Q3 2025 WeRide Inc Earnings Call

November 24, 2025

Jennifer Li: Hello. Can you hear me?

[Analyst]: Hello. Can you hear me?

Operator: Good morning and good evening, ladies and gentlemen. Thank you for standing by. Welcome to WeRide Q4, Q2, Q3 earnings conference call. At this time, all participants are in the listen-only mode. The company will be hosting a question-and-answer session after management prepare remarks. Please note that today's event is being recorded. The company's unaudited financial and operating results were released by the newswire earlier today and are currently available online. Joining us today are WeRide's founder, chairman, and CEO, Dr. Tony Han, and CFO and Head of International, Ms. Jennifer Li. Before we continue, I would like to refer you to the safe harbor statement in the company's earnings press release, which also applies to this call as today's call will include forward-looking statements including WeRide strategies and future plans.

Operator: These forward-looking statements are made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. The company's actual results could differ materially from those stated or implied by these forward-looking statements as a result of various important factors. Please refer to risk factors sections of the company's Form 20F filed with the SEC and announcements on the website of the Hong Kong Stock Exchange for the full disclosure of these risk factors. The company does not assume any obligations to update any forward-looking statements except as required under applicable law.

Operator: These forward-looking statements are made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. The company's actual results could differ materially from those stated or implied by these forward-looking statements as a result of various important factors. Please refer to risk factors sections of the company's Form 20-F filed with the SEC and announcements on the website of the Hong Kong Stock Exchange for the full disclosure of these risk factors. The company does not assume any obligations to update any forward-looking statements except as required under applicable law.

Operator: Please note that all numbers stated in management prepared remarks are in RMB terms, and we will discuss non-IFRS measures today, which are more truly explained and reconciled to the most comparable measures reported in the company's earnings release and filed with the SEC and the Hong Kong Stock Exchange. With that, I'll now turn the call over to the company's founder, chairman, and CEO, Dr. Tony Han. Please go ahead, sir.

Please note that all numbers stated in management prepared remarks are in RMB terms, and we will discuss non-IFRS measures today, which are more truly explained and reconciled to the most comparable measures reported in the company's earnings release and filed with the SEC and the Hong Kong Stock Exchange. With that, I'll now turn the call over to the company's founder, chairman, and CEO, Dr. Tony Han. Please go ahead, sir.

Tim Xiao: Thank you. Hello everyone. Thank you for joining us today. I would like to begin by highlighting some of the key milestones we achieved this past quarter. Q3 was a period of extraordinary progress for WeRide. Most notably, we made history in Abu Dhabi by securing the world's first city-level fully driverless robotaxi commercial permit outside the United States. We have already started the driverless operations through Uber, which I am going to detail in the later slides this week. With our recent expansion into Belgium and our inaugural driverless robotaxi license in Switzerland, WeRide has become the only company with autonomous driving permits for eight countries. By October, we have developed L4 fleets in 11 countries and more than 30 cities, with over 1,600 L4-level autonomous driving vehicles in operation worldwide. Now, let's take a look at our Q3 accomplishments.

Tony Han: Thank you. Hello everyone. Thank you for joining us today. I would like to begin by highlighting some of the key milestones we achieved this past quarter. Q3 was a period of extraordinary progress for WeRide. Most notably, we made history in Abu Dhabi by securing the world's first city-level fully driverless robotaxi commercial permit outside the United States. We have already started the driverless operations through Uber, which I am going to detail in the later slides this week. With our recent expansion into Belgium and our inaugural driverless robotaxi license in Switzerland, WeRide has become the only company with autonomous driving permits for eight countries. By October, we have developed L4 fleets in 11 countries and more than 30 cities, with over 1,600 L4-level autonomous driving vehicles in operation worldwide. Now, let's take a look at our Q3 accomplishments.

Tim Xiao: Let's turn into Abu Dhabi slides. Okay, next slide, please. As mentioned earlier, WeRide has been officially approved to provide full driverless commercial robotaxi service in the UAE's capital, Abu Dhabi. This landmark authorization removes the requirements for in-car safety officers and demonstrates the regulator's strong confidence in our technology. Following this approval, WeRide and Uber jointly launched the region's first fully driverless fare-charging robotaxi service this week, starting from Yas Island, with a citywide rollout underway. Next page. Our commercial operation at Abu Dhabi has begun in last December. Our service now covers roughly 50% of the city's core area. In half of 12 hours, our single vehicle can complete up to 20 trips per day. I think this is a quite exciting progress.

Let's turn into Abu Dhabi slides. Okay, next slide, please. As mentioned earlier, WeRide has been officially approved to provide full driverless commercial robotaxi service in the UAE's capital, Abu Dhabi. This landmark authorization removes the requirements for in-car safety officers and demonstrates the regulator's strong confidence in our technology. Following this approval, WeRide and Uber jointly launched the region's first fully driverless fare-charging robotaxi service this week, starting from Yas Island, with a citywide rollout underway. Next page. Our commercial operation at Abu Dhabi has begun in last December. Our service now covers roughly 50% of the city's core area. In half of 12 hours, our single vehicle can complete up to 20 trips per day. I think this is a quite exciting progress.

Tim Xiao: In the midterm, we aim to extend our service hours to 24/7, increase vehicle utilization to more than 25 trips per day, and improve human-to-vehicle ratio to 1 to 10. These numbers will lead us to a very healthy unit economics. We believe Abu Dhabi will set a global benchmark for large-scale, commercially viable robotaxi operation. With all of these numbers, I think our unit economics is very, very healthy and can be profitable. I just want to emphasize this kind of breakthrough is quite exciting, and we worked so hard for a whole year to achieve this full driverless robotaxi operation in Abu Dhabi. This is the first city-level outside of the United States who are capable of first city-level robotaxi service out of the United States, and it is actually provided through Uber platform.

In the midterm, we aim to extend our service hours to 24/7, increase vehicle utilization to more than 25 trips per day, and improve human-to-vehicle ratio to 1 to 10. These numbers will lead us to a very healthy unit economics. We believe Abu Dhabi will set a global benchmark for large-scale, commercially viable robotaxi operation. With all of these numbers, I think our unit economics is very, very healthy and can be profitable. I just want to emphasize this kind of breakthrough is quite exciting, and we worked so hard for a whole year to achieve this full driverless robotaxi operation in Abu Dhabi. This is the first city-level outside of the United States who are capable of first city-level robotaxi service out of the United States, and it is actually provided through Uber platform.

In half in half of 12 hours. Our single vehicle can complete up to 20 trips per day. I think this is a quite exciting progress in the third midterm in the midterm. We aim to extend our service hours to 24/7, increase vehicle to utilization to more than 25 trips per day and improve human to vehicle ratio to 1 to 10.

These numbers will lead us to a very healthy unit economics.

We believe Abu Dhabi will set a global benchmark for large-scale and commercially reliable robo-taxi operations. With all of these numbers, I think our unit economics are very, very healthy and can be profitable.

Tim Xiao: With all of these important factors, this is unparalleled, and we are so excited that we are making history. Now, let's talk about our current operation in Dubai. In September, we secured a self-driving vehicle trial permit from Dubai's Roads and Transport Authority and have begun road testing for our driverless operation in Dubai. Our goal is to launch a supervised trial on Uber this year and the driverless commercial operation in the year of 2026. I mean, next year, we are going to provide driverless robotaxi service in Dubai. Next page, please. We are going to talk about our current operation in Saudi Arabia. In Riyadh, we began offering robotaxi rides through Uber in October, making our robotaxi service the first and only publicly accessible robotaxi service in the kingdom.

With all of these important factors, this is unparalleled, and we are so excited that we are making history. Now, let's talk about our current operation in Dubai. In September, we secured a self-driving vehicle trial permit from Dubai's Roads and Transport Authority and have begun road testing for our driverless operation in Dubai. Our goal is to launch a supervised trial on Uber this year and the driverless commercial operation in the year of 2026. I mean, next year, we are going to provide driverless robotaxi service in Dubai. Next page, please. We are going to talk about our current operation in Saudi Arabia. In Riyadh, we began offering robotaxi rides through Uber in October, making our robotaxi service the first and only publicly accessible robotaxi service in the kingdom.

Uh, so I just want to emphasize, you know, this kind of breakthrough is quite exciting, and we worked so hard for a whole year to achieve this food. Drivers' Robo taxi operation in Abdi, and this is the first city-level outside of the United States that is capable of, you know, providing the first city-level Robo taxi service out of the United States. It is actually provided through the Uber platform. So with all of these important factors, this is unparalleled. We are so excited that we are making history.

Now, let's talk about our current operation in Dubai in September. We secured a self-driving vehicle trial permit from Dubai's Roads and Transport Authority and have begun road testing for our drivers' operation in Dubai. Our goal is to launch a supervised trial on Uber this year and the drivers' commercial operation in 2026. I mean, next year, we are going to provide drivers, uh, robot taxi service in Dubai.

Next page, please.

And then, we are going to talk about our current operation in Saudi Arabia.

In real art, we began offering Global Taxi rides through Uber in October.

Tim Xiao: With our development in the three largest cities in the Middle East, that is Riyadh, Abu Dhabi, and Dubai, we have more than 100 robotaxi vehicles in the Middle East region. The launch of driverless operation in Abu Dhabi is paving the way to scale the fleet to more than 500 vehicles by next year and to tens of thousands by 2030. We are very excited, very confident, very proud, and very optimistic about our full driverless robotaxi operation in the Middle East. That's not only our operation region, and I want to talk about East Asia and Europe. First, in Singapore, together with Grab, we received approval from the Land Transport Authority for both robotaxi and robobus in the area called the Punggol District. We plan to increase our AV test volume by four times by the end of this year.

With our development in the three largest cities in the Middle East, that is Riyadh, Abu Dhabi, and Dubai, we have more than 100 robotaxi vehicles in the Middle East region. The launch of driverless operation in Abu Dhabi is paving the way to scale the fleet to more than 500 vehicles by next year and to tens of thousands by 2030. We are very excited, very confident, very proud, and very optimistic about our full driverless robotaxi operation in the Middle East. That's not only our operation region, and I want to talk about East Asia and Europe. First, in Singapore, together with Grab, we received approval from the Land Transport Authority for both robotaxi and robobus in the area called the Punggol District. We plan to increase our AV test volume by four times by the end of this year.

Making our robo-taxi service the first and only publicly accessible robo-taxi service in the Kingdom.

With our development in the three largest cities in the Middle East, that is, Riyadh, Derby, and Dubai.

Uh, we have more than 100 Rabo Taxi vehicles in the M M East region. The launch of driver's operations in Dabi is paving the way to scale the fleet to more than 500 vehicles by next year.

In Middle East.

But that's not only our operation region, and I want to talk about East Asia and Europe. First, in Singapore, together with Grab, we received approval from the Land Transport Authority.

Uh, for both the Robo Taxi and the Robo Bus in the area called the Pongo District.

Tim Xiao: We're also integrating our technology into Grab's fleet management and the routing system so that in future, we can provide driverless robotaxi through Grab in Singapore, just what we have done in Abu Dhabi through Uber. Actually, all of these efforts will pave the groundwork for commercial service in the next phase. Let's talk about Switzerland. In Europe, the expansion in Switzerland continues to lead our robotaxi deployment. We received the country's first driverless robotaxi license, enabling our autonomous operation in the Q4 region. A full driverless public service is expected to be launched in the first half of 2026. That is our current operation in Europe and in East Asia in Singapore. Now let's talk about China. In our China market, we continue to expand and innovate. As we scale our commercial fleets, we also launched a 24/7 driverless commercial service in Huangpu District at Guangzhou.

We're also integrating our technology into Grab's fleet management and the routing system so that in future, we can provide driverless robotaxi through Grab in Singapore, just what we have done in Abu Dhabi through Uber. Actually, all of these efforts will pave the groundwork for commercial service in the next phase. Let's talk about Switzerland. In Europe, the expansion in Switzerland continues to lead our robotaxi deployment. We received the country's first driverless robotaxi license, enabling our autonomous operation in the Q4 region. A full driverless public service is expected to be launched in the first half of 2026. That is our current operation in Europe and in East Asia in Singapore. Now let's talk about China. In our China market, we continue to expand and innovate. As we scale our commercial fleets, we also launched a 24/7 driverless commercial service in Huangpu District at Guangzhou.

