WeRide Inc.(US:WRD)2025-07-31 13:00Financial Data and Key Metrics Changes - Total revenue for Q2 2025 reached RMB 127.2 million, a 60.8% increase year over year, driven by strong growth in both product and service segments [20] - Product revenue surged by 309.6% year over year to RMB 59.8 million, with robotaxi revenue hitting a record high of RMB 45.9 million, up 836.7% year over year, contributing 36.1% to total revenue [21] - Service revenue grew by 4.3% year over year to RMB 67.4 million, supported by intelligent data services and L4 operational support [22] - Gross profit increased by 40.6% to RMB 35.7 million, with a gross margin of 28.1% [23] - Net loss decreased by 1.7% to RMB 406.4 million, while on a non-IFRS basis, net loss increased to RMB 306.6 million due to ongoing R&D investments [26] Business Line Data and Key Metrics Changes - Robotaxi revenue accounted for 36% of total revenue, reflecting strong momentum and expected to remain a major contributor [38] - The company operates the largest robotaxi fleet in the Middle East, with rapid expansion in Abu Dhabi and the first robotaxi pilot in Riyadh [21][22] - R&D expenses increased by 33.1% to RMB 318.9 million, primarily due to personnel-related expenses and project services [24] Market Data and Key Metrics Changes - The company has expanded its global footprint to 10 cities, with significant operations in the Middle East, including partnerships with Uber and local authorities [9][10] - The robotaxi fleet in Dubai has tripled in size, covering approximately 50% of core areas, with plans to further scale [12] - The company holds autonomous driving permits in six countries, demonstrating its technology's compliance with high safety standards [22][18] Company Strategy and Development Direction - The company aims to transform future mobility through safe and accessible driverless solutions, with a focus on expanding robotaxi operations globally [9] - A multi-product strategy is employed, leveraging a universal platform to support various urban mobility applications, enhancing data collection and operational flexibility [31][32] - The Middle East is identified as a strategic priority for growth throughout 2025, with plans to expand commercial robotaxi services to 15 additional cities [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing expansion and commercialization of driverless services, highlighting successful partnerships and regulatory progress [26][27] - The company is optimistic about its ability to convert global potential into long-term value, supported by a strong liquidity position [26] - Management emphasized the importance of safety and compliance in scaling operations, with a commitment to maintaining high standards [18][24] Other Important Information - The company launched its proprietary computing platform, HPC 3.0, which significantly enhances AI computing power and reduces costs by 50% [16][17] - The robotaxi service has logged over 14 million kilometers of real-world autonomous driving mileage, continuously improving system reliability [18] Q&A Session Summary Question: Could you elaborate on the company's multi-product strategy and the relationship between Robotaxi and other products? - The company utilizes a multi-product strategy to access a larger pool of data and adapt to market readiness, with Robotaxi as the flagship use case [31][32] Question: Is the revenue contribution from the Robotaxi business expected to sustain in the coming quarters? - The company expects the trend to continue, driven by fleet expansion and a triple growth engine from hardware sales, service revenue, and revenue sharing [38] Question: When will the HPC 3.0 platform be deployed in the next generation robotaxi? - HPC 3.0 is already in use, enhancing computational power and user experience, ready for large-scale mass production [46][50] Question: How many permits are currently in the pipeline, and what are the expansion targets for Robotaxi? - The company has obtained driverless testing permits in various regions and aims to add hundreds of vehicles to its fleet by the end of the year, with a goal of thousands in 2026 [56][60] Question: What challenges does the company face in deploying robotaxi services in new markets? - Challenges include adapting technology to local conditions and navigating regulatory frameworks, but the company has built a strong understanding of these issues through experience [90][94] Question: How does the company sustain its technological leadership in the competitive landscape? - The company focuses on providing reliable and affordable services while advancing both robotaxi and ADAS technologies, ensuring a strong competitive edge [102]