percent)	49.00%
Suzhou Photon-Matrix
Long-term investments
Equity interest sold (as a percent)										3.45%
Number of equity method investments spun off \| item							3
Cash consideration for sale of equity method investment										¥ 10,000
Remeasured equity interest at fair value					¥ 64,000					¥ 64,000							¥ 64,000
Gain as a result of deconsolidation																	¥ 71,974
Suzhou Photon-Matrix \| Minimum
Long-term investments
Equity interest (as a percent)										49.17%
Suzhou Photon-Matrix \| Maximum
Long-term investments
Equity interest (as a percent)										50.92%
ECARX HK
Long-term investments
Equity interest (as a percent)					40.00%												40.00%
Cash contribution to acquire equity method investment					¥ 11,652	kr 17,080
Anhui Xinzhi
Long-term investments
Cash consideration for sale of equity method investment								¥ 28,500	¥ 28,500
JICA Intelligent Robotics Co., Ltd. [Member]
Long-term investments
Equity interest (as a percent)														70.00%	70.00%

Accounts receivable, net (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Accounts receivable, net
Accounts receivable - third parties	¥ 296,449		¥ 422,743		¥ 184,546
Less: Allowance for doubtful accounts, third parties	(8,216)		(4,521)
Accounts receivable - third parties, net	288,233	$ 39,749	418,222	$ 57,675	184,546
Accounts receivable - related parties	807,621		837,686		768,747
Less: Allowance for doubtful accounts	(3,354)		(2,366)
Accounts receivable - related parties, net	¥ 804,267		¥ 835,320		¥ 768,747

Warrant liabilities - Warrant liability is measured at fair value (Details) - Level 3 - Government Warrants - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Warrant liabilities
Fair value as at beginning	¥ 80,270	¥ 40,635
Change in fair value included in losses	¥ 111,299	39,635
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Fair Value Adjustment of Warrants
Settlement	¥ (191,569)
Fair value as at end		¥ 80,270

Property and equipment, net (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of property and equipment, net


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Machinery and electronic equipment	180,264	189,052
Transportation vehicles	3,897	5,214
Office and other equipment	15,510	18,338
Leasehold improvements	43,440	46,572
Construction in progress	332	394
Property and equipment	243,443	259,570
Less: accumulated depreciation	(103,836)	(129,154)
Property and equipment, net	139,607	130,416


	As of December 31,
	2021	2022
	RMB	RMB
Machinery and electronic equipment	160,141	180,264
Transportation vehicles	8,589	3,897
Office and other equipment	7,219	15,510
Leasehold improvements	39,166	43,440
Construction in progress	10,478	332
Property and equipment	225,593	243,443
Less: accumulated depreciation	(115,808)	(103,836)
Property and equipment, net	109,785	139,607

Schedule of depreciation on property and equipment was allocated as follows


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Cost of revenues	—	375
Selling and marketing expenses	324	380
General and administrative expenses	15,735	14,654
Research and development expenses	8,301	11,675
Total depreciation	24,360	27,084


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Cost of revenues	1,684	1,401	1,022
Selling and marketing expenses	355	290	727
General and administrative expenses	23,148	26,544	31,204
Research and development expenses	13,293	15,038	17,574
Total depreciation	38,480	43,273	50,527

Related party balances and transactions - Revenues (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Related party balances and transactions
Revenues, related parties	¥ 1,420,514	¥ 1,005,856	¥ 2,517,732	¥ 2,023,753	¥ 1,738,654
Sales of goods
Related party balances and transactions
Revenues, related parties	1,018,256	613,655	1,663,076	1,466,340	1,275,777
Automotive computing platform
Related party balances and transactions
Revenues, related parties	1,013,860	603,112	1,651,512	1,410,566	1,231,429
SoC Core Modules
Related party balances and transactions
Revenues, related parties	140	22	77
Automotive merchandise and other products
Related party balances and transactions
Revenues, related parties	4,256	10,521	11,487	55,774	44,348
Software license
Related party balances and transactions
Revenues, related parties	164,995	15,481	133,450	24,788	18,168
Service
Related party balances and transactions
Revenues, related parties	237,263	376,720	721,206	532,625	444,709
Automotive computing Platform - Design and development service
Related party balances and transactions
Revenues, related parties	119,291	241,090	466,747	306,027	251,471
Connectivity service
Related party balances and transactions
Revenues, related parties	99,254	107,752	212,406	187,781	172,490
Other services
Related party balances and transactions
Revenues, related parties	¥ 18,718	¥ 27,878	¥ 42,053	¥ 38,817	¥ 20,748

Share based compensation - Fair value of options granted that are estimated using binomial model (Details) - $ / shares	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share based compensation
Expected dividend yield			0.00%	0.00%	0.00%
Expected terms				10 years
2021 Option Plan
Share based compensation
Risk-free rate of return, minimum		1.63%	1.63%	1.20%
Risk-free rate of return, maximum		3.05%	3.83%	1.65%
Volatility, minimum		44.18%	44.18%	44.03%
Volatility, maximum		44.64%	45.07%	44.47%
Expected dividend yield	0.00%	0.00%
Fair value of underlying ordinary share	$ 8.02
Expected terms	10 years	10 years
2021 Option Plan \| Minimum [Member]
Share based compensation
Fair value of underlying ordinary share		$ 7.57	$ 7.57	$ 6.99
2021 Option Plan \| Maximum [Member]
Share based compensation
Fair value of underlying ordinary share		$ 8.02	$ 9.30	$ 7.55

Risks and Concentration (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of concentration of customers and suppliers


	As of December 31,		As of June 30,
	2022		2023
Customer A, a related party	92.1	%	79.2	%
Customer B, a related party	Less than 10.0	%	10.5	%

The following table summarizes customers with greater than 10.0% of the accounts receivable - third parties, net:


	As of December 31,		As of June 30,
	2022		2023
Customer C, a third party	48.9	%	40.4	%
Customer D, a third party	30.4	%	29.7	%
Customer E, a third party	Less than 10.0	%	10.6	%
Customer F, a third party	Less than 10.0	%	12.6	%

Customers contributing more than 10.0% of total revenues were as follows:


	Six Months Ended June 30,
	2022		2023
Customer A, a related party	73.6	%	73.7	%
Customer C, a third party	11.4	%	Less than 10.0	%

The following table summarizes suppliers with greater than 10.0% of the accounts payable:


	As of December 31,		As of June 30,
	2022		2023
Supplier A, a third party	19.0	%	18.5	%
Supplier B, a third party	10.9	%	Less than 10.0	%
Supplier C, a third party	19.1	%	17.6	%

Suppliers contributing more than 10.0% of total purchases were as follows:


	Six Months Ended June 30,
	2022		2023
Supplier D, a third party	12.5	%	Less than 10.0	%
Supplier A, a third party	14.5	%	23.3	%
Supplier E, a related party	10.7	%	Less than 10.0	%
Supplier C, a third party	Less than 10.0	%	13.3	%

Accounts receivable - third parties, net

Schedule of concentration of customers and suppliers


	As of December 31,
	2021		2022
Customer A, a third party	51.1	%	48.9	%
Customer B, a third party	11.0	%	30.4	%
Customer C, a third party	10.6	%	Less than 10.0	%

Schedule of concentration of customers and suppliers


	Year Ended December 31,
	2020		2021		2022
Geely Group and its subsidiaries	74.1	%	70.4	%	67.0	%
Customer A, a third party	Less than 10.0	%	Less than 10.0	%	12.6	%
Customer B, a third party	Less than 10.0	%	Less than 10.0	%	12.5	%

Accounts payable

Schedule of concentration of customers and suppliers


	As of December 31,
	2021		2022
Supplier A, a third party	15.5	%	Less than 10.0	%
Supplier B, a third party	13.8	%	19.0	%
Supplier C, a related party	10.3	%	Less than 10.0	%
Supplier D, a third party	Less than 10.0	%	19.1	%
Supplier E, a third party	Less than 10.0	%	10.9	%

Total purchase

Schedule of concentration of customers and suppliers


	Year Ended December 31,
	2020		2021		2022
Supplier A, a third party	35.2	%	23.6	%	Less than 10.0	%
Supplier B, a third party	Less than 10.0	%	Less than 10.0	%	17.4	%
Supplier C, a related party	Less than 10.0	%	Less than 10.0	%	Less than 10.0	%
Supplier D, a third party	Less than 10.0	%	Less than 10.0	%	12.7	%

Mezzanine equity - Rights, preferences and privileges of preferred shares (Details)	12 Months Ended
	Dec. 31, 2022 D
Mezzanine equity
Number of days within which a material breach is to be cured	30
Number of days within which a material illegal act is to be cured	30
Percentage of investor directors to nominate and appoint a successor of Mr. Ziyu Shen	0.67%
Number of days after the resignation of Mr. Ziyu Shen, to appoint a successor	30
Redemption price percentage	100.00%
Interest rate percentage	8.00%
Conversion ratio	1
Preferred Preference Amount, percentage	100
Ordinary Preference Amount, percentage	100

Long-term investments - Equity method investment prospectively from the date of deconsolidation (Details) ¥ in Thousands, $ in Thousands	1 Months Ended	6 Months Ended	12 Months Ended
	Jan. 31, 2022 CNY (¥)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Long-term investments
Add: Carrying amount of redeemable noncontrolling interest			¥ 40,750		¥ 30,500
Less: Carrying amount of non-redeemable noncontrolling interest			(7,178)
Gain as a result of deconsolidation	¥ 71,974	¥ 71,974	71,974	$ 9,926	¥ 10,579
Suzhou Photon-Matrix
Long-term investments
Add: Fair value of retained equity interest in Suzhou Photon-Matrix	¥ 64,000		64,000
Less: Carrying amount of Suzhou Photon-Matrix's net assets			(25,598)
Gain as a result of deconsolidation			¥ 71,974

Leases - Operating lease right-of-use assets and the amortization (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Jan. 01, 2022 CNY (¥)
Leases
Operating lease right-of-use assets	¥ 167,317		¥ 141,627
Less: accumulated amortization	(46,012)		(41,975)
Total	¥ 121,305	$ 16,729	¥ 99,652	$ 13,743	¥ 95,108

Contract liabilities

12 Months Ended

Dec. 31, 2022

Contract liabilities

Contract liabilities

12.Contract liabilities

Contract liabilities consisted of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Current liabilities – third parties	2,685	4,706
Current liabilities – related parties	363,285	316,667
Non-current liabilities – third parties	317	70
Non-current liabilities – related parties	472,749	282,080
Contract liabilities, current and non-current	839,036	603,523

Contract liabilities primarily relate to upfront non-refundable payments from the Group’s customers for purchase of connectivity services and automotive computing platform products in advance of transfer of control of the products and services under the contract. Amounts that are expected to be recognized as revenues within one-year are included as current contract liabilities with the remaining balance recognized as non-current contract liabilities.

The amount of revenue recognized that was included in the contract liabilities balance at the beginning of the year was RMB163,225, RMB159,371 and RMB364,004 for the years ended December 31, 2020, 2021 and 2022, respectively.

As of December 31, 2021 and 2022, the aggregated amounts of the transaction price allocated to the remaining performance obligation under the Group’s existing contracts is RMB839,036 and RMB603,523, respectively.

As of December 31, 2022, revenue expected to be recognized in the future related to the unsatisfied performance obligations is as follows:


Year ending December 31,		Amount
2023		321,373
2024		148,155
2025		96,651
2026		36,835
2027		322
2028		187

The Group has elected the practical expedient not to disclose the information about remaining performance obligations which are part of contracts that have an original duration of one year or less.

Leases (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Leases

Summary of components of lease cost


	Six Months Ended June 30,
	2022	2023
	RMB	RMB

Operating lease cost	23,502	22,854
Short-term lease cost	2,679	1,660
Total	26,181	24,514


	Six Months Ended June 30,
	2022	2023
	RMB	RMB

Selling and marketing expenses	662	456
General and administrative expenses	9,541	12,512
Research and development expenses	15,978	11,546
Total	26,181	24,514


		Year Ended
		December 31, 2022
		RMB

Operating lease cost		47,163
Short-term lease cost		4,234
Total		51,397


		Year Ended
		December 31, 2022
		RMB

Selling and marketing expenses		1,525
General and administrative expenses		18,834
Research and development expenses		31,038
Total		51,397

Summary of operating lease right-of-use assets and the amortization


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB

Operating lease right-of-use assets	141,627	167,317
Less: accumulated amortization	(41,975)	(46,012)
Total	99,652	121,305


		As of December 31,
		2022
		RMB

Operating lease right-of-use assets		141,627
Less: accumulated amortization		(41,975)
Total		99,652

Summary of weighted average remaining lease term and weighted average discount rate


	As of June 30,
	2023

Weighted average remaining lease term (years):
Operating leases	6.46
Weighted average discount rate:
Operating leases	8.61	%


	As of December 31,
	2022

Weighted average remaining lease term (years):
Operating leases	5.68

Weighted average discount rate:
Operating leases	6.70	%

Schedule of future minimum lease commitments


		As of June 30,
		2023
		RMB

2023		17,210
2024		23,552
2025		29,663
2026		22,237
2027		18,604
2028 and thereafter		77,857
Total lease payments		189,123
Less imputed interest		(50,623)
Present value of lease liabilities		138,500
Current portion		30,189
Operating lease liabilities, non-current		108,311


		As of December 31,
		2022
		RMB

2023		35,354
2024		19,413
2025		19,222
2026		12,268
2027		8,644
2028 and thereafter		36,162
Total lease payments		131,063
Less imputed interest		(31,185)
Present value of lease liabilities		99,878
Current portion		31,110
Operating lease liabilities, non-current		68,768

Summary of supplemental cash flow information


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	17,928	6,484
Right-of-use assets obtained in exchange for lease obligations
Operating leases	45,887	31,832


		Year Ended
		December 31, 2022
		RMB
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		40,173
Right-of-use assets obtained in exchange for lease obligations
Operating leases		51,621

Income taxes - Movement of the valuation allowance for the deferred tax assets (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income taxes
Balance as of January 1,	¥ 550,520	¥ 362,371	¥ 268,702
Increase during the year	121,245	188,149	93,669
Reversal of net operating loss carryforwards due to the Restructuring	(134,593)
Balance as of December 31	¥ 537,172	¥ 550,520	¥ 362,371

Loss per share

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Loss per share

18.

Loss per share

Basic and diluted net loss per share for the six months ended June 30, 2022 and 2023 have been calculated as follows:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Numerator:
Net loss available to ECARX Holdings Inc.	(582,195)	(380,586)
Accretion of Redeemable Convertible Preferred Shares	(177,842)	—
Numerator for basic and diluted net loss per share calculation	(760,037)	(380,586)
Denominator:
Weighted average number of ordinary shares - basic and diluted	236,248,112	337,395,390
Denominator for basic and diluted net loss per share calculation	236,248,112	337,395,390
Loss per ordinary share
—Basic and diluted	(3.22)	(1.13)

For the purposes of calculating loss per share for the six months ended June 30, 2022 and 2023, the weighted average number of ordinary shares outstanding used in the calculation has been retrospectively adjusted to reflect the issuance of Class A and Class B ordinary shares in connection with the Recapitalization, as if the Recapitalization had occurred at the beginning of the earliest period presented.

The potential dilutive instruments that have not been included in the calculation of diluted loss per share as their inclusion would be anti-dilutive are as follows:


	Six Months Ended June 30,
	2022	2023
Redeemable convertible preferred shares	90,724,289	—
Warrants	—	23,871,971

For the six months ended June 30, 2022, the outstanding share options are not included in the calculation of diluted loss per share, as the issuance of such awards was contingent upon a qualified IPO, which was not satisfied as of period end. For the six months ended June 30, 2023, the vested and unvested share options and warrants are not included in the calculation of diluted loss per share, given the exercise price exceeded average market price of the Company’s shares during the period, resulting in the effect of them being anti-dilutive.

Convertible notes are not included in the calculation of diluted loss per share, as the inclusion will be anti-dilutive.

25.

Loss per share

Basic and diluted net loss per share for the years ended December 2020, 2021 and 2022 have been calculated as follows:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Numerator:
Net loss attributable to ECARX Holdings Inc.	(439,659)	(1,175,261)	(1,564,878)
Accretion of Redeemable Convertible Preferred Shares	(101,286)	(243,564)	(354,878)
Numerator for basic and diluted net loss per share calculation	(540,945)	(1,418,825)	(1,919,756)

Denominator:
Weighted average number of ordinary shares – basic and diluted	238,591,421	236,691,093	239,296,386
Net loss per share attributable to ordinary shareholders
— Basic and diluted	(2.27)	(5.99)	(8.02)

For the purposes of calculating loss per share for the years ended December 31, 2020, 2021 and 2022, the weighted average number of ordinary shares outstanding used in the calculation has been retrospectively adjusted to reflect the issuance of Class A and Class B ordinary shares in connection with the Recapitalization (see Note 1(b)), as if the Recapitalization had occurred at the beginning of the earliest period presented.

The potentially dilutive instruments that have not been included in the calculation of diluted loss per share as their inclusion would be anti-dilutive are as follows:


	Year ended December 31,
	2020	2021	2022
Redeemable convertible preferred shares	26,841,535	90,724,289	—
Warrants	6,016,207	—	23,871,971

For the years ended December 31, 2020 and 2021 and the period between January 1, 2022 to the completion of the Company’s Merger with COVA, the outstanding share options are not included in the calculation of diluted loss per share, as the issuance of such awards was contingent upon a qualified IPO, which was not satisfied as of each period end. After the Merger, the vested and unvested share options and warrants are not included in the calculation of diluted loss per share, given the exercise price exceeded average market price of the Company’s shares during the period, resulting in the effect of them being anti-dilutive.

Convertible notes are not included in the calculation of diluted loss per share, as the inclusion will be anti-dilutive.

