WeRide Inc.(WRD) - 2025 Q2 - Quarterly Report

Company Overview and Recent Highlights This section provides an overview of WeRide's technological advancements, global operational expansion, and key financial performance in Q2 2025 Redefining Autonomous Driving with Leading Technology Breakthroughs WeRide achieved significant breakthroughs in autonomous driving technology, launching the high-performance computing platform HPC 3.0 and collaborating with Chery Group on a new generation Robotaxi to reduce costs and enable large-scale commercial deployment - WeRide launched the high-performance computing 3.0 platform, powered by NVIDIA DRIVE AGX Thor chips, reducing autonomous driving suite costs by 50% and achieving 100% automotive-grade standards[6] - The HPC 3.0 platform was first applied to WeRide's latest generation Robotaxi GXR, making it the world's first L4 autonomous vehicle mass-produced based on NVIDIA DRIVE AGX Thor[6] - A new generation Robotaxi model, CER, was jointly developed with Chery Group, based on the WeRide One universal autonomous driving platform and EXEED's STERRA ET vehicle architecture, equipped with over 20 sensors and a five-layer redundant safety system[6][7] Unparalleled Robotaxi Footprint Validated by Global Operations WeRide accelerated the global expansion of Robotaxi and Robobus services, securing operational permits in key international markets and significantly expanding its fleet, particularly in the Middle East - Abu Dhabi (UAE): The WeRide-Uber Robotaxi fleet has tripled in size since December 2024, covering approximately 50% of the city's core areas, with a goal to expand the fleet to hundreds of vehicles and has commenced driverless testing[6][12] - Shanghai (China): Launched L4 Robotaxi ride-hailing services in Shanghai in partnership with Chery Group and Jinjiang Taxi, marking WeRide Robotaxi's official entry into its tenth global city[12] - Riyadh (Saudi Arabia): Obtained Saudi Arabia's first Robotaxi autonomous driving permit, making WeRide the only technology company globally with autonomous driving permits in six countries (Saudi Arabia, China, UAE, Singapore, France, USA); launched pilot operations in Riyadh with Uber and local partner Ai Driver, with commercial services expected by end of 2025[6][12] - Dubai (UAE): Signed an MoU with Dubai's Roads and Transport Authority and Uber, planning to launch Robotaxi pilot operations via the Uber platform later in 2025, with driverless services planned for 2026[12] - Singapore: Received approval from Singapore's Land Transport Authority to launch fully driverless Robobus services at Resorts World Sentosa, becoming Southeast Asia's first autonomous vehicle without a safety driver[15] - Paris (France): Partnered with Renault Group for the second consecutive year to provide L4 autonomous minibus shuttle services for the French Open, with added night services[15] Key Financial Highlights WeRide demonstrated strong financial growth in Q2 2025, with record-high Robotaxi revenue becoming a significant component of total revenue, while maintaining industry-leading gross margins Key Financial Highlights for Q2 2025 | Indicator | Q2 2025 (RMB) | YoY Growth | | :--- | :--- | :--- | | Total Revenue | 127.2 million RMB (17.8 million USD) | 60.8% | | Robotaxi Revenue | 45.9 million RMB (6.4 million USD) | 836.7% | | Gross Profit | 35.7 million RMB (5.0 million USD) | 40.6% | | Gross Margin | 28.1% | - | - Robotaxi revenue accounted for 36.1% of total revenue in Q2 2025, representing the highest quarterly revenue contribution since 2021[6] Management Commentary This section presents the management's strategic perspectives on WeRide's Q2 2025 performance, emphasizing global expansion, technological leadership, and commitment to advancing autonomous mobility Management Perspectives Management highlights Q2 2025 results as a pivotal moment for WeRide's globalization, with rapid Robotaxi growth validating its global expansion and strong partnerships strategy. The company is committed to expanding safe autonomous transportation through advanced technology and regulatory breakthroughs, leading the evolution of global mobility - CEO Tony Han stated that the Q2 performance