ECARX Announces US$20,000,000 Share Repurchase Program

Rhea-AI Summary

ECARX Holdings (Nasdaq: ECX) has announced a share repurchase program authorizing the buyback of up to $20 million worth of ordinary shares. The program will run until September 30, 2025. Repurchases may be executed through open market transactions, private negotiations, block trades, or other legal means, subject to market conditions and regulations. The company plans to fund the buybacks using its existing cash reserves. The board will periodically review and may adjust the program's terms and size. All transactions will comply with SEC Rules 10b-18 and 10b5-1 requirements.

Positive

• Authorization of $20 million share repurchase program indicates confidence in company's value
• Program potentially increases shareholder value through reduced share count
• Company has sufficient cash reserves to fund the buyback

Negative

• Buyback reduces cash available for operations and growth investments
• $20 million allocation might limit other strategic opportunities

SHANGHAI, Dec. 20, 2024 (GLOBE NEWSWIRE) -- ECARX Holdings, Inc. (Nasdaq: ECX) (“ECARX” or “the Company”), a global mobility tech provider, today announced its board of directors has authorized a share repurchase program under which the Company may repurchase up to US$20,000,000 of its ordinary shares until the close of business on September 30, 2025, U.S. Eastern Time. The Company plans to adopt and implement this share repurchase program in accordance with applicable rules and requirements under the Securities Exchange Act of 1934, as amended, and the Company’s insider trading policy.

The Company’s proposed repurchases may be made from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The timing and dollar amount of repurchase transactions will be subject to the Securities and Exchange Commission Rule 10b-18 and/or Rule 10b5-1 requirements. The Company’s board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size. The Company expects to fund the repurchases out of its existing cash balance.

About ECARX

ECARX (Nasdaq: ECX) is a global automotive technology provider with capabilities to deliver turnkey solutions for next-generation smart vehicles, from the system on a chip (SoC), to central computing platforms, and software. As automakers develop new electric vehicle architectures from the ground up, ECARX is developing full-stack solutions to enhance the user experience, while reducing complexity and cost.

Founded in 2017 and listed on the Nasdaq in 2022, ECARX now has over 1,800 employees based in 12 major locations in China, UK, USA, Sweden, Germany, and Malaysia. The co-founders are two automotive entrepreneurs, Chairman and CEO Ziyu Shen, and Eric Li (Li Shufu), who is also the founder and chairman of Zhejiang Geely Holding Group — with ownership interests in global brands including Lotus, Lynk & Co, Geely Galaxy, Polestar, smart, and Volvo Cars. ECARX also works with other well-known automakers, including FAW and Dongfeng Peugeot-Citroën. To date, ECARX products can be found in over 7.3 million vehicles worldwide.

Safe Harbor Statement

This release contains statements that are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management’s beliefs and expectations as well as on assumptions made by and data currently available to management, appear in a number of places throughout this document and include statements regarding, amongst other things, results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate. The use of words “expects”, “intends”, “anticipates”, “estimates”, “predicts”, “believes”, “should”, “potential”, “may”, “preliminary”, “forecast”, “objective”, “plan”, or “target”, and other similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including, but not limited to statements regarding our intentions, beliefs or current expectations concerning, among other things, results of operations, financial condition, liquidity, prospects, growth, strategies, future market conditions or economic performance and developments in the capital and credit markets and expected future financial performance, and the markets in which we operate. For a discussion of these and other risks and uncertainties that could cause actual results to differ materially from those expressed in any forward-looking statement, see ECARX’s filings with the U.S. Securities and Exchange Commission. ECARX undertakes no obligation to update or revise and forward-looking statements to reflect subsequent events or circumstances, except as required by applicable law.

Investor Contacts:

ir@ecarxgroup.com

Media Contacts:

ecarx@christensencomms.com

FAQ

How much is ECARX's (ECX) share repurchase program worth?

ECARX's share repurchase program is worth up to US$20 million.

When does ECARX's (ECX) share buyback program end?

The share buyback program ends at the close of business on September 30, 2025, U.S. Eastern Time.

How will ECARX (ECX) fund its share repurchase program?

ECARX plans to fund the share repurchases using its existing cash balance.

What methods will ECARX (ECX) use for share repurchases?

ECARX may repurchase shares through open market purchases at market prices, privately negotiated transactions, block trades, and other legally permissible means.

What regulatory requirements apply to ECARX's (ECX) buyback program?

The buyback program must comply with SEC Rules 10b-18 and 10b5-1 requirements, as well as the Securities Exchange Act of 1934 and the company's insider trading policy.