Share based compensation - Activities of Company's RSUs (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Number of RSUs
Outstanding at January 1, 2023	24,431,761	18,995,595	16,224,217
Granted (new RSUs)		6,680,560	2,890,674
Granted (replacement RSUs)		3,419,811	7,708,362
Forfeited		(1,244,394)	(119,296)
Replaced		(3,419,811)	(7,708,362)
Outstanding at June 30, 2023		24,431,761	18,995,595
Vested and expected to vest as of December 31, 2021		24,431,761
Exercisable as of December 31, 2021		21,191,690
Weighted Average Exercise Price
Outstanding at January 1, 2023	$ 0.15	$ 0.23	$ 0.05
Granted (new RSUs)		0.56	1.23
Granted (replacement RSUs)		0.13	0.28
Forfeited		0.54	0.01
Replaced		1.24	0.28
Outstanding at June 30, 2023		0.15	0.23
Vested and expected to vest as of December 31, 2021		0.15
Exercisable as of December 31, 2021		0.06
Weighted Average Fair value at grant date
Outstanding at January 1, 2023	$ 5.60	5.10	3.66
Granted (new RSUs)		6.92	5.15
Granted (replacement RSUs)		1.47	6.88
Forfeited		4.97	3.71
Replaced		1.47	3.89
Outstanding at June 30, 2023		5.60	$ 5.10
Vested and expected to vest as of December 31, 2021		5.60
Exercisable as of December 31, 2021		$ 5.79
Weighted remaining contractual years
Vested and expected to vest as of December 31, 2021		7 years 9 months 18 days
Exercisable as of December 31, 2021		7 years 10 months 28 days
Aggregate intrinsic value
Vested and expected to vest as of December 31, 2021		$ 5.76
Exercisable as of December 31, 2021		$ 5.83
RSU
Number of RSUs
Outstanding at January 1, 2023	24,431,761
Granted (new RSUs)	600,000
Granted (replacement RSUs)	4,175,352
Forfeited	(1,312,251)
Replaced	(4,175,352)
Outstanding at June 30, 2023	23,719,510	24,431,761
Vested and expected to vest as of December 31, 2021	23,719,510
Exercisable as of December 31, 2021	21,847,960
Weighted Average Exercise Price
Outstanding at January 1, 2023	$ 0.15
Granted (new RSUs)	0.48
Granted (replacement RSUs)	0.21
Forfeited	0.29
Replaced	0.63
Outstanding at June 30, 2023	0.08	$ 0.15
Vested and expected to vest as of December 31, 2021	0.08
Exercisable as of December 31, 2021	0.04
Weighted Average Fair value at grant date
Outstanding at January 1, 2023	5.60
Granted (new RSUs)	4.41
Granted (replacement RSUs)	3.75
Forfeited	5.12
Replaced	4.11
Outstanding at June 30, 2023	5.54	$ 5.60
Vested and expected to vest as of December 31, 2021	5.54
Exercisable as of December 31, 2021	$ 5.77
Weighted remaining contractual years
Vested and expected to vest as of December 31, 2021	8 years 2 months 1 day
Exercisable as of December 31, 2021	8 years 29 days
Aggregate intrinsic value
Vested and expected to vest as of December 31, 2021	$ 5.83
Exercisable as of December 31, 2021	$ 5.85

Accounts receivable, net

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Accounts receivable, net

3.	Accounts receivable, net

Accounts receivable, net consisted of the following:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Accounts receivable - third parties	422,743	296,449
Less: Allowance for doubtful accounts, third parties	(4,521)	(8,216)
Accounts receivable - third parties, net	418,222	288,233

Accounts receivable - related parties	837,686	807,621
Less: Allowance for doubtful accounts, related parties	(2,366)	(3,354)
Accounts receivable - related parties, net	835,320	804,267

The movement of the allowance for doubtful accounts is as follows:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Balance at the beginning of the period	—	6,887
Additions	6,887	7,097
Reversal	—	(2,142)
Write-off	—	(272)
Balance at the end of the period	6,887	11,570

4.	Accounts receivable, net

Accounts receivable, net consisted of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Accounts receivable – third parties	184,546	422,743
Less: Allowance for doubtful accounts, third parties	—	(4,521)
Accounts receivable – third parties, net	184,546	418,222

Accounts receivable – related parties	768,747	837,686
Less: Allowance for doubtful accounts	—	(2,366)
Accounts receivable – related parties, net	768,747	835,320

The movement of the allowance for doubtful accounts receivables is as follows:


	As of December 31,
	2020	2021	2022
	RMB	RMB	RMB
Balance at the beginning of the year	—	—	—
Additions	360	—	6,887
Write-off	(360)	—	—
Balance at the end of the year	—	—	6,887

Accounts receivable, net - Movement of the allowance for doubtful accounts of accounts receivables due from related parties (Details) ¥ in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2020 CNY (¥)
Accounts receivable, net
Balance at the beginning of the year	¥ 6,887
Additions, net		¥ 6,887	$ 950	¥ 360
Write-off	(272)			¥ (360)
Balance at the end of the year	¥ 11,570	¥ 6,887

Property and equipment, net - Depreciation expenses on property and equipment allocated to expense items (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property and equipment, net
Total depreciation	¥ 27,084	¥ 24,360	¥ 50,527	¥ 43,273	¥ 38,480
Cost of revenues
Property and equipment, net
Total depreciation	375		1,022	1,401	1,684
Selling and marketing expenses
Property and equipment, net
Total depreciation	380	324	727	290	355
General and administrative expenses
Property and equipment, net
Total depreciation	14,654	15,735	31,204	26,544	23,148
Research and development expenses
Property and equipment, net
Total depreciation	¥ 11,675	¥ 8,301	¥ 17,574	¥ 15,038	¥ 13,293

Parent only financial information - Condensed statements of comprehensive loss (Details) ¥ in Thousands, $ in Thousands	6 Months Ended			12 Months Ended
	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Condensed statements of comprehensive loss
Research and development expenses	¥ 481,600	$ 66,416	¥ 643,991	¥ 1,332,800	$ 183,802	¥ 1,209,580	¥ 706,018
General and administrative expenses	377,343	52,038	425,441	1,223,610	168,744	525,041	215,008
Interest income (including related parties: nil, RMB717 and RMB9,069 for the years ended December 31, 2020, 2021 and 2022, respectively)	17,885	2,466	5,257	13,820	1,906	13,655	28,480
Interest expenses (including related parties: RMB872, RMB212 and RMB18,808 for the years ended December 31, 2020, 2021 and 2022, respectively)	38,228	5,272	15,835	44,543	6,143	131,585	59,128
Foreign currency exchange gains (losses), net	(34,659)	(4,780)	(10,656)	(18,216)	(2,512)	18,315	54,842
Change in fair value of an equity security	27,722	3,823		(16,843)	(2,323)
Income (loss) from equity method investments	(25,414)	(3,505)	(52,493)	(71,928)	(9,919)	(3,891)	148
Loss before income taxes	(411,001)	(56,681)	(586,733)	(1,578,081)	(217,626)	(1,169,897)	(439,776)
Income tax expenses	326	45	7,925	29,065	4,008	6,861	228
Net loss attributable to ECARX Holdings Inc	¥ (380,586)	$ (52,487)	¥ (581,481)	(1,564,164)	$ (215,706)	(1,173,955)	(439,659)
Parent Company [Member]
Condensed statements of comprehensive loss
General and administrative expenses				(26,005)		(17,660)
Interest income (including related parties: nil, RMB717 and RMB9,069 for the years ended December 31, 2020, 2021 and 2022, respectively)				6,565		885	431
Interest expenses (including related parties: RMB872, RMB212 and RMB18,808 for the years ended December 31, 2020, 2021 and 2022, respectively)				(3,132)		(514)
Foreign currency exchange gains (losses), net				(14,459)		12,478	55,213
Change in fair value of an equity security				(16,843)
Income (loss) from equity method investments				(1,511,004)		(1,170,450)	(495,303)
Loss before income taxes				(1,564,878)		(1,175,261)	(439,659)
Net loss attributable to ECARX Holdings Inc				¥ (1,564,878)		¥ (1,175,261)	¥ (439,659)

Leases - Weighted average remaining lease term and discount rate (Details)	Jun. 30, 2023	Dec. 31, 2022
Leases
Weighted average remaining lease term (years), operating lease	6 years 5 months 15 days	5 years 8 months 4 days
Weighted average discount rate, operating lease	8.61%	6.70%

Prepayments and other current assets (Details) ¥ in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023 CNY (¥)	Dec. 31, 2022 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jan. 01, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Prepayments and other current assets
Prepayments to suppliers	¥ 351,354	¥ 210,819				¥ 179,744
Contract cost assets	285,040	192,848
Foreign exchange swaps	16,247
Others	25,448	21,251				24,351
Prepayments and other current assets	678,089	424,918	$ 93,513	$ 58,598	¥ 240,647	247,411
Deposits						7,597
Deferred offering costs						¥ 5,719
Provision for prepayments and other current assets	¥ 0	¥ 1,310
Not designated as hedging instruments \| Foreign currency swap contracts
Prepayments and other current assets
Notional amount \| $			$ 70,000

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022	Dec. 20, 2022
Ordinary shares, par value per share			$ 0.000005
Ordinary shares, shares authorized		10,000,000,000
Class A Ordinary Shares
Ordinary shares, par value per share	$ 0.000005	$ 0.000005
Ordinary shares, shares authorized	8,000,000,000	8,000,000,000
Ordinary shares, shares issued	288,434,474	288,434,474
Ordinary shares, shares outstanding	288,434,474	288,434,474
Class B Ordinary Shares
Ordinary shares, par value per share	$ 0.000005	$ 0.000005
Ordinary shares, shares authorized	1,000,000,000	1,000,000,000
Ordinary shares, shares issued	48,960,916	48,960,916
Ordinary shares, shares outstanding	48,960,916	48,960,916

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - CNY (¥) ¥ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues, related parties	¥ 1,420,514	¥ 1,005,856	¥ 2,517,732	¥ 2,023,753	¥ 1,738,654
Interest income, related parties	6,771	2,759	9,069	717	0
Interest expenses, related parties	6,116	1,622	12,215	131	872
Foreign currency translation adjustments, tax	0	0	0	0	0
Research and development expenses
Expenses, related parties	5,610	29,642	60,687	21,069	2,118
Selling and marketing expenses
Expenses, related parties	0	64	96	0	192
General and administrative expenses
Expenses, related parties	2,131	1,004	2,057	2,343	2,447
Sales of goods
Revenues, related parties	1,018,256	613,655	1,663,076	1,466,340	1,275,777
Cost of revenues, related parties	125,406	164,900	509,242	220,062	6,073
Software license revenues
Revenues, related parties	164,995	15,481	133,450	24,788	18,168
Cost of revenues, related parties	11,061	0	21,700	0	0
Service
Revenues, related parties	237,263	376,720	721,206	532,625	444,709
Cost of revenues, related parties	¥ 31,938	¥ 22,097	¥ 60,671	¥ 0	¥ 0

Prepayments and other current assets

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of condensed balance sheets

6.	Prepayments and other current assets

Prepayments and other current assets consisted of the following:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Prepayments to suppliers	210,819	351,354
Contract cost assets	192,848	285,040
Foreign exchange swaps *	—	16,247
Others	21,251	25,448
Prepayments and other current assets	424,918	678,089

A provision for RMB1,310 and nil were made for prepayments and other current assets as of December 31, 2022 and June 30, 2023, respectively.

7.Prepayments and other current assets

Prepayments and other current assets consisted of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Prepayments to suppliers	179,744	210,819
Contract cost assets	—	192,848
Prepaid rental and deposits	7,597	—
Deferred offering costs	5,719	—
Government grants receivable	30,000	—
Others	24,351	21,251
Prepayments and other current assets	247,411	424,918

A provision for RMB3,245 and RMB1,310 was made for prepayments and other current assets as of December 31, 2021 and 2022, respectively.

Related party balances and transactions - Balances (Details) ¥ in Thousands, £ in Thousands, $ in Thousands						1 Months Ended				2 Months Ended	6 Months Ended		12 Months Ended
	Jun. 27, 2022 CNY (¥)	Mar. 28, 2022 CNY (¥)	Aug. 25, 2021 CNY (¥)	Aug. 25, 2021 USD ($)	Mar. 29, 2018 CNY (¥)	Mar. 31, 2023 CNY (¥)	Jan. 31, 2023 GBP (£)	Feb. 28, 2022 CNY (¥)	Oct. 31, 2021 CNY (¥)	Mar. 31, 2022 CNY (¥)	Jun. 30, 2023 CNY (¥)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Jun. 30, 2023 USD ($)	Jan. 31, 2023 CNY (¥)	Dec. 31, 2022 GBP (£)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 26, 2022 CNY (¥)	Jul. 31, 2021	Jul. 26, 2021
Related party balances and transactions
Accounts receivable - related parties, net											¥ 804,267				¥ 768,747						¥ 835,320
Amounts due from related parties											140,225				41,298			$ 19,338			911,729	$ 125,733
Amount of loans and interest receivables											68,158										63,091
Accounts payable - related parties (including accounts payable - related parties of the VIEs without recourse to the Company of RMB99,906 and nil as of December 31, 2021 and 2022, respectively)											101,098				111,531			13,942			241,773	33,342
Consideration for disposal of investment \| $														$ 115,000
Amounts due to related parties (including amounts due to related parties of the VIEs without recourse to the Company of RMB309,010 and nil as of December 31, 2021 and 2022, respectively)											341,202				106,825			47,054			42,843	5,908
Other non-current assets - related parties											218,899				1,929			$ 30,188			213,695	$ 29,470
Proceeds from accounts receivables, related parties						¥ 538,867					804,267		¥ 835,320		768,747
Purchases from related parties											24,014	¥ 47,209
Prepayments from purchase of raw materials and services to related parties															41,298		¥ 1,366				29,595
Due to related parties															220,062		6,073				591,613
Amount of transaction													6,395		1,093		3,391
Amount of operating expenses											5,341	27,289	62,840		23,412
Interest expenses, related parties											6,116	1,622	12,215		131		872
Borrowings and interest payable, related parties											319,916	13,800			2,743						138,000
Advances to a related party											8,500				19,806		103,024
Cash collection of advances to a related party															90,155		81,026
Loans to related parties											12,000
Interest income, related parties											6,771	2,759	9,069		717		0
Gain on disposal of property, equipment and intangible assets													(1,939)	(267)	(1,562)		(577)
Cash contribution to acquire equity method investment												67,790	79,442	$ 10,956	1,145,637
Lease deposits and advances with related parties															1,929
Payables for technical services and logistics expenses, related parties															36,186						29,043
Purchase of products and services
Related party balances and transactions
Amount of transaction											197,760	¥ 261,495	677,775		293,552		8,186
SiEngine Technology Co., Ltd
Related party balances and transactions
Equity interest (as a percent)																								34.61%	34.61%
Cash contribution to acquire equity method investment \| $																$ 10,649
Unsecured bank loans \| Purchase of products and services
Related party balances and transactions
Purchases from related parties													29,717		51,171		747
Geely Group \| Unsecured bank loans
Related party balances and transactions
Aggregate principal amount	¥ 500,000				¥ 20,000														¥ 300,000
Interest rate	4.35%				4.35%		4.10%
Interest expenses, related parties			¥ 45,152	$ 7,000
Aggregate principal amount, repaid																							¥ 500,000
Zhejiang Huanfu Technology Co., Ltd.
Related party balances and transactions
Advances to a related party													29,360		19,806		103,024
Cash collection of advances to a related party															90,155		81,026
Loans to related parties													57,260		28,850
Interest income, related parties													¥ 9,069		¥ 717		¥ 0
Proceeds from disposal of property and equipment								¥ 1,697	¥ 745
Gain on disposal of property, equipment and intangible assets								¥ 93	¥ 38
Financial support to Anhui Xinzhi
Related party balances and transactions
Amount of transaction										¥ 28,500
Hubei Xingji Times Technology Co., Ltd \| Unsecured bank loans
Related party balances and transactions
Aggregate principal amount		¥ 200,000
Interest rate		2.25%
Hubei ECARX Technology Co., Ltd
Related party balances and transactions
Other non-current assets - related parties											¥ 218,899										213,695
Interest rate													5.00%	5.00%
Amount of transaction													¥ 252,287
Zenseact
Related party balances and transactions
Consideration for disposal of investment													¥ 793,177	$ 115,000
Arteus
Related party balances and transactions
Amounts due from related parties							£ 3,082												¥ 25,866	£ 3,082	¥ 25,866

Related party balances and transactions (Details) - CNY (¥) ¥ in Thousands	1 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2022	Feb. 28, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Related party balances and transactions
Amount of transaction					¥ 6,395	¥ 1,093	¥ 3,391
Purchase of products and services
Related party balances and transactions
Amount of transaction			¥ 197,760	¥ 261,495	677,775	293,552	8,186
Rental of office space, and administrative services
Related party balances and transactions
Amount of transaction			2,400	3,421	6,395	1,093	3,391
Other income
Related party balances and transactions
Amount of transaction			7,055
Interest income on loans
Related party balances and transactions
Amount of transaction			6,771	2,759	9,069	717
Interest expense on borrowings
Related party balances and transactions
Amount of transaction			6,116	1,622	12,215	131	872
Loans to related parties
Related party balances and transactions
Amount of transaction			12,000	8,060	57,260	28,850
Repayment received of loans to related parties
Related party balances and transactions
Amount of transaction			8,500	25,000	29,360
Financial support to Anhui Xinzhi
Related party balances and transactions
Amount of transaction				28,500
Advances to Zhejiang Huanfu
Related party balances and transactions
Amount of transaction						19,806	103,024
Collection of advances to Zhejiang Huanfu
Related party balances and transactions
Amount of transaction						90,155	¥ 81,026
Repayment of borrowings from related parties
Related party balances and transactions
Amount of transaction				200,000	700,000	65,152
Borrowings from related parties
Related party balances and transactions
Amount of transaction			¥ 300,000	700,000	700,000	45,152
Transfer of property and equipment to Zhejiang Huanfu
Related party balances and transactions
Amount of transaction				¥ 1,604	1,604	¥ 707
Financial support to Anhui Xinzhi
Related party balances and transactions
Amount of transaction	¥ 28,500	¥ 28,500			¥ 28,500

