A rising gross margin indicates that a company is scaling efficiently. It signals a shift away from expensive hardware testing toward high-margin software and service operations. This is the holy grail for tech sector investors, as it suggests the business can grow without costs spiraling out of control.Perhaps the most critical data point for long-term investors is gross margin. In the third quarter of 2024, WeRide’s gross margin was a thin 6.5%, typical for a hardware-heavy manufacturing phase. In this la ...

Core Insights - Company reported Q3 2025 revenue of 171 million yuan, a year-on-year increase of 144.3%, with gross profit reaching 56.3 million yuan, up 1123.9%, and gross margin rising to 32.9% [1] - Net loss narrowed by 70.5% year-on-year, with adjusted net loss decreasing by 24.4% quarter-on-quarter, indicating a transition to a phase of "scale expansion + profit improvement" [1] Group 1: Business Performance - The company has established a fleet of over 1,600 autonomous vehicles, including more than 750 Robotaxis, which serve as the foundation for its autonomous ride-hailing services [3] - The domestic market has seen continuous upgrades in service experience, with 24-hour unmanned operations in Guangzhou and nighttime testing in Beijing [3] Group 2: Global Expansion - The company has achieved significant milestones in international markets, including the launch of the first fully unmanned commercial operation in Abu Dhabi, road testing in Singapore, and public operations in Riyadh, Saudi Arabia [5] - It has obtained autonomous driving operation licenses in eight countries, including the US, France, Switzerland, and the UAE, establishing a unique competitive barrier through extensive global certification [5] Group 3: Technological Innovation - The company has successfully launched the WePilot 3.0 ADAS solution in collaboration with Bosch, completing the entire process from project initiation to mass production in just seven months, setting a new industry record [7] - The company has been included in the NASDAQ China Golden Dragon Index, receiving high recognition from the capital market, which supports its global business expansion [7] Group 4: Industry Positioning - The autonomous driving industry is transitioning from "technology validation" to "scale commercialization," with the company leveraging its operational licenses, technological advantages, and improving financial performance to establish a leading position [9] - The company is expected to continue releasing growth potential through the expansion of unmanned operation scenarios and the mass deployment of ADAS technology [9]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached RMB 171 million, reflecting a year-over-year growth of 144% driven by fleet expansion and service penetration [18] - Product revenue increased by 428% to RMB 79 million, while service revenue grew by 67% to RMB 92 million, with service revenue surpassing product revenue for the first time [19][20] - Group-level gross profit surged by 1,124% to RMB 56 million, achieving a gross margin of 33% [20] - Operating expenses decreased by 51% to RMB 436 million, with R&D expenses accounting for 73% of total operating expenses [21][22] - Net loss narrowed by 71% to RMB 307 million, while adjusted net loss on a non-IFRS basis increased by 15% to RMB 276 million [24] Business Line Data and Key Metrics Changes - Robotaxi revenue increased by 761% year-over-year to RMB 35 million, accounting for 21% of total revenue [20] - The introduction of a free pickup and drop-off feature in China improved operational flexibility and user experience, leading to an increase in daily trips per vehicle [10] Market Data and Key Metrics Changes - WeRide has secured driverless robotaxi permits in eight countries, including recent expansions into Belgium and Switzerland [4][9] - In the Middle East, WeRide operates over 100 robotaxi vehicles and plans to scale the fleet to more than 500 vehicles by next year [8] - In China, WeRide has deployed over 300 robotaxis in Guangzhou and over 100 in Beijing, with plans for further expansion [10] Company Strategy and Development Direction - WeRide aims to establish a scalable blueprint for global driverless operations, with a focus on profitability and market share [25] - The company is pursuing a hybrid strategy that combines L4 and L2+ technologies to enhance adaptability and reliability [16] - The Abu Dhabi model serves as a roadmap for expansion into similar markets, leveraging partnerships with platforms like Uber and Grab [36][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the profitability potential of