Core Viewpoint - SUTENG JUCHUANG (2498.HK) reported strong financial performance for the first half of 2025, with significant growth in revenue and gross profit, particularly in the robotics sector, which has become a key driver of the company's overall performance [2][3]. Financial Performance - Total revenue for the first half of 2025 reached RMB 783 million, a year-on-year increase of 7.7% [2]. - Gross profit for the same period was approximately RMB 203 million, showing a substantial year-on-year growth of 106.12% [2]. - In Q2 2025, revenue was about RMB 460 million, reflecting a year-on-year increase of 24.4% and a quarter-on-quarter increase of 38.9% [2][3]. - The overall gross margin for the first half of 2025 was 25.9%, significantly up from 13.6% in the same period last year [3]. Robotics Business - The robotics sector experienced explosive growth, with revenue reaching RMB 220.7 million in the first half of 2025, a year-on-year increase of 184.8% [3]. - The gross margin for the robotics business was notably high at 45%, far exceeding the company's overall gross margin [3]. - Sales of laser radar units for robotics and other applications reached 34,400 units in Q2, a staggering year-on-year increase of 631.9% [3]. Strategic Partnerships - The company has established long-term partnerships in the unmanned delivery sector with notable firms such as COCO Robotics and major domestic platforms like Meituan [4]. - In the field of embodied intelligence, SUTENG JUCHUANG has formed deep collaborations with over 20 global companies [4]. ADAS Business - Despite the rapid growth in robotics, the Advanced Driver Assistance Systems (ADAS) segment remains a crucial foundation for the company [5]. - Sales of laser radar units for ADAS applications totaled 220,500 units, a year-on-year decrease of 6% [5]. - Revenue from the ADAS segment was RMB 500.3 million, down 17.9% year-on-year [5]. - The gross margin for ADAS improved from 11.2% to 17.4% due to optimized raw material costs and the use of self-developed SOC processing chips [6]. Market Position - As of June 30, 2025, SUTENG JUCHUANG secured 133 model designations for mass production, including projects with eight overseas and joint venture brands, covering key markets in Japan, North America, and Europe [6].

Core Viewpoint - DBS released a report indicating that SOTON (02498) exceeded expectations in its second-quarter performance, achieving a gross margin of 28%, surpassing the target of 25% [1] Group 1: Financial Performance - The strong performance was primarily driven by the mass production of the MX series and effective cost control measures [1] - The management's outlook has become more optimistic, reaffirming the goal of achieving breakeven by the second half of 2025 [1] Group 2: Future Growth Drivers - Growth drivers for 2026 include mass production of the EM platform, expansion of BYD (002594) related businesses, acquisition of new clients, and orders in the robotics business [1] - Based on the revised gross margin forecasts, profit estimates for 2025 and 2026 have been increased by 22% and 16% respectively [1] Group 3: Investment Rating - The rating remains "Buy," with the target price raised from HKD 45 to HKD 50 [1]

Core Viewpoint - The company has shown significant growth in revenue and profit in Q2 2025, primarily driven by its robotics business and self-developed technologies [4][5]. Revenue and Profit Summary - In Q2 2025, the company achieved total revenue of 455 million yuan, representing a year-on-year growth of 24% and a quarter-on-quarter growth of 39% [4]. - The gross profit for Q2 2025 was 130 million yuan, with a year-on-year increase of 133% and a quarter-on-quarter increase of 64%, resulting in a gross margin of 27.7% [4]. Robotics Business Development - The sales revenue from robotics and other products reached approximately 147 million yuan in Q2 2025, a substantial increase of 285.2% year-on-year [5]. - The gross margin for the robotics segment was 41.5%, up 18.3 percentage points year-on-year, benefiting from reduced raw material costs due to increased production scale [5]. - The company has expanded its robotics business into various verticals, serving over 3,200 global clients, with notable success in the lawn care robot sector [5]. Self-Developed Chip and Digital Product Innovation - The company has led the digitalization process in the lidar sector, launching the E series digital platform in 2021, with large-scale production of E1 expected in 1H 2025 [6]. - The company anticipates that the shipment of E series lidar products will reach six figures by 2025, supporting L3/L4 autonomous driving [6]. ADAS Business Performance - In Q2 2025, ADAS business revenue was 270 million yuan, showing a year-on-year decline of 10.5% but a quarter-on-quarter increase of 18.6% [7]. - The gross margin for ADAS was 19.4%, with improvements driven by reduced raw material costs and the integration of lower-cost lidar products with self-developed SOC chips [7]. - The company has secured mass production orders for 119 vehicle models from 30 automotive manufacturers and suppliers, with the number of mass production models increasing to 133 by August 2025 [7].