Convertible notes payable to a related party (Details) - Convertible notes payable $ / shares in Units, ¥ in Thousands, $ in Thousands	May 13, 2022 CNY (¥) item shares	May 13, 2022 USD ($) $ / shares
Convertible notes payable to a related party
Debt instrument term	12 months
Aggregate principal amount	¥ 67,871	$ 10,000
Interest rate	5.00%
Conversion price		$ 9.50
Number of shares issued upon conversion \| shares	1,052,632
Investor
Convertible notes payable to a related party
Number of investors \| item	1
Threshold amount of guarantee obligations considered for determination of an event of default \| $		$ 100,000
Period following the issuance date of convertible notes payable, to consummate initial public offering of Class A ordinary shares	6 months
Investor \| In the event the Company consummates a public offering of Class A ordinary shares that is no more than six (6) months following the issuance date
Convertible notes payable to a related party
Conversion price		$ 10.00
Fair value of underlying ordinary share		$ 10.00
Investor \| In the event the Company consummates a public offering of Class A ordinary shares that is more than six (6) months following the issuance date
Convertible notes payable to a related party
Conversion price as a percentage of Initial Conversion Price	95.00%	95.00%
Investor \| If the Company fails to consummate a public offering of Class A ordinary shares on or prior to the maturity date
Convertible notes payable to a related party
Written notice period by note holder for redemption of convertible notes payable	10 days
Minimum \| Investor
Convertible notes payable to a related party
Written notice period by company for redemption of convertible notes payable	20 days
Maximum \| Investor
Convertible notes payable to a related party
Written notice period by company for redemption of convertible notes payable	35 days

Property and equipment, net - Depreciation on property and equipment was allocated as follows (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property and equipment, net
Total depreciation	¥ 27,084	¥ 24,360	¥ 50,527	¥ 43,273	¥ 38,480
Cost of revenues
Property and equipment, net
Total depreciation	375		1,022	1,401	1,684
Selling and marketing expenses
Property and equipment, net
Total depreciation	380	324	727	290	355
General and administrative expenses
Property and equipment, net
Total depreciation	14,654	15,735	31,204	26,544	23,148
Research and development expenses
Property and equipment, net
Total depreciation	¥ 11,675	¥ 8,301	¥ 17,574	¥ 15,038	¥ 13,293

Summary of significant accounting policies - Concentration of customers and suppliers (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounts receivable \| Customer concentration risk \| Customer A, a related party
Concentration risk
Concentration risk percentage	79.20%		92.10%	95.80%
Accounts receivable \| Customer concentration risk \| Customer A, a related party
Concentration risk
Concentration risk percentage	79.20%		48.90%	51.10%
Accounts receivable \| Customer concentration risk \| Customer B, a related party
Concentration risk
Concentration risk percentage	10.50%		10.00%
Accounts receivable \| Customer concentration risk \| Customer B, a third party
Concentration risk
Concentration risk percentage			30.40%	11.00%
Accounts receivable \| Customer concentration risk \| Customer C, a third party
Concentration risk
Concentration risk percentage	40.40%		48.90%	10.60%
Accounts receivable \| Customer concentration risk \| Customer D, a third party
Concentration risk
Concentration risk percentage	29.70%		30.40%
Accounts receivable \| Customer concentration risk \| Customer E, a third party
Concentration risk
Concentration risk percentage	10.60%		10.00%
Accounts receivable \| Customer concentration risk \| Customer F, a third party
Concentration risk
Concentration risk percentage	12.60%		10.00%
Revenue \| Customer concentration risk \| Customer A, a related party
Concentration risk
Concentration risk percentage	73.70%	73.60%
Revenue \| Customer concentration risk \| Customer C, a third party
Concentration risk
Concentration risk percentage	10.00%	11.40%
Revenue from contract with customer \| Customer concentration risk \| Customer A, a related party
Concentration risk
Concentration risk percentage	73.70%	73.60%	67.00%	70.40%	74.10%
Revenue from contract with customer \| Customer concentration risk \| Customer A, a related party
Concentration risk
Concentration risk percentage			12.60%	10.00%	10.00%
Revenue from contract with customer \| Customer concentration risk \| Customer B, a third party
Concentration risk
Concentration risk percentage			12.50%	10.00%	10.00%
Accounts payable \| Customer concentration risk \| Supplier A, a third party
Concentration risk
Concentration risk percentage			10.00%	15.50%
Accounts payable \| Customer concentration risk \| Supplier B, a third party
Concentration risk
Concentration risk percentage			19.00%	13.80%
Accounts payable \| Customer concentration risk \| Supplier D, a third party
Concentration risk
Concentration risk percentage			19.10%	10.00%
Accounts payable \| Customer concentration risk \| Supplier C, a related party
Concentration risk
Concentration risk percentage			10.00%	10.30%
Accounts payable \| Supplier concentration risk \| Supplier A, a third party
Concentration risk
Concentration risk percentage	18.50%		19.00%
Accounts payable \| Supplier concentration risk \| Supplier B, a third party
Concentration risk
Concentration risk percentage	10.00%		10.90%
Accounts payable \| Supplier concentration risk \| Supplier C, a third party
Concentration risk
Concentration risk percentage	17.60%		19.10%
Total purchase \| Customer concentration risk \| Supplier A, a third party
Concentration risk
Concentration risk percentage			10.00%	23.60%	35.20%
Total purchase \| Customer concentration risk \| Supplier B, a third party
Concentration risk
Concentration risk percentage			17.40%	10.00%	10.00%
Total purchase \| Customer concentration risk \| Supplier D, a third party
Concentration risk
Concentration risk percentage			12.70%	10.00%	10.00%
Total purchase \| Customer concentration risk \| Supplier C, a related party
Concentration risk
Concentration risk percentage			10.00%	10.00%	10.00%
Total purchase \| Supplier concentration risk \| Supplier A, a third party
Concentration risk
Concentration risk percentage	23.30%	14.50%
Total purchase \| Supplier concentration risk \| Supplier C, a third party
Concentration risk
Concentration risk percentage	13.30%
Total purchase \| Supplier concentration risk \| Supplier D, a third party
Concentration risk
Concentration risk percentage	10.00%	12.50%
Total purchase \| Supplier concentration risk \| Supplier E, a related party
Concentration risk
Concentration risk percentage	10.00%	10.70%
Total purchase \| Supplier concentration risk \| Customer C, a third party
Concentration risk
Concentration risk percentage		10.00%

Contract liabilities - Revenue expected to be recognized in the future (Details) ¥ in Thousands	Dec. 31, 2022 CNY (¥)
Contract liabilities
2023	¥ 321,373
2024	148,155
2025	96,651
2026	36,835
2027	322
2028	¥ 187

Revenue information (Details) ¥ in Thousands, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023 CNY (¥)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Revenue information
Total revenues	¥ 1,717,437	¥ 1,313,992	¥ 3,561,994	$ 491,222	¥ 2,779,063	¥ 2,241,063
Point in time
Revenue information
Total revenues	1,617,929	1,206,043	3,349,256		2,590,714	2,068,222
Over time
Revenue information
Total revenues	99,508	107,949	212,738		188,349	172,841
Sales of goods revenues
Revenue information
Total revenues	1,264,263	858,080	2,433,964	335,659	1,983,817	1,678,234
Automotive computing platform
Revenue information
Total revenues	1,053,901	608,078	1,690,569		1,423,548	1,265,227
SoC Core Modules
Revenue information
Total revenues	200,255	188,338	660,554		333,421	203,402
Automotive merchandise and other products
Revenue information
Total revenues	10,107	61,664	82,841		226,848	209,605
Software license revenues .
Revenue information
Total revenues	215,641	78,995	404,469		261,265	71,297
Service revenues
Revenue information
Total revenues	237,533	376,917	723,561	$ 99,784	533,981	491,532
Automotive computing Platform - Design and development service
Revenue information
Total revenues	119,291	241,090	468,770		306,358	297,801
Connectivity service
Revenue information
Total revenues	99,508	107,949	212,738		188,349	172,841
Other services
Revenue information
Total revenues	¥ 18,734	¥ 27,878	¥ 42,053		¥ 39,274	¥ 20,890

Leases - operating lease right-of-use assets and the amortization (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Jan. 01, 2022 CNY (¥)
Leases
Operating lease right-of-use assets	¥ 167,317		¥ 141,627
Less: accumulated depreciation	(46,012)		(41,975)
Total	¥ 121,305	$ 16,729	¥ 99,652	$ 13,743	¥ 95,108

Related party balances and transactions (Details) - CNY (¥) ¥ in Thousands	1 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2022	Feb. 28, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Related party balances and transactions
Amount of transaction					¥ 6,395	¥ 1,093	¥ 3,391
Purchase of products and services
Related party balances and transactions
Amount of transaction			¥ 197,760	¥ 261,495	677,775	293,552	8,186
Rental of office space
Related party balances and transactions
Amount of transaction			2,400	3,421	6,395	1,093	3,391
Other income
Related party balances and transactions
Amount of transaction					22,846
Interest income on loans due from related parties
Related party balances and transactions
Amount of transaction			6,771	2,759	9,069	717
Interest expense on borrowings due to related parties
Related party balances and transactions
Amount of transaction			6,116	1,622	12,215	131	872
Loans to related parties
Related party balances and transactions
Amount of transaction			12,000	8,060	57,260	28,850
Repayment received of loans to related parties
Related party balances and transactions
Amount of transaction			8,500	25,000	29,360
Advances to Zhejiang Huanfu
Related party balances and transactions
Amount of transaction						19,806	103,024
Collection of advances to Zhejiang Huanfu
Related party balances and transactions
Amount of transaction						90,155	¥ 81,026
Repayment of borrowings from related parties
Related party balances and transactions
Amount of transaction				200,000	700,000	65,152
Borrowings from related parties
Related party balances and transactions
Amount of transaction			¥ 300,000	700,000	700,000	45,152
Transfer of property and equipment to Zhejiang Huanfu
Related party balances and transactions
Amount of transaction				¥ 1,604	1,604	¥ 707
Financial support to Anhui Xinzhi
Related party balances and transactions
Amount of transaction	¥ 28,500	¥ 28,500			¥ 28,500

Parent only financial information (Tables)

12 Months Ended

Dec. 31, 2022

Parent only financial information


	As of December 31,
	2021	2022
	RMB	RMB
ASSETS
Current assets
Cash	158,755	119,022
Prepayments and other assets	5,751	35
Amounts due from related parties	3,217,624	4,168,615
Total current assets	3,382,130	4,287,672

Non-current assets
Long-term investments	—	69,319
Total non-current assets	—	69,319
Total assets	3,382,130	4,356,991

Current Liabilities
Accounts payable	108	—
Accrued expenses and other current liabilities	—	146,507
Amounts due to related parties	85,390	18,925
Share of losses in excess of investments in subsidiaries and VIEs	2,861,051	3,948,086
Total current liabilities	2,946,549	4,113,518

Non-current liabilities
Convertible notes payable	—	439,869
Total non-current liabilities	—	439,869
Total liabilities	2,946,549	4,553,387

MEZZANINE EQUITY
Series Angel Redeemable Convertible Preferred Shares	283,585	—
Series A Redeemable Convertible Preferred Shares	1,429,313	—
Series A+ Redeemable Convertible Preferred Shares	1,386,671	—
Series A++ Redeemable Convertible Preferred Shares	475,413	—
Series B Redeemable Convertible Preferred Shares	1,117,317	—
Subscription receivable from a Series B Redeemable Convertible Preferred Shareholder	(159,392)	—
Total mezzanine equity	4,532,907	—

SHAREHOLDERS’ DEFICIT
Ordinary Shares	7	—
Class A Ordinary Shares	—	9
Class B Ordinary Shares	—	1
Treasury Shares	—	—
Additional paid-in capital	—	5,919,660
Accumulated deficit	(4,103,381)	(5,730,180)
Accumulated other comprehensive income (loss)	6,048	(385,886)
Total shareholders’ deficit	(4,097,326)	(196,396)
Total liabilities, mezzanine equity and shareholders’ deficit	3,382,130	4,356,991

Schedule of condensed statements of comprehensive loss


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
General and administrative expenses	—	(17,660)	(26,005)
Interest income	431	885	6,565
Interest expenses	—	(514)	(3,132)
Foreign currency exchange gains (losses)	55,213	12,478	(14,459)
Change in fair value of an equity security	—	—	(16,843)
Share of losses from subsidiaries and VIEs	(495,303)	(1,170,450)	(1,511,004)
Loss before income taxes	(439,659)	(1,175,261)	(1,564,878)
Income tax expenses	—	—	—
Net loss	(439,659)	(1,175,261)	(1,564,878)

Schedule of condensed statements of cash flows


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Net cash used in operating activities	(266)	(22,741)	(22,893)
Net cash used in investing activities	(97,873)	(3,121,321)	(734,299)
Net cash provided by financing activities	206,422	3,222,206	729,767
Effect of foreign currency exchange rate changes on cash	(10,012)	(17,660)	(12,308)
Net increase in cash	98,271	60,484	(39,733)
Cash at beginning of the year	—	98,271	158,755
Cash at end of the year	98,271	158,755	119,022

Loss per share (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of basic and diluted net loss per share


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Numerator:
Net loss available to ECARX Holdings Inc.	(582,195)	(380,586)
Accretion of Redeemable Convertible Preferred Shares	(177,842)	—
Numerator for basic and diluted net loss per share calculation	(760,037)	(380,586)
Denominator:
Weighted average number of ordinary shares - basic and diluted	236,248,112	337,395,390
Denominator for basic and diluted net loss per share calculation	236,248,112	337,395,390
Loss per ordinary share
—Basic and diluted	(3.22)	(1.13)


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Numerator:
Net loss attributable to ECARX Holdings Inc.	(439,659)	(1,175,261)	(1,564,878)
Accretion of Redeemable Convertible Preferred Shares	(101,286)	(243,564)	(354,878)
Numerator for basic and diluted net loss per share calculation	(540,945)	(1,418,825)	(1,919,756)

Denominator:
Weighted average number of ordinary shares – basic and diluted	238,591,421	236,691,093	239,296,386
Net loss per share attributable to ordinary shareholders
— Basic and diluted	(2.27)	(5.99)	(8.02)

Schedule of potential dilutive instruments that have not been included in the calculation of diluted loss per share as their inclusion would be anti-dilutive


	Six Months Ended June 30,
	2022	2023
Redeemable convertible preferred shares	90,724,289	—
Warrants	—	23,871,971


	Year ended December 31,
	2020	2021	2022
Redeemable convertible preferred shares	26,841,535	90,724,289	—
Warrants	6,016,207	—	23,871,971

Prepayments and other current assets - Additional Information (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Jul. 01, 2022	Dec. 31, 2021
Prepayments and other current assets
Government grants receivable		¥ 30,000	¥ 30,000
Provision for prepayments and other current assets	¥ 1,310		¥ 3,245

Loss per share (Details)
¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands

6 Months Ended

12 Months Ended

Jun. 30, 2023

CNY (¥)

¥ / shares

Jun. 30, 2023

USD ($)

$ / shares

Jun. 30, 2022

CNY (¥)

¥ / shares

Dec. 31, 2022

CNY (¥)

¥ / shares

Dec. 31, 2022

USD ($)

$ / shares

Dec. 31, 2021

CNY (¥)

¥ / shares

Dec. 31, 2020

CNY (¥)

¥ / shares

Numerator:

Net loss available to ECARX Holdings Inc.

¥ (380,586)

$ (52,487)

¥ (582,195)

¥ (1,564,878)

$ (215,804)

¥ (1,175,261)

¥ (439,659)

Accretion of redeemable convertible preferred shares (Note 19)

177,842

354,878

48,940

243,564

101,286

Numerator for basic and diluted net loss per share calculation

¥ (380,586)

$ (52,487)

¥ (760,037)

¥ (1,919,756)

$ (264,744)

¥ (1,418,825)

¥ (540,945)

Denominator:

Basic

337,395,390

236,248,112

239,296,386

^[1],[2]

239,296,386

^[1],[2]

236,691,093

^[1],[2]

238,591,421

^[1],[2]

Diluted

337,395,390

236,248,112

239,296,386

236,691,093

238,591,421

Denominator for basic and diluted net loss per share calculation

337,395,390

236,248,112

239,296,386

236,691,093

238,591,421

Basic | (per share)

¥ (1.13)

$ (0.16)

¥ (3.22)

¥ (8.02)

$ (1.11)

^[2]

¥ (5.99)

^[2]

¥ (2.27)

^[2]

Diluted | (per share)

¥ (1.13)

$ (0.16)

¥ (3.22)

¥ (8.02)

$ (1.11)

¥ (5.99)

¥ (2.27)

[1]	Shares outstanding for all periods reflect the adjustment for Recapitalization.
[2]	Shares outstanding for all periods reflect the adjustment for Recapitalization.

