Q1 2026 WeRide Inc Earnings Call

May 13, 2026

Operator: Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to WeRide's Q1 2026 Earnings Conference Call. Please note that today's event is being recorded. At this time, all participants are in listen only mode. For today's call, management will use English as the main language. A third party interpreter will provide a simultaneous Chinese interpretation. The company will host a question and answer session after the management's prepared remarks. If you wish to listen to the management's original statement or ask a question during the question and answer session, please make sure you are dialed into the English line. Please note that the Chinese interpretation is for convenience purpose only. In the case of any discrepancy, management statements in the original language will be prevail.

Speaker #1: At this time, all participants are in listen-only mode. For today's call, management will use English as the main language. A third-party interpreter will provide a simultaneous Chinese interpretation.

Speaker #1: The company will host a question-and-answer session after the management-prepared remarks. If you wish to listen to management's original statement or ask a question during the question-and-answer session, please make sure you are dialed into the English line.

Speaker #1: Please note that the Chinese interpretation is for convenience purposes only. In the case of any discrepancy, management's statement in the original language will be provided.

Speaker #1: Joining us today, WeRide's founder, Chairman and CEO, Dr. Tony Han, and CFO, and head of international Ms. Jennifer Lee. Before we continue, I would like to refer you to the safe harbor statement in the company's earnings press release.

Operator: Joining us today, 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 the call, as today's call will include forward-looking statements, including WeRide's strategy and future plans. These forward-looking statements are made under the Safe Harbor provision 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 those forward-looking statements as a result of various important factors. Please refer to risk factors section of the company's Form 20-F filed with the SEC, and announcements on the website of the Hong Kong Stock Exchange for full closure of these risk factors.

Speaker #1: Which also applies to the call as today's call will include forward-looking statements including WeRide's strategy and future plans. These forward-looking statements are made under the safe harbor provision of the US Private Security Education Reform Act of 1995.

Speaker #1: Forward-looking statements involve inherited risk and uncertainties. The company's actual results could differ materially from those stated or implied by those forward-looking statements as a result of various important factors and please refer to risk factor section of the company's form 20F filed with the SEC and announcements on the website of the Hong Kong Stock Exchange for full closure of these risk factors.

Speaker #1: The company does not assume any obligations to update any forward-looking statements except as required under application law. Please note that all numbers stated in the management's prepared remarks are R&B terms and will be discussed in non-FRS measures today.

Operator: The company does not assume any obligations to update any forward-looking statements, except as required under applicable law. Please note that all numbers stated in the management prepared remarks are RMB terms, and will be discussed in non-IFRS measures today, which are more thoroughly explained and reconciled in most co-comparable measures reported in the company's earnings release and filings of the SEC and the Hong Kong Stock Exchange. The company's unaudited financial and operating results are released earlier today via Newswire and can be found on the company's IR website. With that, I will now begin the company's video presentation.

Speaker #1: Which are more thoroughly explained and reconciled in most comparable measures reported in the company's earnings release and filings of the ECC, and the Hong Kong Stock Exchange.

Speaker #1: The company's unordered financial and operating results are released earlier today via Newswire and can be found on the company's IR website. With that, I will now begin the company's video presentation.

Speaker #1: As a global leader in autonomous driving, WeRide operates one of the world's largest commercial robotaxi fleets, with over six years of public service. In China, our services are available not only through our WeRide Go app but also via the WeRide Go WeChat Mini Program.

[Company Representative] (WeRide): As a global leader in autonomous driving, WeRide operates one of the world's largest commercial Robotaxi fleets with over 6 years of public service. In China, our service is available not only through our WeRide Go app, but also via WeRide Go WeChat Mini Program, Tencent Mobility Service mini program, and Amap, bringing autonomous driving into users' everyday lives. Our international footprint spans the Middle East, Europe, and Asia. In Abu Dhabi, we now provide driverless commercial Robotaxi service, covering 70% of the city's core area. We expanded this leadership further with the launch of fully driverless Robotaxi services in Dubai in March. We also launched Robotaxi public operations in Riyadh in October 2025. In April, in partnership with Grab, we launched Singapore's first autonomous public ride service in Punggol, bringing Robotaxi GXR service to residential communities.

[Video Narrator]: As a global leader in autonomous driving, WeRide operates one of the world's largest commercial Robotaxi fleets with over 6 years of public service. In China, our service is available not only through our WeRide Go app, but also via WeRide Go WeChat Mini Program, Tencent Mobility Service mini program, and Amap, bringing autonomous driving into users' everyday lives. Our international footprint spans the Middle East, Europe, and Asia. In Abu Dhabi, we now provide driverless commercial Robotaxi service, covering 70% of the city's core area. We expanded this leadership further with the launch of fully driverless Robotaxi services in Dubai in March. We also launched Robotaxi public operations in Riyadh in October 2025. In April, in partnership with Grab, we launched Singapore's first autonomous public ride service in Punggol, bringing Robotaxi GXR service to residential communities.

Speaker #1: Tencent Mobility, WeChat Mini Program, and AMAP are bringing autonomous driving into users' everyday lives. Our international footprint spans the Middle East, Europe, and Asia. In Abu Dhabi, we now provide driverless commercial robotaxi service, covering 70% of the city's core area.

Speaker #1: We expanded this leadership further with the launch of fully driverless robotaxi services in Dubai in March; we also launched robotaxi public operations in Riyadh in October 2025.

Speaker #1: In April, in partnership with Grab, we launched Singapore's first autonomous public ride service in Punggol, bringing robotaxi GXR service to residential communities. We are accelerating commercialization through key partnerships.

[Company Representative] (WeRide): We are accelerating commercialization through key partnerships with Geely Farizon to deliver 2,000 purpose-built Robotaxi GXRs by 2026, and with Lenovo to jointly deploy 200,000 autonomous vehicles globally by 2030. Our technology is the foundation of our sustained leadership. WeRide is the only company that has commercialized both L2+ and L4 autonomous driving technology at scale, powered by shared underlying algorithms and our dual flywheel strategy. Our self-developed general purpose simulation world model, WeRide GENESIS, enables extensive training and closed loop validation in high-fidelity simulation environments at scale to continuously advance system intelligence. These unparalleled capabilities are distilled into WRD 3.0, our one-stage end-to-end ADAS solution, bringing proven L4 technology capabilities to mass market L2++ vehicles. The Chery Exeed Sterra model, equipped with WRD 3.0, has won four consecutive championships at the China Urban Intelligent Driving Competition, setting a historic record.

[Video Narrator]: We are accelerating commercialization through key partnerships with Geely Farizon to deliver 2,000 purpose-built Robotaxi GXRs by 2026, and with Lenovo to jointly deploy 200,000 autonomous vehicles globally by 2030. Our technology is the foundation of our sustained leadership. WeRide is the only company that has commercialized both L2+ and L4 autonomous driving technology at scale, powered by shared underlying algorithms and our dual flywheel strategy. Our self-developed general purpose simulation world model, WeRide GENESIS, enables extensive training and closed loop validation in high-fidelity simulation environments at scale to continuously advance system intelligence. These unparalleled capabilities are distilled into WRD 3.0, our one-stage end-to-end ADAS solution, bringing proven L4 technology capabilities to mass market L2++ vehicles. The Chery Exeed Sterra model, equipped with WRD 3.0, has won four consecutive championships at the China Urban Intelligent Driving Competition, setting a historic record.

Speaker #1: With Geely Farison, to deliver 2,000 purpose-built robotaxi GXRs by 2026. And with Lenovo, to jointly deploy 200,000 autonomous vehicles globally by 2030. Our technology is the foundation of our sustained leadership.

Speaker #1: WeRide is the only company that has commercialized both L2+ and L4 autonomous driving technology at scale, powered by shared underlying algorithms and our dual flywheel strategy.

Speaker #1: Our self-developed general-purpose simulation world model, WeRide Genesis, enables extensive training and closed-loop validation in high-fidelity simulation environments at scale to continuously advance system intelligence.

Speaker #1: These unparalleled capabilities are distilled into WRD 3.0, our one-stage end-to-end ADAS solution, bringing proven L4 technology capabilities to mass-market L2++ vehicles. The Chery Exeed Stera model equipped with WRD 3.0 has won four consecutive championships at the China Urban Intelligent Driving competition.

Speaker #1: Setting a historic record, WRD 3.0 has secured production design wins across nearly 30 vehicle models, and is now in mass production across multiple models, including the Chery Exeed Stera ESET.

[Company Representative] (WeRide): WRD 3.0 has secured production design wins across nearly 30 vehicle models, and is now in mass production across multiple models, including the Chery Exeed Sterra ES, Chery Exeed RX, and GAC Aion N60. WRD 3.0 now supports multi-chip compatibility across NVIDIA, Qualcomm, and SiEngine platforms, providing global automakers one of the most flexible, high-performance L2++ solutions. Looking ahead, WeRide will continue to lead the way in advancing autonomous technology and making autonomous mobility a daily reality.

[Video Narrator]: WRD 3.0 has secured production design wins across nearly 30 vehicle models, and is now in mass production across multiple models, including the Chery Exeed Sterra ES, Chery Exeed RX, and GAC Aion N60. WRD 3.0 now supports multi-chip compatibility across NVIDIA, Qualcomm, and SiEngine platforms, providing global automakers one of the most flexible, high-performance L2++ solutions. Looking ahead, WeRide will continue to lead the way in advancing autonomous technology and making autonomous mobility a daily reality.

Speaker #1: Chery Exeed EX7 and GAC ION N60. WRD 3.0 now supports multi-chip compatibility across NVIDIA, Qualcomm, and CY Engine platforms. Providing global automakers one of the most flexible high-performance L2++ solutions.

Speaker #1: Looking ahead, WeRide will continue to lead the way in advancing autonomous technology and making autonomous mobility a daily reality. Now, I would like to pass the floor to the company's founder, Chairman, and CEO, Dr. Tony Han.

Operator: Now, I would like to pass the floor to the company's founder, chairman and CEO, Dr. Tony Han. Please go ahead, sir.