We plan to increase our A/B test volume by 4 times by the end of this year. We are also integrating our technology into graphs with management and the routing system so that in the future, we can provide drivers with Robo taxis through graphs in Singapore, just as we have done in Abu Dhabi through Uber.

Actually, uh, all of these efforts will pay the groundwork for commercial service in the next phase.

And then, let's talk about Switzerland in Europe. The expansion in Switzerland continues to lead our Robo Taxi department. We received the country's first driverless Robo Taxi license, enabling our autonomous operation in the fertile region. A full driverless public service is expected to be launched in the first half of 2026.

Um, that is our current operation in Europe and in East Asia, in Singapore. And now let's talk about China.

In our China Market.

We continue to expand and innovate.

As we scale our commercial fleets, we also launched a 24/7 driverless commercial service in Q3.

Tim Xiao: This is an area of 150sq km. As of October, we have deployed more than 300 robotaxis in Guangzhou and over 100 in Beijing. For all of these services, you can hail a driverless robotaxi in this region through our WeRide Go app. User value is kept very close to our heart, and we recently introduced China's first free pickup and drop-off feature for robotaxi service. We call it Pudu Service, allowing our system to intelligently recommend optimal boarding locations. This greatly improved both operational flexibility and user experience, which is well captured by our operational data. In November, each robotaxi completed up to 25 daily trips in Guangzhou and 23 in Beijing, which is clear evidence of accelerated adoption. This is our current exciting progress about robotaxi. Next, let's talk about our other applications. First, robobus. Okay, next page.

This is an area of 150sq km. As of October, we have deployed more than 300 robotaxis in Guangzhou and over 100 in Beijing. For all of these services, you can hail a driverless robotaxi in this region through our WeRide Go app. User value is kept very close to our heart, and we recently introduced China's first free pickup and drop-off feature for robotaxi service. We call it Pudu Service, allowing our system to intelligently recommend optimal boarding locations. This greatly improved both operational flexibility and user experience, which is well captured by our operational data. In November, each robotaxi completed up to 25 daily trips in Guangzhou and 23 in Beijing, which is clear evidence of accelerated adoption. This is our current exciting progress about robotaxi. Next, let's talk about our other applications. First, robobus. Okay, next page.

In the Hong Kong District, at Hongo, this is an area of 150 square kilometers.

As of October, we have deployed more than 300 global taxis in Gwangju, and over 100 in Beijing.

All of.

For all of these services, you can help our drivers, local taxi, in this region through our Rewrite Go app.

User value is kept very close to our heart, and we recently introduced China's first free pickup and drop-off feature for our robo-taxi service. We call it Pudu Service, allowing our system to intelligently recommend optimal boarding locations.

This greatly improved both operational flexibility and user experience, which is well captured by our operational data. In November, each RoboTaxi completed up to 25 trips in Guango and 23 in Beijing, which is clear evidence of the acceleration of adoption.

Tim Xiao: Our robobus obtained Belgium's first Level 4 test permit, and we launched our operation in Leuven, making Belgium the 11th country covered by our service. In Guangzhou, after serving more than 1 million passengers since 2021, we received an order for an additional 100 mid-size robobuses. This is a very exciting achievement. Actually, this is a newly developed robobus. In Hong Kong, we established a partnership with Guangzhou Bus Holding to deploy more than 500 Level 4 vehicles over the next three years. For our L2+ Level 8 system, WeRide and Bosch achieved a major milestone in November with the start of production of WePilot 3.0. This is an end-to-end system. It's just like what Tesla has achieved through their FSD system. Our WePilot is totally comparable to what Tesla can do with FSD.

Our robobus obtained Belgium's first Level 4 test permit, and we launched our operation in Leuven, making Belgium the 11th country covered by our service. In Guangzhou, after serving more than 1 million passengers since 2021, we received an order for an additional 100 mid-size robobuses. This is a very exciting achievement. Actually, this is a newly developed robobus. In Hong Kong, we established a partnership with Guangzhou Bus Holding to deploy more than 500 Level 4 vehicles over the next three years. For our L2+ Level 8 system, WeRide and Bosch achieved a major milestone in November with the start of production of WePilot 3.0. This is an end-to-end system. It's just like what Tesla has achieved through their FSD system. Our WePilot is totally comparable to what Tesla can do with FSD.

Um, and then, you know, this is all our current exciting progress about RoboTaxi. Next, let's talk about our other applications, first, LogoBus. Okay. Next page, our robots obtained.

Belgium's first Level 4 Testament permit. And the

And we launched our operation in Leuven, making Belgium the 11th country covered by our service in Guango, after serving more than 1 million passengers since 2021. We

Received an offer received an order for another for additional 100 meat sizes of buses. This is a, a very exciting achievement. Actually, this is a newly developed global bus in Hong Kong. We established a partnership with Guan, Chong bus holding to deploy more than 500 level board Vehicles over the next 3 years.

And for our L2 Plus level 8, as a system, we write in B.

Achieved a major milestone in November with the start of production of WePilot 3.0.

This is a end-to-end system.

Tim Xiao: WePilot 3.0 will debut with the refreshed Chery Exeed ES and ET model, and existing owners will receive OTA upgrades. With this kind of new feature, every owner of Chery Exeed ES and ET can enjoy the experience of Tesla's FSD. With this exceptional end-to-end system, WePilot has also been selected as a major add-on system provider by Guangzhou Automobile Group, GAC, for several of their passenger car models. That part is actually a very exciting progress, demonstrating WeRide can not only be capable of doing L4-level robotaxi, but also capable of doing L2 plus plus level add-ons for massive production cars. This page actually summarizes our footprint in the global. Actually, WeRide's strategy prioritizes a balanced development in the global market. I want to explain this slide a little bit. You can see in these 11 countries, we have different levels of operation.

WePilot 3.0 will debut with the refreshed Chery Exeed ES and ET model, and existing owners will receive OTA upgrades. With this kind of new feature, every owner of Chery Exeed ES and ET can enjoy the experience of Tesla's FSD. With this exceptional end-to-end system, WePilot has also been selected as a major add-on system provider by Guangzhou Automobile Group, GAC, for several of their passenger car models. That part is actually a very exciting progress, demonstrating WeRide can not only be capable of doing L4-level robotaxi, but also capable of doing L2++ level add-ons for massive production cars. This page actually summarizes our footprint in the global. Actually, WeRide's strategy prioritizes a balanced development in the global market. I want to explain this slide a little bit. You can see in these 11 countries, we have different levels of operation.

Um, it's just like what Tesla has achieved through their FSD system. Our V Pilot is totally comparable to what Tesla can do with FSD.

The WePilots 3.0 will develop deals with the refreshed Cherry Exceed and Ito model.

And existing orders will receive OTA upgrades with this kind of new feature. Every owner of Cherry Exceeds and ET can enjoy the experience of Tesla's FSD.

Uh, car models.

So that part is actually a very exciting progress demonstration. We write that we are not only capable of doing L4 level Global Taxi, but also capable of doing L2 Plus Plus level adders for massive production cars.

And this page actually shows a summary of our footprint in the global market.

Tim Xiao: We have tested or we can operate it with other drivers. They are shown in the legend. You see our multi-product offering has maximized the value of our strategy, making us the only company whose technology is available in the 11 countries shown here. We actually have a wide spectrum of applications and service available for the global market. Next, let me discuss about the backbone of our technology. This is called WeRide One's universal platform. Starting from supporting L4 applications alone in the early days, WeRide One has gradually grown into a more powerful platform that empowers the full spectrum from L2 to L4, while continuously breeding new tools and systems. One of the most prominent is our world model, WeRide Genesis.

We have tested or we can operate it with other drivers. They are shown in the legend. You see our multi-product offering has maximized the value of our strategy, making us the only company whose technology is available in the 11 countries shown here. We actually have a wide spectrum of applications and service available for the global market. Next, let me discuss about the backbone of our technology. This is called WeRide One's universal platform. Starting from supporting L4 applications alone in the early days, WeRide One has gradually grown into a more powerful platform that empowers the full spectrum from L2 to L4, while continuously breeding new tools and systems. One of the most prominent is our world model, WeRide Genesis.

Actually, um, we write strategy to prioritize a balanced data development in a global market. I want to explain this slide a little bit. You can see that in these 11 countries, we have different levels of operation. We have tested or can operate with or without the driver, and so they are shown in the Legend. As you see, our multi-product offering has maximized the value of our strategy, making us the only company whose technology is available in the 11 countries shown here. So we actually have the right spectrum of applications available and services available for the global market.

Next, let me discuss the backbone of our technology. This is called WeRun1s, Universal Platform.

Um, by starting from supporting Alpha applications alone. In the early days, we wrote 1, which has grown gradually into a more powerful platform that empowers the full spectrum from L2 to L4 while continuously breeding new tools and systems.

Tim Xiao: In our Genesis model, you can see Genesis is a new platform and will allow autonomous vehicles to be tested in a digital twin of the real world safely, efficiently, and at a large scale. It features the data loop, algorithm loop, and the simulation validation loop that are essential for scalable autonomy. This is our world model, and it's seamlessly integrated with our end-to-end system. This is a unique technology advantage. Our world model can be seamlessly integrated into end-to-end add-on system, and our L4 system can leverage on the data we collected from our L2 level data. This Genesis form as the core flying wheel, actually, we call it a double fly wheel. We can actually leverage on L2 plus plus plus level massive production car data to improve our robo-taxi.

In our Genesis model, you can see Genesis is a new platform and will allow autonomous vehicles to be tested in a digital twin of the real world safely, efficiently, and at a large scale. It features the data loop, algorithm loop, and the simulation validation loop that are essential for scalable autonomy. This is our world model, and it's seamlessly integrated with our end-to-end system. This is a unique technology advantage. Our world model can be seamlessly integrated into end-to-end add-on system, and our L4 system can leverage on the data we collected from our L2 level data. This Genesis form as the core flying wheel, actually, we call it a double fly wheel. We can actually leverage on L2+++ level massive production car data to improve our robo-taxi.

So, one of the most prominent is our world model; we write Genesis.

So, in our Genesis model, you can see Genesis is a new platform that will allow autonomous vehicles to be tested in a digital twin of the real world.

Safely, efficiently, and at a large scale, it features the data loop algorithm, Loop, and the simulation validation groups that are essential for scalable autonomy.

Tim Xiao: In turn, our robotaxi data with redundancy can help us to boost the performance of our add-on system. I want to emphasize in this world, there's only one company, WeRide, can do so. On one hand side, we have a large-scale robotaxi fleet. WeRide is capable of doing leading robotaxi service like Waymo and other companies like they can do in the US, so that we can actually capture all the characteristics of full driverless operation. At the same time, WeRide supplies WePilot 3.0 and very advanced add-on system comparable to the FSD of Tesla, and we can leverage on the mass production car data and collect all this kind of data in a very broad sense in all kinds of scenarios to help us to improve the performance of robotaxi. We believe we can combine the benefits of L4 and L2 plus.

In turn, our robotaxi data with redundancy can help us to boost the performance of our add-on system. I want to emphasize in this world, there's only one company, WeRide, can do so. On one hand side, we have a large-scale robotaxi fleet. WeRide is capable of doing leading robotaxi service like Waymo and other companies like they can do in the US, so that we can actually capture all the characteristics of full driverless operation. At the same time, WeRide supplies WePilot 3.0 and very advanced add-on system comparable to the FSD of Tesla, and we can leverage on the mass production car data and collect all this kind of data in a very broad sense in all kinds of scenarios to help us to improve the performance of robotaxi. We believe we can combine the benefits of L4 and L2+.

This is our world model and it seamlessly integrated with our end-to-end system. So this is a unique technology uh Advantage. Our world model can be seamlessly integrated into end to end other system and our Air Force system can leverage on the data, we collected from our, our L2 level data. So this Genesis form, as the cross line wheel actually we call the double double flywheel. We can actually leverage on L2 plus plus plus level, uh massive production car data, to improve our global

In turn our Robo, taxi data, with redundancy can help us to move boost the performance of our other system. I want to emphasize in this world. There's only 1 company we write can do. So, you know, we on 1 hand side. We have a large scale Robo tax. Fleet may we write a capable of doing uh, leading Robo, taxi service, like, whoo and uh, other companies like they can do uh, in in in in the US so that or we can we can actually capture all the characteristics of Food Drivers operation. At the same time we write Supply. We point 3.0 and very Advanced a system comparable to the FSD of Tesla and we can leverage on the mass production car data, and collect. All these kind of data uh, in a very broad sense in all kinds of all kinds of scenario to how

Help us to improve the performance of Global Taxi.