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

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

Loss per share - Anti-dilutive securities (Details) - shares	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Redeemable convertible preferred shares
Anti-dilutive securities
Anti-dilutive securities		90,724,289		90,724,289	26,841,535
Warrants
Anti-dilutive securities
Anti-dilutive securities	23,871,971		23,871,971		6,016,207

Share based compensation - Activities of Company's RSUs (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Number of RSUs
Outstanding at January 1, 2023	24,431,761	18,995,595	16,224,217
Granted (new RSUs)		6,680,560	2,890,674
Granted (replacement RSUs)		3,419,811	7,708,362
Forfeited		(1,244,394)	(119,296)
Replaced		(3,419,811)	(7,708,362)
Outstanding at June 30, 2023		24,431,761	18,995,595
Vested and expected to vest as of June 30, 2023		24,431,761
Exercisable as of June 30, 2023		21,191,690
Weighted Average Exercise Price
Outstanding at January 1, 2023	$ 0.15	$ 0.23	$ 0.05
Granted (new RSUs)		0.56	1.23
Granted (replacement RSUs)		0.13	0.28
Forfeited		0.54	0.01
Replaced		1.24	0.28
Outstanding at June 30, 2023		0.15	0.23
Vested and expected to vest as of June 30, 2023		0.15
Exercisable as of June 30, 2023		0.06
Weighted Average Fair value at grant date
Outstanding at January 1, 2023	$ 5.60	5.10	3.66
Granted (new RSUs)		6.92	5.15
Granted (replacement RSUs)		1.47	6.88
Forfeited		4.97	3.71
Replaced		1.47	3.89
Outstanding at June 30, 2023		5.60	$ 5.10
Vested and expected to vest as of June 30, 2023		5.60
Exercisable as of June 30, 2023		$ 5.79
Weighted remaining contractual years
Vested and expected to vest as of June 30, 2023		7 years 9 months 18 days
Exercisable as of June 30, 2023		7 years 10 months 28 days
Aggregate intrinsic value
Vested and expected to vest as of June 30, 2023		$ 5.76
Exercisable as of June 30, 2023		$ 5.83
RSU
Number of RSUs
Outstanding at January 1, 2023	24,431,761
Granted (new RSUs)	600,000
Granted (replacement RSUs)	4,175,352
Forfeited	(1,312,251)
Replaced	(4,175,352)
Outstanding at June 30, 2023	23,719,510	24,431,761
Vested and expected to vest as of June 30, 2023	23,719,510
Exercisable as of June 30, 2023	21,847,960
Weighted Average Exercise Price
Outstanding at January 1, 2023	$ 0.15
Granted (new RSUs)	0.48
Granted (replacement RSUs)	0.21
Forfeited	0.29
Replaced	0.63
Outstanding at June 30, 2023	0.08	$ 0.15
Vested and expected to vest as of June 30, 2023	0.08
Exercisable as of June 30, 2023	0.04
Weighted Average Fair value at grant date
Outstanding at January 1, 2023	5.60
Granted (new RSUs)	4.41
Granted (replacement RSUs)	3.75
Forfeited	5.12
Replaced	4.11
Outstanding at June 30, 2023	5.54	$ 5.60
Vested and expected to vest as of June 30, 2023	5.54
Exercisable as of June 30, 2023	$ 5.77
Weighted remaining contractual years
Vested and expected to vest as of June 30, 2023	8 years 2 months 1 day
Exercisable as of June 30, 2023	8 years 29 days
Aggregate intrinsic value
Vested and expected to vest as of June 30, 2023	$ 5.83
Exercisable as of June 30, 2023	$ 5.85

Inventories (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Inventories
Raw material	¥ 73,767		¥ 65,575		¥ 117,845
Work-in-process	1,095		2,999		2,690
Finished goods	111,364		113,998		102,784
Total	¥ 186,226	$ 25,682	¥ 182,572	$ 25,178	¥ 223,319

Convertible notes payable (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2023 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)
Convertible notes payable
Principal amount	¥ 471,335	¥ 448,318
Unamortized debt issuance costs	(7,041)	(8,449)	$ (1,225)
Net carrying amount	464,294	¥ 439,869
Level 3
Convertible notes payable
Fair value	¥ 440,879
Investor Notes
Convertible notes payable
Interest rate	5.00%	5.00%	5.00%

Schedule of contract liabilities

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

+ References + Details

Contract liabilities (Tables)

12 Months Ended

Dec. 31, 2022

Contract liabilities


	As of December 31,
	2021	2022
	RMB	RMB
Current liabilities – third parties	2,685	4,706
Current liabilities – related parties	363,285	316,667
Non-current liabilities – third parties	317	70
Non-current liabilities – related parties	472,749	282,080
Contract liabilities, current and non-current	839,036	603,523

Schedule of revenue expected to be recognized in the future related to remaining performance obligations


Year ending December 31,		Amount
2023		321,373
2024		148,155
2025		96,651
2026		36,835
2027		322
2028		187

Cash and restricted cash (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Cash and restricted cash
Cash	¥ 850,373	$ 117,272	¥ 860,472	$ 118,665		¥ 966,128
Restricted cash	74,975	10,340	40,957	5,648		23,004
Cash and restricted cash shown in the consolidated statements of cash flows	¥ 925,348	$ 127,612	¥ 901,429	$ 124,313	¥ 728,413	¥ 989,132	$ 136,408	¥ 1,003,876	¥ 334,931

Property and equipment, net (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Property and equipment, net
Property and equipment	¥ 259,570		¥ 243,443		¥ 225,593
Less: accumulated depreciation	(129,154)		(103,836)		(115,808)
Property and equipment, net	130,416	$ 17,985	139,607	$ 19,253	109,785
Machinery and electronic equipment
Property and equipment, net
Property and equipment	189,052		180,264		160,141
Transportation vehicles
Property and equipment, net
Property and equipment	5,214		3,897		8,589
Office and other equipment
Property and equipment, net
Property and equipment	18,338		15,510		7,219
Leasehold improvements
Property and equipment, net
Property and equipment	46,572		43,440		39,166
Construction in progress
Property and equipment, net
Property and equipment	¥ 394		¥ 332		¥ 10,478

Short-term borrowings (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Short-term borrowings
Short-term borrowings	¥ 870,000	$ 119,978	¥ 870,000	$ 119,978	¥ 932,000
Unsecured bank loans
Short-term borrowings
Short-term borrowings	¥ 870,000		¥ 870,000		¥ 932,000

Property and equipment, net

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

8.	Property and equipment, net

Property and equipment, net consisted of the following:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Machinery and electronic equipment	180,264	189,052
Transportation vehicles	3,897	5,214
Office and other equipment	15,510	18,338
Leasehold improvements	43,440	46,572
Construction in progress	332	394
Property and equipment	243,443	259,570
Less: accumulated depreciation	(103,836)	(129,154)
Property and equipment, net	139,607	130,416

Depreciation on property and equipment was allocated as follows:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Cost of revenues	—	375
Selling and marketing expenses	324	380
General and administrative expenses	15,735	14,654
Research and development expenses	8,301	11,675
Total depreciation	24,360	27,084

9.	Property and equipment, net

Property and equipment, net, consisted of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Machinery and electronic equipment	160,141	180,264
Transportation vehicles	8,589	3,897
Office and other equipment	7,219	15,510
Leasehold improvements	39,166	43,440
Construction in progress	10,478	332
Property and equipment	225,593	243,443
Less: accumulated depreciation	(115,808)	(103,836)
Property and equipment, net	109,785	139,607

Depreciation on property and equipment was allocated as follows:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Cost of revenues	1,684	1,401	1,022
Selling and marketing expenses	355	290	727
General and administrative expenses	23,148	26,544	31,204
Research and development expenses	13,293	15,038	17,574
Total depreciation	38,480	43,273	50,527

Share based compensation (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Summary of activities of Company's RSUs


			Weighted Average	Weighted
		Weighted Average	Fair value at grant	remaining	Aggregate intrinsic
	Number of RSUs	Exercise Price	date	contractual years	value
		US$	US$		US$
Outstanding at January 1, 2023	24,431,761	0.15	5.60
Granted (new RSUs)	600,000	0.48	4.41
Granted (replacement RSUs)	4,175,352	0.21	3.75
Forfeited	(1,312,251)	0.29	5.12
Replaced	(4,175,352)	0.63	4.11
Outstanding at June 30, 2023	23,719,510	0.08	5.54
Vested and expected to vest as of June 30, 2023	23,719,510	0.08	5.54	8.17	5.83
Exercisable as of June 30, 2023	21,847,960	0.04	5.77	8.08	5.85


			Weighted	Weighted
		Weighted	Average	remaining	Aggregate
	Number of	Average	Fair value at	contractual	intrinsic
	RSUs	Exercise Price	grant date	years	value
		US$	US$
Outstanding at January 1, 2021	16,224,217	0.05	3.66	—	—
Granted (new RSUs)	2,890,674	1.23	5.15	—	—
Granted (replacement RSUs)	7,708,362	0.28	6.88	—	—
Forfeited	(119,296)	0.01	3.71	—	—
Replaced	(7,708,362)	0.28	3.89	—	—
Outstanding at December 31, 2021	18,995,595	0.23	5.10	—	—
Granted (new RSUs)	6,680,560	0.56	6.92	—	—
Granted (replacement RSUs)	3,419,811	0.13	1.47	—	—
Forfeited	(1,244,394)	0.54	4.97	—	—
Replaced	(3,419,811)	1.24	1.47	—	—
Outstanding at December 31, 2022	24,431,761	0.15	5.60	—	—
Vested and expected to vest as of December 31, 2022	24,431,761	0.15	5.60	7.80	5.76
Exercisable as of December 31, 2022	21,191,690	0.06	5.79	7.91	5.83

Summary of fair value of RSUs granted that are estimated using the binomial model


	Six Months Ended June 30,
	2022		2023
Grant dates
Risk-free rate of return	1.61% - 2.36	%	2.65% - 3.85	%
Volatility	44.15% - 44.38	%	44.73	%
Expected dividend yield	0	%	0	%
Fair value of underlying ordinary share	US$7.57 - US$7.67 (equivalent to RMB48.29 - RMB48.88)		US$6.91 (equivalent to RMB49.90)
Expected terms	10 years		10 years


	Year ended December 31,
	2020	2021	2022
Risk-free rate of return	0.17% – 2.91%	0.35% – 2.70%	1.61% – 4.12%
Volatility	44.68% – 54.39%	41.13% – 50.60%	44.15% – 48.12%
Expected dividend yield	0.0%	0.0%	0.0%
Fair value of underlying ordinary share	US$3.16 – US$4.03 (equvalent to RMB21.76 – RMB26.27)	US$4.26 – US$7.45 (equvalent to RMB27.97 – RMB47.51)	US$7.57 – US$9.05 (equvalent to RMB48.29 – RMB64.98)
Expected terms	10 years	10 years	10 years

Summary of compensation expense recognized for RSUs


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Research and development expenses	—	84
Selling and marketing expenses	—	392
General and administrative expenses	—	(307)
Total	—	169

Summary of activities of options


			Weighted	Weighted
		Weighted	Average	remaining	Aggregate
	Number of	Average	Fair value at	contractual	intrinsic
	options	Exercise Price	grant date	years	value
		US$	US$		US$
Outstanding at January 1, 2023	12,853,364	9.70	3.14
Granted	63,464	9.70	3.80
Forfeited	(1,527,342)	9.70	3.26
Outstanding at June 30, 2023	11,389,486	9.70	3.13
Vested and expected to vest as of June 30, 2023	11,389,486	9.70	3.13	8.23	—
Exercisable as of June 30, 2023	8,311,048	9.70	2.94	8.19	—


			Weighted	Weighted
		Weighted	Average	remaining	Aggregate
	Number of	Average	Fair value at	contractual	intrinsic
	options	Exercise Price	grant date	years	value
		US$	US$
Outstanding at January 1, 2021	—	—	—
Granted	13,575,733	9.70	2.92
Forfeited	(294,690)	9.70	2.92
Outstanding at December 31, 2021	13,281,043	9.70	2.92
Granted	2,354,744	9.70	3.39
Forfeited	(2,782,423)	9.70	2.31
Outstanding at December 31, 2022	12,853,364	9.70	3.14
Vested and expected to vest as of December 31, 2021	12,853,364	9.70	3.14	8.76	—
Exercisable as of December 31, 2022	6,843,970	9.70	2.92	8.67	—

Summary of fair value of options granted that are estimated using the binomial model


	Six Months Ended June 30,
	2022		2023
Risk-free rate of return	1.63% - 3.05	%	3.79	%
Volatility	44.18% - 44.64	%	44.95	%
Expected dividend yield	0	%	0	%
Fair value of underlying ordinary share	US$7.57 - US$8.02		US$8.02
Expected terms	10 years		10 years


	Year ended December 31,
	2021		2022
Risk-free rate of return	1.20% – 1.65	%	1.63% - 3.83	%
Volatility	44.03% – 44.47	%	44.18% - 45.07	%
Expected dividend yield	0.0	%	0.0	%
Fair value of underlying ordinary share	US$6.99 - US$7.55		US$7.57 - US$9.30
Expected terms	10	years	10	years

2019 RSU Plan

Summary of compensation expense recognized for RSUs


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Research and development expenses	6,501	80,872	42,986
Selling and marketing expenses	723	7,321	8,297
Cost of revenues	—	6,524	—
General and administrative expenses	4,186	68,764	473,270
Total	11,410	163,481	524,553

2021 Option Plan

Summary of compensation expense recognized for RSUs


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Research and development expenses	23,492	19,577
Selling and marketing expenses	3,969	4,547
General and administrative expenses	167,576	27,933
Total	195,037	52,057


		Year ended December 31,
		2022
		RMB
Research and development expenses		93,824
Selling and marketing expenses		8,554
General and administrative expenses		98,720
Total		201,098

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
¥ in Thousands, $ in Thousands

12 Months Ended

Dec. 31, 2022

CNY (¥)

¥ / shares

Dec. 31, 2022

USD ($)

$ / shares

Dec. 31, 2021

CNY (¥)

¥ / shares

Dec. 31, 2020

CNY (¥)

¥ / shares

Revenues

¥ 3,561,994

$ 491,222

¥ 2,779,063

¥ 2,241,063

Research and development expenses (including related parties: RMB2,118, RMB21,069 and RMB60,687 for the years ended December 31, 2020, 2021 and 2022, respectively)

(2,568,115)

(354,159)

(1,962,000)

(1,689,675)

Gross profit

993,879

137,063

817,063

551,388

(1,332,800)

(183,802)

(1,209,580)

(706,018)

Selling and marketing expenses (including related parties: RMB192, nil and RMB96 for the years ended December 31, 2020, 2021 and 2022, respectively)

(86,597)

(11,942)

(82,827)

(60,643)

General and administrative expenses (including related parties: RMB2,447, RMB2,343 and RMB2,057 for the years ended December 31, 2020, 2021 and 2022, respectively)

(1,223,610)

(168,744)

(525,041)

(215,008)

Other income - related parties

22,846

3,151

Others, net

(1,939)

(267)

207

(200)

Total operating expenses

(2,622,100)

(361,604)

(1,817,241)

(981,869)

Loss from operation

(1,628,221)

(224,541)

(1,000,178)

(430,481)

Interest income (including related parties: nil, RMB717 and RMB9,069 for the years ended December 31, 2020, 2021 and 2022, respectively)

13,820

1,906

13,655

28,480

Interest expenses (including related parties: RMB872, RMB131 and RMB12,215 for the years ended December 31, 2020, 2021 and 2022, respectively)

(44,543)

(6,143)

(131,585)

(59,128)

Income (loss) from equity method investments

(71,928)

(9,919)

(3,891)

148

Change in fair value of an equity security

(16,843)

(2,323)

Gains on sale of an equity securities

59,728

8,237

Gains on deconsolidation of a subsidiary

71,974

9,926

10,579

Change in fair value of warrant liabilities

(3,245)

(448)

(111,299)

(39,635)

Government grants

59,393

8,191

34,507

5,998

Foreign currency exchange gains (losses), net

(18,216)

(2,512)

18,315

54,842

Loss before income taxes

(1,578,081)

(217,626)

(1,169,897)

(439,776)

Income tax expense

(29,065)

(4,008)

(6,861)

(228)

Net loss attributable to non-redeemable non-controlling interests

(1,607,146)

(221,634)

(1,176,758)

(440,004)

42,518

5,864

1,997

345

Net loss attributable to redeemable non-controlling interests

464

806

Net loss attributable to ECARX Holdings Inc

(1,564,164)

(215,706)

(1,173,955)

(439,659)

Accretion of redeemable non-controlling interests (Note 20(b))

(714)

(98)

(1,306)

Net loss available to ECARX Holdings Inc

(1,564,878)

(215,804)

(1,175,261)

(439,659)

Accretion of Redeemable Convertible Preferred Shares

(354,878)

(48,940)

(243,564)

(101,286)

Net loss available to ECARX Holdings Inc. ordinary shareholders

¥ (1,919,756)

$ (264,744)

¥ (1,418,825)

¥ (540,945)

Loss per ordinary share

Basic | (per share)

¥ (8.02)

$ (1.11)

^[1]

¥ (5.99)

^[1]

¥ (2.27)

^[1]

Diluted | (per share)

¥ (8.02)

$ (1.11)

¥ (5.99)

¥ (2.27)

Weighted average number of ordinary shares used in computing loss per ordinary share

Basic | shares

^[1],[2]

239,296,386

236,691,093

238,591,421

Diluted | shares

239,296,386

236,691,093

238,591,421

Other comprehensive income (loss):

Foreign currency translation adjustments, net of nil income taxes

¥ (391,934)

$ (54,050)

¥ 4,551

¥ 1,497

Comprehensive loss

(1,999,080)

(275,684)

(1,172,207)

(438,507)

Comprehensive loss attributable to non-redeemable non-controlling interests

42,518

5,864

1,997

345

Comprehensive loss attributable to redeemable non-controlling interests

464

806

Comprehensive loss attributable to ECARX Holdings Inc

(1,956,098)

(269,756)

(1,169,404)

(438,162)

Total deficit attributable to ordinary shareholders of the Company

Revenues

Accretion of redeemable non-controlling interests (Note 20(b))

(714)

(1,306)

Accretion of Redeemable Convertible Preferred Shares

(354,878)

(243,564)

(101,286)

Other comprehensive income (loss):

Foreign currency translation adjustments, net of nil income taxes

(391,934)

4,551

1,497

Sales of goods

Revenues

2,433,964

335,659

1,983,817

1,678,234

Software license revenues

(1,970,845)

(271,792)

(1,749,188)

(1,524,744)

Revenues

404,469

55,779

261,265

71,297

(126,807)

(17,487)

(32,164)

(27,926)

Service

Revenues

723,561

99,784

533,981

491,532

¥ (470,463)

$ (64,880)

¥ (180,648)

¥ (137,005)

[1]	Shares outstanding for all periods reflect the adjustment for Recapitalization.
[2]	Shares outstanding for all periods reflect the adjustment for Recapitalization.

Summary of significant accounting policies - Additional information (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Summary of significant accounting policies
Percentage of Vat on sale of products	6.00%
Percentage of Vat on provision of services	13.00%
Advertising costs	¥ 11,800	¥ 13,674	¥ 5,139
Employee social benefits expense	¥ 197,669	168,971	95,913
Number of operating segments	1
Profit appropriation to statutory surplus fund	¥ 0	3,240	248
Statutory surplus fund balance	¥ 3,240	¥ 3,240	282
VIE's
Summary of significant accounting policies
Employee social benefits expense			¥ 22,473

Notes receivable (Details) - CNY (¥) ¥ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Notes receivable
Notes receivable pledged for notes payable	¥ 26,126	¥ 25,034	¥ 25,034	¥ 110,550

Short-term borrowings

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Related party balances and transactions

Short-term borrowings

10.