Speaker #1: Please go ahead sir.

Speaker #2: Hello, everyone. And thank you for joining us today. We started 2026 with strong momentum as a global leader in autonomous driving. In the first quarter, the total revenue of WeRide reached R&B $114 million, 58% up year over year.

Tony Han: Hello, everyone, thank you for joining us today. We started 2026 with strong momentum as a global leader in autonomous driving. In Q1, the total revenue of WeRide reached RMB 114 million, 58% up year over year. These results are driven by our accelerating Robotaxi deployment. Growth across our broader autonomous driving business and the great success of our L2++ level ADAS solution. By the end of April, our global Robotaxi fleet grow to around 1,300 vehicles, representing one of the largest Robotaxi fleets globally. At the same time, our level 4 autonomous driving fleet, including Robovan and Robobus, has grown to around 2,800 units that have been deployed to or tested in 12 countries and over 40 cities worldwide.

Speaker #2: This results are driven by our accelerating robotaxi deployment. Growth across our broader autonomous driving business and the great success of our L2++ level ADAS solution.

Speaker #2: By the end of April, our global robotaxi fleet grew to around 1,300 vehicles, representing one of the largest robotaxi fleets globally. At the same time, our level 4 autonomous driving fleet including robo-van and robo-bus has grown to around 2,800 units.

Speaker #2: They have been deployed to or tested in 12 countries and over 40 cities worldwide. We believe the steady and significant progress this quarter reflects not only the maturity of our technology, but also the growing operational experience for thousands level fleet in multiple cities.

Tony Han: We believe the steady and significant progress this quarter reflects not only the maturity of our technology, but also the growing operational experience for thousand-level fleet in multiple cities. First of all, I want to point out that we have made a major technical breakthrough through GENESIS, our closed-loop world model-based simulation engine, which boosted our model evolution pace by several folds. We can now train AI model for autonomous driving with synthesized corner cases, which may be very rare or even imaginary. With a compact AI model leveraged on our GENESIS, we have achieved four consecutive championships in China Urban Intelligent Driving Competition. This is unprecedented. The best previous record is held by Huawei, ADAS system, which got two consecutive championships. Today, many companies talk about world model and simulation platforms.

Speaker #2: First of all, I want to point out that we have made a major technical breakthrough through Genesis, our closed-loop world model-based simulation engine, which boosted our model evolution pace by several folds.

Speaker #2: We can now train AI model for autonomous driving with synthesized corner cases, which may be very rare or even imaginary. With a compact AI model leveraged on our Genesis, we have achieved four consecutive championships in China Urban Intelligent Driving competition.

Speaker #2: This is unprecedented. The best previous record is held by Huawei ADAS system, which got two consecutive championships. Today, many companies talk about world model and simulation platforms.

Speaker #2: But WeRide is one of very few companies that have publicly demonstrated footage of a highly realistic autonomous driving world model at scale. We have already released Genesis demonstration video on YouTube, where viewers can check the model's ability to reconstruct and simulate visually realistic driving environments strictly following physical laws as well.

Tony Han: WeRide is one of very few companies that have publicly demonstrate foot-footage of a highly realistic autonomous driving world model at scale. We have already released Genesis demonstration video on YouTube, where viewers can check the model's ability to reconstruct and simulate visually realistic driving environments, strictly following physical laws as well. Genesis can generate holistic virtual driving environment consistent to the desired locations, including traffic flows, pedestrians, weather conditions, and complex interactions between vehicles and the surrounding objects. More importantly, we can add this environment component to simulate highly challenging scenarios such as aggressive driving behavior, dense traffic, extreme weather, unusual road conditions, and many other long-tail corner cases that are very difficult and extremely expensive to replicate in the real world.

Speaker #2: Genesis can generate a holistic virtual driving environment consistent with the desired locations, including traffic flows, pedestrians, weather conditions, and complex interactions between vehicles and surrounding objects.

Speaker #2: More importantly, we can edit this environment component to simulate highly challenging scenarios such as aggressive driving behavior, dense traffic, extreme weather, on euro road conditions, and many other long-tail corner cases that are very difficult and extremely expensive to replicate in the real world.

Speaker #2: By leveraging synthetic data and large-scale simulation, Genesis improves training and validation efficiency by thousands of times compared to traditional road testing. It also significantly reduces the crucial dependence on a large-scale testing fleet and accelerates the deployment process in new operational regions globally.

Tony Han: By leveraging on synthetic data and large-scale simulation, GENESIS improves training and validation efficiency by thousands of times compared to traditional road testing. It also significantly reduces the crucial dependence on large-scale testing fleet and accelerates deployment process in new operational regions globally. GENESIS is not just a capability, it is a unified simulation and AI training platform supporting applications from L2 ADAS to L4 Robotaxi. It is very same tech stack that makes us the only company in the world to have already achieved the scaled commercialization of both L4 and mass production L2 vehicles. The newly developed GENESIS now has paved the way of WeRide to the physical AI world. With GENESIS, the ADAS system developed by WeRide is comparable to the performance of FSD 14.3 in California.

Speaker #2: Genesis is not just a capability. It is a unified simulation and AI training platform supporting applications from L2 ADAS to L4 robotaxi. And it is very same tech stack that makes us the only company in the world to have already to have already achieved the skilled commercialization of both L4 and the mass production L2 vehicles.

Speaker #2: The newly developed Genesis now has paved the way of WeRide to the physical AI world. With Genesis, the ADAS system developed by WeRide is comparable to the performance of FSD 14.3 in California.

Speaker #2: You know, I personally own two Teslas and I drive 14.3 with FSD 14.3 every day. I look forward to entering a global urban intelligent driving competition directly facing FSD 14.3 from Tesla.

Tony Han: You know, I personally own 2 Tesla, and I drive 14.3 with FSD 14.3 every day. I look forward to entering a global urban intelligent driving competition directly facing FSD 14.3 from Tesla. Hope one day we can meet in US or Europe and give our consumers a head-to-head comparison. Today, we are seeing our technology leadership translate into real global commercial scale. Let me walk you through the key operational and commercialization milestones we have achieved this quarter. First, in China, our Robotaxi business continued to make strong progress in scale, operational efficiency, and commercialization depth. First, in China, our Robotaxi business continued to make strong progress in scale and operational efficiency.

Speaker #2: Hope one day we can meet in the US or Europe, and give our consumers a head-to-head comparison. Today, we are seeing our technology leadership translate into real global commercial scale.

Speaker #2: Let me talk let me walk you through the key operational and commercialization milestones we have achieved this quarter. First, in China, our robotaxi business continues to make strong progress in scale.

Speaker #2: Operational efficiency, and commercialization depth. First, in China, our robotaxi business continues to make strong progress in scale and operational efficiency. By the end of April, our domestic robotaxi fleet expanded to about 1,000 vehicles, while our service area in Guangzhou increased by 97% compared to the end of 2025, including additional downtown district.

Tony Han: By the end of April, our domestic Robotaxi fleet expanded to about 1,000 vehicles, while our service area in Guangzhou increased by 97% compared to the end of 2025, including additional downtown districts. On the demand side, average daily order per vehicle domestically reached 17 trips during Q1, with peak periods reaching 28 trips per vehicle. Registered Robotaxi users also doubled almost every year. We believe these metrics continue to demonstrate growing user adoption and improving unit economics as Robotaxi commercialization scales. In this quarter, we also continued to deepen our partner ecosystem. In April, we expanded our collaboration with Lenovo in autonomous driving computing platforms with a joint target to deploy 200,000 autonomous driving vehicles globally over the next 5 years. Together with Geely Farizon, we plan to deliver 2,000 upgraded purposely built Robotaxi GXRs in 2026.

Speaker #2: On the demand side, average daily orders per vehicle domestically reached 17 trips during Q1, with peak periods reaching 28 trips per vehicle. Registered robotaxi users also doubled almost every year.

Speaker #2: We believe these metrics continue to demonstrate growing user adoption and improving unit economics as robotaxi commercialization scales. In this quarter, we also continue to deepen our partner ecosystem.

Speaker #2: In April, we expanded our collaboration with Lenovo in autonomous driving computing platforms with a joint target to deploy 200,000 autonomous driving vehicles globally over the next five years.

Speaker #2: Together with Geely Farison, we plan to deliver 2,000 upgraded purposely built robotaxi GXRs in 2026. We believe this partnership this partnership further strengthens our manufacturing scalability and deployment capability globally.

Tony Han: We believe this partnership, these partnerships further strengthen our manufacturing scalability and deployment capability globally. Now, turning into international markets, we also continue to see strong momentum in both new market launches and the commercialization progress. In Singapore, we launched the country's first public autonomous driving service together with Grab. Since the initial development, I'm sorry, since the initial deployment plan began in H2 of last year, the fleet has built a trustworthy operational track record in a highly regulated international market. In the Middle East, we have launched fully driverless commercial Robotaxi operation in Dubai together with Uber and Dubai's RTA. This is the city's first fully driverless commercial Robotaxi service. Meanwhile, Abu Dhabi service coverage expanded to around 70% of the city's core area.

Speaker #2: Now, turning into international markets, we also continue to see strong momentum in both new markets launches and the commercialization progress. In Singapore, we launched the country's first public autonomous driving service together with Grab.

Speaker #2: Since the initial development I'm sorry, since the initial deployment plan began in the second half of last year, the fleet has built a trustworthy operational track record in a highly regulated international market.

Speaker #2: In the Middle East, we have launched fully driverless commercial robotaxi operation in Dubai together with Uber and the Dubai's RTA. This is the city's first fully driverless commercial robotaxi service.

Speaker #2: Meanwhile, Abu Dhabi service coverage expanded to around 70% of the city's core area. Across the Middle East, together with Uber, we remain on track to deploy at least across Abu Dhabi, Dubai, and Riyadh by 2027.