Tim Xiao: This hybrid architecture enhanced adaptability, reliability, safety, and transparency, ultimately enabling robust commercial deployment. We look forward to sharing more about this advantage soon. In summary, Q3 was a quarter of exceptional execution. We expand our global leadership, and we translated technology innovation into commercial reality. With that, I will handle the call over to our CFO, Jennifer Li, to discuss our financial performance. Jennifer, please go ahead to discuss about the financial numbers.

This hybrid architecture enhanced adaptability, reliability, safety, and transparency, ultimately enabling robust commercial deployment. We look forward to sharing more about this advantage soon. In summary, Q3 was a quarter of exceptional execution. We expand our global leadership, and we translated technology innovation into commercial reality. With that, I will handle the call over to our CFO, Jennifer Li, to discuss our financial performance. Jennifer, please go ahead to discuss about the financial numbers.

We believe we can combine the benefits of L4 and L2. This hybrid architecture enhances adaptability, reliability, safety, and transparency, ultimately enabling robust commercial deployment. We look forward to sharing more about this advantage soon.

Jennifer Li: Thank you, Tony. Hello everyone. Before we dive into the third quarter financials, I want to highlight that all figures are in RMB and comparisons are year over year unless otherwise stated. Now let's discuss our third quarter financial performance. We delivered a total revenue of RMB 171 million with a year-over-year growth of 144%, driven by our continued fleet expansion and increasing service penetration. The revenue growth also reflects a significant milestone we have achieved during this quarter, supported by our advanced technology, robust deployment, and operational capabilities. Our revenue came from both product revenue and service revenue. Product revenue delivered strong growth of 428% to RMB 79 million in this quarter, an encouraging result driven by the increased sale of our robotaxi and robobus.

Jennifer Li: Thank you, Tony. Hello everyone. Before we dive into the third quarter financials, I want to highlight that all figures are in RMB and comparisons are year-over-year unless otherwise stated. Now let's discuss our third quarter financial performance. We delivered a total revenue of RMB 171 million with a year-over-year growth of 144%, driven by our continued fleet expansion and increasing service penetration. The revenue growth also reflects a significant milestone we have achieved during this quarter, supported by our advanced technology, robust deployment, and operational capabilities. Our revenue came from both product revenue and service revenue. Product revenue delivered strong growth of 428% to RMB 79 million in this quarter, an encouraging result driven by the increased sale of our robotaxi and robobus.

In summary, Q3 was a culture of exceptional execution. We expanded our global leadership and translated technology innovation into commercial reality with that. I will hand the call over to our CFO, Jennifer, to discuss our financial performance. Jennifer, please go ahead to discuss the financial numbers.

Thank you, Tony. Hello everyone. Before we dive into the third quarter financials, I want to highlight that all figures are in RMB and comparisons are year-over-year unless otherwise stated.

Now, let's discuss our third-quarter financial performance.

24% driven by our continued fleet expansion and increasing service penetration.

The revenue growth also reflects a significant milestone we achieved during this quarter, supported by our advanced technology, robust deployment, and operational capabilities.

Jennifer Li: Service revenue grew 67% to RMB 92 million in Q3, supported by an increase of RMB 29 million from intelligent data service, and an increase of RMB 8 million in autonomous driving-related operational and technical services. Service revenue has surpassed product revenue in this quarter, demonstrating a continual growth momentum and healthy business structure. Among our product lines, what really stood out in Q3, same as in the last two quarters, was our robotaxi businesses. Robotaxi revenue increased 761% year over year to RMB 35 million in Q3, accounting for 21% of total revenue in this quarter. With our new federal permits in UAE, we are the first and the only robotaxi company that has begun full driverless robotaxi operation in UAE. Removing in-car safety officer is a critical milestone from a financial perspective, which will enable our robotaxi service to achieve unit economic breakeven. The quality of our growth is also compelling.

Service revenue grew 67% to RMB 92 million in Q3, supported by an increase of RMB 29 million from intelligent data service, and an increase of RMB 8 million in autonomous driving-related operational and technical services. Service revenue has surpassed product revenue in this quarter, demonstrating a continual growth momentum and healthy business structure. Among our product lines, what really stood out in Q3, same as in the last two quarters, was our robotaxi businesses. Robotaxi revenue increased 761% year-over-year to RMB 35 million in Q3, accounting for 21% of total revenue in this quarter. With our new federal permits in UAE, we are the first and the only robotaxi company that has begun full driverless robotaxi operation in UAE. Removing in-car safety officer is a critical milestone from a financial perspective, which will enable our robotaxi service to achieve unit economic breakeven. The quality of our growth is also compelling.

Our revenue came from both product revenue and service revenue. Product revenue delivered strong growth of 428% to $79 million in this quarter, an encouraging result driven by the increased sale of our robot taxis and robot buses.

Service revenue grew 67% to $92 million in Q3, supported by an increase of $29 million from intelligent data services, and an increase of $8 million in autonomous driving-related operational and technical services.

Service revenue has surpassed product revenue in this quarter, demonstrating a continual growth momentum and a healthy business structure.

Among our product lines, what really stood out in Q3, the same as in the last two quarters, was our Robo taxi businesses.

Global tax and revenue increased 761% year-over-year to $35 million in Q3, accounting for 21% of total revenue in this quarter.

With our new federal permitting in the UAE, we are the first and only robotics company that has begun food and driverless robotics operations in the UAE.

Removing the in-car safety officer is a critical milestone from a financial perspective, which will enable our robot taxi service to achieve unit economic break-even.

Jennifer Li: Group-level gross profit increased 1,124% to RMB 56 million for the third quarter, with a group-level gross margin of 33%, demonstrating our industry-leading gross margin as our business continues to grow. We aim to keep delivering business value along with our globalization strategy. Operating expense decreased 51% to RMB 436 million, with R&D expense accounting for 73% of the total operating expenses. To break down further, R&D expense increased by 24% to RMB 316 million in the third quarter of 2025 compared to the same period of 2024. Excluding share-based compensation, R&D expense grew 39% to RMB 288 million, as we further strengthened our global data compliance and advanced R&D efforts for our pre-installed robotaxi.

Group-level gross profit increased 1,124% to RMB 56 million for the third quarter, with a group-level gross margin of 33%, demonstrating our industry-leading gross margin as our business continues to grow. We aim to keep delivering business value along with our globalization strategy. Operating expense decreased 51% to RMB 436 million, with R&D expense accounting for 73% of the total operating expenses. To break down further, R&D expense increased by 24% to RMB 316 million in the third quarter of 2025 compared to the same period of 2024. Excluding share-based compensation, R&D expense grew 39% to RMB 288 million, as we further strengthened our global data compliance and advanced R&D efforts for our pre-installed robotaxi.

Our growth is also compelling.

This profit increased from $1,124 to $56 million for the third quarter, with a group-level gross margin of 33%, demonstrating our energy-leading gross margin as our business continued to grow.

We aim to keep delivering business value along with our globalization strategy.

Operating expenses decreased by 51% to $40,036 million, with R&D expenses accounting for 73% of the total operating expenses.

To break down further.

R&D expense increased by 24% to $316 million in the third quarter of 2025 compared to the same period of 2024.

Jennifer Li: The increase in R&D expense was primarily due to an increase of RMB 31 million in service fee for R&D projects, an increase of RMB 21 million in personnel-related expense from HATCOM increase, and an increase of RMB 23 million in material consumption and depreciation and amortization expenses. Administrative expense decreased by 84% to RMB 100 million in the third quarter of 2025 compared to the same period in 2024. Excluding share-based compensation, administrative expense increased by 23% to RMB 74 million. The increase was primarily due to an increase of RMB 6 million in professional service fee mainly related to legal compliance service, and an increase of RMB 4 million in personnel costs as we continue to build necessary supporting functions to grow our business. Selling expenses increased 23% to RMB 19 million in the third quarter of 2025 compared to the same period of 2024.

The increase in R&D expense was primarily due to an increase of RMB 31 million in service fee for R&D projects, an increase of RMB 21 million in personnel-related expense from HATCOM increase, and an increase of RMB 23 million in material consumption and depreciation and amortization expenses. Administrative expense decreased by 84% to RMB 100 million in the third quarter of 2025 compared to the same period in 2024. Excluding share-based compensation, administrative expense increased by 23% to RMB 74 million. The increase was primarily due to an increase of RMB 6 million in professional service fee mainly related to legal compliance service, and an increase of RMB 4 million in personnel costs as we continue to build necessary supporting functions to grow our business. Selling expenses increased 23% to RMB 19 million in the third quarter of 2025 compared to the same period of 2024.

Excluding share-based compensation, R&D expenses grew 39% to $288 million as we further strengthened our global data compliance and advanced R&D efforts for our pre-installed RoboTaxi.

The increasing R&D expenses were primarily due to an increase of $31 million in service fees for R&D projects, an increase of $21 million in personnel-related expenses from pay increases, and an increase of $23 million in immaterial, consumption, and depreciation and amortization expenses.

Administrative expenses.

By 84%.

To $100 million and a third quarter of 2025, compared to the same period in 2024.

Excluding share-based compensation, administrative expense increased by 23% to $74 million.

The increase was primarily due to an increase of $6 million in professional service fees, mainly related to legal compliance services, and an increase of $4 million in personnel costs as we continue building the necessary supporting functions to grow our business.

Jennifer Li: Excluding share-based compensation, selling expense increased by 36% to RMB 19 million, which was well below the sales increase. Our commitment to R&D is the backbone of our strategy. We will continue to direct our resources there to pioneer the industry innovation and keep building our competitive advantage. Alongside this, we will strategically grow our global team, with a clear focus on regions that have accelerated the adoption of L4 solutions. This ensures that we have world-class talents needed to support our business expansion. Our net loss narrowed by 71% to RMB 307 million in the third quarter of 2025. On a non-IFRS basis, adjusted net loss increased 15% to RMB 276 million, largely due to ongoing R&D investment and broader operational support required for the expansion of our business.

Excluding share-based compensation, selling expense increased by 36% to RMB 19 million, which was well below the sales increase. Our commitment to R&D is the backbone of our strategy. We will continue to direct our resources there to pioneer the industry innovation and keep building our competitive advantage. Alongside this, we will strategically grow our global team, with a clear focus on regions that have accelerated the adoption of L4 solutions. This ensures that we have world-class talents needed to support our business expansion. Our net loss narrowed by 71% to RMB 307 million in the third quarter of 2025. On a non-IFRS basis, adjusted net loss increased 15% to RMB 276 million, largely due to ongoing R&D investment and broader operational support required for the expansion of our business.

Selling expenses increased 23% to $90 million in the third quarter of 2025 compared to the same period of 2024.

Excluding share-based compensation, selling expenses increased by 36% to $19 million, which was well below the sales increase.

Our commitment to R&D is the backbone of our strategy. We will continue to direct our resources there to pioneer industry innovation and keep building our competitive advantage.

Alongside this, we will strategically grow our global team. It's a clear focus on a region that is accelerating the adoption of Air Force solutions.

This ensures we have world-class talent needed to support our business expansion.

Our net loss narrowed by 71% to $300 million in the third quarter of 2025.

Jennifer Li: As of 30 September 2025, we had $4.5 billion in cash and cash equivalents and time deposit, $926 million in investment in wealth management product, and $18 million in restricted cash. We had short-term bank borrowing of $245 million. Our current liquidity reserve, along with the proceeds from our recent Hong Kong dual primary listing in November, have enabled us with a resilient position for our R&D-focused strategy, and our globalization deployment process progress. Our fully driverless robotaxi commercial permit in Abu Dhabi is not just a local milestone. It's a scalable blueprint for the global industry. It demonstrates a viable path for city-level full driverless operation outside the US, along with the potential for profitable unit economics and major international markets. Our strategy is to scale this model globally. We have the complete package: the technology, the operational experience, a proven safety record, and regulatory trust.