marks a critical moment in WeRide's globalization journey, with rapid Robotaxi business growth validating its strategic vision, and the HPC 3.0 platform setting a new benchmark for scalable, high-performance autonomous driving[13] - CFO Jennifer Li noted that the strong revenue performance reflects effective execution of growth strategies and continuous expansion of operational scale, with Robotaxi business increasingly contributing to revenue structure and overall financial strength, and international business expansion leading to improved unit economics and enhanced commercial viability[13] Unaudited Second Quarter 2025 Financial Results This section details WeRide's unaudited financial performance for Q2 2025, covering revenue, cost of revenue, gross profit, operating expenses, and net loss Revenues Total revenue in Q2 2025 significantly increased, primarily driven by a substantial rise in product revenue (especially Robotaxi and Robosweeper sales) and growth in service revenue from intelligent data services Total Revenue Overview | Indicator | Q2 2025 (RMB) | Q2 2024 (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Total Revenue | 127.2 million RMB (17.8 million USD) | 79.1 million RMB | 60.8% | Product revenue Product revenue saw substantial year-over-year growth, primarily due to increased sales of Robotaxi and Robosweeper units Product Revenue Details | Indicator | Q2 2025 (RMB) | Q2 2024 (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Product Revenue | 59.8 million RMB (8.3 million USD) | 14.6 million RMB | 309.6% | - Product revenue growth was primarily attributable to increased sales of Robotaxi and Robosweeper units, partially offset by a decrease in Robobus sales[16] Service revenue Service revenue experienced modest growth, driven by new intelligent data services and increased autonomous driving operational support, despite a reduction in ADAS R&D service income Service Revenue Details | Indicator | Q2 2025 (RMB) | Q2 2024 (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Service Revenue | 67.4 million RMB (9.4 million USD) | 64.6 million RMB | 4.3% | - Service revenue growth primarily stemmed from intelligent data services (an increase of 35.8 million RMB) and autonomous driving-related operations and technical support services (an increase of 2.5 million RMB), partially offset by a decrease in ADAS R&D service revenue of 35.5 million RMB[16] Robotaxi revenue Robotaxi revenue reached a new quarterly high, significantly contributing to total revenue and reflecting strong market penetration Robotaxi Revenue Details | Indicator | Q2 2025 (RMB) | YoY Growth | | :--- | :--- | :--- | | Robotaxi Revenue | 45.9 million RMB (6.4 million USD) | 836.7% | | Percentage of Total Revenue | 36.1% | - | - Robotaxi revenue reached a new quarterly high since the company's inception, and its proportion of total revenue was the highest since 2021[16] Cost of revenue Cost of revenue increased in Q2 2025 in line with revenue growth, mainly driven by higher costs of goods sold and intelligent data services Cost of Revenue Overview | Indicator | Q2 2025 (RMB) | Q2 2024 (RMB) | | :--- | :--- | :--- | | Cost of Revenue | 91.5 million RMB (12.8 million USD) | 53.7 million RMB | Cost of goods sold Cost of goods sold increased, consistent with the growth in product revenue Cost of Goods Sold Details | Indicator | Q2 2025 (RMB) | Q2 2024 (RMB) | | :--- | :--- | :--- | | Cost of Goods Sold | 30.7 million RMB (4.3 million USD) | 11.0 million RMB | - The increase in cost of goods sold was consistent with the growth in product revenue[21] Cost of services Service costs rose due to increased intelligent data services and operational support, partially offset by reduced ADAS R&D service costs Cost of Services Details | Indicator | Q2 2025 (RMB) | Q2 2024 (RMB) | | :--- | :--- | :--- | | Cost of Services | 60.8 million RMB (8.5 million USD) | 42.7 million RMB | - The increase in service costs was primarily due to higher costs for intelligent data services (29.8 million RMB) and operations and technical support services (9.4 million RMB), partially offset by a decrease in ADAS R&D service costs of 21.1 million RMB[21] Gross Profit and Gross