Tony Han: Across the Middle East, together with Uber, we remain on track to deploy at least 1,200 Robotaxi across Abu Dhabi, Dubai, and Riyadh by 2027. In Europe, we entered Slovakia in March, our fourth European market, and continue progressing toward fully driverless commercial operation in Zurich. Overall, we continue to believe WeRide remains the most globally deployed autonomous driving company today, with deployments across 12 countries and permits in eight markets. This global footprint not only diversifies our revenue, but also demonstrates operational and regulatory capabilities that are hard for followers to replicate. It also keeps us on track toward our long-term vision of deploying tens of thousands of Robotaxi globally by 2030. Beyond Robotaxi, our ADAS business is also seeing growing commercial traction.

Speaker #2: In Europe, we entered Slovakia in March, our fourth European market, and continue progressing toward fully driverless commercial operation in Zurich. Overall, we continue to believe WeRide remains the most globally deployed autonomous driving company today.

Speaker #2: With deployments across 12 countries and permits in eight markets. This global footprint not only diversifies our revenue, but also demonstrates operational and regulatory capabilities that are hard for followers to replicate.

Speaker #2: It also keeps us on track toward our long-term vision of deploying tens of thousands of robotaxi globally by 2030. Beyond robotaxi, our ADAS business is also seeing growing commercial traction.

Speaker #2: Our current version of ADAS system WRD 3.0 has been adopted by nearly 30 vehicle models, including vehicles from leading OEMs such as GAC and Chery.

Tony Han: Our current version of ADAS system, WRD 3.0, has been adopted by nearly 30 vehicle models, including vehicles from leading OEMs such as GAC and Chery. In April, GAC Aion launched pre-sales for the Aion N60, the first mass production vehicle with WeRide solution. Leveraging the generalization capability of Genesis, our WRD 3.0 solution is now supporting 3 major chip platforms: NVIDIA DRIVE, Qualcomm Snapdragon, and the SiEngine Starlight. We believe this level of multi-chip compatibility is crucial because it enables faster mass production, greater cost optimization, and broader OEM adoption. At the same time, we continue expanding internationally with partners including Tigo, Lepus, Omanda, Jeco, bringing WeRide-powered ADAS solution to consumer globally. For Robobus, we also continue making progress globally. We are collaborating with the Geneva Public Transport operator, TPG, on autonomous bus deployment.

Speaker #2: In April, GAC ION launched presales for the ION N60, the first mass production vehicle with WeRide solution. Leveraging the generalization capability of Genesis, our WRD 3.0 solution is now supporting three major chip platforms.

Speaker #2: NVIDIA Drive, Qualcomm Snapdragon, and the C Engine Starlight. We believe this level of multi-chip compatibility is crucial because it enables faster mass production, greater cost optimization, and broader OEM adoption.

Speaker #2: At the same time, we continue expanding internationally with partners including Tigo, Lapas, Omanda, Jayco, and Branding WeRide powered ADAS solution to consumers globally. Finally, for Robopus, we also continue making progress globally.

Speaker #2: We are collaborating with Geneva Public Transport Operator TPG on autonomous bus deployment. Meanwhile, we are preparing for the Robobus operation with Renault at the Holland Gargoyle French Open for the third consecutive year.

Tony Han: Meanwhile, we are preparing for the Robobus operation with Renault at the Roland-Garros French Open for the third consecutive year. To summarize, the first quarter of 2026 was about substantiating technology leadership of WeRide into commercial scalability through growing Robotaxi operations, expansion into new international markets, growing deployment pipelines, or continued unrivaled winning momentum in ADAS. We believe we are executing well with our global strategy, and we continue to see a clear path toward long-term growth. With that, let me turn the call over to our CFO, Jennifer Li, for a deeper view of the financial results this quarter. Thank you.

Speaker #2: To summarize, the first quarter of 2026 was about substantially 18 technology leadership of WeRide into commercial scalability through growing robotaxi operations, expansion into new international markets, growing deployment pipelines, or continued unrivaled winning momentum in ADAS.

Speaker #2: We believe we are exciting, we are exact, we believe we are executing well with our global strategy, and we continue to see a clear path toward long-term growth.

Speaker #2: With that, let me turn the call over to our CFO, Jennifer Lee, for a deeper view of the financial results this quarter. Thank you.

Speaker #1: Thank you, Tony. Hello, everyone. Before we dive into the financials, I want to highlight that all figures are in R&B comparisons are year over year unless as stated otherwise.

Jennifer Li: Thank you, Tony. Hello, everyone. Before we dive into the financials, I want to highlight that all figures are in RMB. Comparisons are year-over-year unless stated otherwise. We will discuss non-IFRS measures today, which are more solely explained and reconciled to the most comparable measures reported in the company's earning release and filing with the SEC and Hong Kong Stock Exchange. Now let's discuss our Q1 financial performance. We delivered total revenue of RMB 114 million in Q1, representing an increase of 58%. Product revenue increased 116% to RMB 20 million, mainly driven by increased deployment of Robotaxi and other L4 vehicles. Service revenue increased 49% to RMB 94 million. This revenue growth mirrors the solid commercial progress we made in this quarter together with our proven track record in execution and deployment.

Speaker #1: And we will discuss non-IFRS measures today. Richard more solely explained and reconciled to the most comparable measures reported in the company's earning release and following this SEC and the Hong Kong Stock Exchange.

Speaker #1: Now let's discuss our first quarter financial performance. We delivered total revenue of $114 million in the first quarter, representing an increase of 58%. Product revenue increased $116% to $20 million, mainly driven by increased deployment of robotaxi and other L4 vehicles.

Speaker #1: Service revenue increased 49% to $94 million. This revenue growth mirrors the solid commercial progress we made in this quarter, together with our proven track record in execution and deployment.

Speaker #1: Considering the seasonal impact of Chinese New Year and Ramadan in the Middle East, our business performance surpassed our original internal targets. Group-level gross profit increased 56% to $40 million in the first quarter, with the group-level gross margin of approximately 35%.

Jennifer Li: Considering the seasonal impact of Chinese New Year and Ramadan in Middle East, our business performance surpassed our original internal targets. Group level gross profit increased 56% to RMB 40 million in Q1, with a group level gross margin of approximately 35%. We maintain top-line expansion without sacrificing margin discipline and scoring the inherent profitability of our autonomous driving business as we further scale. This was also supported by the increased exposure of our ex-China markets, where we continue to see the structural stronger margin profile as we expand into new additional international territories. Operating expense were at RMB 469 million, with R&D expense accounting for 77% of the total operating expense. Our operating expense are stable in absolute dollar amount compared to the same period in 2025.

Speaker #1: We maintained top-line expansion without sacrificing margin discipline. And scoring the inheritance profitability of our autonomous driving business as we further scale. This was also supported by the increased exposure of our ex-China markets.

Speaker #1: We continue to see the structurally stronger margin profile as we expand into new additional international territories. Operating expenses were at $469 million, with R&D expense accounting for 77% of the total operating expense.

Speaker #1: Our operating expense are stable in absolute dollar amount compared to the same period in 2025. To break down further, R&D expense increased by 12% to $363 million in Q1 2026.

Jennifer Li: To break down further, R&D expense increased by 12% to RMB 363 million in Q1 2026. Excluding share-based compensation, R&D expense grew 16% to RMB 322 million. This consistent investment in R&D underpins our technology roadmap and ensures we stay at the forefront of autonomous driving innovation. Administrative expense decreased by 33% to RMB 83 million in Q1. Excluding share-based compensation, administrative expense decreased by 17% to RMB 61 million. The decrease was primarily driven by lower professional services fee, mainly related to audit and legal compliance services, and partially offset by increased personnel costs for the expansion of our team as a for growing business. Selling expense increased by 63% to RMB 23 million in Q1 2026. Excluding share-based compensation, selling expense increased by 81% to RMB 22 million.

Speaker #1: Excluding share-based compensation, R&D expense grew 16% to $322 million. This consistent investment in R&D underpins our technology roadmap and ensures we stay at the forefront of autonomous driving innovation.

Speaker #1: At administrative expense decreased by 33% to $83 million in the first quarter, excluding share-based compensation, administrative expense decreased by 17% to $61 million. The decrease was primarily driven by lower professional services fee, mainly related to audit and legal compliance services.

Speaker #1: And partially offset by increased personnel costs for the expansion of our team as a foregrowing business. Selling expense increased by $16.3% to $23 million in Q1 2026.

Speaker #1: Excluding share-based compensation, selling expense increased by $81% to $22 million. The increase corresponding to ongoing expansion for our business and scoring our commitment to support growth appropriately.

Jennifer Li: The increase corresponding to ongoing expansion for our business and is growing our commitment to support growth appropriately. Our net loss kept stable at RMB 369 million in Q1. On a non-IFRS basis, the net loss increased slightly by 11% to RMB 326 million in Q1. The slight uptick was largely driven by ongoing R&D expanding as we continue to invest ahead of scale in our long-term technology leadership. As of 31 March 2026, we had total capital reserve of RMB 6.22 billion, comprising RMB 6.18 billion in cash and cash equivalents and time deposits, RMB 29 million in investment and wealth management products, and RMB 18 million in restricted cash. We maintain short-term bank loans of RMB 294 million to support daily operations.

Speaker #1: Our net loss kept stable at $369 million in the first quarter. On a non-IFRS basis, the net loss increased slightly by 11% to $326 million in the first quarter.

Speaker #1: The slight uptick was largely driven by ongoing R&D expanding and as we continue to invest ahead of scale in our long-term technology leadership. As of March 31, 2026, we had total capital reserve of $6.22 billion.

Speaker #1: Comprising $6.18 billion in cash and cash equivalent and time deposits, $29 million in investment and wealth management products. And $18 million in restricted cash.

Speaker #1: We maintained short-term bank loans of $294 million to support daily operation. We have well-positioned our capital base to match our cash deployment need, with headroom to support ongoing growth and strategic initiatives.