As of 30th September 2025, we had RMB 4.5 billion in cash and cash equivalents and time deposit, RMB 926 million in investment in wealth management product, and RMB 18 million in restricted cash. We had short-term bank borrowing of RMB 245 million. Our current liquidity reserve, along with the proceeds from our recent Hong Kong dual primary listing in November, have enabled us with a resilient position for our R&D-focused strategy, and our globalization deployment process progress. Our fully driverless robotaxi commercial permit in Abu Dhabi is not just a local milestone. It's a scalable blueprint for the global industry. It demonstrates a viable path for city-level full driverless operation outside the US, along with the potential for profitable unit economics and major international markets. Our strategy is to scale this model globally. We have the complete package: the technology, the operational experience, a proven safety record, and regulatory trust.

On a non-GAAP basis, adjusted net loss increased 15% to $276 million, largely due to ongoing R&D investments and operational support required for the expansion of our business.

Cash, equivalents, and time deposits totaled $926 million in investments in wealth management products and $18 million in restricted cash.

We had short-term bank borrowing of $245 million.

Our current liquidity reserve, along with the proceeds from our recent Hong Kong due primary listing in November,

have enabled us with a resilient position for our R&D-focused strategy and our globalization deployment process progress.

Our food.

Discovered this Robo Taxi.

Commercial permitting. Abu Dhabi is not just a local milestone; it's a scalable brain blueprint for the global industry.

It demonstrates a viable path for city-level food delivery and driverless operation outside the U.S.

Along with the potential for profitable unit economics and major international markets.

Jennifer Li: In the next five years, we will achieve large-scale L4 deployment, creating a sustainable business and delivering tremendous value of autonomous driving to the shareholders. With that, operator, we're now ready to take on some questions.

In the next five years, we will achieve large-scale L4 deployment, creating a sustainable business and delivering tremendous value of autonomous driving to the shareholders. With that, operator, we're now ready to take on some questions.

Our strategy is to scale this model globally. We have the complete package: the technology, the operational experience, a proven safety record, and regulatory trust.

In the next five years, we will achieve large-scale L4 deployments, creating a sustainable business and delivering tremendous value of autonomous driving to the shareholders.

Operator: Thank you. We will now begin the question and answer session. To ask the questions on the phone, please press star 11 and wait for a name to be announced. One moment for the first question. The first question comes from the line of Tim Xiao from Morgan Stanley. Please go ahead, sir.

Operator: Thank you. We will now begin the question-and-answer session. To ask the questions on the phone, please press star one one and wait for a name to be announced. One moment for the first question. The first question comes from the line of Tim Xiao from Morgan Stanley. Please go ahead, sir.

With that operator, we're now ready to take on some questions.

511 with her name, Diana.

1 moment for the first question.

The first question comes from the line of Team Shell from Morgan Stanley.

Tim Xiao: Hi, Tony and Jennifer. Thanks for taking my question. This is Tim from Morgan Stanley. Congratulations on the strong results, and continuous expansion, and robo-taxi operation globally. I have two questions. The first question, we noticed that WeRide officially started commercial deployment of driverless robo-taxi in Abu Dhabi, UAE. In addition to the volume upsize to realize fleet sales, as Tony just mentioned, how should we quantify the revenue opportunities of vehicle sales, revenue charge, and profit sharing in the long run? That's my first question.

this is,

By, uh, Tony and Jennifer. Thanks for taking my question. Now, this is Tim from August. Um, congratulations on the strong results and continuous expansion and global tech separation globally. Um, I have two questions. The first question is, um, we noticed that we officially started commercial deployment of Travelers throughout Texas and in the UAE.

So, in addition to the volume upsides to revise, flea cells, as Tony just mentioned.

Jennifer Li: Okay. Thank you, Tim. That's a great question. I'll take the first one. For the benefit of all listeners, I'd like to briefly elaborate on our robotaxi business model. In domestic China, we mainly own and operate vehicles by ourselves and on our own ride-hailing platform, WeRide Go. After the UAE gets to break-even point in the next few years in China, we will gradually engage third-party add-on owners and the vehicle ownership to them. For now, we pretty much own all the vehicles by ourselves. The international market is different. From day one, we collaborated with platform partners such as Uber, Grab, FBB, and TXAI, and we generate revenue from three main streams, three streams. The first one is revenue share from the ride fare, the second one is the annual licensing, and the third is the sale of the vehicle.

How should we quantify the revenue opportunities of a vehicle sales revenue charge in the property, sharing in the long run? Uh, that's my first question.

Okay. Uh, thank you, Tim. That's a great question. I'll take the first one. Um, so for the benefit of all, I'd like to briefly elaborate on our robotics and business model.

In domestic China, we mainly own and operate vehicles by ourselves and on our own, right? Healing platform, Virgo.

So, before the UEE gas to break even point in the next few years, in China we will gradually engage third parties as owners and the big partnership off to them.

And for now, we pretty much own like all the vehicles by ourselves.

And International Market is different.

From day one, we have collaborated with platform partners such as Uber, Grab, SBB, and Txai, and we generate revenue from three main streams.

Jennifer Li: Vehicle sale is considered as the product revenue. WeRide can scale up the robotaxi fleet much quicker and in a lighter business model on an asset basis since the robotaxi operation fleet doesn't sit on our own balance sheet. We usually just sell this to our partner already. Revenue share and annual licensing are the recurring service revenue over the whole lifespan of the vehicle, which tends to be five to seven years. In particular, revenue share will become a significant multiplier following the expansion of the fleet size. We'll take Middle East as an example. A robotaxi at a human-level utilization, which means they can complete like 25 orders per day, can generate an annual revenue of over $90,000 on the platform. If WeRide takes 30% of the revenue share, that will give us $30,000 per car per year as revenue share.

Vehicle sale is considered as the product revenue. WeRide can scale up the robotaxi fleet much quicker and in a lighter business model on an asset basis since the robotaxi operation fleet doesn't sit on our own balance sheet. We usually just sell this to our partner already. Revenue share and annual licensing are the recurring service revenue over the whole lifespan of the vehicle, which tends to be five to seven years. In particular, revenue share will become a significant multiplier following the expansion of the fleet size. We'll take Middle East as an example. A robotaxi at a human-level utilization, which means they can complete like 25 orders per day, can generate an annual revenue of over $90,000 on the platform. If WeRide takes 30% of the revenue share, that will give us $30,000 per car per year as revenue share.

The first stream is revenue share from the ride fare. The second stream is annual licensing, and the third is the sale of the vehicle.

So, Google sell is considered as the product revenue. We can scale up the robo-taxi fleet much quicker and in a lighter business model, like assets on the asset basis, since the robo-tech operations lead doesn't sit on our own balance sheet. We usually just sell this to our partner already.

And the revenue share and annual licensing of the recurring service revenue over the whole lifespan of the vehicle, which tends to be 5 to 7 years.

Um, in particular, revenue share will become a significant multiplier.

Um, following the expansion of the fleet size.

We'll take middle area as, as example.

Um, a robot taxi at a human-level utilization, which means they can complete like 25 orders per day, can generate an annual revenue of over $90,000, like, on the platform.

Jennifer Li: If we can take 70% of the revenue share, that will give us like $60,000 per car per year. If we are moving this step one step closer to the goal and to see what we have already, let's say in Abu Dhabi, right now we have a significant presence with near 100 robotaxis in Abu Dhabi. We already cover 50% of the city core area. The commercial model is we integrate on platforms like Uber. Right now, we are charging at the same price level as UberX and Uber Comfort. In fact, if you get on Uber and call the robot, just to call a normal ride-hailing car in half of the city, no matter if you pick UberX, Uber Comfort, or the autonomous option, you can all get a WeRide vehicle.

If we can take 70% of the revenue share, that will give us like $60,000 per car per year. If we are moving this step one step closer to the goal and to see what we have already, let's say in Abu Dhabi, right now we have a significant presence with near 100 robotaxis in Abu Dhabi. We already cover 50% of the city core area. The commercial model is we integrate on platforms like Uber. Right now, we are charging at the same price level as UberX and Uber Comfort. In fact, if you get on Uber and call the robot, just to call a normal ride-hailing car in half of the city, no matter if you pick UberX, Uber Comfort, or the autonomous option, you can all get a WeRide vehicle.

If we write take 30% of the revenue share that will give us uh 30,000 US dollar per car per year as Service. Uh as a revenue share, if we can take 70% of the revenue share that will give us likes. 60,000 US dollar per car per year.

So, um, if we are moving to Step 1, Step Closer to the go, um, to see what we have already.

Henry Robo, taxi in Abu Dhabi.

Now, we already cover 50% of the city core area.

Jennifer Li: This demonstrates that our service is competitive with the mainstream ride-hailing from day one on the pricing level. On the unit economics side, the most critical metric is utilization. Right now, we already achieve a daily average like 12 orders per vehicle in a 12-hour shift. Sometimes we can get to, on the good days, more than 20 orders per vehicle per day for the 12-hour shift. It's already indicating a strong user preference and stickiness. For your information, for 12 orders per vehicle per day, we can already get to the break-even threshold in this market. There's huge profitability potential. Based on our current driverless cost structure and plan to extend the hours to 24 hours next year, we project an average daily order can reach 25 per vehicle per day.

This demonstrates that our service is competitive with the mainstream ride-hailing from day one on the pricing level. On the unit economics side, the most critical metric is utilization. Right now, we already achieve a daily average like 12 orders per vehicle in a 12-hour shift. Sometimes we can get to, on the good days, more than 20 orders per vehicle per day for the 12-hour shift. It's already indicating a strong user preference and stickiness. For your information, for 12 orders per vehicle per day, we can already get to the break-even threshold in this market. There's huge profitability potential. Based on our current driverless cost structure and plan to extend the hours to 24 hours next year, we project an average daily order can reach 25 per vehicle per day.

And the commercial model is, uh, we are integrating on platforms like Uber right now. We are charging at the same price level as UberX and Uber Comfort. In fact, if you get on Uber and call the robot, you can just call a normal ride. Healing cars in half of the city, no matter if you pick Uber apps, Uber Comfort, or the autonomous option, you can all get a variety of vehicles.

And this demonstrates that our service is competitive with the mainstream, like, right? Healing from day one on the price and level.

And unit economic is um, on the unique economic side, the most critical metric is utilization. Uh right now we already achieved a daily average like 12 order per vehicle and a 12-hour shift sometime we can get to on a good days. We can get to more than 20 orders per vehicle per day for the 12 hour shift.

and it's already indicating, um, a strong user preference and sickness.

So, for 12, for the in, for your information for 12 orders per vehicle per day, we can already get to the break event threshold, uh, in in this market.

Jennifer Li: This level of utilization will lead to a very strong profitability potential next year. The specific percentage of revenue share is confidential between different partners, but this approach can empower a sustainable, win-win partnership for everyone in the ecosystem. Thank you.

This level of utilization will lead to a very strong profitability potential next year. The specific percentage of revenue share is confidential between different partners, but this approach can empower a sustainable, win-win partnership for everyone in the ecosystem. Thank you.

So, um, there's huge profitability potential. Uh, based on our current driverless cost structure and plan to extend the hours to 24 hours, next year we project an average daily order can reach 25 per vehicle per day. This level of utilization, um, will lead to a very strong profitability, uh, potential, um, next year.

Tim Xiao: Thank you so much for sharing all the details. My second question is also related to WeRide's global business. Looking forward, in addition to operations in Abu Dhabi and Switzerland, which we just announced, which markets could step up as a key volume driver to WeRide? Does WeRide need to accelerate R&D and selling, expanding more aggressively into next year, 2026, to finance the company's robust expansion in overseas? That's my second question. Thank you.

So, uh, with the percentage, well, the specific percentage of revenue share as confidential between different partners, and, uh, this approach can empower a sustainable win-win partnership for everyone in the ecosystem. Thank you.

Tony Han: Okay, I'll take the question. First of all, I think besides Abu Dhabi and Switzerland, which markets would step up as key volume driver? To us, in our plan, it's like, first of all, in the Middle East, we have two major cities in UAE, Dubai and Abu Dhabi. Currently, we have already got the permit, and we are doing extensive road testing. UAE is definitely one country we pay a lot of attention to. It's a very important market. There's also Saudi Arabia. You can see major countries in the Middle East, so they are part of potential countries. Also, Europe and other developed countries in Asia like Japan, Singapore, and Korea, they are all potential markets that can help us to drive the volume up.