Short-term borrowings

Short-term borrowings consisted of the following:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Unsecured bank loans	870,000	870,000

Short-term borrowings of RMB870,000 as of December 31, 2022 and June 30, 2023 were guaranteed by Hubei ECARX, which is a related party of the Group after the VIE Restructuring.

11.

Short-term borrowings

Short-term borrowings consisted of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Unsecured bank loans	932,000	870,000

Summary of significant accounting policies - Risks and Concentration (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounts receivable - third parties, net \| Customer concentration risk \| Geely Group
Risks and Concentration
Concentration risk percentage	79.20%	92.10%	95.80%
Accounts payable \| Customer concentration risk \| Supplier B, a third party
Risks and Concentration
Concentration risk percentage		19.00%	13.80%
Accounts payable \| Supplier concentration risk \| Supplier B, a third party
Risks and Concentration
Concentration risk percentage	10.00%	10.90%
Accounts payable \| Supplier concentration risk \| Supplier C, a third party
Risks and Concentration
Concentration risk percentage	17.60%	19.10%
Total purchase \| Customer concentration risk \| Supplier B, a third party
Risks and Concentration
Concentration risk percentage		17.40%	10.00%	10.00%
Total purchase \| Supplier concentration risk \| Supplier C, a third party
Risks and Concentration
Concentration risk percentage	13.30%

Related party balances and transactions

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

20.

Related party balances and transactions

(a)	Related Parties

Names of the major related parties		Nature of relationship
Zhejiang Geely Holding Group (“Geely Group”) and its subsidiaries		Entity controlled by the controlling shareholder of the Company
Proton Holdings Berhad and its subsidiaries		Entity that the controlling shareholder of the Company has significant influence
Anhui Xinzhi Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Zhejiang Huanfu Technology Co., Ltd., (“Zhejiang Huanfu”, formerly known as Zhejiang Yikatong Technology Co., Ltd.,”Zhejiang Yikatong”)		Entity controlled by the controlling shareholder of the Company
Xi’an Liansheng Intelligent Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Hubei Xingji Meizu Group Co., Ltd. (formerly known as Hubei Yuanshidai Technology Co., Ltd.)		Entity controlled by the controlling shareholder of the Company
Hubei Xingji Meizu Technology Co., Ltd (formerly known as Hubei Xingji Times Technology Co., Ltd.)		Entity controlled by the controlling shareholder of the Company
Hubei ECARX Technology Co., Ltd (“Hubei ECARX”)		Entity controlled by the controlling shareholder of the Company
Arteus Group Limited (“Arteus”)		Entity controlled by the controlling shareholder of the Company
DreamSmart Technology Pte. Ltd. (“DreamSmart”)		Entity controlled by the controlling shareholder of the Company
Apollo Intelligent Connectivity (Beijing) Technology Co., Ltd.		Entity that one board of director of the Company has significant influence
SiEngine Technology Co., Ltd. (“SiEngine”)		Entity which is under significant influence of the Company
Suzhou Tongjie Automotive Electronics Co., Ltd.		Entity which is under significant influence of the controlling shareholder of the Company
Hubei Dongjun Automotive Electronic Technology Co., Ltd. and its subsidiary		Entity which is under significant influence of the Company
Suzhou Photon-Matrix Optoelectronics Technology Co., Ltd		Entity which is under significant influence of the Company
HaleyTek AB		Entity which is under significant influence of the Company

(b)	Significant transactions with related parties:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Revenues (i):
Sales of goods revenues	613,655	1,018,256
Automotive computing platform	603,112	1,013,860
SoC Core Modules	22	140
Automotive merchandise and other products	10,521	4,256
Software licence revenues	15,481	164,995
Service revenues	376,720	237,263
Automotive computing platform – Design and development service	241,090	119,291
Connectivity service	107,752	99,254
Other services	27,878	18,718
Total	1,005,856	1,420,514


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Purchase of products and services ⁽ⁱⁱ⁾	261,495	197,760
Rental of office space, and administrative services ⁽ⁱⁱ⁾	3,421	2,400
Other income ^(viii)	—	7,055
Interest income on loans due from related parties ^(iv)	2,759	6,771
Interest expense on borrowings and the Note due to related parties ⁽ⁱⁱⁱ⁾	1,622	6,116
Loans to related parties ^(iv)	8,060	12,000
Repayment received of loans to related parties ^(iv)	25,000	8,500
Financial support to Anhui Xinzhi ^(vii)	28,500	—
Repayment of borrowings from related parties ⁽ⁱⁱⁱ⁾	200,000	—
Borrowings from related parties ⁽ⁱⁱⁱ⁾	700,000	300,000
Transfer of property and equipment to Zhejiang Huanfu ^(v)	1,604	—

(c)	Balances with related parties:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Accounts receivable - related parties, net ⁽ⁱ⁾	835,320	804,267
Amounts due from related parties ^{(ii)(iv)(viii)}	911,729	140,225
Other non-current assets - related parties ^(vi)	213,695	218,899
Accounts payable - related parties ⁽ⁱⁱ⁾	241,773	101,098
Amounts due to related parties ^(iii)(ix)	42,843	341,202

Note:

(i)

(ii)

(iii)

In January 2023, ECARX (Hubei) Tech entered into an unsecured loan agreement with Geely Group in an amount of RMB300,000 with an interest rate of 4.1% per annum, which was repayable on June 30, 2024.

(iv)

(v)	In February 2022, Hubei ECARX disposed certain property and equipment to Zhejiang Huanfu at RMB1,697 and recorded a gain of RMB93 as a result of the disposal.

(vi)

(vii)

In February and March 2022, the Group provided cash in the amount of RMB28,500 to Anhui Xinzhi as financial support. The investment was derecognized as part of the Restructuring.

(viii)

(ix)	As a result of the purchase of technical services and logistics services from related parties, the Group recorded balances due to related parties of RMB29,043 and RMB21,286 as of December 31, 2022 and June 30, 2023, respectively.

28.

Related party balances and transactions

(a)	Related Parties


Names of the major related parties		Nature of relationship
Zhejiang Geely Holding Group (“Geely Group”) and its subsidiaries		Entity controlled by the controlling shareholder of the Company
Proton Holdings Berhad and its subsidiaries		Entity that the controlling shareholder of the Company has significant influence
Anhui Xinzhi Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Zhejiang Huanfu Technology Co., Ltd., (“Zhejiang Huanfu”, formerly known as Zhejiang Yikatong Technology Co., Ltd.,”Zhejiang Yikatong”)		Entity controlled by the controlling shareholder of the Company
Xi’an Liansheng Intelligent Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Hubei Yuanshidai Technology Co., Ltd.		Entity controlled by the controlling shareholder of the Company
Hubei Xingji Times Technology Co., Ltd		Entity controlled by the controlling shareholder of the Company
Hubei ECARX Technology Co., Ltd		Entity controlled by the controlling shareholder of the Company
Arteus Group Limited		Entity controlled by the controlling shareholder of the Company
Apollo Intelligent Connectivity (Beijing)Technology Co., Ltd.		Entity that one board of director of the Company has significant influence
SiEngine Technology Co., Ltd.		Entity which is under significant influence of the Company
Suzhou Tongjie Automotive Electronics Co., Ltd.		Entity which is under significant influence of the controlling shareholder of the Company
Hubei Dongjun Automotive Electronic Technology Co., Ltd. and its subsidiary		Entity which is under significant influence of the Company
Suzhou Photon-Matrix Optoelectronics Technology Co., Ltd		Entity which is under significant influence of the Company

(b)	Significant transactions with related parties:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Revenues(i):
Sales of goods revenues	1,275,777	1,466,340	1,663,076
Automotive computing platform	1,231,429	1,410,566	1,651,512
SoC Core Modules	—	—	77
Automotive merchandise and other products	44,348	55,774	11,487
Software license revenues	18,168	24,788	133,450
Service revenues	444,709	532,625	721,206
Automotive computing platform – Design and development service	251,471	306,027	466,747
Connectivity service	172,490	187,781	212,406
Other services	20,748	38,817	42,053
Total	1,738,654	2,023,753	2,517,732


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Purchase of products and services (ii)	8,186	293,552	677,775
Rental of office space (ii)	3,391	1,093	6,395
Other income (ix)	—	—	22,846
Interest income on loans due from related parties (iv)	—	717	9,069
Interest expense on borrowings due to related parties (iii)	872	131	12,215
Loans to related parties (iv)	—	28,850	57,260
Repayment received of loans to related parties (iv)	—	—	29,360
Advances to Zhejiang Huanfu (iv)	103,024	19,806	—
Collection of advances to Zhejiang Huanfu (iv)	81,026	90,155	—
Repayment of borrowings from related parties (iii)	—	65,152	700,000
Borrowings from related parties (iii)	—	45,152	700,000
Transfer of property and equipment to Zhejiang Huanfu (v)	—	707	1,604
Financial support to Anhui Xinzhi (viii)	—	—	28,500


	As of December 31,
	2021	2022
	RMB	RMB
Accounts receivable – related parties, net (i)	768,747	835,320
Amounts due from related parties (ii)(iv)(ix)	41,298	911,729
Accounts payable – related parties (ii)	111,531	241,773
Amounts due to related parties (iii)(vi)(x)	106,825	42,843
Other non-current assets – related parties (vii)	1,929	213,695

(i)

The Group sold automotive computing platform products and provided related technology development services, merchandise and other products, connectivity service, software licenses and other consulting services to a number of related parties. Accounts receivable, net due from related parties arising from sales of products and provision of services were RMB768,747 and RMB835,320 as of December 31, 2021 and 2022, respectively. The balance as of December 31, 2021 was fully received in 2022. Of the balance as of December 31, 2022, RMB538,867 was subsequently received by March 2023.

(ii)

(iii)

(iv)	In 2020 and 2021, the Group respectively paid advances of RMB103,024 and RMB19,806, and received collection of RMB81,026 and RMB90,155, from Zhejiang Huanfu. The payments were interest-free and due on demand. The amounts due from Zhejiang Huanfu as of December 31, 2020 was fully collected in 2021.

In 2021, the Group provided loans of RMB28,850 to related parties. Interest incomes on loans due from related parties were RMB717 for the year ended December 31, 2021.

(v)

(vi)

(vii)

(viii)

(ix)

(x)	As a result of the purchase of technical services and logistics services from related parties in each of the reporting periods specified in the Note (ii), the Group recorded balances due to related parties of RMB36,186 and RMB29,043 as of December 31, 2021 and 2022, respectively.

Share based compensation

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Share based compensation

15.

Share based compensation

2019 RSU (Restricted Share Unit) Plan

On January 31, 2023, the Company approved a new modification plan to change the vesting condition of aggregated 1,789,437 RSUs granted under 2019 RSU Plan. After this modification, the employees can vest 20%, 50% and 30% of the RSUs for each year of service provided. The Company accounted for the modification as a Type I (probable to probable) modification, which refers to the modification that does not change the expectation that the awards will ultimately vest. The Company calculated incremental compensation cost of the modification as the excess of the fair value of the modified awards over the fair value of the original awards immediately before its terms were modified at the modification date. Total incremental compensation costs were US$557 (equivalent to RMB3,940), of which US$206 (equivalent to RMB1,457) was recognized immediately for the vested RSUs at the modification date, while the remaining incremental compensation costs along with unrecognized compensation cost remaining from the unvested RSUs, were recognized over the remaining requisite service period.

On April 30, 2023, the Company approved the modification to change the exercise price of aggregated 1,073,662 RSUs granted to certain employees under 2019 RSU Plan. The RSUs were granted on November 30, 2021 and January 30, 2022 at a weighted average exercise price of US$1.96 per RSU. After the modification, the exercise price was changed to US$0.32 per RSU. The Company accounted for the modification as a Type I (probable-to-probable) modification, the cumulative amount of compensation cost that should be recognized is the original grant date fair value of the award plus any incremental fair value resulting from the modification,

which is measured as the excess of the fair value of the modified award over the fair value of the original award immediately before the terms are modified. Total incremental compensation costs were US$1,474 (equivalent to RMB10,430).

On June 29, 2023, the Company approved a new modification plan to change the vesting condition of aggregated 1,312,253 RSUs granted under 2019 RSU Plan. After this modification, the RSUs vest under one of the following two approaches: 20%, 50% and 30% or 20%, 20% and 60% of the RSUs for each year of service provided. The Company accounted for the modification as a Type I (probable to probable) modification. Total incremental compensation costs were US$318 (equivalent to RMB2,250), of which US$76 (equivalent to RMB538) was recognized immediately for the vested RSUs at the modification date, while the remaining incremental compensation costs along with unrecognized compensation cost remaining from the unvested RSUs, were recognized over the remaining requisite service period.

Pursuant to the 2019 RSU Plan, in June 2023, the Company granted an aggregate number of 600,000 RSUs to employees, at a weighted average exercise price of US$0.48 per RSU. The RSUs vest under one of the following two approaches:

●

20% of the grants vest every twelve-month service period since the service commencement of the employees.

●

50%, 30%, 20% of the grants vest every twelve-month service period since the service commencement of the employees.

The following table summarizes activities of the Company’s RSUs for the six months ended June 30, 2023:


			Weighted Average	Weighted
		Weighted Average	Fair value at grant	remaining	Aggregate intrinsic
	Number of RSUs	Exercise Price	date	contractual years	value
		US$	US$		US$
Outstanding at January 1, 2023	24,431,761	0.15	5.60
Granted (new RSUs)	600,000	0.48	4.41
Granted (replacement RSUs)	4,175,352	0.21	3.75
Forfeited	(1,312,251)	0.29	5.12
Replaced	(4,175,352)	0.63	4.11
Outstanding at June 30, 2023	23,719,510	0.08	5.54
Vested and expected to vest as of June 30, 2023	23,719,510	0.08	5.54	8.17	5.83
Exercisable as of June 30, 2023	21,847,960	0.04	5.77	8.08	5.85

The fair value of the RSUs granted for the six months ended June 30, 2022 and 2023 were estimated using the binomial model with the following assumptions used:


	Six Months Ended June 30,
	2022		2023
Grant dates
Risk-free rate of return	1.61% - 2.36	%	2.65% - 3.85	%
Volatility	44.15% - 44.38	%	44.73	%
Expected dividend yield	0	%	0	%
Fair value of underlying ordinary share	US$7.57 - US$7.67 (equivalent to RMB48.29 - RMB48.88)		US$6.91 (equivalent to RMB49.90)
Expected terms	10 years		10 years

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 RSUs. With respect to the RSUs issued in US$ or RMB, the risk-free interest rate was separately estimated based on the yield to maturity of U.S. Treasury bonds or China Government Bond for a term consistent with the expected term of the Company’s RSUs in effect at the valuation date. Expected dividend yield is zero as the Company does not anticipate any dividend payments in the foreseeable future. Expected term is the contract life of the RSUs.

Compensation expense recognized for RSUs for the six months ended June 30, 2022 and 2023 was allocated as follows:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Research and development expenses	23,492	19,577
Selling and marketing expenses	3,969	4,547
General and administrative expenses	167,576	27,933
Total	195,037	52,057

As of June 30, 2023, US$22,333 (equivalent to RMB157,990) of the total unrecognized compensation expense related to RSUs is expected to be recognized over a weighted-average period of 1.4 years. The unrecognized compensation cost may be adjusted for actual forfeitures occurring in the future.

2021 Option Plan

Pursuant to the 2021 Option Plan, in January 2023, the Company granted 63,464 share options to certain employees at an exercise price of US$9.70 per option. The grantees are entitled to cumulative vesting of 25% of the total grants for every twelve-month service period since their employment commencement.

The following table summarizes activities of the options for the six months ended June 30, 2023:


			Weighted	Weighted
		Weighted	Average	remaining	Aggregate
	Number of	Average	Fair value at	contractual	intrinsic
	options	Exercise Price	grant date	years	value
		US$	US$		US$
Outstanding at January 1, 2023	12,853,364	9.70	3.14
Granted	63,464	9.70	3.80
Forfeited	(1,527,342)	9.70	3.26
Outstanding at June 30, 2023	11,389,486	9.70	3.13
Vested and expected to vest as of June 30, 2023	11,389,486	9.70	3.13	8.23	—
Exercisable as of June 30, 2023	8,311,048	9.70	2.94	8.19	—

The fair value of the options granted for the six months ended June 30, 2022 and 2023 are estimated using the binomial model with the following assumptions used:


	Six Months Ended June 30,
	2022		2023
Risk-free rate of return	1.63% - 3.05	%	3.79	%
Volatility	44.18% - 44.64	%	44.95	%
Expected dividend yield	0	%	0	%
Fair value of underlying ordinary share	US$7.57 - US$8.02		US$8.02
Expected terms	10 years		10 years

U.S. Treasury bonds for a term consistent with the expected term of the options in effect at the valuation date. Expected dividend yield is zero as the Group does not anticipate any dividend payments in the foreseeable future. Expected term is the contract life of the option awards.

Compensation expense recognized for options for the six months ended June 30, 2022 and 2023 is allocated as follows:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Research and development expenses	—	84
Selling and marketing expenses	—	392
General and administrative expenses	—	(307)
Total	—	169

As of June 30, 2023, US$3,516 (equivalent to RMB24,873) of total unrecognized compensation expense related to the options is expected to be recognised over a weighted-average period of 2.23 years. The unrecognized compensation cost may be adjusted for actual forfeitures occurring in the future.

22.

Share based compensation

2019 RSU (Restricted Share Unit) Plan

In December 2019, Mr. Ziyu Shen set up a trust (the “Trust”), of which he acted as the sole beneficiary. He transferred 23,859,142 ordinary shares he owned, representing 10.0% of total outstanding shares of the Company, to the Trust, and entered into 2019 RSU agreements (the “2019 RSU Plan”) with key employees and external consultants. 2019 RSU Plan entitled the grantees to purchase the economic beneficial right of the ordinary shares in the Trust.

Between August and December 2020, an aggregate number of 16,224,217 RSUs were granted to employees and non-employee consultants, at a weighted average exercise price of RMB0.34 per RSU. Between March and November 2021, 2,890,674 RSUs were granted to employees at a weighted average exercise price of US$1.23 per RSU.