Jennifer Li: We have well-positioned our capital base to match our cash deployment need. We've had room to support ongoing growth and strategic initiatives. Under the $100 million share repurchase program authorized by our Board of Directors on 23 March 2026, we have repurchased approximately 24.4 million Class A ordinary shares, including in the form of American depository shares, as of market close on 12 May, for a total consideration of approximately $61.4 million in US dollar. This reflects our firm belief in company's long-term value and growth potential. Moving forward, we proceed with confidence and a well-defined focus. By end of 2026, we remain on track to deploy 2,600 Robotaxis worldwide, marking the first milestone in our journey towards hundreds of thousands by 2030.

Speaker #1: Under the US dollar $100 million share repurchase program authorized by our board of directors on March 23, 2026, we have repurchased approximately $24.4 million of Class A ordinary shares, including in the form of American Depository Shares.

Speaker #1: As of market close on May 12, for a total consideration of approximately $61.4 million in US dollars. This reflects our firm belief in the company's long-term value and growth potential.

Speaker #1: Moving forward, we proceed with confidence and a well-defined focus. By end of 2026, we remain on track to deploy 2,600 robotaxi worldwide. Marking the first milestone in our journey towards hundreds of thousands by 2030.

Speaker #1: As we continue to scale, our approach is to enter new regions and cities which have proven which has proven effective and replicable. Supported by strong technological leadership, operational know-how, and increasingly robust global rollout, we're prepared to lead the next phase of autonomous driving, with that operator we are now ready to take on some to take some questions.

Jennifer Li: As we continue to scale, our approach is to enter new regions and cities which has proven effective and replicable. Supported by strong technological leadership, operational know-how, and increasingly robust global rollout, we are prepared to lead the next phase of autonomous driving. With that, operator, we are now ready to take some questions.

Speaker #2: Thank you. Owen Elb began the question-and-answer session. As a reminder, we're only accepting questions in the English language line. To ask a question, please dial into the English line and press dial 11 on your telephone keypad.

Operator: Thank you. We will now begin the question and answer session. As a reminder, we only accept questions in the English language line. To ask a question, please dial into the English line and press star one one on your telephone keypad. If you have any follow on questions, please re-enter the queue. Thank you. Just a moment for our first question, please. First question comes from Stanley Wan from Morgan Stanley. Please go ahead.

Speaker #2: If you have any follow-on questions, please re-enter the queue. Thank you. Just a moment, our first question, please. First question comes from Stanley Wang from Morgan Stanley.

Speaker #2: Please go ahead.

Speaker #3: Thank you, Tony and Jennifer. This is Stanley from Morgan Stanley. I have two questions. So first one is on your robotaxi expansion. Are you on track to meet your expansion roadmap in 2026?

Stanley Wan: Thank you, Tony and Jennifer. This is Stanley from Morgan Stanley. I have two questions. First one is on your Robotaxi expansion. Are you on track to meet your expansion roadmap in 2026? Could you update us on the latest expansion progress in China, the Middle East, and the rest of the world? My second question is on WeRide's overseas business. With the company's core advantage being its possession of overseas operating licenses in eight countries, and in light of the global expansion of players like Waymo and Zoox, and also the accelerating regulatory approvals, how do you view the key growth drivers, profitability path, and timeline for tangible contributions from your overseas operations in 2026 to 2027? Thank you.

Stanley Wang: Thank you, Tony and Jennifer. This is Stanley from Morgan Stanley. I have two questions. First one is on your Robotaxi expansion. Are you on track to meet your expansion roadmap in 2026? Could you update us on the latest expansion progress in China, the Middle East, and the rest of the world? My second question is on WeRide's overseas business. With the company's core advantage being its possession of overseas operating licenses in eight countries, and in light of the global expansion of players like Waymo and Zoox, and also the accelerating regulatory approvals, how do you view the key growth drivers, profitability path, and timeline for tangible contributions from your overseas operations in 2026 to 2027? Thank you.

Speaker #3: And could you update us on the latest expansion progress in China? The Middle East and the rest of the world? And my second question is on WeRide's overseas business with the company's core advantage being its possession of overseas operating licenses in eight countries.

Speaker #3: And in light of the global expansion of players like Waymo and Zoox, and also the accelerating regulatory approvals, how do you view the key growth drivers, profitability path, and timeline for tangible contributions from your overseas operations in 2026 to 2027?

Speaker #3: Thank you.

Speaker #4: Okay. So I will take the first question. And then I will let Jennifer to answer the second question about the profitability. Okay. So first question is about the on-track, whether we are on track with our robotaxi expansion.

Tony Han: Okay. I will take the first question, and then I will let Jennifer to answer the second question about the profitability. Okay. First question is about the on track, whether we are on track with our robotaxi expansion. I think overall we are very optimistic and confident in our global robotaxi expansion. We have been making the steady progress all the time. You know, I will share some numbers I have already told to the market. That is, at the end of April, our global robotaxi fleet reached approximately 1,300 vehicles. That is, to my best knowledge, one of the biggest robotaxi fleets globally. In China, our robotaxi fleet has grown to approximately 1,000 vehicles, with solid demand, healthy daily order volume, and a growing user base.

Speaker #4: I think overall we are very optimistic and confident in our global robotaxi expansion. And we have been making the steady progress all the time.

Speaker #4: As I was sharing some numbers, I have already told the market that as of the end of April, our global robotaxi fleet reached approximately 1,300 vehicles.

Speaker #4: That is, to my best knowledge, one of the biggest robotaxi fleets globally. In China, our robotaxi fleet has grown to approximately 1,000 vehicles with solid demand.

Speaker #4: Healthy daily order volume and growing user base. And I want to share you a number. Our average daily order per vehicle exceeded 17 trips during the first quarter.

Tony Han: I want to share you a number. Our average daily order per vehicle exceeded 17 trips during Q1. That is amazing number. Our overseas Robotaxi fleet has expanded to approximately 300 vehicles across multiple markets. In the Middle East, we recently launched a full driverless commercial operation in Dubai and on Uber platform. Today, you know, if you really want to hail a full driverless Robotaxi, to my best knowledge, you know, I look at all our competitors. Outside of US and China, if you want to hail a full driverless Robotaxi, the only way is through Uber hailing WeRide's Robotaxi in Abu Dhabi or Dubai. That is our current stage. With regional tensions, I know, you know, regional tensions create some short-term softness in utilization, but, you know, but we remain very confident.

Speaker #4: That is an amazing number. And our overseas robotaxi fleet has expanded to approximately 300 vehicles across multiple markets. In the Middle East, we recently launched a full driverless commercial operation in Dubai and on the Uber platform.

Speaker #4: Today, if you really want to hail a full driverless robotaxi, to my best knowledge, I look at our competitors. Outside of US and China, if you want to hail a full driverless robotaxi, the only way is through Uber hailing WeRide's robotaxi in Abu Dhabi or Dubai.

Speaker #4: Okay. That's our current stage. With regional tensions created some I know regional tensions create some short-term softness in utilization. But what we remain very confident.

Tony Han: More important, we remain firmly committed to the Middle East, and our long-term investment and operational presence are well-received by local governments. We remain on track toward our commitment to deploy 1,200 vehicles across Dubai, Abu Dhabi. We are as additional driverless ODD to be added. In Europe, we are expanding our footprint. In Switzerland, we obtained regional's first driverless commercial permit and continue progressing toward public operations in Zurich. We also recently launched our national autonomous driving program in Slovakia, making our entry into another new European market. More broadly, we believe WeRide has established a meaningful first-mover advantage through years of global expansion. Overall, I think this global operation and regulatory footprint is becoming an increasing important differentiator as the autonomous driving commercialization accelerates worldwide.

Speaker #4: More important, we remain firmly committed to the Middle East. And our long-term investment and operational presence are well received by local governments. We remain on track toward our committed commitment to deploy 1,200 vehicles across Dubai, Abu Dhabi, Riyadh, as additional driverless ODD to be added.

Speaker #4: In Europe, we are expanding our footprint in Switzerland. We obtained the region's first driverless commercial permit and continue progressing toward public operations in Zurich.

Speaker #4: We also recently launched our national autonomous driving program in Slovakia, making our entry into another new European market. More broadly, we believe WeRide has established a meaningful first mover advantage through years of global expansion.

Speaker #4: And overall, I think this global operation and regulatory footprint is becoming an increasing important differentiator as autonomous driving commercialization accelerates worldwide. So that's overall conclude my answer to your question.

Tony Han: That's overall, conclude my answer to your question, our global roadmap and our plan. Okay. About profit, profitability, would you pick up the question, Jennifer?

Speaker #4: Our global roadmap and our plan. Okay. About profitability, would you pick up the question, Jennifer?

Speaker #5: Yeah. Yeah. I'll answer the second one. Yeah. So just now, Stanley also mentioned the various core advantage that is having operating license in eight countries.

Jennifer Li: Yeah. Yeah. I'll answer the second one. Just now Stanley also mentioned the WeRide's core advantage is having like operating license in 8 countries. Actually, now when comparing the total number of Robotaxi deployed and driverless permit held by any autonomous vehicle, autonomous driving company outside China and the US, WeRide ranks first across, like, among all the different companies, auto companies. We are very encouraged by the momentum of our international expansion so far. As we can recall from the last earning release, international revenue already accounts for approximately one-third of the total group revenue last year. Our Middle East subsidiary was already profitable at net level.

Speaker #5: Actually, now, when comparing the total number of robotaxis deployed and driverless permits held by any autonomous driving company outside China and the US, WeRide ranks first across all the different companies—our four companies.

Speaker #5: We are very encouraged by the momentum of our international expansion so far. And as we can recall from the last earning release, international revenue already accounts for approximately one-third of the total group revenue last year.

Speaker #5: And our Middle East subsidiary was already profitable at the net level. And also, Tony just discussed just already talked through our key developments in some of the regions outside China this year.

Jennifer Li: Also, Tony already talked through our key developments in some of the regions outside China this year. We will announce some more exciting announcements in Robotaxi deployment in due course. This year we expect international revenue to grow even faster and contribute an even larger share of group revenue supported by the positive unit economics. Maybe I would like to just to also elaborate a little bit more about our city selection criteria here. Now people always ask us, you know, you guys already have like presence in like 40 cities, do you still want to expand to more cities or focusing on the current ones?