Thank you so much for sharing all the details. Um, my second question is also related to revised global business. Um, so looking for us, in addition to applications in Abu Dhabi and Switzerland, which we just announced, which markets to step up as a key volunteer to revive, and this we really need to accelerate R&D. And the selling spending more aggressively into next year, 2026, to finance the topics robust expansion in overseas. Uh, that's my second question. Thank you.

Okay, I'll take the question. And, um, so first of all,

I think so, besides the obvious, which is land, you know, uh, which markets would step up as key volume drivers? So to us, in our plan is like, so first of all, in the Middle East, we have.

2 major cities, in UAE Dubai and of Dubai. Currently is already. We have already got the permits and we are doing extensive Road testing and uh UA is definitely 1 country. We pay a lot of attention to, it's very important market and there's also Saudi Arabia so uh you can see a major countries in South in Middle East. Um so they are part of a potential countries and although

Tony Han: One thing I want to point out is like Tim, you just asked a very good question. That is, it's also I have been thinking about this over the years all the time. That is, what are our target markets and which markets can we make our service and products very profitable? I think through our testing or through our operation in Abu Dhabi, we find something so-called Abu Dhabi model. Together with Uber, we found that the unit economics is good and give us a very promising projection that we will soon in this region, we can make a good, very profitable service. This Abu Dhabi model actually created a roadmap for other cities. With Uber, I think we will try to copy this kind of model to the similar cities.

One thing I want to point out is like Tim, you just asked a very good question. That is, it's also I have been thinking about this over the years all the time. That is, what are our target markets and which markets can we make our service and products very profitable? I think through our testing or through our operation in Abu Dhabi, we find something so-called Abu Dhabi model. Together with Uber, we found that the unit economics is good and give us a very promising projection that we will soon in this region, we can make a good, very profitable service. This Abu Dhabi model actually created a roadmap for other cities. With Uber, I think we will try to copy this kind of model to the similar cities.

Europe and also and and other developed countries in Asia, like Japan, Singapore and Korea. They are all potential markets can help us to drive the volume up. But 1 thing I want to point out is like the team you just asked a very good question. That is it's also I have been thinking about this over the years, all the time that is what what are the our top in markets, and which markets can can make a or can can we make our service and products very profitable and I think through our tested as well.

Tony Han: This is a good combination of our current technology, our strategy as compared with our, and also our collaboration with our strategic partnership. With this model, I think we tend to copy to Singapore by forming another alliance with Grab, our also very important strategic partner, to doing in Singapore and also potentially all East Asia. In China, we are focusing on developing a robotaxi service based on our own application. About expansion, although we are increasing R&D investment to build stronger technology platforms, and we also try hard to recruit top talents, we expect our growth of related expenditure to be moderate because we want to adopt a satellite model to strike a balance between scaling and the investment. One of our very midterm goal is trying to reach the profitability at the same time, maintain a strong market share.

This is a good combination of our current technology, our strategy as compared with our, and also our collaboration with our strategic partnership. With this model, I think we tend to copy to Singapore by forming another alliance with Grab, our also very important strategic partner, to doing in Singapore and also potentially all East Asia. In China, we are focusing on developing a robotaxi service based on our own application. About expansion, although we are increasing R&D investment to build stronger technology platforms, and we also try hard to recruit top talents, we expect our growth of related expenditure to be moderate because we want to adopt a satellite model to strike a balance between scaling and the investment. One of our very midterm goal is trying to reach the profitability at the same time, maintain a strong market share.

Operation in Abu Dhabi. We find some something so called abdomen model. OKAY, together with Uber we found the, the, the unique economics is good and give us a very, uh, promising projection, that we will soon, uh, you know, this region we can make a good very profitable service. This opt-out model actually created a road map for other cities. Uh, so, uh, with Uber, and I think we will try to copy this kind of model to the similar cities.

and also,

With our strategy, strategic partnership. So with this model, I think we tend to, you know, we tend to copy Singapore by a form of another alliance with Grab. You know, our also very important strategic partner in doing business in Singapore and also potentially all of East Asia, and in China we are focusing on developing a global taxi service based on our own application.

Tony Han: We still want to innovate. We have to strike a balance between investment, expenditure, and development. With our current progress, I think I'm very optimistic because I have already seen the success of the Abu Dhabi model. What's next to do is trying to find all the places we can easily copy the Abu Dhabi model to, and by gathering all the strengths from these potential markets, we want to achieve profitability in the near future.

We still want to innovate. We have to strike a balance between investment, expenditure, and development. With our current progress, I think I'm very optimistic because I have already seen the success of the Abu Dhabi model. What's next to do is trying to find all the places we can easily copy the Abu Dhabi model to, and by gathering all the strengths from these potential markets, we want to achieve profitability in the near future.

And about expansion, you know, although we are increasing R&D investment to build stronger technology platforms. And we also try hard to recruit top talents, but we expect our growth of related expenditure to be moderate because, um, you know, we we want to adopt a satellite model to strike a balance between scaling and the investment, uh, 1 of our uh, um, very mid-term goal is trying to reach the profitability at the same time, maintain a strong market share and also, we still want to innovate. So, we have to strike a balance between investment and expenditure and and the development. But with our current programs, I think I'm very optimistic because I have already seen the success of the of model. And what's next to do is trying to find all the

Operator: Great. Thank you so much, Tony, for sharing that great insight, and congratulations, Tim. Looking forward to more exciting project breakthroughs around the world. Thank you.

Tim Xiao: Great. Thank you so much, Tony, for sharing that great insight, and congratulations, Tim. Looking forward to more exciting project breakthroughs around the world. Thank you.

Places we can easily copy off of, of the model to. And by gathering all the strands from this potential market, we want to achieve, uh, uh, profitability in the near future.

Tony Han: Thank you for the excellent question, Tim.

Operator: Thank you for the questions. The next questions will come from Alex Yao from JP Morgan. Please go ahead.

Operator: Thank you for the questions. The next questions will come from Alex Yao from JPMorgan. Please go ahead.

Great, thank you so much, Tony, for sharing that great insight. Congratulations again, and I look forward to more exciting projects from around the world. Thank you, thank you for the actual question. Tim.

Thank you for the question.

The next question is from Alex Yao with JP Morgan. Please go ahead.

Alex Yao: Hello and good evening, management team. Thank you for taking my question. I have two questions. Number one, what is your take of the robotaxi business in China? How do you envision economics to change in the future for China and for international market, respectively? The second question is, how quickly can the driverless milestone of Abu Dhabi operation be replicated in other markets? What can we expect for your fleet expansion plan globally, and what are the catalysts or hurdles for your plan? Thank you.

Hello and good evening, management team. Thank you for taking my question. I have two questions.

Uh, number one, uh, what is your take on the robotaxi business in China?

Uh, how do you envision economics changing?

In the future, for China and for the international market, respectively. Um, the second question is, uh, how quickly can the driverless milestone of update, the, uh, operation be replicated in other markets?

Tony Han: Okay, let me try to answer these questions one by one. Although it's claimed to be two questions, I believe it's two groups of questions. First question, if I remember clearly, it's roughly about our what do you think about China market and what's our plan for China market and our thoughts on the economics of China market? First of all, I have spoken a lot about the global market, Middle East, Asian market, Middle East, Asian market, East Asian market, European market. What about China? China, our headquarters is located in China. China is definitely a major market, and we also definitely think China is one of the most important markets we are targeted at. Now let me elaborate about the pros and cons to put resources in China market and what our strategy is.

Uh, what can we expect for your fleet expansion plan globally? And what are the catalysts, uh, or hurdles for your plan? Thank you.

Okay, let me try to answer these questions, uh, 1 by 1. Although it's a claim to be 2 questions. I've used 2 groups of questions. So, first question, if I remember clearly, it's roughly about, uh, our our, what do you think about China market? And what's our plans for for China market and our so, on the economics of China market? So, first of all, I have I have a, uh, spoken a lot about the global market in the East Asian market. Uh, uh, meet meet meet East, Asia Market East, Asia Market, European market and uh, but what about China? Okay. China, you know, our headquarters is located in China. China is definitely a major market and we also, you know, definitely in China is

Tony Han: First of all, China is a unique market with the largest user base and dynamic economics. Also, it is a great test ground. It has been both our technology proving ground and ideal operation, our sandbox for our very innovative ideas. Of course, that does not mean we treat them as a lab. We want to, when we do the robotaxi operation or trial operation, we keep safety as our top priority. Still, with all kinds of scenarios, all kinds of different climate, different weather conditions, China is a vast country. We actually tested so many different methods, different algorithms. That part, actually, China is unique and a very big market. We believe China is also very, in terms of development, it is not that balanced. They have tier one cities, looks like Paris and New York.

First of all, China is a unique market with the largest user base and dynamic economics. Also, it is a great test ground. It has been both our technology proving ground and ideal operation, our sandbox for our very innovative ideas. Of course, that does not mean we treat them as a lab. We want to, when we do the robotaxi operation or trial operation, we keep safety as our top priority. Still, with all kinds of scenarios, all kinds of different climate, different weather conditions, China is a vast country. We actually tested so many different methods, different algorithms. That part, actually, China is unique and a very big market. We believe China is also very, in terms of development, it is not that balanced. They have tier one cities, looks like Paris and New York.

As one of the most important markets, we are targeted at China. Now let me elaborate on the pros and cons of putting resources in the China market and what our strategies are. First of all, China is a unique market with the largest user base and dynamic economics.

Um, and also it is a great, uh, test ground. It has been both our technology proving ground and ideal operation, our, uh, sandbox for our very innovative ideas. But, of course,

That doesn't mean like we treat them as a lab, okay? We want to why we do the robo, taxi operation, or trial operation. We, we keep safety as our top priority but still, you know, with all kinds of scenarios, all kinds of, uh, uh, uh, different climate, uh, different, uh, weather conditions. China is a vast country. And we, actually, we tested so many different, uh, methods different algorithms. So that part actually China is unique and a very big Market.

Tony Han: There's a tier four city, looks like rural area. We believe profitability in tier one cities can be achieved with a combination of three elements. Number one, city-level driverless permit. Number two, average daily order of high double digits. That means like what we try to achieve in the Middle East should be achieved in China also, more than 20 orders per day. Number three, a kind of relatively healthy price. Although these days, the taxifier in China is still relatively low, we expect to see the fare to grow a little bit. It's still a kind of relative healthy. With these three factors, we believe we still need to expand our market in China, mainly in tier one cities.

There's a Tier 4 city, looks like rural area. We believe profitability in tier one cities can be achieved with a combination of three elements. Number one, city-level driverless permit. Number two, average daily order of high double digits. That means like what we try to achieve in the Middle East should be achieved in China also, more than 20 orders per day. Number three, a kind of relatively healthy price. Although these days, the taxifier in China is still relatively low, we expect to see the fare to grow a little bit. It's still a kind of relative healthy. With these three factors, we believe we still need to expand our market in China, mainly in Tier 1 cities.

Tony Han: So far, we have achieved, as I mentioned before, 300 robotaxis in Guangzhou and another 100 robotaxis, more than 100 robotaxis in Beijing in the area of 150km area. We are continuing to expand that. We have implemented the free pickup and drop-off features to help us to improve the user experience. I think we aim at supplying better robotaxi service than traditional taxi service supplied by human driver. Therefore, we can get more orders. We can give better user experience so that we can be ordered more frequently. We expect that the economics of all of these markets will help to improve over time. We want to actually learn what we have in China to expand to and learn what we have learned in China and use them as our competitive advantage in a global market.

So far, we have achieved, as I mentioned before, 300 robotaxis in Guangzhou and another 100 robotaxis, more than 100 robotaxis in Beijing in the area of 150km area. We are continuing to expand that. We have implemented the free pickup and drop-off features to help us to improve the user experience. I think we aim at supplying better robotaxi service than traditional taxi service supplied by human driver. Therefore, we can get more orders. We can give better user experience so that we can be ordered more frequently. We expect that the economics of all of these markets will help to improve over time. We want to actually learn what we have in China to expand to and learn what we have learned in China and use them as our competitive advantage in a global market.

