WeRide Inc.(US:WRD)2025-11-24 14:02Financial 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]