Speaker #5: And we will announce some more exciting announcements in robotaxi deployment and in due course. So this year, we expect international revenue to grow even faster and contribute even larger share of group revenue supported by the positive unit economics.

Speaker #5: And maybe I would like to just also elaborate a little bit more about our city selection criteria here. Now, people always ask us, you guys already have presence in 40 cities.

Speaker #5: So do you still want to explain expand to more cities or focusing on the current ones? So our strategy is to focusing on scale in existing city as well as entering additional cities and a more selective criteria.

Jennifer Li: Our strategy is to focusing on scale in existing city as well as entering additional cities under a more selective criteria. We really need to consider whether the market has the potential to support scalable and commercially attractive operations over long-term. Especially on the monetization potential side, we pay close attention to the overall gross booking opportunities, as well as the gross bookings per mile, because both scale and unit price matter significantly for long-term robotaxi unit economics. Besides, we focus heavily on whether there is a realistic path to scale. For all the cities we are currently deploying, we do see potentials for each city to deploy thousands of autonomous driving vehicles. Yeah.

Speaker #5: So we really need to we really consider whether the market has the potential to support scalable and commercially attractive operations over long term. And especially on the monetization potential side, we pay close attention to the overall gross booking opportunities as well as the gross bookings per mile.

Speaker #5: Because both scale and unit price matter significantly for long-term robotaxi unit economics. And besides, we focus heavily on whether there is a realistic path to scale.

Speaker #5: For all the cities, we are currently deploying we do see potentials for each city to deploy thousands of autonomous driving vehicles. Yeah. And something more to mention here, Europe remains to be a key focus for us this year.

Jennifer Li: Something more to mention here, Europe remains to be a key focus for us this year. We will share our exciting news in more deployment in more cities in Europe, hopefully soon. Yeah. That concludes my answer for this question.

Speaker #5: We will share our exciting news in more deployment in more cities in Europe hopefully soon. Yes. That concludes my answer for this question.

Speaker #1: Thank you. Just a moment for the next question, please. Next, we have Ming Sunli from Bank of America. Please go ahead.

Operator: Thank you. Just a moment for the next question, please. Next, we have Ming Sung Lee from Bank of America. Please go ahead.

Ming Sung Lee: Hi, Tony and Jennifer, thank you for giving me the opportunity to raise a question. I also have two questions. The first one, how do the recent report about the China halting new self-driving approvals to impact WeRide? The second question, it's about the technology difference. I think since the past, there has been a consistent and industry-wide debate over the LiDAR and the HD map approach that Waymo adopts and the camera-only solution by Tesla. What is WeRide's view? Thank you.

Ming Hsun Lee: Hi, Tony and Jennifer, thank you for giving me the opportunity to raise a question. I also have two questions. The first one, how do the recent report about the China halting new self-driving approvals to impact WeRide? The second question, it's about the technology difference. I think since the past, there has been a consistent and industry-wide debate over the LiDAR and the HD map approach that Waymo adopts and the camera-only solution by Tesla. What is WeRide's view? Thank you.

Speaker #3: Hi. Tony and Jennifer, thank you for giving me the opportunity to raise the question. I also have two questions. So the first one, how do the recent report about the China holding a new self-driving approvals to impact WeRide?

Speaker #3: And the second question, it's about the technology difference. So I think since the past there has been a consistent and the industry-wide debate over the LIDAR and the HD map approach that Waymo adopts and the camera-only solution by Tesla.

Speaker #3: What is WeRide's view? Thank you.

Speaker #4: Questions. I think I will take them one by one. Okay. I did take some notes. So let's see. The first question, I think everybody have already realized the recent hot about the recent halting about the new self-driving approvals.

Tony Han: Questions. I think I will take them one by one. Okay. I did take some notes, let's see. The first question, you know, I think everybody have already realized the recent halt about the recent halting about the new self-driving approvals. You know, we all noticed, you know, this kind of accident of Baidu in Wuhan, and we have seen the reports. First of all, our view is that we view this as more of a short-term regulatory adjustment rather than structural change to the industry.

Speaker #4: We all noticed this kind of accident of Baidu in Wuhan. And we have seen a report. So first of all, our view is that it is we view this as more of a short-term regulatory adjustment rather than structural change to the industry.

Speaker #4: Because from our discussion with the central government and local government and through this kind of communication and careful investigation, first of all, WeRide, if you check our record, WeRide has a very good safety and operational record.

Tony Han: From our discussion with the central government and local government, and through this kind of communication and careful investigation, first of all, WeRide, if you check our record, WeRide has a very good safety and operational record. Both central government and local government just like give us very strong support. Through our discussion, we were assured that the central government and local governments are supporting support to the autonomous driving remains very strong. That is what we have learned. We talk with the local regulators, legislators and officials. This remains very supportive. It is a short-term adjustment. They basically halting the new approvals for the autonomous driving vehicles.

Speaker #4: And both central government and local government just gave us very strong support. And through our discussion, we were assured that the central government and local governments supporting support to the autonomous driving remains very, very strong.

Speaker #4: That is what we have learned and we talk with the local regulators legislators. And the officials this remains very supportive. It is a short-term adjustment.

Speaker #4: They basically halting the new approvals for the added autonomous driving vehicles. But current autonomous driving vehicles remain actively operation for WeRide. And our orders are increasing as I have already mentioned to you.

Tony Han: Current autonomous driving vehicles remain actively operational for WeRide, and our orders are increasing, as I have already mentioned to you. As autonomous driving moves from early pilots towards larger scale commercialization, I think it is natural for regulators to place great focus on safety, and we really think this is a very responsible attitude. We actually think this is definitely a very responsible action, and we fully support this. From our perspective, this is ultimately positive for the long-term development for the industry. A company with a very good safety record should be rewarded. A company with lousy safety record should be punished. That is definitely, I think, just think about airlines. It's the same results, right?

Speaker #4: And as autonomous driving moves from early pilots towards larger scale commercialization, I think it is natural for regulators to place great focus on safety and we really think this is a very responsible attitude we actually we think this is definitely a very responsible action and we fully support this.

Speaker #4: From our perspective, this is ultimately positive for the long-term development for the industry. Accompanied with a safety with a very good safety record should be rewarded.

Speaker #4: Accompanied with lousy safety reward should be punished. That is definitely I think just think about airlines. It's the same results, right? So the airlines with good safety record remain in the market.

Tony Han: The airlines with good safety record remain in the market. Airline without a good safety record kind of got eliminated. Well, we do suggest like the regulatory framework should favor companies with proven technology, operational experience, and a strong safety record. We also expect regulation over time to become more differentiated based on factors such as safety performance, operational track record, and technical capability. For WeRide specifically, we remain confident because we have accumulated meaningful real-world operational experience, both in China and internationally. Just two numbers, right? We operate and test across more than 40 cities in 12 countries. Who else have achieved such number? Overall, we view this necessary step for the industry and believe it will ultimately lead to a more sustainable competitive landscape.

Speaker #4: Airlines without a good safety record kind of got eliminated. So, we do suggest the regulatory framework should favor companies with proven technology, operational experience, and a strong safety record.

Speaker #4: We also expect regulation over time to become more differentiated based on factors such as safety performance, operational track record, and technical capability. For WeRide specifically, we remain confident because we have accumulated meaningful real-world operational experience both in China and internationally just two numbers, right?

Speaker #4: We operate and test across more than 40 cities in 12 countries. Who else have achieved such number? Overall, we view this necessary step for the industry and believe it will ultimately lead to a more sustainable competitive landscape.

Speaker #4: I don't want a kind of company with lousy safety record to ramp around in the markets. It's not safe to the public, not safe to our community.

Tony Han: I don't want a kind of a company with lousy safety record to ramp around in the market. It's not safe to the public, not safe to our community. We are very confident that safety company with very safe, with very good safety record like WeRide have a higher moat. WeRide will continue as a leading player to keep our very good safety record and keep our reliable operation. We try every efforts we possibly can to maintain this very good record. Second question, you know, because my answer is a little bit lengthy, sorry about that, for the first question.

Speaker #4: So we are very confident that a safety company with very safe, with very good safety record like WeRide, have a higher motor, and that WeRide will continue as a leading player, first mover, to keep our very good safety record and keep our reliable operation.

Speaker #4: We try every effort we possibly can to maintain this very good record. Second question—because my answer is a little bit lengthy, sorry about that.

Speaker #4: For the first question, the second question is just want to remind everybody a question is about actually it's the long-term debate that is LIDAR versus HD map.

Tony Han: The second question is, just want to remind everybody, question is about actually, is the long-term debate that is LiDAR versus HD map, and the approach from Waymo versus Tesla. My view is simple, okay? I spent many years in Missouri, okay? More than 10, 12 years. Missouri has been long called a Show Me State, okay? To me, I don't want to argue about approach, I want to see the results. For L4 level Robotaxi, today I think everybody have already seen that Waymo deployed thousands of Robotaxi and safely operated in many cities in United States. There are all kinds of claimers, but I just want to say for L4 level Robotaxis are driverless, autonomous driving vehicle, and safety is very important.

Speaker #4: And the approach from Waymo versus Tesla. So my view is simple, okay? I spent many years in Missouri, okay? More than 12 years. Missouri has been long called a show me state, okay?

Speaker #4: To me, I don't want to argue about the approach. I want to see the results. For L4 level robotaxi, today I think everybody have already seen that Waymo deployed thousands of robotaxi and safely operated in many cities in the United States.

Speaker #4: There are all kinds of claimers but I just want to say for L4 level robotaxi is a driverless autonomous driving vehicle. And safety is very important.

Speaker #4: If we can use HD map as an actual layer of information, why not? We have long adopted multi-sensor, redundancy-oriented technology paths. We believe that camera and LIDAR, combining together, build a strong, robust autonomous driving system, and this approach actually is broadly aligned with the direction adopted by leading global robotaxi players like Waymo, okay?