Uh in in in terms of development, it's not that balanced. You know they have material 1 City looks like Paris and New York. There's a tier 4 City. Looks like uh you know, like rural area. So we believe profitability in Tier 1 cities, can be achieved with a combination of 3. Elements number 1 City, level drivers permit number 2, average daily order of high double digits. That means like what we try to achieve in Middle East, should be achieved in China. Also, you know, more than 20 orders per day, number 3, uh, a kind of a relatively healthy, uh, price, okay? Although these days, the taxi fire in China is still relatively low but we expect to see the the fair to grow a little bit, so it's still a kind of relative healthy. So, with these 3 factors, we believe, uh, we still need to expand our Market in China or mainly in, in Tier 1 cities.

So while we have achieved like as I mentioned before, right? 300 robotics in in Wando and another 100, Rob have more than 100 robotics in Beijing in the areas of 150 kilometers area and we are continuing to expand that and also we we we have have implemented, the free poodle. I mean pickup and drop off features. Help us to improve the user experience and I think, you know, we aim at Supply back.

Robo taxi service than traditional taxi service. Supplied by human driver. Therefore, we can get more orders and, um, and also we can, uh, we can give better user experience so that we, we can be ordered more frequently.

Tony Han: Therefore, I think we still treat China as one of the most important markets, and we will keep on investing and injecting resources in this market. The second group question is about how quickly we can copy the Abu Dhabi model to the rest of the world. First of all, thanks for asking this question, Andy. We believe we have found this kind of Abu Dhabi model. It's kind of like a method effect. WeRide is kind of a unique first mover because we just got a city-level driverless permit. It is the only one so far out of the United States that you can have a city-wide driverless permit, and you can provide the service through Uber. That means making the service more ubiquitously available.

Therefore, I think we still treat China as one of the most important markets, and we will keep on investing and injecting resources in this market. The second group question is about how quickly we can copy the Abu Dhabi model to the rest of the world. First of all, thanks for asking this question, Andy. We believe we have found this kind of Abu Dhabi model. It's kind of like a method effect. WeRide is kind of a unique first mover because we just got a city-level driverless permit. It is the only one so far out of the United States that you can have a city-wide driverless permit, and you can provide the service through Uber. That means making the service more ubiquitously available.

And we expect that economics of all of these markets will help to improve over time and also, uh, we want to actually learn what we have in China to expand to, uh, and learn what we have learned in China and, and, and use them as our competitive advantage in the global market. Therefore, um, I think we still treat China as 1 of the most important market and we will keep on invest and inject resource in this market.

Tony Han: Therefore, I think we can quickly copy to some similar market like Dubai in UAE, same country, Riyadh in Saudi, and same region, and Singapore with a Grab support. We are trying to copy to these kind of countries. I believe the regulatory condition, all of other factors are quite similar. We also want to emphasize Europe is a very important market, and we are trying to see whether we can copy to Europe. About the catalysts and hurdles, catalysts is actually because of this method effect, other countries are more prone to allow our operation, are more prone to give us permit. At the same time, the hurdles is still the regulatory issues. We want to make sure we use our current leverage or our current successful experience to get more driverless permits so that we can deploy the service.

Therefore, I think we can quickly copy to some similar market like Dubai in UAE, same country, Riyadh in Saudi, and same region, and Singapore with a Grab support. We are trying to copy to these kind of countries. I believe the regulatory condition, all of other factors are quite similar. We also want to emphasize Europe is a very important market, and we are trying to see whether we can copy to Europe. About the catalysts and hurdles, catalysts is actually because of this method effect, other countries are more prone to allow our operation, are more prone to give us permit. At the same time, the hurdles is still the regulatory issues. We want to make sure we use our current leverage or our current successful experience to get more driverless permits so that we can deploy the service. That's all I wanted to say about this question.

Okay, the second group question is about how quickly we can copy up that model to the rest of the world. Okay, first of all, uh, thanks for asking this question. Uh, uh, uh, any and, uh, the, we we believe we have find this kind of update model. It's, it's kind of like a massive effect, uh, and we write is kind of a unique first, mover? Because we just got a city level, driver's permit. It is not only 1 so far out of the United States that you can have a city-wide driver's permit and you can provide this service through Uber. So that means make the service more ubiquitously available. Uh therefore I think

We can quickly copy to some similar markets like Dubai in the UAE, same country. We are in, uh, in new Saudi and, you know, same region and Singapore, uh, you know, with a graph support. So we are trying to copy to these kinds of countries. And I believe the, the, uh, the regulatory, uh, conditions, all of the other, uh, factors are quite similar. And we also want to emphasize that Europe is a very important market, and we are trying to see whether we can copy to Europe.

and uh,

Tony Han: That's all I wanted to say about this question.

And about the Catholic and hurdles Catholics is of actually is uh, is because of this massive effect or other countries are more prone to uh, to allow our our, our operation uh, are more prone to give us permit, but at the same time, the hurdles is still the regulatory uh issues. We want to make sure we use our car, we leverage on our current successful experience to get more drivers permit, so that we can deploy the service.

That's all I want to say about this question.

Operator: Thank you for the questions. One moment for the next question. Next question comes from Ming Sun Li of Bank of America. Your line is now open.

Operator: Thank you for the questions. One moment for the next question. Next question comes from Ming Hsun Lee of Bank of America. Your line is now open.

Thank you for the questions. One moment for the next question.

Mingsun Li: Hello, dear management team. I have two questions as well. First question, we are seeing more OEMs and ride-hailing companies announcing to plan enter the robotaxi business. What are WeRide's key advantages, and how should we think about the competitive landscape in the future? Thank you. That's my first question.

Ming Hsun Lee: Hello, dear management team. I have two questions as well. First question, we are seeing more OEMs and ride-hailing companies announcing to plan enter the robotaxi business. What are WeRide's key advantages, and how should we think about the competitive landscape in the future? Thank you. That's my first question.

Next question comes from Ming Sun, Li of Bank of America. Your line is now open.

Tony Han: Okay. I think these days because of the increasing discussion and the increasing maturity of robo-taxi, you see so many car OEMs and platforms, car-hailing platforms start to talk about robo-taxi or start to announce their robo-taxi strategy. One thing I want to mention is like robo-taxi, to do robo-taxi is not easy. It takes many years of efforts, technology accumulation, regulatory exploration. That's why there are so few mature robo-taxi companies in this world. If you count the mature robo-taxi service, one standard is they have open to public driverless robo-taxi operation. I think you can contact most one of three or four. Not so many. If not because of why you see a few companies getting matured, then you can announce your strategy. Better, you need to show whether you have enough technology accumulation, enough experience to do robo-taxi.

Tony Han: Okay. These days because of the increasing discussion and the increasing maturity of robotaxi, you see so many car OEMs and platforms, car-hailing platforms start to talk about robotaxi or start to announce their robotaxi strategy. One thing I want to mention is like robotaxi, to do robotaxi is not easy. It takes many years of efforts, technology accumulation, regulatory exploration. That's why there are so few mature robo-taxi companies in this world. If you count the mature robo-taxi service, one standard is they have open to public driverless robo-taxi operation. I think you can contact most one of three or four. Not so many. If not because of why you see a few companies getting matured, then you can announce your strategy. Better, you need to show whether you have enough technology accumulation, enough experience to do robotaxi.

Uh, hello uh, dear management. Uh, I have 2 questions as well. Uh, so first question, uh, we are seeing more oems uh and the right hauling uh companies uh announcing uh to plan uh enter uh the robot taxi business. Uh, what are uh we write the key advantages and how should we think about the contact competitive Landscapes? Uh, in the future? I think that's my first question.

okay, so I think you

So because of the increasing discussion and increasing maturity of Robo tax, you see so many car oems and platforms. Uh uh car getting platforms start to talk about Robo taxi or start to announce the robo taxi strategy. But 1 thing I want to mention is like um, you know um Robo taxi to do. Robo taxi is not easy. Okay. It take many years of efforts technology, accumulation, uh, regulatory exploration and that's why there are so few mature Robo taxi company in this world.

Tony Han: WeRide's competitive advantage is still in several areas. First of all, technology, right? WeRide, our ability to massively deploy both L4 and L2, up to plus plus level mass production vehicle, helps us to actually, first of all, gain data, to gather data more efficiently, and make our algorithm more generalizable. That one actually in turn strengthens our technology. Second, our capability actually for fast iteration is there. Think about for car OEMs, right? They usually have a relatively small ADAS system development team. What you can do for L2 plus plus FSD or L2 plus plus ADAS system is far from what you can achieve in L4 because L4 is a driverless operation. L2 is just like a system driving system. For the L2 system, you don't need to take the final responsibility.

WeRide's competitive advantage is still in several areas. First of all, technology, right? WeRide, our ability to massively deploy both L4 and L2, up to plus plus level mass production vehicle, helps us to actually, first of all, gain data, to gather data more efficiently, and make our algorithm more generalizable. That one actually in turn strengthens our technology. Second, our capability actually for fast iteration is there. Think about for car OEMs, right? They usually have a relatively small ADAS system development team. What you can do for L2 plus plus FSD or L2++ ADAS system is far from what you can achieve in L4 because L4 is a driverless operation. L2 is just like a system driving system. For the L2 system, you don't need to take the final responsibility.

You you know if you count the mature Robo taxi service, once the energy they have open to public drivers or Robo taxi operation. I think, you know, you can contact most 1 of 3 or 4. Okay, so not so many. Uh, so it it, if, if, if not because of what you see, a few companies getting matured, then then you can announce your strategy better. You need to show whether you have enough technology, accumulation enough experience to do robo taxi. Um, so, but our, uh, Weise of competitive Advantage is still in several area. First of all technology, right? We write uh, we our ability to massively deploy, both L4 and L2 up to plus level mass production uh vehicle help us to actually more for

Tony Han: For L4 system, you have to be redundant, have to be redundant, have to take the responsibility. Over the past nine years, WeRide has accumulated lots of experience. That's why we can roll out our robotaxi service. I haven't seen any other car OEMs or car-hailing platforms be able to do so. That is one of our advantages. The last thing I want to emphasize is about the core of a company. The core of WeRide is really the AI technology. WeRide since day one has been an AI company. We hire so many top talents and set up our company for the fast iteration in the AI algorithm. I don't think traditional car OEMs or traditional car-hailing platforms are capable of this kind of faster iteration. Let's wait and see.

For L4 system, you have to be redundant, have to be redundant, have to take the responsibility. Over the past nine years, WeRide has accumulated lots of experience. That's why we can roll out our robotaxi service. I haven't seen any other car OEMs or car-hailing platforms be able to do so. That is one of our advantages. The last thing I want to emphasize is about the core of a company. The core of WeRide is really the AI technology. WeRide since day one has been an AI company. We hire so many top talents and set up our company for the fast iteration in the AI algorithm. I don't think traditional car OEMs or traditional car-hailing platforms are capable of this kind of faster iteration. Let's wait and see.

First of all gain data, uh, okay, uh, uh, to, uh, to gather data more efficiently and make our algorithm more generalizable. So that's 1 after internal strength, our technology. Second, our all, uh, our, um, capability actually for fast iteration is there and, uh, you know, think about what cloud yams, right? They have usually they have a relatively small, uh uh 88 system, uh developer team, you know, what you can do for L2 plus plus FSD uh or L2 plus plus AA system is far from what you can achieve in L4 because L4 is a driverless operation. It's you know L2 is just like a system driving system they for the L2 system. You don't need to take the final responsibility, but for L4 system, you have to be redone. Have to be redundant have to take

The responsibility over the past 9 years we write has to accumulate uh loss of experience. Uh we that's why we can uh uh roll out all the taxi service. And I haven't seen any other car EMS or uh car heading platform, being be able to do so. So that is 1 of our uh uh advantage and 1 Thing. The the last thing I want to emphasize is about on the, the core.

Tony Han: So far, I haven't seen any major car OEMs or car-hailing platform companies have successfully rolled out any robotaxi service, driverless robotaxi service to public. Okay. That's my answer to these two questions.

So far, I haven't seen any major car OEMs or car-hailing platform companies have successfully rolled out any robotaxi service, driverless robotaxi service to public. Okay. That's my answer to these two questions.