The RSUs vest following the three approaches, pursuant to the share award agreements which were entered into between the Group and the grantees:

●

50% of the RSUs shall vest upon a qualified IPO; the other 50% has a requisite service condition of 5 years from the service commencement date with the Group; while upon the achievement of a qualified IPO, all unvested RSUs become immediately vested.

●

Before a qualified IPO is achieved, the grantees are entitled to vest 50% of the RSUs when they complete five-year continuous service with the Group; upon a qualified IPO, the employees are entitled to cumulatively vest 20% of the total grants for every twelve-month service period since their employment commencement; and, after the completion of a qualified IPO, the grantees could continue to vest 20% of the total grants for every twelve-month service period since their service commencement. Upon employment termination, any remaining unvested portion shall be forfeited.

●

For those RSUs granted to non-employees in exchange for technical and strategic consultancy services over the service period of 60 months, the RSUs shall vest immediately upon the completion of a qualified IPO.

In December 2021, Mr. Ziyu Shen and the Company entered into 2021 Restricted Share Units agreements (the “2021 RSU Replacement Plan”) with employees who were subject to 2019 RSU Plan. The 2021 RSU Replacement Plan modified the 2019 RSU Plan pursuant to which the condition of the qualified IPO was excluded. As a result, the RSUs can vest in equal tranches at the first, second, third, fourth and fifth anniversary since the grantees’ service commencement with the Group. The Group accounted for the modification as a Type III (improbable-to-probable) modification, which represents the modification of the award that was not expected to vest under the original vesting conditions at the date of the modification. The Group recognized compensation cost equal to the modified award’s fair value at the date of the modification. As a result of the modification, 5,101,085 RSUs became vested immediately, and share based compensation expense of US$16,311 (equivalent to RMB105,211) was recognized in the consolidated statements of comprehensive loss for the year ended December 31, 2021. The remaining portion of 2,607,277 RSUs was to be vested over the service period following the modified vesting schedule.

Pursuant to the 2019 RSU Plan, between January and September 2022, the Company granted an aggregate number of 6,680,560 RSUs to employees, at a weighted average exercise price of US$0.56 per RSU. The RSUs vest under one of the following two approaches:

●

20% of the grants vest every twelve-month service period since the service commencement of the employees.

●

Half of the RSUs vest on April 1, 2022, and the remaining 50% of the RSUs vest on a monthly basis over thirty-six (36) months from May 2022.

On August 20, 2022, the Company approved the modification to change the exercise price of aggregated 1,431,549 RSUs granted to certain employees under 2019 RSU Plan. The RSUs were granted on March 31, 2021 and January 30, 2022 at a weighted average exercise price of US$2.96 per RSU. After the modification, the exercise price was changed to US$0.32 per RSU. The Company accounted for the modification as a Type I (probable to probable) modification, which refers to the modification that does not change the expectation that the awards will ultimately vest. The Company calculated incremental compensation cost for such awards based on their fair value before and after the modification. Upon the modification, incremental compensation cost of US$750 (equivalent to RMB4,976) was recognized immediately for the vested RSUs and US$2,999 (equivalent to RMB19,904) were to be recorded between 3.3 years and 3.5 years.

On October 31, 2022, the Company approved the modification to change the vesting condition of aggregated 4,771,828 RSUs granted in January 2022 under 2019 RSU Plan. At the date of the modification, the unvested 1,988,262 RSUs which were to vest on a monthly basis over thirty (30) months from November 2022 following the original vesting schedule were modified to vest immediately on October 31, 2022. The Company accounted for the modification as a Type III (not probable to probable) modification, which represents the modification of the awards that were not expected to vest under the original vesting conditions at the date of the modification. The Group recorded an additional compensation cost as the fair value of the modified awards at the amount of US$17,993 (equivalent to RMB119,408).

The following table summarizes activities of the Company’s RSUs for the years ended December 31, 2021 and 2022:


			Weighted	Weighted
		Weighted	Average	remaining	Aggregate
	Number of	Average	Fair value at	contractual	intrinsic
	RSUs	Exercise Price	grant date	years	value
		US$	US$
Outstanding at January 1, 2021	16,224,217	0.05	3.66	—	—
Granted (new RSUs)	2,890,674	1.23	5.15	—	—
Granted (replacement RSUs)	7,708,362	0.28	6.88	—	—
Forfeited	(119,296)	0.01	3.71	—	—
Replaced	(7,708,362)	0.28	3.89	—	—
Outstanding at December 31, 2021	18,995,595	0.23	5.10	—	—
Granted (new RSUs)	6,680,560	0.56	6.92	—	—
Granted (replacement RSUs)	3,419,811	0.13	1.47	—	—
Forfeited	(1,244,394)	0.54	4.97	—	—
Replaced	(3,419,811)	1.24	1.47	—	—
Outstanding at December 31, 2022	24,431,761	0.15	5.60	—	—
Vested and expected to vest as of December 31, 2022	24,431,761	0.15	5.60	7.80	5.76
Exercisable as of December 31, 2022	21,191,690	0.06	5.79	7.91	5.83

The fair value of the RSUs granted in 2020, 2021 and 2022 were estimated using the binomial model with the following assumptions used:


	Year ended December 31,
	2020	2021	2022
Risk-free rate of return	0.17% – 2.91%	0.35% – 2.70%	1.61% – 4.12%
Volatility	44.68% – 54.39%	41.13% – 50.60%	44.15% – 48.12%
Expected dividend yield	0.0%	0.0%	0.0%
Fair value of underlying ordinary share	US$3.16 – US$4.03 (equvalent to RMB21.76 – RMB26.27)	US$4.26 – US$7.45 (equvalent to RMB27.97 – RMB47.51)	US$7.57 – US$9.05 (equvalent to RMB48.29 – RMB64.98)
Expected terms	10 years	10 years	10 years

The Group recognized share-based compensation expense of US$19,505 (equivalent to RMB129,444) relating to the RSUs vested upon the completion of its Merger with COVA. Compensation expense recognized for RSUs for the years ended December 31, 2020, 2021 and 2022 is allocated as follows:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Research and development expenses	6,501	80,872	42,986
Selling and marketing expenses	723	7,321	8,297
Cost of revenues	—	6,524	—
General and administrative expenses	4,186	68,764	473,270
Total	11,410	163,481	524,553

In addition to the share-based expenses from the vested RSUs during the years ended December 31, 2020, 2021 and 2022, share-based expenses of nil, RMB16,452 and nil were recorded, respectively, due to the redesignation from ordinary shares to preferred shares (see Note 19).

As of December 31, 2022, US$31,628 (equivalent to RMB209,898) of total unrecognized compensation expense related to RSUs is expected to be recognised over a weighted-average period of 1.9 years. The unrecognized compensation cost may be adjusted for actual forfeitures occurring in the future.

2021 Option Plan

In July 2021, the Company’s shareholders and Board of Directors approved a share option plan (the “2021 Option Plan”), which granted the employees an option to purchase ordinary shares of the Company at an exercise price of US$9.70 per share. Between August and December 2021, 13,575,733 share options were granted to employees. Between January and November 2022, the Company granted an aggregated number of 2,354,744 share options to employees. Upon a qualified IPO, the grantees are entitled to cumulatively vest 25% of the total grants for every twelve-month service period since their employment commencement; and after the completion of a qualified IPO, the grantees could continue to vest 25% of the total grants for every twelve-month service period. The share options can only be exercised upon the occurrence a qualified IPO.

The following table summarizes activities of the options for the years ended December 31, 2021 and 2022:


			Weighted	Weighted
		Weighted	Average	remaining	Aggregate
	Number of	Average	Fair value at	contractual	intrinsic
	options	Exercise Price	grant date	years	value
		US$	US$
Outstanding at January 1, 2021	—	—	—
Granted	13,575,733	9.70	2.92
Forfeited	(294,690)	9.70	2.92
Outstanding at December 31, 2021	13,281,043	9.70	2.92
Granted	2,354,744	9.70	3.39
Forfeited	(2,782,423)	9.70	2.31
Outstanding at December 31, 2022	12,853,364	9.70	3.14
Vested and expected to vest as of December 31, 2021	12,853,364	9.70	3.14	8.76	—
Exercisable as of December 31, 2022	6,843,970	9.70	2.92	8.67	—

The fair value of the options granted in 2021 and 2022 are estimated using the binomial model with the following assumptions used:


	Year ended December 31,
	2021		2022
Risk-free rate of return	1.20% – 1.65	%	1.63% - 3.83	%
Volatility	44.03% – 44.47	%	44.18% - 45.07	%
Expected dividend yield	0.0	%	0.0	%
Fair value of underlying ordinary share	US$6.99 - US$7.55		US$7.57 - US$9.30
Expected terms	10	years	10	years

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 option awards. The risk-free interest rate was separately estimated based on the yield to maturity of U.S. Treasury bonds for a term consistent with the expected term of the options in effect at the valuation date. Expected dividend yield is zero as the Group does not anticipate any dividend payments in the foreseeable future. Expected term is the contract life of the option awards.

Upon the completion of the Merger with COVA in December 2022, the Group recognized share-based compensation expense of US$30,384 (equivalent to RMB201,645) for 6,818,048 options vested.

Compensation expense recognized for options for the years ended December 31, 2022 is allocated as follows; the Group recognized the effect of forfeitures in compensation costs when they occur.


		Year ended December 31,
		2022
		RMB
Research and development expenses		93,824
Selling and marketing expenses		8,554
General and administrative expenses		98,720
Total		201,098

As of December 31, 2022, US$8,284 (equivalent to RMB54,976) of total unrecognized compensation expense related to the options is expected to be recognised over a weighted-average period of 2.75 years. The unrecognized compensation cost may be adjusted for actual forfeitures occurring in the future.

Risks and Concentration

12 Months Ended

Dec. 31, 2022

Risks and Concentration

26.

Risks and Concentration

Concentration of credit risk

Financial instruments that potentially expose the Group to concentrations of credit risk consist principally of cash, restricted cash, accounts receivables, notes receivable, amounts due from related parties and other non-current assets.

individually. If the assessment indicates a likelihood of collection risk, the Group will not deliver the services or sell the products to the customer or require the customer to pay cash to secure payment or to make significant down payments.

Concentration of customers and suppliers

The Group currently has a concentrated customer base with a limited number of key customers, particularly Geely Group and its subsidiaries. Geely Group and its subsidiaries represents 95.8% and 92.1% of the Group’s accounts receivable — related parties, net, as of December 31, 2021 and 2022, respectively. During the years ended December 31, 2020, 2021 and 2022, Geely Group and its subsidiaries contributed 74.1%, 70.4% and 67.0% of the Group’s total revenues, respectively, which excluded the sales of SoC core modules or software licenses by the Group to its third-party customers that were integrated into infotainment and cockpit products and sold by such third-party customers to Geely Group and its subsidiaries.

The following table summarizes customers with greater than 10.0% of the accounts receivable - third parties, net:


	As of December 31,
	2021		2022
Customer A, a third party	51.1	%	48.9	%
Customer B, a third party	11.0	%	30.4	%
Customer C, a third party	10.6	%	Less than 10.0	%

Customers contributed more than 10.0% of total revenues are as follows:


	Year Ended December 31,
	2020		2021		2022
Geely Group and its subsidiaries	74.1	%	70.4	%	67.0	%
Customer A, a third party	Less than 10.0	%	Less than 10.0	%	12.6	%
Customer B, a third party	Less than 10.0	%	Less than 10.0	%	12.5	%

The following table summarizes suppliers with greater than 10.0% of the accounts payable:


	As of December 31,
	2021		2022
Supplier A, a third party	15.5	%	Less than 10.0	%
Supplier B, a third party	13.8	%	19.0	%
Supplier C, a related party	10.3	%	Less than 10.0	%
Supplier D, a third party	Less than 10.0	%	19.1	%
Supplier E, a third party	Less than 10.0	%	10.9	%

Suppliers accounting for more than 10.0% of total purchases are as follows:


	Year Ended December 31,
	2020		2021		2022
Supplier A, a third party	35.2	%	23.6	%	Less than 10.0	%
Supplier B, a third party	Less than 10.0	%	Less than 10.0	%	17.4	%
Supplier C, a related party	Less than 10.0	%	Less than 10.0	%	Less than 10.0	%
Supplier D, a third party	Less than 10.0	%	Less than 10.0	%	12.7	%

Accrued expenses and other liabilities (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of accrued expenses and other liabilities


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Salaries and benefits payables	246,189	165,238
Taxes payable	103,067	59,318
Product warranties	61,432	69,915
Accrued costs of the Merger	136,756	68,922
Other payables and accrued charges*	237,690	148,355
Accrued expenses and other current liabilities	785,134	511,748

*	Other payables and accrued charges primarily include accrual for research and development expenses.


	As of December 31,
	2021	2022
	RMB	RMB
Salaries and benefits payables	230,985	246,189
Taxes payable	39,286	103,067
Product warranties	40,263	61,432
Accrued costs of the Merger	—	136,756
Other payables and accrued charges*	150,730	237,690
Accrued expenses and other current liabilities	461,264	785,134

*Other payables and accrued charges primarily include accrual for research and development expenses.

Commitments and contingencies (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of future minimum purchase commitments


		Less than
	Total	one year	1-2 Years	2-3 Years	3-5 Years
Purchase commitments	61,713	45,046	6,667	6,667	3,333

Purchase commitments


		Less than				Over 5
	Total	one year	1-2 Years	2-3 Years	3-5 Years	Years
Purchase commitments	99,907	79,906	6,667	6,667	6,667	—

Schedule of future minimum capital commitments

Capital commitments

Total capital expenditures contracted but not yet reflected in the unauditd condensed consolidated financial statements as of June 30, 2023 were as follows:


	Total	Less than one year
	RMB	RMB
Capital commitments	18,994	18,994

Capital commitments

Total capital expenditures contracted but not yet reflected in the consolidated financial statements as of December 31, 2022 were as follows:


	Total	Less than one year
Capital commitments	15,872	15,872

Income taxes - Principal components of the deferred tax assets and liabilities (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Inventories	¥ 7,654	¥ 6,431
Allowance for doubtful accounts	2,049	487
Intangible assets	268,381
Accrued product warranties	23,037	8,483
Accrued salaries and benefits	10,961	8,704
Accrued expenses and other liabilities	14,494	48,520
Unrealized investment loss of equity method investments	7,326	3,600
Donation	503	450
Operating lease liabilities	22,781
Net operating loss carryforwards	201,812	473,845
Total deferred tax assets	558,998	550,520
Less: valuation allowance	(537,172)	¥ (550,520)	¥ (362,371)	¥ (268,702)
Deferred tax assets, net of valuation allowance	21,826
Deferred tax liabilities:
Operating lease right-of-use assets	(21,826)
Total deferred tax liabilities	¥ (21,826)

Non-controlling interests (Tables)

12 Months Ended

Dec. 31, 2022

Non-controlling interests

Schedule of balance of redeemable non-controlling interests


		RMB
Balance as of January 1, 2021		—
Add: Capital contribution		30,000
Less: Comprehensive loss		(806)
Add: Accretion of redeemable non-controlling interests		1,306
Balance as of December 31, 2021		30,500
Add: Capital contribution		10,000
Less: Comprehensive loss		(464)
Add: Accretion of redeemable non-controlling interests before the deconsolidation of Suzhou Photon-Matrix		714
Less: Deconsolidation of Suzhou Photon-Matrix		(40,750)
Balance as of December 31, 2022		—

Accrued expenses and other liabilities

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Accrued expenses and other liabilities

12.

Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consisted of the following:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Salaries and benefits payables	246,189	165,238
Taxes payable	103,067	59,318
Product warranties	61,432	69,915
Accrued costs of the Merger	136,756	68,922
Other payables and accrued charges*	237,690	148,355
Accrued expenses and other current liabilities	785,134	511,748

*	Other payables and accrued charges primarily include accrual for research and development expenses.

14.Accrued expenses and other liabilities

Accrued expenses and other liabilities, current and non-current consisted of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Salaries and benefits payables	230,985	246,189
Taxes payable	39,286	103,067
Product warranties	40,263	61,432
Accrued costs of the Merger	—	136,756
Other payables and accrued charges*	150,730	237,690
Accrued expenses and other current liabilities	461,264	785,134

*Other payables and accrued charges primarily include accrual for research and development expenses.

