WeRide Inc.

Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to WeRide's second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. The company will be hosting a question and answer session after management's prepared remarks. Please note that today's event is being recorded. The company's financial and operating results were released by the Newswire earlier today and are currently available online. Joining us today are WeRide's founder, chairman and CEO, Dr. Tony Han, and CFO and head of international, Ms. Jennifer Lee. Before we continue, I would like to refer you to the Safe Harbor statement in the company's earnings press release, which also applies to this call. As of today's call, we'll include forward-looking statements, including WeRide strategies and future plans. Actual results could differ materially from those stated or implied by these forward-looking statements as a result of various important factors. And please refer to the risk factor section of the company's UF prospectus file with the SEC for a full disclosure of these risk factors. Please note that all numbers stated in the manager's prepared remarks are in R&B terms, and we will discuss non-IFRS measures today, which are more thoroughly explained and reconciled to the most comparable measures reported in the company's earnings release and filings with the founder, chairman and CEO, Dr. Tony Han. Please go ahead.

Ladies

and gentlemen, please stand by.

Your

conference will begin shortly. We do appreciate your

patience. Please stand by. Thank you. Hello?

Hello, can you hear me now?

Tony, you may begin.

Hello, can you hear me? Can you hear me now? Just want to double check with you.

Tony, your line is loud and clear. You may begin.

Okay, thank you. Sorry about this technical problem. I will start now. Hello, everyone, and thank you for joining us today. This past quarter has been post-exciting and full of We remain committed to our long-term vision, transforming the future mobility through safe and accessible driverless solutions. Over the past few months, our teams have reached significant milestones, most notably the rollout of our robot taxi service to Dubai, Riyadh and Shanghai. These new locations expand our global footprint to 10 cities around the globe, making a major step forward. We also have, we also partnered with Lenovo to launch our latest computing platform, HPC 3.0. This breakthrough offers a new level of cost effectiveness and scalability for level four autonomous vehicles. With that in mind, let's take a look at some of the key highlights from this quarter. We have made major progress in expanding our global robot taxi operations, and this is just beginning. Today, we operate the largest public commercial robot taxi fleet outside the US and China. The Middle East is a strategic priority for V-Ride, and it will remain one of our key growth regions throughout 2025. In 2023, we became the first company to be granted a national wide meet in UAE. In last month, December, we launched a partnership with Uber. In just six months, the V-Ride Uber robot taxi fleet has tripled in size, now covering roughly 50% of Abu Dhabi's core areas, including major highways and airports. By year end, we aim to further scale the fleet to hundreds of vehicles and expand service into new areas such as Khalifa City, Master City, and the Mall of downtown Abu Dhabi. This growth is expected to double our ride volume. On average, each robot taxi is expected to complete dozens of rides in a typical 12-hour shift, with each typical ride exceeding six kilometers. We have also begun driverless testing in Abu Dhabi, paving the way for commercial driverless launch in the months ahead. We couldn't be more excited about what to come. In June, we kicked off testing in Dubai and anticipate launching of our pilot operation later this year. During this initial phase, a safety driver will be present in the vehicle, much like our approach in Abu Dhabi. Our ultimate goal is to introduce a full driverless service in Dubai next year. As part of our strategic plan with Uber, we are expanding commercial robot taxi service to 15 additional cities. Earlier this month, we partnered with the Transportation General Authority of Saudi Arabia to launch the kingdom's first-ever robot taxi pilot in Riyadh. The initial rollout covers key locations, including King Khalid International Airport, major highways, and several city-centered destinations. Riyadh is now the third city where we, Ride and Uber, have introduced robot taxi services together. We are also making waves in China, where our robot taxi service not only serves as a proving ground for our technology, but also plays a vital part of our commercial operations. This month, the World Artificial Intelligence Conference, this month at the World Artificial Intelligence Conference, we announced our debut in Shanghai through a collaboration with Cherry and Jinjiang Taxi. Together, we are launching our town's ride to major cities, major city landmarks, including the Shanghai World Expo Center, Pudong International Airport, and Shanghai Disney Resort. On the heels of our robot taxi success, new opportunities are emerging for the commercialization of our other elbow products. In Guangzhou, our robot van, W5, has secured a second round of permits following its successful debut in April. In Singapore, we launched fully driverless robot bus operations in Sentosa, the first of its kind in Southeast Asia. Meanwhile, in Paris, we partnered with Renault Group for the second consecutive year to provide robot bus shuttle service at the prestigious Holland-Garhaut Tennis Tournament. These milestones reflect our commitment to safety and our proven track record of transporting tens of thousands of passengers around the world. What truly sets us apart isn't just our ability to commercialize, but our relentless drive to innovate. Early this month, we unveiled HPC 3.0, our proprietary computing platform developed in collaboration with Lenovo. HPC 3.0 featuring dual NVIDIA Thor X chips. It delivers up to 2,000 tops of AI computing power, making it one of the most powerful computing platform for L4 autonomy. This full auto grid computing platform with a design 10 years of lifespan is rigorously tested under extreme weather conditions. Not only does it deliver exceptional performance, it also cuts the cost of our autonomous driving suite by 50 percent, positioning we ride strong for large-scale commercial deployment. HPC 3.0 is already integrated into our GXR robot taxi, making it the world's first mass-produced L4 autonomous vehicle using NVIDIA Thor chips. In partnership with Cherry, we have also introduced our next-gen robot taxi, CER, which is now ready for mass production. CER is built with five-layer redundancy across the core systems, including the steering system, braking system, communication system, and power supply, ensuring we maintain the same high safety standards proven over past 2,200 days of public operation. As we continue to scale our operations, policy compliance remains a critical pillar of our strategy. We are incredibly proud of the trust we have earned globally. We are now the only company in the world whose products were granted autonomous driving permits in six countries. Each of these permits represents not only the right to operate, but also a stem of recognition, showing that our vehicles meet the high standards wherever we go. To date, we have logged more than 14 million kilometers of real-world autonomous driving knowledge, continuously making our system smarter, safer, and more reliable. Now, I will pass to our CFO, Jennifer Lee, to discuss the company's financial performance.