Margin Gross profit increased year-over-year in Q2 2025, with the overall gross margin remaining industry-leading, notably with product gross margin significantly higher than service gross margin Gross Profit and Gross Margin Details | Indicator | Q2 2025 (RMB) | Q2 2024 (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Gross Profit | 35.7 million RMB (5.0 million USD) | 25.4 million RMB | 40.6% | | Overall Gross Margin | 28.1% | - | - | | Product Gross Profit | 29.1 million RMB (4.1 million USD) | - | - | | Product Gross Margin | 48.6% | - | - | | Service Gross Profit | 6.6 million RMB (0.9 million USD) | - | - | | Service Gross Margin | 9.8% | - | - | Operating Expenses Operating expenses significantly increased in Q2 2025, driven by higher personnel-related costs, R&D service fees, and administrative expenses such as audit and legal compliance services Operating Expenses Overview | Indicator | Q2 2025 (RMB) | Q2 2024 (RMB) | | :--- | :--- | :--- | | Operating Expenses | 487.8 million RMB (68.1 million USD) | 342.4 million RMB | - The change in operating expenses was primarily due to an increase of 63.6 million RMB in personnel-related expenses (including share-based compensation expenses), an increase of 31.5 million RMB in autonomous driving R&D service fees, and an increase of 28.9 million RMB in audit and legal compliance service fees[19] Research and development (R&D) expenses R&D expenses increased substantially, primarily due to higher personnel costs, R&D project service fees, and material consumption and depreciation expenses R&D Expenses Details | Indicator | Q2 2025 (RMB) | Q2 2024 (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | R&D Expenses | 318.9 million RMB (44.5 million USD) | 239.6 million RMB | 33.1% | | R&D Expenses Excluding Share-based Compensation | 280.3 million RMB | 186.3 million RMB | 50.5% | - The significant increase in R&D expenses was primarily due to higher personnel-related expenses (45.1 million RMB), R&D project service fees (31.5 million RMB), and material consumption and depreciation and amortization expenses (14.3 million RMB)[22] Selling expenses Selling expenses increased, with the growth in selling expenses excluding share-based compensation remaining significantly lower than revenue growth Selling Expenses Details | Indicator | Q2 2025 (RMB) | Q2 2024 (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Selling Expenses | 13.8 million RMB (1.9 million USD) | 12.3 million RMB | 12.9% | | Selling Expenses Excluding Share-based Compensation | 12.1 million RMB | 10.3 million RMB | 17.5% | - Selling expenses excluding share-based compensation increased by 17.5%, which was significantly lower than the growth in sales[22] Administrative expenses Administrative expenses rose significantly, mainly driven by increased professional service fees for audit and legal compliance, and higher personnel costs to support business growth Administrative Expenses Details | Indicator | Q2 2025 (RMB) | Q2 2024 (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Administrative Expenses | 155.1 million RMB (21.6 million USD) | 90.5 million RMB | 71.3% | | Administrative Expenses Excluding Share-based Compensation | 75.6 million RMB | 39.0 million RMB | 93.8% | - The significant increase in administrative expenses was primarily due to higher professional service fees (mainly for audit and legal compliance services, 28.9 million RMB) and increased personnel costs (5.1 million RMB) to support business growth[22] Net Loss and Net Loss per ADS The company's net loss slightly narrowed in Q2 2025, but non-IFRS adjusted net loss expanded, while basic and diluted net loss per ADS significantly improved Net Loss and Net Loss per ADS Details | Indicator | Q2 2025 (RMB) | Q2 2024 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Net Loss | 406.4 million RMB (56.7 million USD) | 413.6 million RMB | Decreased by 1.7% | | Non-IFRS Adjusted Net Loss | 300.6 million RMB (42.0 million USD) | 174.6 million RMB | Increased by 72.2% | | Basic and Diluted Net Loss per ADS | 1.35 RMB (0.18 USD) | 10.11 RMB | Decreased by 86.6% | Unaudited Condensed Consolidated Statements of Financial Position This section presents WeRide's