Mingsun Li: Yeah. Sorry, one more question from me. Following the last question, do you think the amount of data and the development of AI models have given OEMs certain edge to enter and compete in robo-taxis? Is it possible to evolve from L2 to L4?

Ming Hsun Lee: Yeah. Sorry, one more question from me. Following the last question, do you think the amount of data and the development of AI models have given OEMs certain edge to enter and compete in robo-taxis? Is it possible to evolve from L2 to L4?

The calls we write is, is really the AI technology we write since day 1 has been the AI company. And we hire so many top talents and, uh, set up our company for the fast, iteration in the air algorithm. I don't think traditional car, oems or traditional car heating platform, uh, are capable of this kind of faster iteration. So, uh, last 1, let's wait and see, but so far, I haven't seen any major car. Oems or car heating platform company have successfully rolled out any Robo taxi service drivers or more Tax Service to public. Okay let me answer to these 2 questions.

Tony Han: Oh, very good question. First of all, I want us to think about one thing. Who are the best L2 plus plus or ADAS system company in this world? Probably Tesla. In China, I think we can name a few, maybe Xpeng, Li Auto. If you look at their strategy, they are doing L2 plus plus ADAS system. They talk about robotaxi, but when they come to robotaxi, they always try to attack this problem or approach this project directly from L4 level. Why is there no L3 strategy? Where are their L3 strategy? There's no L3 strategy from Tesla. There's no Xpeng and Li Auto. They all skipped L3. Why is that? Because if you directly grow L2 plus plus to L3 and then to L4, they found that it's really very, very difficult. It's just like you are climbing a cliff.

Tony Han: Very good question. First of all, I want us to think about one thing. Who are the best L2 plus plus or ADAS system company in this world? Probably Tesla. In China, I think we can name a few, maybe Xpeng, Li Auto. If you look at their strategy, they are doing L2++ ADAS system. They talk about robotaxi, but when they come to robotaxi, they always try to attack this problem or approach this project directly from L4 level. Why is there no L3 strategy? Where are their L3 strategy? There's no L3 strategy from Tesla. There's no Xpeng and Li Auto. They all skipped L3. Why is that? Because if you directly grow L2++ to L3 and then to L4, they found that it's really very, very difficult. It's just like you are climbing a cliff.

Yeah, uh, sorry, uh, one more question from me. Uh, so following the last question, uh, do you think the amount of data and the development of AI models have given OEMs a certain edge to enter, uh, and compete in robotics? Is it possible to, uh, evolve from Level 2 to, uh, Level 4?

Oh, very good question. So first of all, I want us to think about what 1 thing. So who are the best L2 plus plus or add a system with company in this world probably Tesla, uh, in China, I think there are we can name a few or maybe xonly Auto but if you look at their strategy, they are doing L2 plus plus,

The system, and they talk about Robo taxi. But when they come to Robo taxi, they always try to attack this problem or approach this project directly from L4 level.

Why isn't there an L3 strategy? Okay? Where is the other L3 strategy?

Tony Han: Instead, you maybe directly solve the problem. That is using what your experience directly solves L4 system level problem. That is just like we have already done for past eight or nine years. The technology has been there. We have used deep learning algorithm based on large language model or lots of data. All of this, I want to say, it's based on our past eight years' experience. Currently, true car OEM can leverage on the cutting-edge large language model stuff. There are lots of infrastructures that are relevant, like data simulation and the cloud computing platform. All of this, I don't think the car OEMs have enough accumulation. Still take many years of them to really roll out a simulation platform, to roll out the protocol, to roll out the pipeline to test the driverless robotaxi.

Instead, you maybe directly solve the problem. That is using what your experience directly solves L4 system level problem. That is just like we have already done for past eight or nine years. The technology has been there. We have used deep learning algorithm based on large language model or lots of data. All of this, I want to say, it's based on our past eight years' experience. Currently, true car OEM can leverage on the cutting-edge large language model stuff. There are lots of infrastructures that are relevant, like data simulation and the cloud computing platform. All of this, I don't think the car OEMs have enough accumulation. Still take many years of them to really roll out a simulation platform, to roll out the protocol, to roll out the pipeline to test the driverless robotaxi.

Why is that? Because, you know, if you directly grow out to prosper to elsewhere, and then to L4, they found its really, very, very difficult. It's just like, you know, you are climbing a cliff. Instead you may be directly directly solve. The problem that is using what you your experience direct from L forces, L4 system level problem. That is just like we have already done for past 8 or 9 years, you know, the technology has been there. You know, we have used deep learning algorithm based on large language model or lots of data. But all of this, I I want to say, uh, you know, it's it's it's based on our past 8 years experience. Uh, currently true, uh carem can leverage on The Cutting Edge. Uh, large language model stuff, but there are a lot of infrastructures that's a

Tony Han: One thing I want to emphasize, having a pretty good ADAS system can let you drive for 100mi without takeover. It's far from to roll out a driverless robotaxi. To roll out a driverless robotaxi, you have to be capable of making that car drive by itself more than 10,000mi. That is a kind of magnitude of difficulties. It's just like swimming in a swimming pool and then you want to swim across the English Channel. That's different. I'm not going to say it's absolutely not possible to gradually grow from L2 plus plus to L4, but it will take a long, long time. Before then, I think first class, the tier one robotaxi company like WeRide will have already taken over the global market, has already been very profitable.

One thing I want to emphasize, having a pretty good ADAS system can let you drive for 100mi without takeover. It's far from to roll out a driverless robotaxi. To roll out a driverless robotaxi, you have to be capable of making that car drive by itself more than 10,000mi. That is a kind of magnitude of difficulties. It's just like swimming in a swimming pool and then you want to swim across the English Channel. That's different. I'm not going to say it's absolutely not possible to gradually grow from L2++ to L4, but it will take a long, long time. Before then, I think first class, the Tier 1 robotaxi company like WeRide will have already taken over the global market, has already been very profitable.

Like, uh, data simulation and the cloud computing platform. All of this, I don't think, uh, the cloud EMS has enough accumulation. Uh, it will take many years for them to really roll out a simulation platform, to roll out the protocol, and to roll out the pipeline to test the driver's Robo taxi. Once they... I want to emphasize having a pretty good ad system can let you drive for 100 miles without taking over. It's far from rolling out, uh, Drive.

Global Taxi to roll out, the driver with Robo taxi. You have to capable of making that car drive by itself more than 10,000 miles. So, that is a kind of magnific, uh, magnitude of difficulties. So, um, so it's just like swimming or swimming pool and then, you want to swim and then across the English Channel, that that's different. So, um,

Tony Han: Time left for these major car OEMs to gradually grow from L2 plus plus to L4 is very, very limited. Any other questions?

Time left for these major car OEMs to gradually grow from L2++ to L4 is very, very limited. Any other questions?

I think I I'm I'm not saying I'm not going to say so absolutely not possible to gradually grow from L2 plus plus to L4, but it will take a long long time before then that I think, uh, a first first class the Tier 1 robot taxi comes like, we write, we will have already taken over the global market has already been, uh, very profitable so, uh, time left for this, uh, uh, car. Major car, oems to gradually grow from L2 plus plus to L4 is very, very limited.

Operator: Thank you for the questions. We will now take the next question from Li Pingchao from CICC. Your line is now open.

Operator: Thank you for the questions. We will now take the next question from Liping Zhao from CICC. Your line is now open.

Any other questions?

Pingchao Li: Good evening, Tony and Jennifer. Thanks for taking my questions. First, I want to follow the previous technical question. This question is for Tony because you are quite confident in maintaining the leadership in the industry. What tools and technology approaches help you stay ahead of the curve? Could you please share more color from a technical perspective? I'll have a follow-up.

Liping Zhao: Good evening, Tony and Jennifer. Thanks for taking my questions. First, I want to follow the previous technical question. This question is for Tony because you are quite confident in maintaining the leadership in the industry. What tools and technology approaches help you stay ahead of the curve? Could you please share more color from a technical perspective? I'll have a follow-up.

Thank you for the questions. We will now take the next question from Leaping Chao from CIGC. Your line is now open.

Good evening, Tony and Jennifer. Thanks for.

Taking my questions. Uh, the first I want to uh, follow the previous technical question. Uh, and this question is for Tony because you are uh, quite confident in maintaining the leadership in the industry. Um, what tools and technology approaches help you stay ahead of the curve? Could you please share more color, uh, from a technical perspective?

Tony Han: Okay. First of all, just as I have discussed, right, there is only one company in the world, to my best knowledge, that is capable of doing robotaxi, has already achieved open to public driverless operation, at the same time supply ADAS system to mass production car company. That's WeRide. We have a so-called dual flywheel strategy. That is, we can gather the data we collected through our robotaxi fleet, all kinds of corner cases, and use that to facilitate our L2 plus plus development. At the same time, we can also get what we have collected from L2 plus plus system, like AI drive based on navigation, and make our L4 system more stable and more generalizable.

Tony Han: Okay. First of all, just as I have discussed, right, there is only one company in the world, to my best knowledge, that is capable of doing robotaxi, has already achieved open to public driverless operation, at the same time supply ADAS system to mass production car company. That's WeRide. We have a so-called dual flywheel strategy. That is, we can gather the data we collected through our robotaxi fleet, all kinds of corner cases, and use that to facilitate our L2++ development. At the same time, we can also get what we have collected from L2++ system, like AI drive based on navigation, and make our L4 system more stable and more generalizable.

Uh, and then I'll have a follow-up.

Okay, so first of all, just uh uh as I have discussed, right? There's only 1 company in the world to my best knowledge that are capable of doing Robo. Taxi has already achieved open to public drivers operations. At the same time Supply a the system to mass production car company. That's we write and so we have a so-called dual flywheel strategy. That is we can uh gather the data uh we we we we we collected through our Robo taxi Fleet, all kinds of polar cases and use that to facilitate our health 2 plus plus development. At the same time, we, we, we can also get what we have, uh, collected from L2 plus plus system, like AI Drive based on navigation and make our Air Forces team.

Tony Han: By combining these two sources of data, two sources of problem, we actually gradually evolve to a super platform that is capable of robotaxi at the same time, with limited hardware and limited HD map or navigation map, making us able to cover the whole global market. These two parts actually leverage on each other, help us to improve or to iterate our algorithm at a speed that cannot be achieved by a single strategy company. Okay. That's one of our advantages. The other thing is like the globalization. Since we have deployed the fleets in the global market, we can collect the data, and also we can get heterogeneous sources of data from all over the world.

By combining these two sources of data, two sources of problem, we actually gradually evolve to a super platform that is capable of robotaxi at the same time, with limited hardware and limited HD map or navigation map, making us able to cover the whole global market. These two parts actually leverage on each other, help us to improve or to iterate our algorithm at a speed that cannot be achieved by a single strategy company. That's one of our advantages. The other thing is like the globalization. Since we have deployed the fleets in the global market, we can collect the data, and also we can get heterogeneous sources of data from all over the world.

Uh, ball stable, uh, more generalizable. And so by combining these two sources of data, two sources of problems, we actually, uh, gradually evolved to a super platform that is capable of robo-taxi. At the same time, uh, with limited hardware and limited, uh, uh, uh,

Tony Han: We can have the data that's collected in a very dry climate in the Middle East, and sometimes we can get data from very humid tropical area in Singapore, and very cold area in Japan and in China. I can't imagine any other company has this kind of wide spectrum of application area. With all of this data, and also we hired a group of talented engineers, we actually evolved very fast. The other thing I want to emphasize is our Genesis platform. It's actually based on a physical AI model, and with lots of considerations on a really world model, physical AI world. It actually seamlessly integrates with our end-to-end system. This kind of simulation platform gives us a big advantage to develop. With combination of all of this kind of algorithm and data, I think this is massively effective here.

We can have the data that's collected in a very dry climate in the Middle East, and sometimes we can get data from very humid tropical area in Singapore, and very cold area in Japan and in China. I can't imagine any other company has this kind of wide spectrum of application area. With all of this data, and also we hired a group of talented engineers, we actually evolved very fast. The other thing I want to emphasize is our Genesis platform. It's actually based on a physical AI model, and with lots of considerations on a really world model, physical AI world. It actually seamlessly integrates with our end-to-end system. This kind of simulation platform gives us a big advantage to develop. With combination of all of this kind of algorithm and data, I think this is massively effective here.