Thank you, Tony. Hello, everyone. Before we dive into the Q2 financial, I want to highlight that all figures are in R&B and comparisons are -over-year, unless stated otherwise. Now, let's discuss our second quarter financial performance. We delivered total revenue of 127.2 million, up .8% -over-year, driven by strong growth across both product and service segments. This performance underscores the accelerating commercial momentum of our global strategy. Product revenue delivered a strong growth of .6% -over-year to 59.8 million in Q2, driven by steadily increasing demand for our taxi and noble sleepers. Robo taxi revenue reached a record high of 45.9 million, up .7% -over-year, marking its highest-ever contribution to group revenue at .1% since 2021. This growth reflects our global market leadership. We now operate the largest robot taxi fleet in the Middle East, this rapid expansion in Abu Dhabi, and Saudi Arabia's first ever robot taxi pilot operation in Riyadh. We also have strong regulatory momentum. WeRide is the only company with autonomous driving per million six countries, which means our technology meets the high global safety standards. This demonstrates our technology advantages and encouraging success of our globalization strategy. Service revenue grew .3% -over-year, to 67.4 million, supported by a 35.8 million increase in intelligence data services and L4 operational support, which is partially offset by the completion of legacy ADAS R&D contracts. Group-level growth profit increased .6% to 35.7 million for the second quarter, with a group-level growth margin of .1% and the scoring our continued commercial leadership in the industry. This healthy margin reflects the strengths of our international expansion and robot taxi business growth. Operating expense increased .5% -over-year to 487.8 million, with R&D accounting for .4% of the total. To break down this further, R&D expense increased by .1% to 318.9 million in the second quarter of 2025 compared to the same period of last 2024. Excluding share-based compensation, R&D expense increased by .5% to 280.3 million. The increase in R&D expense was primarily due to an increase of 45.1 million in personnel-related expense from HATCOM increase as well as average salary increase. Also, there is an increase of 31.5 million in services for R&D projects. Administrative expense increased by .3% to 155.1 million. Excluding share-based compensation, administrative expense increased by .8% to 75.6 million. This increase was primarily due to an increase of 28.9 million in professional service fees, mainly related to audit and legal compliance services. Selling expense increased by .5% to 12.1 million. We continue to prioritize our talent strategy, recognizing that a growing team of high-caliber professionals remains pivotal to sustain our technological leadership. Together with our expanding commercial outreach, those investments are laying a resilient foundation for long-term competitiveness. Our net loss decreased by .7% to 406.4 million in the second quarter of 2025. On a non-IFRS basis, the net loss increased to 306.6 million, mainly due to continued investment in R&D and broader operating activities. As of June 30, 2025, we hold a total reserve of $5.8 billion, including $4.1 billion in cash and cash equivalents and time deposits, $1.7 billion in wealth management products, and $15.4 million in restricted cash. We believe our sustainable liquidity position will continue to fuel robust R&D efforts and support our scale-up ambitions. In conclusion, our recent progress in driverless activities, which is now underway in Abu Dhabi, and the recent launch in Riyadh, Shanghai, and Singapore, validate our path to commercialization. This Robotex unit economic improving and partnership accelerating, we are confident our ability to convert global potential into long-term value. With that, operator, we are now ready to take some questions.

Thank you. And as a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile our Q&A roster. And one moment for our first question. We'll be coming from Life Museum and CICC. Your line is open.

Good evening, Tony and Jennifer. Congrats on your strong results and thanks for taking my questions. For Tony, could you elaborate a little bit about how should we consider your company's multi-product strategy? What is the relationship between Robotexi and other products, such as RoboBus? And for Jennifer, we see an expanding revenue contribution of your Robotexi business. Is this trend going to sustain in the coming quarters? And what are the key drivers? Thanks.

