Pony AI Inc.

Hello, ladies and gentlemen. Thank you for standing by, and welcome to Pony AI Inc.' 's third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the management's prepared remarks, there will be a question and answer session. As a reminder, today's conference call is being recorded, and a webcast replay will be available on the company's investor relations website at irpony.ai under the news and events section. I will now turn the call over to your host, George Hsiao, head of capital markets and investor relations at Pony AI. Please go ahead, George.

Thank you, operator. And hello, everyone. We appreciate you joining us today for Pony AI's third quarter 2025 earnings call. Earlier today, we issued a press release with our financial and operating results. which is available on our Investor Relations website. An earnings presentation, which we'll refer to during this conference call, can also be accessed and downloaded on our Investor Relations website. Joining with me on the call today are Dr. James Peng, Chairman of the Board and Chief Executive Officer, Dr. Tiancheng Luo, Chief Technology Officer, and Dr. Liu Wang, Chief Financial Officer of the company. They will provide prepared remarks followed by a Q&A session. Before we begin, please refer to the safe harbor statement in our earnings release, which applies to this call as we'll be making forward-looking statements. Please also note that we'll discuss non-GAAP measures today, which are more thoroughly explained and reconciled to the most comparable measures reported under GAAP in our earnings release. available on our Investor Relations website and following with the SEC and Hong Kong Stock Exchange. I will now hand it over to our Chairman and CEO, Dr. James Peng. Please go ahead.

Thank you, George. Hello, everyone. Thank you for joining our earnings call. I'm excited to share that we have successfully completed the dual primary listing on the Hong Kong Stock Exchange. under stock code 2026 on November 6th, just one year after our NASDAQ listing. With strong support from both international and domestic investors, we secured the largest IPO in the global autonomous driving sector this year, raising more than 800 million U.S. dollars. This significantly strengthens our balance sheet and provides the dry powder to accelerate mass production and large-scale commercialization. We now expect stronger growth, surpassing 1,000 Robotaxi fleet plan by year-end and expanding to more than 3,000 vehicles for 2026. We have already seeing the flywheel in action. Expanded fleet is driving higher user adoption, shorter wait time, more orders, and a strong revenue growth. After launching Gen7 Robotaxi, we have already seen a citywide unit economics breakeven. This, in turn, gives us more room to increase fleet size. The capital we raised also fuels our business development, research and development, making strategic investments in new markets, new applications, and attracting world-class AI talents. All these are set to further propel our technology leadership and the long-term growth. Our Hong Kong IPO also powers our core mission. bringing autonomous mobility to everyone around the world. We're firmly delivering on this commitment. Earlier this month, we officially launched fully driverless commercial service for Gen 7 robotaxis across Guangzhou, Shenzhen, and Beijing. Today, our management team, including myself, actually arrives at our Shenzhen office in a fully driverless Gen 7 robot taxi to host this conference earnings call. This is more than just a normal ride for us. It actually marks a giant leap in autonomous driving's advancement. We are making level 4 autonomy more accessible than ever to a much broader user base. I'm excited to share a critical milestone. Our Gen 7 robo taxis have reached city level break even in Guangzhou shortly after their official commercial launch. This is pivotal to validate our viable business model. It not only gives us strong confidence to further scale our fleet, but also attract more and more third party partners in labeling them to fund our fleet and to support our asset-light model. The scaling up of a fleet is key to our growth as large-scale operational footprint drives efficiency through the economy of scale. Our robot taxi vehicles are essentially moving billboards, in fact, many new users discover and download our Pony Pilot app after spotting our vehicles on the road for daily operation. Fleet expansion serves as a highly efficient self-reinforcing marketing engine, facilitating user adoption and strengthening brand recognition. This creates a powerful upward spiral, more vehicles generate greater visibility, which attracts more users and establish network effects. The results are already evident. Building on that momentum, new registered users nearly doubled within just one week of launching Gen7 from late October. reflecting robust user demand and effective go-to-market strategy now let me highlight some key advance advance were made in recent months in executing our scale up strategy first we have ramped up production at an accelerating pace since the start of production in the middle of this year by november More than 600 Gen 7 robo taxis had rolled off our assembly lines, bringing the total fleet size to be over 900 vehicles. Thanks to the streamlined production process, we now expect to outperform our full-year target of 1,000 vehicles delivering ahead of schedule. This gives us increasing confidence to sustain robust momentum, driving fleet size to surpass 3,000 vehicles in 2026. Second, in Q3, our robo-tax revenue surged by 90% year over year with fair charging revenues delivering over 200% year over year growth. This was fueled by driving user adoption across all four tier one cities, improved fleet operational efficiency, and tailored pricing strategy for diverse user segments. We have seen that the higher order density leads to lower users' average waiting time and, in turn, higher vehicle utilization rate. This allows us to continuously optimize our pricing strategy. Third, we have continued to expand our operational footprint. For example, in Shanghai, we became the city's first company to launch fully driverless commercial robot taxi operations earlier this July, covering the Jingqiao and the Huamu areas of Pudong. In Shenzhen, we extended commercial fully driverless operations to more and bigger city areas, including Shekou and the overseas Chinese town. Fourth, we're taking major steps toward scalable mobility.