the driverless robotaxi model, particularly in the Middle East and China [33][39] - The company plans to maintain a balance between R&D investment and operational expansion to achieve profitability while growing market share [38][49] - Regulatory challenges remain a hurdle, but successful experiences in Abu Dhabi are expected to facilitate further permits in other regions [51] Other Important Information - WeRide's WePilot 3.0 system is comparable to Tesla's FSD, showcasing the company's capability in both L4-level robotaxi and L2++ level add-ons for mass production vehicles [12][66] - The company has a robust cash position with RMB 4.5 billion in cash and equivalents, supporting its R&D-focused strategy [24] Q&A Session Summary Question: Revenue opportunities from driverless robotaxi in Abu Dhabi - Management explained the revenue model includes vehicle sales, revenue share from ride fares, and annual licensing, with significant potential for revenue share as fleet size expands [29][30] Question: Key volume drivers for WeRide's global business - Management identified the Middle East, particularly Dubai and Saudi Arabia, as key markets, along with potential in Europe and developed Asian countries [35][36] Question: Robotaxi business outlook in China - Management emphasized China's unique market dynamics and the importance of achieving high daily order volumes for profitability [46][48] Question: Competitive landscape and WeRide's advantages - Management highlighted WeRide's technological edge, experience, and fast iteration capabilities as key advantages over traditional OEMs and ride-hailing platforms [55][56] Question: Status of the share repurchase program - Management confirmed that no purchases have been initiated due to regulatory restrictions related to the Hong Kong IPO [69]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached RMB 171 million, reflecting a year-over-year growth of 144% driven by fleet expansion and service penetration [18] - Product revenue increased by 428% to RMB 79 million, while service revenue grew by 67% to RMB 92 million, with service revenue surpassing product revenue for the first time [19] - Group-level gross profit surged by 1,124% to RMB 56 million, resulting in a gross margin of 33% [20] - Net loss narrowed by 71% to RMB 307 million, with adjusted net loss increasing by 15% to RMB 276 million due to ongoing R&D investments [24] Business Line Data and Key Metrics Changes - Robotaxi revenue increased by 761% year-over-year to $35 million, accounting for 21% of total revenue [20] - The introduction of a free pickup and drop-off feature in China improved operational flexibility and user experience, leading to an average of 25 daily trips per vehicle in Guangzhou [10][19] Market Data and Key Metrics Changes - WeRide has secured driverless robotaxi permits in eight countries, including recent expansions into Belgium and Switzerland [4][9] - In the Middle East, WeRide operates over 100 robotaxi vehicles and plans to scale the fleet to more than 500 vehicles by next year [8] Company Strategy and Development Direction - The company aims to establish a scalable blueprint for global operations based on the successful model in Abu Dhabi, focusing on profitability and market share [25] - WeRide's strategy includes a balanced development approach across global markets, leveraging partnerships with platforms like Uber and Grab [13][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing the successful implementation of the Abu Dhabi model as a roadmap for expansion into other markets [39] - The company plans to continue investing in R&D while maintaining a balance between scaling operations and managing expenditures [38] Other Important Information - WeRide's WePilot 3.0 system is comparable to Tesla's FSD, showcasing the company's capability in both L4-level robotaxi and L2 Plus Plus systems [12][16] - The company has a strong liquidity position with RMB 4.5 billion in cash and equivalents, supporting its R&D-focused strategy [24] Q&A Session Summary Question: How should WeRide quantify revenue opportunities from vehicle sales and profit sharing in the long run? - Management explained that in China, the company primarily owns and operates vehicles, while in international markets, revenue is generated from ride fare sharing, annual licensing, and vehicle sales [28][30] Question: Which markets could become key volume drivers for WeRide? - Management identified the UAE, Saudi Arabia, and developed countries in Asia and Europe as potential key markets for expansion [35][36] Question: What is the outlook for the robotaxi business in China? - Management