Tony Han: If we can use a HD map as actual layer of the information, why not? We have long adopted multi-sensor redundancy-oriented technology paths. We believe that camera and the LiDAR combining together build a strong, a robust autonomous driving system. This approach actually is broadly aligned with the direction adopted by leading global Robotaxi players like Waymo. Okay? At the same time, we are closely watching the progress of vision-only based and the map-led approach, including Tesla's recent approach. I have to say, FSD 14.0 make a very good progress, and we admire Tesla's achievement. However, it is still not a Robotaxi, not driverless. But we took a similar approach, as I mentioned at the opening remarks, right? Our ADAS system based on one-stage end-to-end world model has achieved four consecutive championships in China.

Speaker #4: At the same time, we are closely watching the progress or vision only based and my flat approach including Tesla's recent approach. I have to say FSD 14.3 make a very good progress and we admire Tesla's achievement.

Speaker #4: However, it is still not a robotaxi, not driverless. But we took a similar approach as I mentioned in the opening remarks, right? Our ADA system, based on a one-stage end-to-end world model, has achieved four consecutive championships in China. Basically, we beat all other ADA system solutions.

Tony Han: Basically, we beat all other ADAS system solutions. I think the only competitor we have, we haven't have a direct, face-to-face matching that is Tesla FSD 14.3. We look forward, as I mentioned, we look forward to head-to-head comparison and give our consumers the best experience. With that said, I said I just want to emphasize, we are very aware the advantage of camera-only solution based on foundation model and world model, and we are pretty good at it. That's why I think I am currently the best suitable CEO to answer this question. We really consider about the very complicated traffic scenarios in cities like Madrid in Europe.

Speaker #4: I think not only competitor we haven't have a direct face-to-face matching that is Tesla FSD 14.3 and we look forward as I mentioned we look forward to had to cut had comparison and give our consumers the best experience.

Speaker #4: So, with that said, I just want to emphasize we are very, very aware of the advantages of a camera-only solution based on foundation models and world models, and we are pretty good at it.

Speaker #4: That's why we I think I'm currently the best suitable CEO to answer this question. And we really consider about very complicated traffic scenarios in cities like Madrid in Europe.

Speaker #4: We have already spent lots of time to solving all possible corner cases in Madrid because we have to be prepared to deploy busy city in a busy European city like Madrid.

Tony Han: We have already spent lots of time to solving all possible corner cases in Madrid, because we have to be prepared to deploy a busy city, in a busy European city like Madrid. Historically, city like Zurich and Madrid would require significant localization and testing resources. With our GENESIS model, we believe we can really combining the HD map approach with the live map version. One of WeRide's strength is flexibility across different architectures. We can make a perfect marriage between this HD map LiDAR base with camera solution and map live solution.

Speaker #4: Historically, cities like Zurich and Madrid would require significant localization and testing resources, but with our Genesis model we believe we can really combine the HD map approach with the light map version.

Speaker #4: So one of WeRide's strengths is flexibility across different architectures. And we can make a perfect marriage between this HD map LIDAR-based with camera solution and map light solution.

Speaker #4: But overall, I just want to emphasize that to have a reliable and safe HD-safe robotaxi deployment at the current stage, we really need to rely on HD map. But gradually, we may use a map-light approach to accommodate emergency road construction and map changes, so we can keep the freshness of the map.

Tony Han: Overall, I just want to emphasize, to have a reliable and safe HD, safe Robotaxi deployment at current stage, we need to really rely on HD map. Gradually, we may use map light approach to accommodate emergency road construction and map change, and we can keep the freshness of map. Overall, we have to cherry-pick the advantage of camera solution, map light solution based on world model like Tesla's approach into L4 system. That's our approach. I think currently only company are capable of doing this in the world is WeRide because our ADAS progress and because our L4 level deployment operational experience. Okay. That concludes my answer. Thank you.

Speaker #4: But overall, we have to cherry pick the advantage of camera solution map light solution based on world model like Tesla's approach into L4 system.

Speaker #4: That's our approach. And I think currently only company are capable of doing this in the world is WeRide because our Ada's progress in Ada's progress and because our L4 level deployment operational experience.

Speaker #4: Okay? That concludes my answer. Thank you.

Speaker #5: Thank you, Tony. I'll answer all my questions.

Ming Sung Lee: Thank you, Tony. That is all my question.

Ming Hsun Lee: Thank you, Tony. That is all my question.

Tony Han: Cool. Thank you.

Speaker #2: Thank you.

Speaker #3: Thank you. Next, we have Patty Hu from Horn Tie Securities. Please go ahead.

Operator: Thank you. Next, we have Purdy Hu from Dongtai Securities. Please go ahead.

Purdy Hu: Hello, Tony and Jennifer. Thank you for taking my question. I got two questions for you guys. First of all, like we are seeing more and more level 2 companies planning to enter a level 4 market. What's your view on this? Also, can you give us more details on your multi-chip platform compatibility for level 2? I understand that. How do you achieve this chip's diversity?

Purdy Ho: Hello, Tony and Jennifer. Thank you for taking my question. I got two questions for you guys. First of all, like we are seeing more and more level 2 companies planning to enter a level 4 market. What's your view on this? Also, can you give us more details on your multi-chip platform compatibility for level 2? I understand that. How do you achieve this chip's diversity?

Speaker #6: Hello, Tony and Jennifer. Yeah, thank you for taking my question. So yeah, I got two questions for you guys. So first of all, we have seen more and more level two companies announcing financial enter level four market.

Speaker #6: So what's the view on this? And then also can you give us more details on your multi-trip platform compatibility for level two? And I understand that this trip so how do you achieve this trip diversity into?

Speaker #2: Okay. So thanks you for these two questions. I think these questions are more like technical questions. So I'll answer both questions, okay? So first question is about overview about the so-called L2 company or Ada's company.

Tony Han: Okay. Thanks. Thank you for these two questions. I think these questions are more like technical questions. I'll answer, you know, both questions. Okay. First question is about like overview about like the so-called L2 company or ADAS company, although they themselves don't want to call themselves as L2 company, plans to enter L4 market. What's our view? To us, like, you know, currently, I still want to emphasize, there's only one company, to my best knowledge, like doing L4 level Robotaxi, at the same time doing L2++ ADAS system.

Speaker #2: Although they themselves don't want to call them themselves as L2 company plans to enter L4 market, what's our view? So to us, currently I still want to emphasize there's only one company to my best knowledge doing L4 level robotaxi at the same time doing L2 plus plus Ada system.

Speaker #2: I have some standard that is for a company you claim yourself as a robotaxi company or L4 level autonomous driving vehicle company. You have to have a robotaxi fleet of 100 driverless robotaxi fleet open to public operate for more than half a year and without any significant or serious accident.

Tony Han: I have some standard that is for a company. You claim yourself as a robotaxi company or L4 level fully driving company. You have to have a robotaxi fleet of 100 driverless robotaxi fleet open to public, operate for more than half a year, and without any significant or serious accidents. I'm sorry, may I remind, like, the listeners, if you are not speaking, please mute your mic because I hear some background noise. Please mute your noise if you are not speaking. Okay.

Speaker #2: I'm sorry, but may I remind the listeners: if you are not speaking, please mute your mic, because I hear some background noise. So please mute your mic if you are not speaking, okay?

Speaker #2: So for L4 level company, you have to have a fleet of 100 vehicles open to public operate for half a year. And then you can call it yourself a robotaxi company.

Tony Han: For L4 level company, you have to have a fleet of 100 vehicles open to public, operate for half a year and then you can call yourself a Robotaxi company. For ADAS company, you have to deploy your system to mass production car, you know. Previously, I would say 3 years ago or 4 years ago, WeRide although have some ADAS solution in our lab, but we cannot call ourself ADAS company because we haven't deployed our system to mass production car.

Speaker #2: For Ada's company, you have to deploy your system to mass production car. Previously, I would say three years ago or four years ago, WeRide, although have some Ada solution, in the in our lab, but we cannot call ourselves Ada's company because we haven't we haven't deployed our system to mass production car.

Speaker #2: But now we can because we have deployed our Ada system to more than close to 30 types of vehicles and several of them are selling in by tens of thousands every month, okay?

Tony Han: Now we can because we have deployed our ADAS system to more than close to 30 types of vehicles and several of them are selling in, by tens of thousands every month. Okay. Now we know the difference. I believe with all of this said, I believe there is still a significant gap between advanced driver assistance system, i.e. ADAS system, and a true L4 robotaxi driverless system. The challenge is fundamentally about system robustness, operation capability and scalability. There are some numbers I want to share with you, okay?

Speaker #2: So now we know the difference. I believe with all of this said, I believe there is still a significant gap between advanced driver assistance system i.e. Ada system and a true L4 robotaxi driverless system.

Speaker #2: The challenge is fundamentally about system robustness, operation capability, and scalability. So there's some numbers I want to share with you, okay? So usually most of the most of the Ada system today according to our test mile per critical intervention if you measure in kilometers, although it's called MPCI, mile per critical intervention lots of competitors in China, they aim at to reach 1,000 kilometers of MPCI.

Tony Han: Yearly, most of the ADAS system today, according to our test, you know, mile per critical intervention, if you measure in km, although it's called MPCI, mile per critical intervention, you know, lot of competitors in China, they aim at to reach 1,000 km of MPCI. You want to share you a number that for L4 level autonomous driving, you can see the numbers from WeRide, from Waymo. The mileage per critical interventions is at above 1 million km level. There is a three magnitudes difference. Although some company claimed they can boost their MPCI by a factor of 10 every year, that's still three years away.

Speaker #2: But I want to share with you a number that, for L4-level autonomous driving, you can see the numbers from WeRide and from Waymo. The mileage per critical intervention is at above the 1 million kilometers level.

Speaker #2: So there's a strict magnitude difference. So although some company claimed they can boost their MPCI by a factor of 10 every year, that's still three years away.

