FF launches "Built in USA" acceleration plan; new FCC policies benefit FF; robot sales hit a new high in July

Weekly Report Issue No. 66.

This week, we will share the July sales battle report with you. Under the favorable new policies from the FCC targeting the robotics industry, we will also introduce the FF EAI Robot "Built in USA" Acceleration Plan and the upcoming FF "Built in USA" upstream and downstream partner investment conference.

Let's start with the sales report. In July, FF EAI Robots achieved sales and shipments of 152 units, setting a new monthly record. The first month of the Q3 campaign for the practical application of the "Four-Core Full Intelligence" ecological strategy was successful. By the end of July, cumulative sales and shipments reached 394 units, steadily advancing towards the annual shipment target of 2,000 units. Four major industry ecosystems and productivity solutions—education, industrial, security & inspection, and other existing markets—are accelerating their formation, continuously building momentum for subsequent sales and delivery ramp-ups.

Next, let's introduce the FCC's new policy. This week, the most important news in the global robotics industry was on July 28, when the U.S. Federal Communications Commission (FCC) officially added foreign-produced advanced robotic equipment, including humanoid robots, quadruped robots, other mobile robots, and inverters, to the Covered List, restricting related new models from obtaining FCC equipment authorization. This means that the competitive focus in the U.S. robotics market is shifting from products and R&D themselves to localized production, compliant supply chains, data and information security, and compliance capabilities. The process of reshoring embodied intelligent robot supply chains will also accelerate accordingly. Meanwhile, we judge that the ICTS-related rules already implemented in industries such as electric vehicles may further impact the robotics industry in the future.

Currently, all FF "Four-Core Full Intelligence" robot core products being sold have passed FCC certification and will not be affected by the new regulations; they will continue to be supplied to the market. In the future, our new core products and parts required for compliance will also accelerate completion of FCC and other U.S. regulatory and certification requirements in phases. The other three cores, including the EAI Brain, EAI Industry Solutions and Developer Platform, and EAI Data Factory, as unique advantages of our local company, are also accelerating in research and development, sales, and deployment.

More importantly, this new policy will significantly benefit FF in six aspects:

1. For existing foreign OEMs selling in the U.S. market: New product certification, software upgrades, and product iterations face greater uncertainty, and some companies may be forced to shrink or even exit the U.S. market.

2. For newly entering OEMs: Market entry thresholds are significantly raised, and the compliance difficulty, time costs, and financial costs of entering the U.S. market have increased substantially.

3. For upstream supply chains: Facing compliance issues for parts entering the U.S., narrowed channels, and oversupply, there will be intensified efforts to find compliant U.S. local companies for deep cooperation, further highlighting FF's advantage as a U.S. local enterprise.

4. For downstream distributors and direct customers: The number of sustainable OEM partners has decreased significantly, making compliant products with stable supply sources more scarce. FF's long-term supply, delivery, after-sales service, and compliance capabilities are more competitive.

5. For local customers and users: Demand for safe, trustworthy, compliant, and sustainably upgradable products has further increased, making FF's localized product, delivery, and service system value more prominent.

6. First-mover delivery advantage accelerates the flywheel effect: The new policy opens a critical market time window, helping to further transform FF's first-mover advantage as "the first U.S. company to scale-deliver humanoid and bionic robots" into market victory and a long-term moat.

At the same time, the FCC's new policy will comprehensively strengthen FF's seven unique value advantages, which include:

1. EAI Core "Full-Form FF EAI Robot World";

2. "Four-Core Full Intelligence" EAI Robot Ecosystem;

3. Unique "5+1" User and Customer Acquisition and Operation Ecosystem;

4. U.S. Local Enterprise, Built in USA, and Global EAI Robot Industry Bridge Strategy;

5. Endogenous evolution flywheel driven by real-scenario data - Brain - scaled deployment, and exogenous evolution flywheel composed of "Built in USA" + EAI Bridge Strategy + Value Chain Openness;

6. Financial system adhering to light assets, light operations, positive gross margin orientation, and "payment before delivery";

7. Scarce capital value formed relying on the extremely few Nasdaq-listed companies and the independent value release path of the robotics business.

It is worth emphasizing that under the premise of fully complying with FCC requirements, this new policy further strengthens FF's value as a global EAI industry bridge. The new policy does not intend to cut off global cooperation but rather, under the premise of ensuring national security and the reshoring of supply chains and manufacturing, to absorb global advanced technologies, experience, and supply chain capabilities. This highly aligns with FF's global EAI industry bridge strategy. Platforms possessing both global industrial resources and local R&D and manufacturing capabilities will become scarcer, and FF is expected to become an important bridge for mutual benefit between the U.S. and other countries.

In fact, the introduction of relevant policies came about half a year earlier than we previously estimated. Taking advantage of the tailwind from this new policy, we have launched the FF EAI Robot "Built in USA" Acceleration Plan, dedicated to the comprehensive implementation of the "Four-Core Full Intelligence" robot ecosystem in the United States.

The plan will proceed in three steps:

Phase I: We have currently completed the preliminary implementation of the "EAI Brain, EAI Industry Solutions and Developer Platform, EAI Data Factory" three cores, providing a solid technical foundation for the continuous development of our core products, and making sufficient preparations for potential further ICTS-related regulations.

Phase II: Accelerate the realization of robot cores and parts required for FCC compliance as "Assembled in USA": We are accelerating the localization of robot core production in the U.S. with shorter cycles and higher efficiency.

Phase III: Ultimately realize "Made in USA" for robot cores and some FCC Covered List parts.

Future Risks, Challenges, and Opportunities: The FCC's new policy accelerates the reshaping of the industry landscape and poses higher demands on FF. We must improve decision-making efficiency, organizational synergy, and execution capabilities to advance the implementation of the "Four-Core Full Intelligence Strategy" at a speed exceeding the industry average, transforming our first-mover advantage into market competitiveness and long-term leading position.

To accelerate the landing and execution of this plan, we will hold the FF Robot "Built in USA" upstream and downstream partner investment conference in the near future. We extend active invitations to upstream and downstream partners in the global robotics industry chain. Upstream includes robot OEMs, component suppliers, and secondary development enterprises as R&D partners; downstream includes B2B large clients, nationwide robot distributors and agents, system integrators, data partners, and robot shared leasing platforms such as Roboshare founded by AIxC. We look forward to partners across the entire industry joining us to jointly promote the popularization of U.S. EAI robots, the development, and growth of the industry.

We will announce more detailed execution plans and progress regarding the "Built in USA Acceleration Plan" in a timely manner.

See you next week.

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