emphasized that China remains a critical market, with plans to expand operations in tier one cities and improve user experience to increase order frequency [48][49] Question: What are WeRide's key advantages in the competitive landscape? - Management highlighted the company's technological capabilities, extensive experience, and AI focus as key differentiators in the robotaxi market [55][56] Question: What is the status of the $100 million share repurchase program? - Management indicated that no purchases have been initiated due to regulatory restrictions related to the Hong Kong IPO, but preparations for shareholder approval are underway [71]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached RMB 171 million, reflecting a year-over-year growth of 144% driven by fleet expansion and service penetration [18] - Product revenue increased by 428% to RMB 79 million, while service revenue grew by 67% to RMB 92 million, with service revenue surpassing product revenue for the first time [19] - Group-level gross profit surged by 1,124% to RMB 56 million, achieving a gross margin of 33% [20] - Net loss narrowed by 71% to RMB 307 million, with adjusted net loss increasing by 15% to RMB 276 million due to ongoing R&D investments [23] Business Line Data and Key Metrics Changes - Robotaxi revenue increased by 761% year-over-year to $35 million, accounting for 21% of total revenue [20] - The company achieved an average of 12 orders per vehicle per day in Abu Dhabi, with potential to reach 25 orders per vehicle per day with extended service hours [30] Market Data and Key Metrics Changes - WeRide has secured autonomous driving permits in eight countries, including the UAE, Belgium, and Switzerland, and operates L4 fleets in 11 countries and over 30 cities [4][10] - In China, WeRide has deployed over 300 robotaxis in Guangzhou and more than 100 in Beijing, with a focus on enhancing user experience through features like free pickup and drop-off [11][38] Company Strategy and Development Direction - The company aims to scale its model globally, leveraging the successful Abu Dhabi model as a blueprint for other markets [24][32] - WeRide is focusing on maintaining a balance between R&D investment and operational expansion to achieve profitability while growing market share [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the scalability of the Abu Dhabi model to other markets, including Dubai and Riyadh, and emphasized the importance of regulatory conditions [40] - The company plans to continue investing in R&D to strengthen its technology platform and recruit top talent to support global expansion [22][33] Other Important Information - WeRide's WePilot 3.0 system is comparable to Tesla's FSD, showcasing the company's capability in both L4 robotaxi and L2 Plus systems [12][13] - The company has a robust liquidity position with RMB 4.5 billion in cash and equivalents, supporting its R&D-focused strategy [23] Q&A Session Summary Question: How should WeRide quantify revenue opportunities from vehicle sales and profit sharing in the long run? - Management explained that in China, they primarily own and operate vehicles, while in international markets, they collaborate with partners like Uber to generate revenue from ride fare shares, annual licensing, and vehicle sales [25][26] Question: Which markets could step up as key volume drivers for WeRide? - Management identified the UAE, Saudi Arabia, and developed countries in Asia and Europe as potential key markets for expansion, emphasizing the importance of replicating the Abu Dhabi model [31][32] Question: What are WeRide's key advantages in the competitive landscape? - Management highlighted their technological expertise, extensive operational experience, and AI-driven approach as key advantages over traditional OEMs and ride-hailing platforms [42][44] Question: What is the status of the $100 million share repurchase program? - Management stated that no purchases have been initiated due to regulatory restrictions related to their Hong Kong IPO, and they are preparing to seek shareholder approval to proceed with the program [55]

NASDAQ: WRD HKEX: 800 2025 Q3 Update This document or the information contained herein is not intended to and does not constitute any offer or invitation, solicitation, commitment or advertisement of any offer for subscription, purchase or sale of any securities, nor shall any part of this document form the basis of or be relied on in connection with any contract or commitment whatsoever. Disclaimer During today's event, we will make statements that may constitute "forward-looking" statements pursuant to th ...