Speaker #2: But let me tell you, you boost your MPCI every 10 times every year is a formidable task, a mission impossible because if some company can do that, then WeRide, Waymo, so many good companies start autonomous driving in the year of 2017.

Tony Han: Let me tell you, like you boost your MPCI every 10 times every year is a formidable task, a mission impossible because if some company can do that, then, you know, WeRide, Waymo, so many good companies start autonomous driving in the year of 2017. You know, within 7 years, think about the MPCI. Basically, all I'm saying is like, you really need to operate for half a year before you know the difficulties about L4. It's great to have ambitious goal, but always you need to really try to achieve your ambitious goals through a concrete path. The concrete path is the key.

Speaker #2: Within seven years, think about the MPCI. So basically, all I'm saying is you really need to operate for half a year before you know the difficulties about L4.

Speaker #2: So it's great to have ambitious goal, but always you need to really try to achieve your ambitious goals through a concrete path. And the concrete path is the key.

Speaker #2: And from our practice experience, you take many years to really make your fleet available and reliable for driverless operation. So I have a golden test rule that is made a driverless fleet of at least 100 cars, make it available to the market, operate for half a year, and see what happens.

Tony Han: You know, from our past experience, it take many years to really make your fleet available and reliable for driverless operation. I have a golden test rule that if made a driverless fleet of at least 100 cars, make it available to the market, operate for half a year and see what happen. I don't want to see some tragedy names. You know, you see some companies actually quit the market because some accidents. You all know the names, so I don't want to mention them anymore. Okay? Second question is about our multi-chip platform. That is actually something I love to answer. I think the key source is the secret source is our GENESIS model.

Speaker #2: And I don't want to see some tragedy names you see some companies actually quit the market because some accidents you all know the names.

Speaker #2: So I don't want to mention them anymore. Okay? Second question is about our multi-chip platform. That is actually something I love to answer. I think the key source is the secret source is our Genesis model.

Speaker #2: Our Genesis model create AI model that can trim to different chipset of different complexity. And so far, we have already rolled out our system based on NVIDIA's SORAX, Dual SORAX, Orin X, Orin Y system.

Tony Han: Our Genesis model create AI model that can trim to different chipset of different complexity. So far, we have already rolled out our system based on NVIDIA's Sorax, dual Sorax, Orin X, Orin Y system. Also we roll out our system, GAC Aion N60 based on Qualcomm SA8650. We are going to roll out a system based on SiEngine's chipset. Basically, we believe, you know, with our current Genesis-based approach, we build up world model, and we can really support different platform. This give us a great competitive advantage.

Speaker #2: And also we rolled out our system GAC N60 based on Qualcomm 8650. And we are going to roll out a system based on Saijin's chipset.

Speaker #2: Okay? So basically, we believe with our current Genesis-based approach, we build up world model and we can really support different platform. And this gives us a great competitive advantage.

Speaker #2: And again, to my best knowledge, we haven't seen any other company can support such wide spectrum of chipset available for Ada solution as well as for robotaxi solution.

Tony Han: To, again, my best knowledge, we haven't see any other company can support such wide spectrum of chipset, at the same time make them available for ADAS solution as well as for Robotaxi solution. Okay. That's my answer to these two questions. Thank you.

Speaker #2: Okay? That's my answer to these two questions. Thank you.

Speaker #1: Thank you, just a moment for our next question, please. Next, we have Kai Xiao from CICC. Please go ahead.

Operator: Thank you. Just a moment for our next question, please. Next, we have Kai Xiao from CICC. Please go ahead.

Speaker #5: Thank you, Tony and Jennifer. This is Kai from So I also have a question on the multi-chip platform strategy you mentioned. Can you share why is this strategy important for your L2++ Ada's business?

Kai Xiao: Thank you, Tony and Jennifer. This is Kai from CICC. I also have a question on the multi-chip platform strategy you mentioned. Can you share why is this strategy important for your L2++ ADAS business? Thank you.

Speaker #5: Thank you.

Speaker #2: Okay. So basically, the main reason is different OEMs have different hardware preferences. Some OEMs want extremely cost-effective chipsets. Some OEMs want very high-top computational platforms.

Tony Han: Okay. Basically, the main reason is like different OEMs have different hardware preference. You know, some OEMs, they want extremely cost-effective chipset. Sometimes some OEMs want very high tops computational platform. They have different supply chain requirements. Basically, a flexible multi-chip architecture allow us to support a broader range of vehicle platforms without like redesigning system every time. The secret sauce is really our GENESIS model, because GENESIS model can help us to tune a spectrum of AI, onboard AI model, which accommodates different tops requirement, like 8650, 200 tops, Soru 700 tops, Soax 1,000 tops, Orin X 250 tops. We have to be able to adjust. More importantly, multi-chip vendor flexibility enables faster mass production and great cost optimization.

Speaker #2: And they have different supply chain requirements. Basically, a flexible multi-chip architecture allows us to support a broad range of vehicle platforms without redesigning system every time.

Speaker #2: But the secret source is really our Genesis model because Genesis model can help us to tune a spectrum of AI onboard AI model which accommodates different tops requirements like 8650, 200 tops, SORU 700 tops, SORAX 1,000 tops, Orin X 250 tops.

Speaker #2: So we have to be able to adjust. More importantly, multi-chip vendor flexibility enables faster mass production and great cost optimization. Different chip platforms offer different cost and supply chain advantages.

Tony Han: Different chip platforms offer different cost and supply chain advantages. That one, you know, if an ADAS company or autonomous driving software company can supply a spectrum of solutions based on the different chipsets, the car OEM tends to work with you more closely. We believe this flexibility also help us secure more production, more vehicle types. We also look forward to deploy all these systems for the abroad market. One thing I want to bring all the investors intention, attention, that is this year, you see the export of Chinese automobile to the Chinese automobile product to the rest of world is have actually growing.

Speaker #2: And so that one, if a company if Ada's company autonomous driving software company can supply a spectrum of solutions based on the different chipset, the car OEM tends to work with you more closely.

Speaker #2: And we believe this flexibility also helps us secure more production more vehicle type. And we also look forward to deploy all these systems for the over for the abroad market.

Speaker #2: One thing I want to bring all the investors' attention that is this year, you see the export of Chinese automobile to the Chinese automobile product to the rest of the world is actually growing.

Speaker #2: But most of them don't have a very good Ada system. And we actually have already secured more than Thai vehicle models to supply Ada system for them.

Tony Han: Most of them don't have a very good ADAS system. We actually have already secured more than 10 vehicle models to supply ADAS system for them. Maybe next year you will see some oversea models. You can maybe drive a car with WeRide ADAS system in Middle East Asia, Southeast Asia, in some countries, and even in Europe. Please stay tuned. Thank you.

Speaker #2: So maybe next year, you will see some overseas models you can maybe drive a car with WeRide Ada system in Middle East Asia, Middle East Asia, Southeast Asia, in some countries, and even in Europe.

Speaker #2: Please stay tuned. Thank you.

Speaker #1: Thank you. Just a moment for our next question, please. Next, we have Xingyu Fang from UBS. Please go ahead.

Operator: Thank you. Just a moment for our next question, please. Next we have Xingyu Fang from UBS. Please go ahead.

Speaker #3: Hi. Thank you for taking my question. I have one question about the strategic balance and prioritization between China and international business. As we know, as Tony mentioned, there has been news about tightening scrutiny for autonomous driving permits domestically.

Xingyu Fang: Hi. Thank you for taking my question. I have one question about the strategic balance and prioritization between China and international business. As we know, as Tony mentioned, there has been news about tightening scrutiny for autonomous driving permits domestically. WeRide has been making steady advancement in international markets with better UE. Could management please share your thoughts on the balance and priority of domestic and overseas operation lately? Thank you.

Speaker #3: And WeRide has been making steady advancements in international markets with better UE. Could management please share your thoughts on the balance and priority of domestic and overseas operation lately?

Speaker #3: Thank you.

Speaker #4: Okay. Xingyu, I'll take your question. So we see both China and international markets as strategically important for WeRide. Of course, in near to medium term, certain international markets offer clearer and faster paths to commercially attractive robotaxi economics.

Jennifer Li: Okay, Xingyu, I'll take your question. We see both China and international markets as strategically important for WeRide. Of course, in near to mid to medium term, certain international markets offers a clearer and faster path to commercially attractive Robotaxi economics, thanks to the favorable pricing, partnership, and friendly, favorable regulations. Demonstrating sustainable profitability early on is critical for our industry, where healthy cash flow enables self-sustained growth. In local market, that's actually very important. We see it very important to get into this, we call it the massive effect type of self-sustained growth. WeRide, we started building a significant international mode starting in 2021, ahead of most of the peers.

Speaker #4: Thanks to the favorable pricing partnership and friendly favorable regulations. And demonstrating sustainable profitability early on is critical for our industry. We're healthy cash flow enables self-sustained growth.

Speaker #4: And in local markets, that's actually very important we see it very important to get into this we call it domestic effect type of self-sustained growth.

Speaker #4: So, WeRide, we started building a significant international mode starting in 2021, ahead of most of the peers. And we have since then gained very hard-to-replicate expertise in global deployment.

Jennifer Li: We have since then gained very hard to replicate expertise in global deployment, in regulation, localization, home location, and fleet operations. Meanwhile, China remains to be a key long-term market due to the size, ecosystem, infrastructure, and after all, it's our home. We continue to maintain a very strong presence here as well. Overall, we see a powerful flywheel effect as we scale across more cities in more countries, and we have more data and more validation to improve the performance and also to improve the regulatory trust. This accelerating the permits, fleet expansion, and commercialization. Yeah. Both are very important for us.

Speaker #4: In regulation, localization, home location, and fleet operation. And meanwhile, China remains to be a key long-term market due to the size, ecosystem, infrastructure, and after all, it's our home.

Speaker #4: And we continue to maintain a very strong presence here as well. So overall, we see a powerful flywheel effect as this scale across more cities in more countries and we have more data and more validation to improve the performance and also to improve the regulatory trust.