Strategy company. Okay? So that's 1 of our advantage. And the other thing is like, you know, the globalization since we have deployed, The Fleets in the global market, we can collect the data, uh, and and also we can get, uh, heterogeneous source of data from all over the world. We can have the data that collected in a very dry climate in Middle East. And sometimes we can get data from very human topical, uh, tropical area in Singapore and very cold area in Japan. And in China, and I, I can't imagine any other company have this kind of, uh, wide spectrum of application area. And, um, and with all of this data and also, we, we hired a group of talented Engineers. We, we, we, we, we, we, we actually, uh, evolve very fast. The other thing I want to emphasize is our gender.

Genesis platform, it's actually based on uh uh, physical AI model. And and you know, things with lots of care with lots of considerations on the really World model, physical, AI or physical AI world and it actually seemed this integrated with our end-to-end system. This kind of simulation platform to give us a big Advantage um, to to develop

and uh,

Tony Han: We have many, many driverless permits all over the world in many countries. We have many car OEMs collaborating with us. We have heterogeneous data collected from different countries, different levels of autonomy. By combining all of this, I think we can achieve accelerated development speed, which is much faster than our competitors. That's my answer to your question.

We have many, many driverless permits all over the world in many countries. We have many car OEMs collaborating with us. We have heterogeneous data collected from different countries, different levels of autonomy. By combining all of this, I think we can achieve accelerated development speed, which is much faster than our competitors. That's my answer to your question.

Uh, with, with, with combination all of this kind of, uh, uh, um, uh, algorithm and data, I think this massive effect is here. We have, uh, many, many drivers' permits from all over the world, in many countries, and we have many car companies collaborating with us. We have heterogeneous data collected from different countries, at different levels of autonomy. And by combining all of this, I think we can achieve an accelerated development speed, uh, which is much, much faster than our competitors.

Pingchao Li: Thanks, Tony. That's very helpful. My second question is for Jennifer. The board of the company has authorized a $1 million share repurchase program in May this year. Could you please update what is the status on this program? Thank you.

Liping Zhao: Thanks, Tony. That's very helpful. My second question is for Jennifer. The board of the company has authorized a $1 million share repurchase program in May this year. Could you please update what is the status on this program? Thank you.

That's my answer to your question.

Jennifer Li: Thank you, Li Ping. Regarding the $100 million share repurchase program, which is authorized by the board in May, no purchase has been initiated to date. The reason is the pre-priority work for our Hong Kong IPO constituted for a closed period under the security regulation, during which the trading was restricted. As a dual-listed company, we are also required to obtain specific shareholder approval to ratify this program. We are currently preparing the extraordinary general meeting to seek this approval, which will allow the program to proceed. Thank you.

Jennifer Li: Thank you, Liping. Regarding the $100 million share repurchase program, which is authorized by the board in May, no purchase has been initiated to date. The reason is the pre-priority work for our Hong Kong IPO constituted for a closed period under the security regulation, during which the trading was restricted. As a dual-listed company, we are also required to obtain specific shareholder approval to ratify this program. We are currently preparing the extraordinary general meeting to seek this approval, which will allow the program to proceed. Thank you.

Uh, thanks, Tony. That's very helpful. And, uh, my second question is for Jennifer. The board of the company has authorized a $1 million share repurchase program in May this year. Could you please update us on the status of this program? Thank you.

No, thank you, liping, uh, regarding the 100 million US dollar share purchase program. Uh, which is authorized by the board in May, uh, we haven't, uh, no purchase have been initiated to date. Uh, the reason is the prayer priority work for our Hong Kong IPO, IPO constitute a foreclosed period under the security regulation, uh, which doing rich.

Pingchao Li: Thank you, Jennifer.

Liping Zhao: Thank you, Jennifer.

The trading was restricted. As a listed company, we are also required to obtain specific shareholder approval to ratify this program. We are currently preparing the call for an extraordinary general meeting to seek this approval, which will allow the program to proceed. Thank you.

Uh, thank you. Jennifer.

Jennifer Li: Sorry, operator, we're ready to take the next question.

Operator: Certainly. Our last question comes from Paul Kong from UBS. I beg your pardon, from UBS. Please go ahead.

Operator: Certainly. Our last question comes from Paul Gong from UBS. I beg your pardon, from UBS. Please go ahead.

All right. Operator, we're ready to take the next question. Certainly.

Last question comes from Paul Cole from Coleman. Sex, please. So, I beg your pardon.

Paul Kong: Thanks for taking my question. Yes, Paul Kong from UBS. I have two questions. The first one is regarding the robotaxi revenue contribution. We have noticed that while this is about seven times year-over-year growth, it seems to have a little bit of fluctuation compared to the second quarter. Could you please elaborate more on this? My second question is regarding the European strategy. Congratulations for the permit in Switzerland recently. Can you share more on the next step of the company's plan for European expansion? Thank you.

Paul Gong: Thanks for taking my question. Yes, Paul Gong from UBS. I have two questions. The first one is regarding the robotaxi revenue contribution. We have noticed that while this is about seven times year-over-year growth, it seems to have a little bit of fluctuation compared to the second quarter. Could you please elaborate more on this? My second question is regarding the European strategy. Congratulations for the permit in Switzerland recently. Can you share more on the next step of the company's plan for European expansion? Thank you.

Jennifer Li: Okay. I'll take the first question. I think Tony probably want to take the second. Regarding the fluctuation of robotaxi revenue, we will say for the past three quarters, you can see our robotaxi revenue made like a 22% contribution in the first quarter, 36%, and 21% revenue contribution for the past two quarters, which already showcased a very continuous momentum. The fluctuation was expected given that our delivery schedule is in tandem with the permit upgrade and the corresponding expansion of our operating area. We made a significant step forward by securing the city-level driverless operation permit in Abu Dhabi, which will pave the way for accelerating expansion in the entire Middle East going forward. Thank you. Yeah, Tony, you want to take the second one?

Uh, thanks for taking my question. Yes, Paul come from UBS. Um, I have 2 questions. Uh, the first 1 is uh, uh, regarding the robot taxi Revenue contribution. Uh, we have noticed that while this is about 7 times over year growth. Uh, it's seems to have a little bit fluctuation compared to the second quarter. Uh, could you please elaborate more uh, on this? Uh, and my second question is, uh, uh, regarding the, uh, European strategy, uh, congratulates, uh, for the uh, permits, uh, in Switzerland's, uh, Mission today. Uh, can you share more on the next step of the company's plan for European expansion? Thank you.

Show is um, it's in tandem with the permit upgrade and the corresponding expansion of our operating area, we made a significant step forward by securing the city level driverless operation permit in Abu Dhabi. Uh, which will pave the way for accelerating expansion in the entire Middle East uh going forward. Thank you.

Tony Han: Yes, I will take the second one. Okay. The second question is about our actually our since we have already got the driverless robotaxi permit in Switzerland, what's our next step for Europe? European market is a great market for robotaxi. I think the taxifier in Europe is high. Also, most of the countries in the European market are short of labor. That is actually a very, very good scenario or opportunity for robotaxi company to deploy robotaxi service to fill the gap between the shortage of driver and the increasing demand for taxi. These days, we know the numbers that people, especially after the coronavirus, if possible, people like to take a kind of private transportation if possible. I think there's an actual growing demand for taxi.

Yeah, Tony. Do you want to take a second?

Yes, I will take a second one. Okay. The second question is about our, actually, uh, our, you know, since we have already got the driver's global tax information from meetings, which is land, what's our next step for you?

Tony Han: If we can deploy robotaxi as a very cost-effective method, people will love this kind of product. Since in Switzerland, we have already got it, we are now considering some other countries. We established an office in Stuttgart and also tried to explore in Paris. In the next 12 months, we will solidify our foundation, actually, with our trial operation in France, in Belgium, and also our current operation in Switzerland, and talk to all the possible countries. We also form a strategic partnership with Uber, Renault, SBB, STL, etc., and there are lots of airports in European countries talking to us to explore the possibility of our robobus.

If we can deploy robotaxi as a very cost-effective method, people will love this kind of product. Since in Switzerland, we have already got it, we are now considering some other countries. We established an office in Stuttgart and also tried to explore in Paris. In the next 12 months, we will solidify our foundation, actually, with our trial operation in France, in Belgium, and also our current operation in Switzerland, and talk to all the possible countries. We also form a strategic partnership with Uber, Renault, SBB, STL, etc., and there are lots of airports in European countries talking to us to explore the possibility of our robobus.

Okay, so European market is so great market for robo taxi. Um, I think uh, the the taxi fire in in in in Europe is high and also Europe European. But most of the countries in your, in European market, they are short of Labor. And that is actually, uh, very, very, uh, good scenario or or opportunity for robo taxi company to do quite a lot of taxi service to fill the gap between the shortage of driver and the increasing demand for taxi. Uh, you know these days we know the numbers that people uh, you know, especially after the the the Corona virus, you know, if possible people like to take uh, a kind of a private transportation if possible. So I think, you know, there's a actual growing demand for taxi um,

Tony Han: We want to use all of our applications like robobus, RoboSweepers to actually help us to explore the possibility to extend to certain countries because in certain European countries, they will like to tend to adopt robobus or RoboSweepers first, and then try to do robotaxi. Gradually, we want to go to Switzerland, Belgium, Germany, France, Spain, and Norway, these kind of countries, to extend to more countries. Of course, I want to emphasize our approach is dynamic. It depends on the availability of strong local partners, and also depends on the regulatory policy and the local weather shortage of the neighbors. All of these factors we have to consider. For sure, we'll gradually expand to the aforementioned countries and all other potential countries in Europe.

We want to use all of our applications like robobus, RoboSweepers to actually help us to explore the possibility to extend to certain countries because in certain European countries, they will like to tend to adopt robobus or RoboSweepers first, and then try to do robotaxi. Gradually, we want to go to Switzerland, Belgium, Germany, France, Spain, and Norway, these kind of countries, to extend to more countries. Of course, I want to emphasize our approach is dynamic. It depends on the availability of strong local partners, and also depends on the regulatory policy and the local weather shortage of the neighbors. All of these factors we have to consider. For sure, we'll gradually expand to the aforementioned countries and all other potential countries in Europe.

So, if we can, uh, deploy our robot taxi as a very, uh, cost effective method. People will love this, kind of product. So, since in Switzerland, we have already got it. And now, we are considering some other countries like we established an office in sugar and also try to explore in in Paris. So, uh, in the next 12 months, we will solidify our foundation. Uh, actually. Uh, in we all try operation in in in France, in Belgium, and, and also, our current operation in, in, in, in Switzerland, and talk to all the possible countries. And we also form a strategic partnership with Uber, with renewal with SBB, STL, et cetera. And, uh, there are a lot of airports you're in European countries, talking to us, uh, to explore the possibility of of our robots.

So we want to use all of our applications, like Global Bus Robo Sweeper, to actually help us explore the possibility to...

To, to extend to certain countries because in certain European countries, uh, they would like to tend to adopt robots or robots people first and then try to do robo taxi and gradually. We want to uh, go to uh uh Switzerland. Uh Belgium uh, Germany from Spain and uh and and Norway. You know, this kind of countries uh to to to to to extend uh to extend to more countries. And uh and then you know, of course I want to emphasize our approach is dynamic. It's all. It depends on the availability of strong, local partner, and also depends on the regulatory regulatory. Uh,

Policy. And the local, uh, local local, uh, whether the shortage of the neighbors, all of these factors we have to, uh, we have to consider. But for sure, we will gradually expand to the aforementioned countries and all other potential countries in Europe.

Paul Kong: Thank you so much. Very helpful.

Paul Gong: Thank you so much. Very helpful.

Operator: Thank you. If there are no further questions, I'll conclude the call today. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

Thank you so much; very helpful.

Tony Han: Thank you very much. Thank you. Bye.

Jennifer Li: Thank you.

Thank you. If there are no further questions, I'll conclude the call today. Thank you for your participation. In today's conference, this does conclude the program; you will now disconnect.

Thank you very much. Thank you. Bye, thank you.

Q3 2025 WeRide Inc Earnings Call

Request a DemoDemo

WRD

WeRide

Earnings