Core Insights - WeRide has achieved Start of Production (SOP) for its one-stage end-to-end Advanced Driver Assistance System (ADAS) solution in collaboration with Bosch, setting a new industry record of seven months from project launch to SOP [1] - The WePilot 3.0 system enhances vehicle capabilities by enabling simultaneous perception and action, supporting various compute platforms and sensor fusion, which allows for safe navigation in complex traffic scenarios [2][3] - WeRide's self-learning architecture of WePilot 3.0 is adaptable across different regions, ensuring alignment with real-world conditions and user needs, and has received positive feedback globally [3] Product Development and Rollout - The one-stage end-to-end ADAS solution will be integrated into the annual refresh of Chery EXEED ES and ET models, with existing owners receiving upgrades via Over-the-Air (OTA) updates [4] - WeRide aims to drive global adoption of ADAS technologies, enhancing the driving experience by making it safer and more enjoyable [4] Company Overview - WeRide is recognized as a leader in the autonomous driving industry, being the first publicly traded Robotaxi company and having tested or operated vehicles in over 30 cities across 11 countries [5] - The company has received autonomous driving permits in seven markets, including China, the UAE, Singapore, France, Saudi Arabia, Belgium, and the US, showcasing its regulatory compliance and market presence [5] - WeRide provides a range of autonomous driving products and services from Level 2 to Level 4, addressing various transportation needs [7]

Core Insights - WeRide, a leading autonomous driving technology company, has successfully achieved Start of Production (SOP) for its end-to-end integrated driver assistance solution in collaboration with Bosch, setting a new industry record of seven months from project initiation to SOP [1] Group 1: Technology and Product Development - The WePilot 3.0 represents a significant breakthrough in end-to-end large model, system-level integration, and hardware-software collaboration, featuring capabilities such as "seeing and reacting, what is seen is what is obtained, efficient and safe" [8] - WePilot 3.0 supports various computing power platforms and multi-modal sensor fusion, enabling it to handle complex traffic scenarios effectively, thus assisting manufacturers in rapidly matching, developing, and mass-producing advanced driver assistance functions [8] - The self-learning and expandable characteristics of WePilot 3.0 allow for quick adaptation and iteration across countries and continents, ensuring that vehicle functions meet local road conditions and user needs [8] Group 2: Market Performance and Reception - WePilot 3.0 has demonstrated impressive performance in multiple countries, including China, Germany, and France, receiving high praise from customers and media alike [8] - The end-to-end integrated driver assistance solution will be delivered alongside the updated Chery Exeed ES and ET models, with existing users receiving the technology update via OTA [9] - WeRide aims to continue collaborating with partners to promote the widespread application of integrated driver assistance functions in both domestic and international markets, enhancing the driving experience for global end users [9]

Core Insights - Chinese autonomous driving companies, including WeRide, Pony.ai, and RoboTaxi, are collectively expanding into global markets, particularly in the Middle East, Southeast Asia, and Europe, showcasing a unique "Chinese path" in the global autonomous driving race [1] Group 1: Company Developments - WeRide's autonomous minibus, Robobus, has officially launched in Leuven, Belgium, marking the company's entry into its eleventh global market [1] - The project is set to begin public road testing in mid-September 2023, with plans for trial operations starting in November 2023, making it Belgium's first commercial deployment of autonomous vehicles in complex traffic environments [2] - WeRide has deployed over 1,300 L4 autonomous vehicles across dozens of cities globally, indicating significant operational scale [3] Group 2: Technological Advancements - WeRide has introduced the WePilot 3.0, an end-to-end assisted driving solution developed in collaboration with Bosch, which is expected to achieve mass production by 2025 [2][3] - The WePilot 3.0 technology offers three key advantages: scalable computing power, adaptable multi-sensor configurations, and rapid iteration capabilities [3] Group 3: Market Expansion Rationale - The expansion into European and Middle Eastern markets is driven by challenges such as aging populations and labor shortages, alongside a demand for greener public transport solutions [4] - Success in these complex markets could provide significant credibility and facilitate entry into other international markets for Chinese companies [4]