Speaker #4: So this accelerating the permits, audit extension, and commercialization. So yeah, both are very important for us. Yeah. Of course, we are very pleased to say we see huge potential that the international revenue will grow rapidly this year.

Jennifer Li: Of course, we are very pleased to say, we see a huge potential that international revenue will grow rapidly this year, and we are very on track to achieve our all year revenue target this year. Yeah. That's all, Xingyu.

Speaker #4: And we are very on track to achieve our all-year revenue target this year. Yeah. That's all, Xingyu.

Xingyu Fang: Thank you.

Speaker #1: Thank you.

Operator: Thank you. Next, we have Tianyu Liu from CITIC Securities. Please go ahead.

Speaker #3: Thank you. Next, we have Tan Lu from Sato Securities. Please go ahead.

Tianyu Liu: Hi, Tony Han and Jennifer Li. This is Tianyu Liu from CITIC Securities. I have two questions. The first one is, what's Uber's current shareholding, and how should investors think about the relationship between WeRide and Uber? Secondly, could you share your go-to-market model across different markets? Thank you very much.

Speaker #5: Tony, I'm Jennifer. This is Tan Lu from Sato Securities. And I have two questions. The first one is: what's Uber's current shareholding, and how should investors think about the relationship between WeRide and Uber?

Speaker #5: And secondly, could you share your go-to-market model across different markets? Thank you very much.

Jennifer Li: All right. Thank you, Tianyu. Uber holds more than 5%. Uber is a strategic shareholder and a key partner for WeRide. Based on their latest public filing, they hold over 5% of WeRide, which we view as a strong endorsement of WeRide technology and our solid deployment and commercialization strategy. Operationally, we're already deploying with Uber in more cities outside the US than any of the AV players out there. Which reflects both, you know, the depth of our relationship and our ability to execute at scale. We expect we will expand. There is like echo sound. Can someone, Tianyu, can you mute? Okay, thank you. Yeah.

Speaker #4: All right. Thank you, Tan Lu. So Uber holds more than 5%. It's Uber is a strategic shareholder and a key partner for WeRide. So based on their latest public filing, they hold over 5% of WeRide which we view as a strong endorsement of WeRide technology and our solid deployment and commercialization strategy.

Speaker #4: So operationally, we already deploying with Uber in more cities outside the US than any of the AV players out there. So which reflects both the depth of our relationship and our ability to execute at scale.

Speaker #4: So we expect we will expand there is echo sound can someone Xingyu, can you mute? Okay. Thank you. Yeah. We expect to expand to there's still echo.

Jennifer Li: We will enter into more cities with Uber this year, and we remain to be a trusted partner as they build their global AV strategy. Of course, at the same time, our go-to-market approach is diversified. We work with partner that best fits each other in each market. In China, we operate our own app to build the brand awareness and operational capabilities. You can get our Robotaxi, WeRide Go, and you can also get it from the Amap and the Tencent mini program.

Speaker #4: Okay. I'll mute him. Yeah. We will enter into more cities with Uber this year and yeah. So and we remain to be a trusted partner as they build up as they build their global AV strategy.

Speaker #4: Of course, at the same time, our go-to-market approach is diversified. We work with partner that fits best fits each other. In each market. And in China, we offered our own app and to build the brand awareness and operational capabilities.

Speaker #4: You can get our robotaxi WeRide Go and you can also get it from the AMAP and then also the Tencent Mini program. In Southeast Asia, we partner with Grab.

Jennifer Li: In Southeast Asia, we partner with Grab, and in Europe, we collaborate with local platforms, operators, and PTOs, including SBB in Zurich, TPG in Geneva, and ELEVATE in Slovakia, et cetera. All of this will accelerate our deployment and the permitting process. Yeah. Overall, we see strong alignment with a platform like Uber in scaling our Robotaxi globally. Of course, we continue to take flexible approach in working with multiple platforms to ensure that we execute very effectively across different markets. Thank you. The second one, the other one is our asset-light business model for Robotaxi. Yeah, I think the time is running out. I'll just be short. I'll try to be quick.

Speaker #4: And in Europe, we collaborate with local platforms operators and PTOs including SPV in Zurich, TPG in Geneva, and Elevate in Slovakia, etc. So all of this will accelerate our deployment and the permitting process.

Speaker #4: Yeah. So overall, we see strong alignment with a platform like Uber in scaling our robotaxi globally. And of course, we continue to take flexible approach in working with multiple platforms to ensure that we execute very effectively across different markets.

Speaker #4: Thank you. And the second one, the other one is our asset light business model for robotaxi. Yeah. I think the time is running out.

Speaker #4: I'll just be short. I'll try to be quick. So outside China, we already implement asset light business model in all markets. It's a mature and proven structure for WeRide.

Jennifer Li: Outside China, we already implement asset-light business model in all markets. It's a mature and proven structure for WeRide. In like, I'll just give you example. In some cases, Robotaxis are purchased by the ride-hailing platform or, like, local customers. In some other cases, they are owned by third-party fleet owners. We have already executed in both models successfully. The asset-light model means, like, we, WeRide will focus on providing the tech and operation while leveraging the local capital to scale more efficiently. In China right now, the priority is to continue improving the unit economic and of course operational efficiency, with a larger ODD so that the revenue share will become sizable enough for it to become appealing to a third party as an owner to participate.

Speaker #4: So I'll just give you an example. In some cases, robotaxis are purchased by the red-heeling platform or local customers in some other cases, they're owned by third-party fleet owners.

Speaker #4: We have already executed in both models successfully. So the asset light model means WeRide will focus on providing the tech and operation while leveraging the local capital to scale more efficiently.

Speaker #4: And in China right now, the priority is to continue improving the unit economics and, of course, operational efficiency with a larger ODD, so that the revenue share will become sizable enough for it to become appealing to third-party asset owners to participate.

Jennifer Li: Over long term, we also expect China to move into the same direction. As utilization continue to strengthen, the model should naturally transition towards a more asset-light structure. Thank you, Kenny.

Speaker #4: So over long term, we also expect China to move into the same direction. As utilization continue to strengthen, the model should naturally transition towards more asset light structure.

Speaker #4: Thank you, Tan Lu.

Operator: Thank you. Our last question comes from Mei Liu from HSBC. Please go ahead.

Speaker #3: Thank you. Our last question comes from May Lu from HSBC. Please go ahead.

Mei Liu: Hi. Thanks management for taking my questions. This is Mei from HSBC. I will only have one question. What's the trajectory for Robotaxi vehicle cost reduction? Thanks.

Mai Lu: Hi. Thanks management for taking my questions. This is Mei from HSBC. I will only have one question. What's the trajectory for Robotaxi vehicle cost reduction? Thanks.

Speaker #5: Hi, thanks management for taking my questions. This is Mai from HSBC. So I will only have one question. What's the trajectory for robotaxi vehicle cost reduction?

Speaker #5: Thanks.

Jennifer Li: Okay, I'll take this one. Thank you, Mei. Cost reduction, of course, always remain to be one of our key focus area. We continue to see meaningful progress. There are three main drivers. The first one is the hardware and the system integration. With our latest platform and our purpose-built vehicle like GXR, we are moving towards, like, the pre-integrated and very standard solution. Every year, the BOM costs continue to drop. The second is scale and supply chain optimization. As now we are moving to, like, a few thousand unit deployment, as we can see, we are able to do better cost efficiency across different components and the manufacturing. The last one is on the operational efficiency.

Speaker #4: Okay, I'll take this one. Thank you, Mai. So cost reduction, of course, always remains one of our key focus areas, and we continue to see meaningful progress.

Speaker #4: There are three main drivers. The first one is the hardware and the system integration. So with our latest platform and our purpose-built vehicle like GXR, we are moving towards the pre-integrated and very standard solution.

Speaker #4: And every year, the bomb costs continue to drop. And the second is scale and supply chain optimization. As now, we are moving to a few thousand units deployment as we can see we are able to do better cost efficiency across different components and manufacturing.

Speaker #4: And the last one is on the operational efficiency. We already see that there's a strong efficiency improvement as fleet scales and utilization increase. For example, in last quarter, we already announced that our remote safety officer ratio has already improved to 1 to 40 from previously as 1 to 10 to 1 to 20.

Jennifer Li: We already see that there's a strong efficiency improvement as fleet scales and utilization increase. For example, in last quarter, we already announced that our remote safety officer ratio has already improved to 1 to 40 from previously as 1 to 10 to 1 to 20. Now it's already 1 to 40. Internationally, we are following the same trend, but now, of course it's not 1 to 40 yet, but we're moving into the same direction. We believe all of this are very important because remote operation efficiency, it's a very meaningful, has a very meaningful impact over per vehicle TCO and overall unit economic.

Speaker #4: Now it's already 1 to 40. And internationally, we are following the same trend, but now, of course, it's not 1 to 40 yet, but we're moving into the same direction.

Speaker #4: So we believe all of this are very important because remote operation efficiency is a very meaningful has a very meaningful impact over per vehicle TCO and overall unit on the overall unit economic.

Jennifer Li: Additionally, when we enter some new market, there might be some upfront like homologation and localization costs, which sometimes temporarily increase the per vehicle cost in early stage. However, as deployment scales, within each market, those costs are amortized and the overall impact will become very limited and manageable. With the cost reduction as a combination of hardware as well as operational efficiency. Yeah. Thank you, Mei.

Speaker #4: Yeah. So additionally, when we enter some new market, there might be some upfront homologation and localization cost which sometimes temporarily increase the per vehicle cost in early stage.

Speaker #4: However, as deployment scales within each market, those costs are amortized and the overall impact will become very limited and manageable. So yeah. So with the cost reduction as a combination of hardware as well as operational efficiency.

Speaker #4: Yeah. Thank you, Mai.

Operator: Thank you. Due to time restraints, I will conclude the call today. Thank you for participation in today's conference. This concludes the program. You may now disconnect.

Speaker #3: Thank you. Due to time restraint, I will conclude the call today. Thank you for participation in today's conference. This concludes the program. You may now disconnect.