Short-term borrowings (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of short-term borrowings


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Unsecured bank loans	870,000	870,000


	As of December 31,
	2021	2022
	RMB	RMB
Unsecured bank loans	932,000	870,000

Related party balances and transactions - Balances (Details) ¥ in Thousands, £ in Thousands, $ in Thousands							1 Months Ended				6 Months Ended			12 Months Ended
	Jun. 27, 2022 CNY (¥)	May 13, 2022 CNY (¥)	Mar. 28, 2022 CNY (¥)	Aug. 25, 2021 CNY (¥)	Aug. 25, 2021 USD ($)	Mar. 29, 2018 CNY (¥)	Mar. 31, 2023 CNY (¥)	Jan. 31, 2023 GBP (£)	Feb. 28, 2022 CNY (¥)	Oct. 31, 2021 CNY (¥)	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Jun. 30, 2023 GBP (£)	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Jan. 31, 2023 CNY (¥)	Dec. 31, 2022 GBP (£)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	May 13, 2022 USD ($)
Related party balances and transactions
Accounts receivable - related parties, net																¥ 768,747			¥ 804,267				¥ 835,320
Amounts due from related parties																41,298			140,225	$ 19,338			911,729	$ 125,733
Other non-current assets - related parties																1,929			218,899	30,188			213,695	29,470
Accounts payable - related parties																111,531			101,098	13,942			241,773	33,342
Amounts due to related parties																106,825			341,202	$ 47,054			42,843	$ 5,908
Proceeds from accounts receivables, related parties							¥ 538,867				¥ 804,267			¥ 835,320		768,747
Rental expenses from operating lease											2,400		¥ 3,421
Purchases from related parties											24,014		47,209
Due to related parties																220,062	¥ 6,073						591,613
Amount of operating expenses											5,341		27,289	62,840		23,412
Prepayments from purchase of raw materials and services to related parties																41,298	1,366						29,595
Interest expenses, related parties											6,116		1,622	12,215		131	872
Borrowings and interest payable, related parties													13,800			2,743			319,916				138,000
Advances to a related party											8,500					19,806	103,024
Collection of advances to a related party																90,155	81,026
Loans to related parties											12,000
Interest income, related parties											6,771		2,759	9,069		717	0
Amount of loans and interest receivables																			68,158				63,091
Gain on disposal of property, equipment and intangible assets														(1,939)	$ (267)	(1,562)	(577)
Loans to related parties											12,000	$ 1,655	8,060	57,260	7,897	28,850
Repayment received of loans to related parties											8,500	$ 1,172	25,000	29,360	4,049
Cash contribution to acquire equity method investment													67,790	79,442	$ 10,956	1,145,637
Lease deposits and advances with related parties																1,929
Payables for technical services and logistics expenses, related parties																36,186							29,043
Convertible notes payable
Related party balances and transactions
Aggregate principal amount		¥ 67,871																							$ 10,000
Interest rate		5.00%
Purchase of raw materials and services
Related party balances and transactions
Accounts payable - related parties																			101,098				241,773
Prepayments arising from purchase of raw materials and services
Related party balances and transactions
Accounts payable - related parties																			13,548				29,595
Technical services and logistics services
Related party balances and transactions
Due to related parties																			21,286				29,043
Hubei Xingji Times Technology Co., Ltd. \| Unsecured bank loans
Related party balances and transactions
Aggregate principal amount			¥ 200,000
Interest rate			2.25%
Geely Group \| Unsecured bank loans
Related party balances and transactions
Aggregate principal amount	¥ 500,000					¥ 20,000															¥ 300,000
Interest rate	4.35%					4.35%		4.10%
Interest expenses, related parties				¥ 45,152	$ 7,000
Zhejiang Huanfu Technology Co., Ltd.
Related party balances and transactions
Advances to a related party														29,360		19,806	103,024
Collection of advances to a related party																90,155	81,026
Loans to related parties														57,260		28,850
Interest income, related parties														¥ 9,069		¥ 717	¥ 0
Proceeds from disposal of property and equipment									¥ 1,697	¥ 745
Gain on disposal of property, equipment and intangible assets									¥ 93	¥ 38
Hubei ECARX
Related party balances and transactions
Other non-current assets - related parties																			218,899				213,695
Interest rate														5.00%	5.00%
Principal amount of loans provided																			¥ 252,287
Effective annual interest rate																		5.00%	5.00%	5.00%
Volvo Cars
Related party balances and transactions
Consideration on disposal of equity security														¥ 792,063	$ 115,000
Arteus
Related party balances and transactions
Amounts due from related parties								£ 3,082													¥ 25,866	£ 3,082	¥ 25,866
DreamSmart
Related party balances and transactions
Amounts due from related parties																		£ 6,400	¥ 58,519
Cost of revenues
Related party balances and transactions
Expenses from related party transactions											¥ 168,405		¥ 186,997

Long-term investments - Equity securities (Details) $ / shares in Units, ¥ in Thousands, kr in Thousands, $ in Thousands			1 Months Ended						6 Months Ended		12 Months Ended
	Jul. 01, 2021 CNY (¥) shares	Jul. 01, 2021 USD ($) shares	Jan. 31, 2023 USD ($)	May 31, 2022 CNY (¥) D shares	May 31, 2022 USD ($) D $ / shares shares	Apr. 30, 2022 CNY (¥) shares	Apr. 30, 2022 USD ($) shares	Apr. 30, 2022 SEK (kr) shares	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2020 CNY (¥)	Dec. 20, 2022 $ / shares
Long-term investments
Impairment loss recognized \| ¥											¥ 0		¥ 0	¥ 0
Consideration for disposal of investment												$ 115,000
Ordinary shares, par value per share \| $ / shares															$ 0.000005
Change in fair value of an equity security									¥ 27,722	$ 3,823	¥ (16,843)	$ (2,323)
Luminar Technologies, Inc
Long-term investments
Amount of cash consideration					$ 15,000
Consideration transferred, equity interests issued and issuable					$ 15,000
Trading days \| D				20	20
Ordinary shares, par value per share \| $ / shares					$ 0.0001
Asset retirement obligation liabilities settled (in shares) \| shares				2,030,374	2,030,374
Settlement of obligation					$ 12,588
Fair value of shares decreased					10,050
Change in fair value of an equity security				¥ 16,843	$ 2,538
Common shares in Zenseact AB
Long-term investments
Newly issued common shares subscribed \| shares	8,834	8,834				6,447	6,447	6,447					8,834
Equity interest acquired	15.00%	15.00%				13.50%	13.50%	13.50%					15.00%
Cash consideration to acquire equity securities	¥ 675,824	$ 106,000						kr 800,000
Investment's carrying amount gain						¥ 35,153	$ 5,297
Disposed investment consideration			$ 115,000			763,192	115,000
Gain of disposed investment consideration						¥ 24,575	$ 3,703

Notes receivable

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Notes receivable

4.	Notes receivable

5.	Notes receivable

Non-controlling interests - Balance of redeemable non-controlling interests (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Non-controlling interests
Balance at beginning	¥ 30,500
Add: Capital contribution	10,000	¥ 30,000
Less: Comprehensive loss	(464)	(806)
Add: Accretion of redeemable non-controlling interests		1,306
Add: Accretion of redeemable non-controlling interests before the deconsolidation of Suzhou Photon-Matrix	714
Less: Deconsolidation of Suzhou Photon-Matrix	(40,750)
Balance at ending	¥ 40,750	¥ 30,500

Property and equipment, net

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

8.	Property and equipment, net

Property and equipment, net consisted of the following:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Machinery and electronic equipment	180,264	189,052
Transportation vehicles	3,897	5,214
Office and other equipment	15,510	18,338
Leasehold improvements	43,440	46,572
Construction in progress	332	394
Property and equipment	243,443	259,570
Less: accumulated depreciation	(103,836)	(129,154)
Property and equipment, net	139,607	130,416

Depreciation on property and equipment was allocated as follows:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Cost of revenues	—	375
Selling and marketing expenses	324	380
General and administrative expenses	15,735	14,654
Research and development expenses	8,301	11,675
Total depreciation	24,360	27,084

9.	Property and equipment, net

Property and equipment, net, consisted of the following:


	As of December 31,
	2021	2022
	RMB	RMB
Machinery and electronic equipment	160,141	180,264
Transportation vehicles	8,589	3,897
Office and other equipment	7,219	15,510
Leasehold improvements	39,166	43,440
Construction in progress	10,478	332
Property and equipment	225,593	243,443
Less: accumulated depreciation	(115,808)	(103,836)
Property and equipment, net	109,785	139,607

Depreciation on property and equipment was allocated as follows:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Cost of revenues	1,684	1,401	1,022
Selling and marketing expenses	355	290	727
General and administrative expenses	23,148	26,544	31,204
Research and development expenses	13,293	15,038	17,574
Total depreciation	38,480	43,273	50,527

Share based compensation

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Share based compensation

15.

Share based compensation

2019 RSU (Restricted Share Unit) Plan

●

20% of the grants vest every twelve-month service period since the service commencement of the employees.

●

50%, 30%, 20% of the grants vest every twelve-month service period since the service commencement of the employees.

The following table summarizes activities of the Company’s RSUs for the six months ended June 30, 2023:


			Weighted Average	Weighted
		Weighted Average	Fair value at grant	remaining	Aggregate intrinsic
	Number of RSUs	Exercise Price	date	contractual years	value
		US$	US$		US$
Outstanding at January 1, 2023	24,431,761	0.15	5.60
Granted (new RSUs)	600,000	0.48	4.41
Granted (replacement RSUs)	4,175,352	0.21	3.75
Forfeited	(1,312,251)	0.29	5.12
Replaced	(4,175,352)	0.63	4.11
Outstanding at June 30, 2023	23,719,510	0.08	5.54
Vested and expected to vest as of June 30, 2023	23,719,510	0.08	5.54	8.17	5.83
Exercisable as of June 30, 2023	21,847,960	0.04	5.77	8.08	5.85

The fair value of the RSUs granted for the six months ended June 30, 2022 and 2023 were estimated using the binomial model with the following assumptions used:


	Six Months Ended June 30,
	2022		2023
Grant dates
Risk-free rate of return	1.61% - 2.36	%	2.65% - 3.85	%
Volatility	44.15% - 44.38	%	44.73	%
Expected dividend yield	0	%	0	%
Fair value of underlying ordinary share	US$7.57 - US$7.67 (equivalent to RMB48.29 - RMB48.88)		US$6.91 (equivalent to RMB49.90)
Expected terms	10 years		10 years

Compensation expense recognized for RSUs for the six months ended June 30, 2022 and 2023 was allocated as follows:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Research and development expenses	23,492	19,577
Selling and marketing expenses	3,969	4,547
General and administrative expenses	167,576	27,933
Total	195,037	52,057

2021 Option Plan

The following table summarizes activities of the options for the six months ended June 30, 2023:


			Weighted	Weighted
		Weighted	Average	remaining	Aggregate
	Number of	Average	Fair value at	contractual	intrinsic
	options	Exercise Price	grant date	years	value
		US$	US$		US$
Outstanding at January 1, 2023	12,853,364	9.70	3.14
Granted	63,464	9.70	3.80
Forfeited	(1,527,342)	9.70	3.26
Outstanding at June 30, 2023	11,389,486	9.70	3.13
Vested and expected to vest as of June 30, 2023	11,389,486	9.70	3.13	8.23	—
Exercisable as of June 30, 2023	8,311,048	9.70	2.94	8.19	—

The fair value of the options granted for the six months ended June 30, 2022 and 2023 are estimated using the binomial model with the following assumptions used:


	Six Months Ended June 30,
	2022		2023
Risk-free rate of return	1.63% - 3.05	%	3.79	%
Volatility	44.18% - 44.64	%	44.95	%
Expected dividend yield	0	%	0	%
Fair value of underlying ordinary share	US$7.57 - US$8.02		US$8.02
Expected terms	10 years		10 years

Compensation expense recognized for options for the six months ended June 30, 2022 and 2023 is allocated as follows:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Research and development expenses	—	84
Selling and marketing expenses	—	392
General and administrative expenses	—	(307)
Total	—	169

22.

Share based compensation

2019 RSU (Restricted Share Unit) Plan

The RSUs vest following the three approaches, pursuant to the share award agreements which were entered into between the Group and the grantees:

●

20% of the grants vest every twelve-month service period since the service commencement of the employees.

●

Half of the RSUs vest on April 1, 2022, and the remaining 50% of the RSUs vest on a monthly basis over thirty-six (36) months from May 2022.

The following table summarizes activities of the Company’s RSUs for the years ended December 31, 2021 and 2022:


			Weighted	Weighted
		Weighted	Average	remaining	Aggregate
	Number of	Average	Fair value at	contractual	intrinsic
	RSUs	Exercise Price	grant date	years	value
		US$	US$
Outstanding at January 1, 2021	16,224,217	0.05	3.66	—	—
Granted (new RSUs)	2,890,674	1.23	5.15	—	—
Granted (replacement RSUs)	7,708,362	0.28	6.88	—	—
Forfeited	(119,296)	0.01	3.71	—	—
Replaced	(7,708,362)	0.28	3.89	—	—
Outstanding at December 31, 2021	18,995,595	0.23	5.10	—	—
Granted (new RSUs)	6,680,560	0.56	6.92	—	—
Granted (replacement RSUs)	3,419,811	0.13	1.47	—	—
Forfeited	(1,244,394)	0.54	4.97	—	—
Replaced	(3,419,811)	1.24	1.47	—	—
Outstanding at December 31, 2022	24,431,761	0.15	5.60	—	—
Vested and expected to vest as of December 31, 2022	24,431,761	0.15	5.60	7.80	5.76
Exercisable as of December 31, 2022	21,191,690	0.06	5.79	7.91	5.83

The fair value of the RSUs granted in 2020, 2021 and 2022 were estimated using the binomial model with the following assumptions used:


	Year ended December 31,
	2020	2021	2022
Risk-free rate of return	0.17% – 2.91%	0.35% – 2.70%	1.61% – 4.12%
Volatility	44.68% – 54.39%	41.13% – 50.60%	44.15% – 48.12%
Expected dividend yield	0.0%	0.0%	0.0%
Fair value of underlying ordinary share	US$3.16 – US$4.03 (equvalent to RMB21.76 – RMB26.27)	US$4.26 – US$7.45 (equvalent to RMB27.97 – RMB47.51)	US$7.57 – US$9.05 (equvalent to RMB48.29 – RMB64.98)
Expected terms	10 years	10 years	10 years


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Research and development expenses	6,501	80,872	42,986
Selling and marketing expenses	723	7,321	8,297
Cost of revenues	—	6,524	—
General and administrative expenses	4,186	68,764	473,270
Total	11,410	163,481	524,553

2021 Option Plan

The following table summarizes activities of the options for the years ended December 31, 2021 and 2022:


			Weighted	Weighted
		Weighted	Average	remaining	Aggregate
	Number of	Average	Fair value at	contractual	intrinsic
	options	Exercise Price	grant date	years	value
		US$	US$
Outstanding at January 1, 2021	—	—	—
Granted	13,575,733	9.70	2.92
Forfeited	(294,690)	9.70	2.92
Outstanding at December 31, 2021	13,281,043	9.70	2.92
Granted	2,354,744	9.70	3.39
Forfeited	(2,782,423)	9.70	2.31
Outstanding at December 31, 2022	12,853,364	9.70	3.14
Vested and expected to vest as of December 31, 2021	12,853,364	9.70	3.14	8.76	—
Exercisable as of December 31, 2022	6,843,970	9.70	2.92	8.67	—

The fair value of the options granted in 2021 and 2022 are estimated using the binomial model with the following assumptions used:


	Year ended December 31,
	2021		2022
Risk-free rate of return	1.20% – 1.65	%	1.63% - 3.83	%
Volatility	44.03% – 44.47	%	44.18% - 45.07	%
Expected dividend yield	0.0	%	0.0	%
Fair value of underlying ordinary share	US$6.99 - US$7.55		US$7.57 - US$9.30
Expected terms	10	years	10	years

Upon the completion of the Merger with COVA in December 2022, the Group recognized share-based compensation expense of US$30,384 (equivalent to RMB201,645) for 6,818,048 options vested.

Compensation expense recognized for options for the years ended December 31, 2022 is allocated as follows; the Group recognized the effect of forfeitures in compensation costs when they occur.


		Year ended December 31,
		2022
		RMB
Research and development expenses		93,824
Selling and marketing expenses		8,554
General and administrative expenses		98,720
Total		201,098

Loss per share

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Loss per share

18.

Loss per share

Basic and diluted net loss per share for the six months ended June 30, 2022 and 2023 have been calculated as follows:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Numerator:
Net loss available to ECARX Holdings Inc.	(582,195)	(380,586)
Accretion of Redeemable Convertible Preferred Shares	(177,842)	—
Numerator for basic and diluted net loss per share calculation	(760,037)	(380,586)
Denominator:
Weighted average number of ordinary shares - basic and diluted	236,248,112	337,395,390
Denominator for basic and diluted net loss per share calculation	236,248,112	337,395,390
Loss per ordinary share
—Basic and diluted	(3.22)	(1.13)

The potential dilutive instruments that have not been included in the calculation of diluted loss per share as their inclusion would be anti-dilutive are as follows:


	Six Months Ended June 30,
	2022	2023
Redeemable convertible preferred shares	90,724,289	—
Warrants	—	23,871,971

Convertible notes are not included in the calculation of diluted loss per share, as the inclusion will be anti-dilutive.

25.

Loss per share

Basic and diluted net loss per share for the years ended December 2020, 2021 and 2022 have been calculated as follows:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Numerator:
Net loss attributable to ECARX Holdings Inc.	(439,659)	(1,175,261)	(1,564,878)
Accretion of Redeemable Convertible Preferred Shares	(101,286)	(243,564)	(354,878)
Numerator for basic and diluted net loss per share calculation	(540,945)	(1,418,825)	(1,919,756)

Denominator:
Weighted average number of ordinary shares – basic and diluted	238,591,421	236,691,093	239,296,386
Net loss per share attributable to ordinary shareholders
— Basic and diluted	(2.27)	(5.99)	(8.02)

The potentially dilutive instruments that have not been included in the calculation of diluted loss per share as their inclusion would be anti-dilutive are as follows:


	Year ended December 31,
	2020	2021	2022
Redeemable convertible preferred shares	26,841,535	90,724,289	—
Warrants	6,016,207	—	23,871,971

Convertible notes are not included in the calculation of diluted loss per share, as the inclusion will be anti-dilutive.