Core Viewpoint - RoboSense (速腾聚创) is experiencing significant growth in both its ADAS and robotics businesses, driven by the successful implementation of digital lidar technology and advancements in chip development [3][13][15]. Financial Performance - In Q2 2025, RoboSense reported total revenue of approximately 460 million yuan, representing a year-on-year increase of 24.4% and a quarter-on-quarter increase of 38.9% [3]. - The overall gross margin improved from 12.3% in Q1 2024 to 27.7% in Q2 2025, marking six consecutive quarters of growth [3]. - The robotics segment achieved a gross margin of 41.5%, with product sales reaching 34,400 units, a year-on-year increase of 631.9% and a quarter-on-quarter increase of 189.1% [6]. Business Segments ADAS Business - RoboSense's EM platform has secured contracts with eight OEMs for 45 vehicle models, including 32 models for a leading global EV manufacturer [9]. - The company has achieved a total of 133 contracts for mass production vehicles, including projects with eight overseas and joint venture brands [9]. - RoboSense has reached a milestone of producing its one-millionth vehicle-mounted lidar, maintaining its leadership in the global market [11]. Robotics Business - The robotics business has expanded to over 3,200 global customers, with significant growth expected in the coming months [17][24]. - The E1 lidar has become the preferred solution for Robotaxi applications, with successful mass production validation with eight leading global clients [18]. - The company anticipates a surge in demand for its robotics products, particularly in the lawn mowing sector, with a production peak expected in Q4 2025 and Q1 2026 [24]. Technological Advancements - RoboSense has pioneered the digital lidar industry with its E platform, which includes the E1 lidar, the first mass-produced solid-state lidar [13]. - The EM platform, designed for long-range lidar, is set to begin mass production with the EM4 model in Q3 2025 [14]. - The company emphasizes that the future competition in lidar technology will focus on chip-level capabilities, with its self-developed SPAD-SoC chip expected to drive continuous product iterations and market leadership [15]. Market Position - RoboSense has established partnerships with over 90% of leading L4 companies globally, expanding its operational network in key markets [22]. - The company is also making strides in the consumer-grade robotics market, with significant orders in the lawn mowing and delivery sectors [22][23].

Core Viewpoint - The company is positioned as a leading player in the laser radar market, focusing on becoming a global robotics technology platform, with significant growth potential in both automotive and robotics sectors [21][24]. Financial Performance - In Q1 2025, the company reported revenue of 3.28 billion, a year-on-year decrease of 12.4% and a quarter-on-quarter decrease of 30.7% [2][9]. - The net profit for Q1 2025 was -1.00 billion, an improvement from -1.31 billion in Q1 2024 and -1.30 billion in Q4 2024 [2][9]. - The gross margin for Q1 2025 was 23.49%, showing a year-on-year increase of 11.17 percentage points and a quarter-on-quarter increase of 1.35 percentage points [3][4][14]. Product Sales and Market Demand - Total sales volume of laser radar products in Q1 2025 was approximately 108,600 units, a year-on-year decrease of 9.8% [10]. - Sales of laser radar products for ADAS applications were approximately 96,700 units, down 16.8% year-on-year, while sales for robotics and other applications increased by 183.3% to 11,900 units [10]. - The company has established strong partnerships with over 30 global automakers and suppliers, securing more than 100 models for pre-installation and achieving mass production for 38 models [6][39]. Product Development and Innovation - The company launched the EM platform in 2025, introducing digital products that cater to various market needs, including the EM4 and EMX laser radars [26]. - New products for robotics, such as Airy and E1R, have been released to cover various applications in the robotics sector [26]. - The company is actively developing incremental components for robotics, including vision, touch, and joint systems, with products like the Active Camera and FS-3D force sensor [31][33]. Strategic Partnerships and Market Expansion - The company has formed strategic partnerships with leading companies in the Robotaxi sector, including collaborations with Didi and Pony.ai for mass production of autonomous vehicles [40][43]. - In the broader robotics market, the company secured a record order of 1.2 million solid-state laser radars for lawn mowing robots, indicating strong demand in the sector [44][45]. - The company is also focusing on the delivery of solutions for the delivery robot market, achieving over 90% market share among leading clients [48]. Research and Development - The company has established three R&D centers in China, focusing on optimizing manufacturing processes and enhancing supply chain planning [50]. - The company leads in patent filings in the laser radar and robotics perception systems sectors, showcasing its strong technological capabilities [52][53].

Core Insights - RoboSense (2498.HK) reported a solid financial performance for Q1 2025, with significant growth in its robotics-related business, including product sales and revenue [1][2] Financial Performance - The company achieved total revenue of approximately 330 million yuan, down from 361 million yuan in the same period last year; however, gross profit surged to 77.01 million yuan, reflecting a year-on-year increase of 73.1% [2] - The overall gross margin reached 23.5%, an increase of 11.2 percentage points year-on-year, while net loss narrowed significantly to 98.79 million yuan, improving by 24.4% [2] Robotics Business Growth - The robotics segment experienced explosive growth, with laser radar product sales reaching approximately 11,900 units, a year-on-year increase of 183.3%, and revenue from this segment reaching 73.403 million yuan, up 87.0% year-on-year [2] - The company has established partnerships with over 2,800 global robotics clients across various applications, including industrial warehousing and delivery robots [3] Strategic Collaborations - RoboSense entered a strategic partnership with Mammotion, agreeing to collaborate on 1.2 million units over three years, setting a new industry order record [3] - The company has secured long-term orders with major clients in the autonomous delivery market, capturing over 90% of the top clients in this sector [3] Market Position and Projections - According to YOLE Group, RoboSense holds the leading market share in the global automotive laser radar market for passenger vehicles in 2024, with over 50% of the models at the 2025 Shanghai Auto Show featuring its products [4] - Goldman Sachs projects a 41% growth rate in RoboSense's Robotaxi business sales by 2026, with the global passenger vehicle laser radar market expected to reach approximately 7 billion yuan by 2025 [5] Product Development and Innovation - The company launched a new category of robotic vision products, Active Camera, and has established partnerships with over 20 companies to advance embodied intelligence applications [6] - RoboSense's product matrix includes mechanical, semi-solid, and solid-state technologies, covering a wide range of applications from entry-level to high-end products [7]