WeRide Inc. Q3 FY2025 earnings call

• Achieved world's first city-level fully driverless robotaxi commercial permit in Abu Dhabi, started driverless operation via Uber. Now has autonomous driving permits for 8 countries and L4 fleet in 11 countries + 30+ cities with over 1,600 vehicles.
• Expanded to Belgium, secured first driverless robotaxi license in Switzerland. In China, launched 24/7 driverless commercial service in Guangzhou, deployed over 300 robotaxi in Guangzhou and over 100 in Beijing. Introduced China's first free pickup and drop-off feature for robotaxi.
• Robobus obtained Belgium's first Level 4 test permit, launched in Leuven; received order for 100 midsized robobuses in Guangzhou. WeRide and Bosch started production of WePilot 3.0 L2+ Level ADAS system, selected by GAC for passenger car models. Utilizes WeRide One Universal platform with WeRide Genesis world model for scalable autonomy.

Total revenue for Q3 was RMB 171 million, a year-over-year growth of 144%. Product revenue was RMB 79 million, up 428%, driven by increased sales of robotaxi and robobuses. Service revenue was RMB 92 million, up 67%. Robotaxi revenue increased 761% to RMB 35 million in Q3, accounting for 21% of total revenue.

• Strategy to scale Abu Dhabi's full driverless robotaxi model globally. Aim to achieve large-scale L4 deployment in next 5 years, creating sustainable business and delivering value to shareholders. Unit economics in Abu Dhabi shows potential for profitable operation in international markets. Need to copy Abu Dhabi model to other regions like Singapore, Middle East cities, and Europe.

Q: How to quantify revenue opportunities of vehicle sales, revenue share, and profit sharing in the long run for Abu Dhabi driverless robotaxi?

A: In international markets, revenue comes from ride fare revenue share, annual licensing, and vehicle sales. In Abu Dhabi, collaborate with Uber, generating revenue from ride fare share, annual licensing, and vehicle sales. Unit economics in Abu Dhabi already shows breakeven potential with current utilization, and projections for higher utilization next year.

Q: Which markets could be key volume drivers besides Abu Dhabi and Switzerland? How to balance expansion and investment?

A: Potential key markets include Middle East cities (Dubai, Riyadh), Singapore, East Asia countries. Aim to copy Abu Dhabi model to similar markets. Expect moderate expansion growth, aiming for balance between scaling, investment, and profitability. Focus on areas where Abu Dhabi model can be replicated to achieve profitability.

Q: Thoughts on robotaxi business in China and international markets' economics? How quickly can Abu Dhabi's driverless milestone be replicated?

A: China is a unique market with large user base; profitability in Tier 1 cities depends on city density, daily orders, and fare. International markets like Abu Dhabi have shown successful unit economics. Abu Dhabi model can be replicated in similar markets like Dubai, Riyadh, Singapore by leveraging successful experience to obtain more driverless permits and deploy services. Catalysts include regulatory trust and technology, hurdles include regulatory issues.

Q: WeRide's key advantages vs competitors? Competitive landscape?

A: Key advantages include technology accumulation, ability to deploy L4 and L2++ level mass production vehicles, fast iteration capability, and dual flywheel strategy (data from robotaxi and L2++ to enhance both). Fewer mature robotaxi companies exist, and WeRide's experience in driverless operation and ADAS integration gives it an edge. Competitors face challenges in technology accumulation, regulatory exploration, and data gathering.

Q: Tools/techniques to stay ahead technically? Status of USD 1 million share repurchase program?

A: Uses dual flywheel strategy (data from robotaxi and L2++ to improve both), Genesis platform for simulation, and global data collection from various climates and regions. Share repurchase program authorized in May but not initiated due to close period from Hong Kong IPO; preparing to call extraordinary general meeting for approval.

Q: Fluctuation in robotaxi revenue? European expansion plan?

A: Fluctuation in robotaxi revenue due to delivery schedule aligned with permit upgrades and operating area expansion. In Europe, plan to solidify foundation with trial operations in France, Belgium, etc., using applications like robobus and Robosweeper. Explore countries like Germany, France, Spain, Norway, leveraging strategic partnerships and local partner availability and regulatory policies.