unaudited consolidated statements of financial position as of June 30, 2025, detailing assets, liabilities, and equity Assets As of June 30, 2025, total assets slightly decreased from year-end 2024, with a reduction in cash and cash equivalents, but increases in inventory and financial assets at fair value through profit or loss (current) Assets Overview | Indicator | As of June 30, 2025 (RMB'000) | As of December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Total Non-current Assets | 510,696 | 405,775 | | Inventories | 289,929 | 204,705 | | Financial assets at fair value through profit or loss - current | 1,735,333 | 1,685,146 | | Cash and cash equivalents | 3,836,137 | 4,268,300 | | Total Assets | 7,145,853 | 7,693,770 | Liabilities and Equity As of June 30, 2025, total liabilities increased, primarily driven by significant growth in short-term bank borrowings and trade payables, while total equity decreased Liabilities and Equity Overview | Indicator | As of June 30, 2025 (RMB'000) | As of December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Total Equity | 6,463,756 | 7,066,019 | | Total Non-current Liabilities | 80,817 | 85,262 | | Short-term bank borrowings | 102,275 | 30,019 | | Trade payables | 47,117 | 20,713 | | Total Liabilities | 682,097 | 627,751 | Cash and Borrowings As of June 30, 2025, the company maintained ample cash, cash equivalents, and wealth management product investments, alongside manageable long-term and short-term bank borrowings Cash and Borrowings Status | Indicator | As of June 30, 2025 (RMB) | | :--- | :--- | | Cash and cash equivalents and time deposits | 4.0879 billion RMB (570.6 million USD) | | Investments in wealth management products (FVTPL) | 1.7353 billion RMB (242.2 million USD) | | Restricted cash | 15.4 million RMB (2.2 million USD) | | Long-term bank borrowings | 47.5 million RMB (6.6 million USD) | | Short-term bank borrowings | 102.3 million RMB (14.3 million USD) | Unaudited Condensed Consolidated Statements of Comprehensive Income This section provides WeRide's unaudited condensed consolidated statements of comprehensive income for Q2 2025, detailing revenue, costs, operating expenses, and net loss Income Statement Overview In Q2 2025, the company achieved significant total revenue growth but recorded a net loss due to increased operating expenses, particularly R&D and administrative costs, though net loss per ADS improved substantially year-over-year Condensed Consolidated Statements of Comprehensive Income for Q2 2025 (Key Metrics) | Indicator | Q2 2025 (RMB'000) | Q2 2024 (RMB'000) | YoY Change (%) | | :-------------------------------- | :------------------------------------- | :------------------------------------- | :------------- | | Revenues | | | | | Product revenue | 59,781 | 14,567 | 310.4% | | Service revenue | 67,397 | 64,556 | 4.4% | | Total Revenues | 127,178 | 79,123 | 60.7% | | Cost of Revenues | | | | | Cost of goods sold | (30,699) | (10,989) | 179.3% | | Cost of services | (60,775) | (42,711) | 42.3% | | Total Cost of Revenues | (91,474) | (53,700) | 70.3% | | Gross Profit | 35,704 | 25,423 | 40.4% | | Operating Expenses | | | | | R&D expenses | (318,918) | (239,579) | 33.1% | | Selling expenses | (13,849) | (12,263) | 12.9% | | Administrative expenses | (155,061) | (90,510) | 71.3% | | Operating Loss | (453,864) | (322,713) | 40.6% | | Loss for the period | (406,445) | (413,618) | -1.7% | | Basic and diluted loss per ADS | (1.35) | (10.11) | -86.6% | Reconciliation of IFRS and Non-IFRS results This section provides a reconciliation between IFRS net loss and non-IFRS adjusted net loss, highlighting adjustments for non-cash items to present a clearer view of core operational performance Non-IFRS Adjusted Net Loss Reconciliation The company provides a reconciliation of IFRS net loss to non-IFRS adjusted net loss, which excludes share-based compensation, fair value changes of financial assets at FVTPL, and changes in the carrying value of preferred shares and other financial instruments IFRS and Non-IFRS Performance Reconciliation (Q2 2025) | Indicator | Q2 2025 (RMB'000) | Q2 2024 (RMB'000) | | :--- | :--- | :--- | | Loss for the period | (406,445) | (413,618) | | Add: Share-based compensation expenses | 119,858 | 108,274 | | Add: Fair value change of financial assets at fair value through profit or loss | (13,971) | (1,094) | | Add: Change in carrying value of preferred shares and other financial instruments | - | 131,842 | | Adjusted Net Loss | (300,558) | (174,596) | - Non-IFRS adjusted net loss is defined as loss for the period, excluding share-based compensation expenses, fair value change of financial assets at fair value through profit or loss, and change in carrying value of preferred shares and other financial instruments[40] Additional Information This section provides supplementary details including exchange rate information, the company's use of non-IFRS financial measures, conference call details, company overview, and a safe harbor statement Exchange Rate Information This announcement converts RMB amounts to USD using the exchange rate of 1 USD to 7.1636 RMB, as set by the US Federal Reserve Board H.10 statistical release on June 30, 2025 - Unless otherwise stated, all RMB to USD conversions are made at the exchange rate of 1 USD to 7.1636 RMB, as set forth in the US Federal Reserve Board H.10 statistical release on June 30, 2025[23] Use of Non-IFRS Financial Measures The company uses non-IFRS adjusted net loss as a supplementary metric to evaluate operating performance and formulate business plans, excluding non-cash adjustments to better reflect core operations, while cautioning investors that non-IFRS metrics are not IFRS-defined and may differ from other companies' calculations - The company uses adjusted net loss as a supplementary metric to assess operating performance, believing it helps investors and management understand and evaluate the company's consolidated operating results[24][25] - Adjusted net loss is defined as loss for the period, excluding share-based compensation expenses, fair value change of financial assets at fair value through profit or loss, and change in carrying value of preferred shares and other financial instruments[24] - Non-IFRS financial measures are not IFRS-defined, should not be considered in isolation, and may differ from those calculated by other companies; investors should review the company's financial information comprehensively[26][27] Conference Call Information WeRide will host its Q2 2025 earnings conference call on July 31, 2025, providing online registration and a webcast - WeRide's management team will host an earnings conference call on Thursday, July 31, 2025, at 8:00 AM U.S. Eastern Time (8:00 PM Beijing Time)[28] - All participants are required to complete online registration in advance via the provided link, after which they will receive dial-in numbers and a unique access PIN[28] - A live and archived webcast of the conference call will be available on the company's investor relations website at ir.weride.ai[30] About WeRide WeRide is a global leader in autonomous driving and the first listed Robotaxi company, offering L2 to L4 autonomous driving products and services, tested or operated in over 30 cities across 10 countries, with permits in 6 markets - WeRide is a global pioneer in the autonomous driving industry and the first listed Robotaxi company[31] - The company's autonomous vehicles have been tested or operated in over 30 cities across 10 countries, and have obtained autonomous driving permits in six markets, including China, France, Saudi Arabia, Singapore, UAE, and the USA[31] - WeRide offers autonomous driving products and services from L2 to L4, catering to the mobility, logistics, and sanitation industries, and was included in Fortune Magazine's 2024 "Future 50" list[31] Safe Harbor Statement This press release contains "forward-looking" statements under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995, which involve inherent risks and uncertainties, and the company undertakes no obligation to update them unless required by applicable law - This press release contains statements that may constitute "forward-looking" statements, which involve inherent risks and uncertainties[32] - The company undertakes no obligation to update any forward-looking statements, except as required by applicable law[32]