Cash and restricted cash - Deposits in financial institutions (Details) - CNY (¥) ¥ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash and restricted cash
Cash balances held at financial institutions	¥ 925,348	¥ 901,429	¥ 989,132
Restricted cash pledged for notes payable	29,607	40,957	23,004
Restricted cash pledged for a framework agreement of foreign exchange swaps	21,755
Restricted cash due to litigation	23,613
US
Cash and restricted cash
Cash balances held at financial institutions	599	17
Sweden
Cash and restricted cash
Cash balances held at financial institutions	26,724	15,028	28,986
Sweden \| US
Cash and restricted cash
Cash balances held at financial institutions	210	555
Sweden \| SEK
Cash and restricted cash
Cash balances held at financial institutions	26,514	14,473	28,986
United Kingdom
Cash and restricted cash
Cash balances held at financial institutions	42,155	22,934	22,150
United Kingdom \| GBP
Cash and restricted cash
Cash balances held at financial institutions	42,155	22,934	22,150
PRC
Cash and restricted cash
Cash balances held at financial institutions	845,616	854,034	937,996
PRC \| RMB
Cash and restricted cash
Cash balances held at financial institutions	811,100	595,559	755,855
PRC \| US
Cash and restricted cash
Cash balances held at financial institutions	34,424	258,475	¥ 182,141
PRC \| HKD
Cash and restricted cash
Cash balances held at financial institutions	92
HONG KONG
Cash and restricted cash
Cash balances held at financial institutions	10,254	9,416
HONG KONG \| US
Cash and restricted cash
Cash balances held at financial institutions	10,240	9,402
HONG KONG \| HKD
Cash and restricted cash
Cash balances held at financial institutions	14	14
United States
Cash and restricted cash
Cash balances held at financial institutions		17
United States \| US
Cash and restricted cash
Cash balances held at financial institutions	¥ 599	¥ 17

Summary of significant accounting policies (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands	6 Months Ended			12 Months Ended
	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥) ¥ / shares	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($) $ / shares
Summary of significant accounting policies
Accumulated deficit	¥ 6,110,766			¥ 5,730,180		¥ 4,103,381		$ 842,713,000	$ 790,228,000
Working capital \| ¥	422,243			74,108
Net cash used in operating activities	¥ 962,893	$ 132,789,000	¥ 337,722	461,337	$ 63,620,000	¥ 907,283	¥ 368,046
Long term related party loan \| ¥				¥ 300,000
proceeds from the disposal of an equity \| $					$ 115,000,000
Legal or contractual asset retirement obligations \| $									$ 0
Translations of amounts \| (per share)				¥ 7.2513					$ 1.00

Commitments and contingencies (Details) - CNY (¥) ¥ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Purchase commitment
Purchase commitment, Less than one year	¥ 45,046	¥ 79,906
Purchase commitments, 1-2 Years	6,667	6,667
Purchase commitments, 2-3 Years	6,667	6,667
Purchase commitments, 3-5 Years	3,333	6,667
Purchase commitment	61,713	99,907
Purchase commitment
Capital commitment, Less than one year	18,994	15,872
Capital commitment	¥ 18,994	¥ 15,872

Share based compensation - Fair value of options granted that are estimated using binomial model (Details) - $ / shares	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share based compensation
Expected dividend yield			0.00%	0.00%	0.00%
Expected terms				10 years
2021 Option Plan
Share based compensation
Risk-free rate of return	3.79%
Risk-free rate of return, minimum		1.63%	1.63%	1.20%
Risk-free rate of return, maximum		3.05%	3.83%	1.65%
Volatility	44.95%
Volatility, minimum		44.18%	44.18%	44.03%
Volatility, maximum		44.64%	45.07%	44.47%
Expected dividend yield	0.00%	0.00%
Fair value of underlying ordinary share	$ 8.02
Expected terms	10 years	10 years
2021 Option Plan \| Minimum
Share based compensation
Fair value of underlying ordinary share		$ 7.57	$ 7.57	$ 6.99
2021 Option Plan \| Maximum
Share based compensation
Fair value of underlying ordinary share		$ 8.02	$ 9.30	$ 7.55

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2022 CNY (¥)
Operating activities:
Net cash used in operating activities	¥ (337,722)
Investing activities:
Purchase of property and equipment and intangible assets	(91,727)
Cash paid for acquisition of equity investments	(67,790)
Cash disposed in deconsolidation of Suzhou Photon-Matrix	(22,643)
Cash received in deconsolidation of Hubei Dongjun	1,000
Financial support to an equity method investee	(28,500)
Loans to related parties	(8,060)
Cash collection of loans to related parties	25,000
Net cash (used in)/provided by investing activities	(192,720)
Financing activities:
Cash contributed by redeemable non-controlling shareholders	10,000
Proceeds from short-term borrowings	880,000
Repayment for short-term borrowings	(1,332,000)
Proceeds from issuance of convertible notes	67,871
Borrowings from related parties	700,000
Repayment of borrowings from related parties	(200,000)
Cash disposed in the Restructuring	(20,000)
Net cash provided by financing activities	265,356
Effect of foreign currency exchange rate changes on cash and restricted cash	4,367
Net increase (decrease) in cash and restricted cash	(260,719)
Cash and restricted cash at the beginning of the period	989,132
Cash and restricted cash at the end of the period	728,413
Supplemental information:
Interest paid	17,250
Series B Convertible Redeemable Preferred Shares
Financing activities:
Proceeds from issuance of Convertible Redeemable Preferred Shares	¥ 159,485

Long-term investments

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

7.	Long-term investments


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Equity method investments	284,536	262,338
Equity securities measured at fair value	69,319	101,293
Total long-term investments	353,855	363,631

Equity securities measured at fair value

8.	Long-term investments


	As of December 31,
	2021	2022
	RMB	RMB
Equity method investments	476,853	284,536
Equity securities	675,824	69,319
Total long-term investments	1,152,677	353,855

Equity method investments

As of December 31, 2020, the Group had a number of equity method investments, which were individually and in aggregate immaterial to the Group’s financial condition or results of operations.

The Group made several equity method investments during the years ended December 2021 and 2022, which included:

●



		Year Ended December 31,
		2022
		RMB
Fair value of the consideration received		—
Add: Fair value of retained equity interest in Suzhou Photon-Matrix		64,000
Add: Carrying amount of redeemable noncontrolling interest		40,750
Less: Carrying amount of non-redeemable noncontrolling interest		(7,178)
Less: Carrying amount of Suzhou Photon-Matrix’s net assets		(25,598)
Gains on deconsolidation of Suzhou Photon-Matrix		71,974

●

In April 2022, as part of the Restructuring, the Group spun off three equity method investments, including the equity method investment in Suzhou Chenling to Hubei ECARX. See Note 1(d).

Summary combined financial information for the investee companies as of and for the years ended December 31, 2021 and 2022 is as follows:


	As of December 31,
	2021	2022
	RMB	RMB
Financial position:
Current assets	1,068,323	1,216,042
Non-current assets	1,252,988	999,573
Total assets	2,321,311	2,215,615
Current liabilities	675,372	942,899
Non-current liabilities	956,934	1,056,274
Total liabilities	1,632,306	1,999,173
Shareholders’ equity	689,005	216,442
Total liabilities and shareholders’ deficit	2,321,311	2,215,615


	Year ended December 31,
	2021	2022
	RMB	RMB
Results of operations:
Total revenues	711,800	1,134,152
Loss from operation	(482,095)	(636,240)
Net loss	(392,337)	(641,401)

Equity securities

No impairment loss was recognized for the years ended December 31, 2020, 2021 and 2022.

Ordinary Shares

12 Months Ended

Dec. 31, 2022

Ordinary Shares

21.Ordinary Shares

Before Recapitalization

Given the consideration of the retroactive adjustments, upon incorporation on November 12, 2019, the Company’s authorized shares were 500,000,000 shares with a par value of US$0.0001 per share, and the Company issued 10,000,000 shares to the founders. Upon consummation of the Reorganization on January 16, 2020, the ownership of ordinary shares of the Company held by each of the shareholders was identical with the ownership of ordinary equity interest of Hubei ECARX held by such shareholders. Pursuant to the share split (see Note 18) and the Memorandum of Association of the Company on January 16, 2020, the authorized share capital of the Company was divided into 10,000,000,000 shares with a par value of US$0.000005, of which 9,973,158,465 were designated as ordinary shares and 26,841,535 as preferred shares.

According to the Amended Memorandum of Association of the Company on December 27, 2021, of the 10,000,000,000 authorized shares of the Company, 9,909,275,711 shares were designated as ordinary shares; 90,724,289 were designated as preferred shares, all with par value of $0.000005 per share.

On December 20, 2021, four members from the Group’s management, who are also the ordinary shareholders of the Group, voluntarily sold 5,010,420 ordinary shares in total back to the Group at par value at US$0.000005 per share. Such ordinary shares were transferred to the Group for 2019 RSU Plan which was modified in December 2021 to attract more talent (see Note 22). The repurchased ordinary shares were accounted for as treasury shares by the Group. As the shares were repurchased for purposes other than retirement, the cost of those shares, in the amount less than RMB1, which is the cash consideration the Group paid to the four ordinary shareholders, is presented as treasury shares in the consolidated balance sheet as of December 31, 2021.

After Recapitalization

As noted in Note 1(b), following the Merger, the Company’s Articles were amended. As such, the shares and corresponding capital amounts and earnings per share prior to the Merger have been retroactively recast.

The new authorized shares of the Company is US$50,000 divided into 10,000,000,000 shares comprising of (i) 8,000,000,000 Class A Ordinary Shares with par value of US$0.000005 each, (ii) 1,000,000,000 Class B Ordinary Shares with par value of US$0.000005 each, and (iii) 1,000,000,000 shares with par value of US$0.000005 each of such class or classes (however designated) as the Board of Directors may determine in accordance with the Articles. The number of shares issued and outstanding is as of December 31, 2022 is 288,434,474 Class A Ordinary Shares and 48,960,916 Class B Ordinary Shares.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Prepayments and other current assets (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of prepayments and other current assets


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Prepayments to suppliers	210,819	351,354
Contract cost assets	192,848	285,040
Foreign exchange swaps *	—	16,247
Others	21,251	25,448
Prepayments and other current assets	424,918	678,089


	As of December 31,
	2021	2022
	RMB	RMB
Prepayments to suppliers	179,744	210,819
Contract cost assets	—	192,848
Prepaid rental and deposits	7,597	—
Deferred offering costs	5,719	—
Government grants receivable	30,000	—
Others	24,351	21,251
Prepayments and other current assets	247,411	424,918

Revenue information

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Revenue information

16.

Revenue information

Revenues are disaggregated as follow:

Major products/services lines:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Sales of goods revenues	858,080	1,264,263
Automotive computing platform	608,078	1,053,901
SoC Core Modules	188,338	200,255
Automotive merchandise and other products	61,664	10,107
Software license revenues	78,995	215,641
Service revenues	376,917	237,533
Automotive computing Platform – Design and development service	241,090	119,291
Connectivity service	107,949	99,508
Other services	27,878	18,734
Total revenues	1,313,992	1,717,437

Timing of revenue recognition:


	Six Months Ended June 30,
	2022	2023
	RMB	RMB
Point in time	1,206,043	1,617,929
Over time	107,949	99,508
Total revenues	1,313,992	1,717,437

For the six months ended June 30, 2022 and 2023, 98.9% and 98.3% of the Group’s revenues were generated in the PRC.

Contract liabilities

Contract liabilities consisted of the following:


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Current liabilities - third parties	4,706	6,073
Current liabilities - related parties	316,667	386,344
Non-current liabilities - third parties	70	12
Non-current liabilities - related parties	282,080	203,976
Contract liabilities, current and non-current	603,523	596,405

The Group has elected the practical expedient not to disclose the information about remaining performance obligations which are part of contracts that have an original duration of one year or less.

23.

Revenue information

Revenues are disaggregated as follow:

Major products/services lines:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Sales of goods revenues	1,678,234	1,983,817	2,433,964
Automotive computing platform	1,265,227	1,423,548	1,690,569
SoC Core Modules	203,402	333,421	660,554
Automotive merchandise and other products	209,605	226,848	82,841
Software license revenues	71,297	261,265	404,469
Service revenues	491,532	533,981	723,561
Automotive computing Platform – Design and development service	297,801	306,358	468,770
Connectivity service	172,841	188,349	212,738
Other services	20,890	39,274	42,053
Total revenues	2,241,063	2,779,063	3,561,994

Timing of revenue recognition:


	Year ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Point in time	2,068,222	2,590,714	3,349,256
Over time	172,841	188,349	212,738
Total revenues	2,241,063	2,779,063	3,561,994

For the years ended December 31, 2020, 2021 and 2022, 97.8%, 97.1% and 98.1% of the Group’s revenues were generated in the PRC.

Commitments and contingencies

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Convertible notes payable to a related party

19.

Commitments and contingencies

Purchase commitments


		Less than
	Total	one year	1-2 Years	2-3 Years	3-5 Years
Purchase commitments	61,713	45,046	6,667	6,667	3,333

Capital commitments

Total capital expenditures contracted but not yet reflected in the unauditd condensed consolidated financial statements as of June 30, 2023 were as follows:


	Total	Less than one year
	RMB	RMB
Capital commitments	18,994	18,994

27.

Commitments and contingencies

Purchase commitments


		Less than				Over 5
	Total	one year	1-2 Years	2-3 Years	3-5 Years	Years
Purchase commitments	99,907	79,906	6,667	6,667	6,667	—

Capital commitments

Total capital expenditures contracted but not yet reflected in the consolidated financial statements as of December 31, 2022 were as follows:


	Total	Less than one year
Capital commitments	15,872	15,872

Convertible notes payable to a related party

12 Months Ended

Dec. 31, 2022

Convertible notes payable to a related party

15.

Convertible notes payable to a related party

On May 13, 2022, the Company issued convertible notes due in twelve (12) months following the issuance (the “Note”) with aggregate principal of US$10,000 (equivalent to RMB67,871) to one investor, which is a related party. The Note bore an interest rate of 5% per annum.

The Note holder shall have the right to require the Company to redeem for cash all of the Note on the date (the “Redemption Date”) notified in writing by the Company that is not less than 20 business days and not more than 35 business days following the date of the notice of an Event of Default or a Fundamental Change as defined below, or in the event the Company fails to deliver such a

notice, the date on which the Note holder becomes aware of the occurrence of an Event of Default or a Fundamental Change, at a price equal to the Redemption Price, which equal to the principal plus interests accrued thereon at an interest rate of 5% per annum.

●

An Event of Default refers to the occurrence of any of the events, including the Company’s breach of conversion obligations, the individual or aggregated amount of the Group’s subsidiaries’ indebtedness, indemnity or guarantee obligations in excess of US$100,000 (or an equivalent amount in any other currency), ECARX (Hubei) Tech’s bankruptcy or involuntary proceeding after seeking liquidation, winding-up, reorganization;

●

a Fundamental Change includes the change of control of the Company via any share exchange, consolidation or mergers or any similar transaction, any sale, lease or other transfer in one transaction or a series of transactions of all or substantially all of the Group’s consolidated assets, to any person outside of the Group, the liquidation or dissolution of the Company, and other events which prohibits listing of the Company.

Conversion of the Note is stipulated as below:

●

In the event the Company consummates a public offering of Class A ordinary shares that is no more than six (6) months following the issuance date, the outstanding principal amount of the Note shall be mandatorily converted to Class A Ordinary Shares at the conversion price of (i) the lesser of (A) US$10.00 per share (assuming that the Company’s authorized shares will be subdivided based on the pre-money equity valuation in connection with an offering via mergers with a special purpose acquisition company to give each ordinary share of the Company a deemed value of US$10.00) and (B) the lowest per share price at which any Class A ordinary shares or ordinary shares of the Company are issued in any subscription by certain investors of the Company’s securities to be issued concurrently, if the offering is via mergers with a special purpose acquisition company; or (ii) the per share offering price in an IPO (the “Initial Conversion Price”). In the event the Company consummates a public offering of Class A ordinary shares that is more than six (6) months following the issuance date, the outstanding principal amount of the Note shall be mandatorily converted to Class A Ordinary Shares at the conversion price of 95% of the Initial Conversion Price.

●

If the Company fails to consummate a public offering of Class A ordinary shares on or prior to the maturity date, the Note holder is entitled to deliver a written notice to the Company within ten (10) business days after the maturity date, electing to convert the Note, the outstanding principal amount of the Note shall be converted into such number of fully paid and non-assessable Series B Preferred Shares at the conversion price equal to the issuance price of the Series B Preferred Shares.

Upon the consummation of the Company’s merger with COVA, we issued 1,052,632 Class A Ordinary Shares to the noteholder as a result of the automatic conversion of the Note at a conversion price of $9.50 per share.

Summary of significant accounting policies - Additional Information (Details) - 6 months ended Jun. 30, 2023	$ / shares	¥ / shares
Summary of significant accounting policies
Translation of amounts \| (per share)	$ 1.00	¥ 7.2513

Intangible assets, net - Amortization expenses on intangible assets allocated to expense items (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Intangible assets, net
Total amortization	¥ 12,007	¥ 11,764	¥ 24,032	¥ 21,887	¥ 20,478
Cost of revenues
Intangible assets, net
Total amortization				77	96
Selling and marketing expenses
Intangible assets, net
Total amortization	3	254	257	876	1,027
General and administrative expenses
Intangible assets, net
Total amortization	4,899	4,670	9,730	5,845	2,535
Research and development expenses
Intangible assets, net
Total amortization	¥ 7,105	¥ 6,840	¥ 14,045	¥ 15,089	¥ 16,820

Leases - Supplemental cash flow information related to leases (Details) - CNY (¥) ¥ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Leases
Cash paid for amounts included in the measurement of lease liabilities, Operating cash flows from operating leases	¥ 6,484	¥ 17,928	¥ 40,173
Right-of-use assets obtained in exchange for lease obligations, Operating leases	¥ 31,832	¥ 45,887	¥ 51,621

Accounts receivable, net (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Schedule of accounts receivable, net


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Accounts receivable - third parties	422,743	296,449
Less: Allowance for doubtful accounts, third parties	(4,521)	(8,216)
Accounts receivable - third parties, net	418,222	288,233

Accounts receivable - related parties	837,686	807,621
Less: Allowance for doubtful accounts, related parties	(2,366)	(3,354)
Accounts receivable - related parties, net	835,320	804,267

Schedule of movement of the allowance for doubtful accounts of accounts receivables due from related parties


	As of December 31,	As of June 30,
	2022	2023
	RMB	RMB
Balance at the beginning of the period	—	6,887
Additions	6,887	7,097
Reversal	—	(2,142)
Write-off	—	(272)
Balance at the end of the period	6,887	11,570


	As of December 31,
	2020	2021	2022
	RMB	RMB	RMB
Balance at the beginning of the year	—	—	—
Additions	360	—	6,887
Write-off	(360)	—	—
Balance at the end of the year	—	—	6,887

Revenue information - Contract liabilities (Details) ¥ in Thousands, $ in Thousands	Jun. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Revenue information
Contract liabilities - third parties	¥ 6,073	$ 838	¥ 4,706	$ 649	¥ 2,685
Contract liabilities - related parties	386,344	53,279	316,667	43,670	363,285
Non-current liabilities - third parties	12	2	70	10	317
Non-current liabilities - related parties	203,976	$ 28,130	282,080	$ 38,901	472,749
Contract liabilities, current and non-current .	¥ 596,405		¥ 603,523		¥ 839,036

Leases

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Leases