Pony AI Inc.

Hello, ladies and gentlemen. Thank you for standing by, and welcome to Pony AI Inc.' 's fourth quarter and full year 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 ir.pony.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 fourth quarter and full year 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 will refer to during the conference call, can also be accessed and downloaded on our IR website. Joining me today on the call are Dr. James Peng, Chairman of the Board and CEO, Dr. Tiancheng Luo, CTO, and Dr. Liu Wang, CFO of the company. They will provide a prepared remark followed by the QA session. Before we begin, please refer to the safe harbor statement in our earnings release, which applies to this call as we will be making forward-looking statements. Please also note that we will discuss non-GAAP measures today, which are more thoroughly explained and reconciled to the most comparable measures reported under the GAAP in our earnings release, available on our Investor Relations website and following with the SEC and the Hong Kong Stock Exchange. I will now hand over to our Chairman and CEO, Dr. James Peng. Please go ahead.

Thank you, George. Hello, everyone. Thank you for joining our earnings call. 2025 is an amazing year for us. This was actually defined by multiple remarkable milestones. First, our top-line growth significantly accelerated. Looking at Q4 last year, our robo-taxi revenues surged by 160% year-over-year, and fare charging revenues skyrocketed by over 500%. Second, since our Gen 7 robo-taxis debut last April, we have moved straight into mass production and commercial deployment. our fleet has now surpassed 1400 units. Third, we are expanding our footprint, launching services in new cities in both China and globally. This has massively broadened our reach. In fact, we're now crossed the 1 million user mark in China alone. Fourth, we've proven our business model actually works. We achieved UE breakeven in both Guangzhou and Shenzhen, and we will replicate this success into more markets. Looking ahead at 2026, it will definitely be a year of hyper growth for Pony. We're riding a perfect wave of industry momentum built on five pillars, fully driverless technology, policy support, mass production, large-scale operation, and ecosystem maturity. Last year, we used China's Tier 1 cities as a strategic blueprint to deploy Gen 7 RoboTaxes. From official debil to mass production, regulatory validation, and rigorous testing, we achieved commercially fully driverless operations within just six months. Last quarter, we set our RoboTaxi fleet target to over 3,000 units for this year, boosted by the financial fire powder from our successful Hong Kong IPO and also with the Toyota BZ4X Gen 7 model already in SOP. We now have greater visibility and are confident in actually even exceeding this target. Our excellent virtual driver is the key to support this confidence. Proven mastery of highly complex urban scenarios and a superior safety record have earned deep trust from the policy makers and the partners, driving rapid user adoption. This directly translates into positive UE. Since we hit the UE breakeven in Shenzhen last month, Growth momentum continues with this March. We are seeing peak daily revenues of 394 RMB per vehicle and daily orders at 25 per vehicle. We will certainly replicate this success globally. By year end, we plan to deploy robo-taxis in over 20 global cities. As the go-to partner, we have forged strategic alliance with industry leaders like Tencent and Uber. Together, we will propel global expansion, powering accelerated top-line growth, and more than tripling our robo-taxi revenues for 2026. Let me elaborate how we will drive this hyper-growth. We are executing dual-engine strategies. That means we are all in on both China and the global markets. Our proven business model in China gives us a solid foundation to replicate the success internationally. And we are already seeing great results that provisions us for our next growth phase. In China, we have earned a clear leadership across tier one cities, skilling further and pushing deeper into busy downtown areas. Take Shenzhen, for example. Our robo-taxis satisfy surging demand in traffic hubs such as Nanshan and Bao'an during Chinese New Year. The paid orders in the first two months this year alone have already surpassed that of the whole year 2025 in Shenzhen. We also entered University Town in Guangzhou, the busiest campus zone in southern China. This sets the stage for more launches in multiple cities across the greater Bay Area. In March, we also entered Hangzhou and Changsha, two driving top tier cities. This is just the start, and we will have more cities to follow soon. Now turn to overseas markets. Our presence in Europe, the Middle East, East Asia, and Southeast Asia now covers a population of 100 million. We're aiming for nearly half of our 20-city target to come from overseas by the end of this year. Recently, we teamed up with Uber and Vern, which is a RIMAC group company, to enter Croatia, working together to launch Europe's first commercial fare charging robo-taxi service. In the Middle East, we rolled out our first fare charging service with Mova Saleh Cover in Doha, and we are gearing up for fully driverless operations after the approval later this month in Dubai, UAE. In Singapore, we have launched public debut of autonomous driving services with ComfortDialGrow. We're confident overseas revenues will grow rapidly in 2026. Ecosystem maturity is a critical pillar in executing our dual-engine strategy. Our successful business model makes us a go-to partner partners are now actually lining up to join our joint deployment model. Essentially, it's a model that they will fund the vehicles and we can share success together. This will empower us to achieve fleet acceleration, reduce cost and capital efficiency. We have got a robust pipeline of new partners ready to jump on board. Toyota is the first to adopt our joint deployment model. Their BZ4X Gen 7 RoboTaxis will account for a significant portion of our 3,000 vehicle target in 2026. And we have already secured 1,000 units. As a longstanding strategic partner, our collaboration with Toyota extends far beyond just manufacturing. Together, we will commercially deploy RoboTaxi to drive market penetration. By leveraging our OEM partners' mature supply chain and extensive after-sales service networks, our enhanced partnership with both Beijing Auto and Guangzhou Auto further reduce our vehicle cost. In addition, We will jointly deploy RoboTaxi vehicles into more overseas markets. To reach a broader user base, we also partnered with Tencent by integrating with WeChat Mobility, unlocking access to hundreds of millions of users who call our RoboTaxi services. We are also deepening strategic partnerships with on-time mobility in Guangzhou and ATVB in Beijing to accelerate adoption of our joint deployment model. Overseas, our global partnership with Uber enables us to access users across multiple continents, starting from Europe. Our regional alliance strengthen our market penetration with partnerships established with ride-hailing platform Bolt and also auto manufacturers Stellantis. Now, let me turn to Robotruck. Over the past few years, we've made huge technological leaps by using our proven L4 tech stack. It has been translating into commercial breakthroughs. We are now covering major logistic routes connecting industrial hubs, ports, and consumption centers across China. To seize the opportunity, we introduced our Gen 4 robot truck in 2025, reducing the ADK bomb cost by 70%. We target mass production of Gen 4 robot trucks and deploy them this year. In 2025, we have deployed fully driverless robotrucks at Jiangmen port in Guangdong province and tested the one plus N driverless platoning in extreme weather conditions in Northwest China. With this proven tech, we will deploy robotrucks in more ports and mine haulage scenarios. Lastly, our licensing and applications business delivered a robust growth. Last year, autonomous domain controllers, the ADC, sales actually reached six-fold to the level of 2024. We have also expanded our application scenarios to low-speed deliveries, robot sweepers, logistics, and the humanoid robotics Strong customer demand and growing market recognition of our technology will continue to drive growth. In summary, we have hit a major inflection point as we validated business models through 2025 achievements, such as fleet expansion, new city launches, and UE break-even. 2026 is posed as a year of hyper growth. We are super confident to triple our robo taxi revenues, grow fleet to over 3,000 vehicles and deploy robo taxis in more than 20 global cities. Powered by our dual engine strategy, we're speeding towards autonomous mobility everywhere. I firmly believe every effort we make today will not only reshape the future of human mobility, but also drive a revolution in transportation. This will be a revolution where safety, efficiency, and accessibility redefine how the world connects, commutes, and thrives. With that, I'll hand it over to our CTO, Dr. Tiancheng Luo. who will go over our technology strategies. Tiancheng, please go ahead. Thank you, James.