Okay, so thank you for the question. I will answer the first one and I think Jennifer can follow up with the second one. So this is about our multi-product strategy. I think all over the world, among all autonomous driving companies, I mean the leading top-rated, leading autonomous driving company, we write it is not only company have this multi-product strategy. And you know, at we take a one platform approach. That is, we do build up a universal platform called rewrite one. And that one actually, that platform powers multiple urban mobility applications, including all of the products you mentioned. Among all of this, Robotexi is our flagship user case. But what is the advantage of this one? Okay, the advantage one, there are several advantages of this strategy. One is like this set up give us access to a huge pool of high quality of L4 data. That means the data you collected with a RoboSweeper or with a RoboBus actually can be used for Robotexi. And you know, during over the past eight years, people are talking about in order to build a great Robotexi or any L4 products, you need cover lots of long tail corner cases. These corner cases are very rare. There's no guarantee like you can use your RoboTexi to capture all corner cases. However, if we have RoboSweeper, RoboVan and RoboBus all over the city, then we have much bigger, five times bigger chance to capture this very precious corner case so that we can improve our system. And besides, you know, for the marketing expansion reason, not every market is ready for full-blown RoboTexi service yet. And you know, that is the reality. So our multi-product lineup gives partners and governments the flexibility to roll out autonomy in a way that fits their pace and priorities. For example, take Paris, Singapore and Japan as examples. These regions, these countries actually having some problem of aging population and a shrinking public transport workforce. For them, RoboBus is often the entry point to L4 autonomy. Starting with RoboBus actually help us to build public trust and it gives regulators time to right framework. It's a smart way to actually avoid costar problem that often stop the new tech rollouts. And also I'm proud to share with you that because of this products and we have already worked with all governments, I'm appointed as a member of Singapore steering committee on AVs. This committee actually is chaired by the acting minister for transport in Singapore, Mr. Jeffrey Hsiao. The committee is tasked to looking to ensure AVs are safely integrated into Singapore's land transport system, create new jobs and improve everybody's connectivity for residents. Actually, it is a great honor for us to contribute to this important national initiative and also to support the development of AVs through strategic guidance and leadership. So overall, I think with all these products and we have many more opportunities, many times more efficiency in data collection and many times more robust in supply chain. And so I believe this strategy is one key factor that makes VRI so successful. That's all I want to say about this first question. And Jen, do you want to answer the second question?

Yeah, I'll take the second question. For the revenue contribution on the RoboTeksy side, we have seen strong momentum in our RoboTeksy revenue and we believe this trend is here to stay. In Q2 2025, RoboTeksy revenue hit a record high accounting 36% of the total revenue. And going forward, we expect it to continue and remain to be a major revenue contributor as we continue to scale globally and lead the charge in commercialization of the RoboTeksy. Our core engine driving the growth are the lows. First of all, it's on the fleet expansion side. As we roll out more RoboTeksy and launch operations in key overseas markets, a larger fleet directly translates into stronger revenue. Secondly, our RoboTeksy runs a triple growth engine. It started with the hardware sales and it follows with the service revenue as well as the revenue sharing. While the hardware anchors the growth today, the service and service revenue as well as the revenue sharing model offers a long-term upside as our operation matures. Thirdly, we're targeting markets with a stronger unit economics, especially in those with a higher price per kilometer. This is a key factor in scaling revenue efficiently. So, RoboTeksy isn't just part of our product lineup, it's the heart of our global strategy. That will be all from my answer. Yeah. Got it. Thank

you,

Tony and Jennifer.

That's helpful.

Thank you. And our next question will come from Tim Thao of Morgan Stanley. Tim, your line is open. Again, Tim of Morgan Stanley, your line is open.

Yeah. Thank you very much. It's great for us to unmute. This is Tim from Morgan Stanley. Thanks, Tony, Jennifer, and Tim for taking my questions and congratulations on the solid progress in the RoboTeksy business. I have two questions. The first one is about the auto grade HPC 3.0 platform. I've heard these super impressive that the new generation platform could cut the cost by 50%. So, just want to know that when are we going to deploy the HPC 3.0 platform on our next generation RoboTeksy and when are we going to start the best production? And in the meantime, want to know if there will be any design changes to realize the next generation RoboTeksy that can help to further enhance the passenger user experience. So, that's my first question. Thank you.

Okay. Thank you, Tim.

So,

first of all, for about one question, I think HPC 3.0 is already on-road. We have spent more than two years working on this very exciting project and now finally we have other results, very satisfactory results. Our RoboTeksy GXR is the first mass production L4 autonomous driving RoboTeksy actually with NVIDIA SOAR platform. As people know, SOAR is currently the most advanced auto grade computational platform produced by NVIDIA. So, we have achieved that. So, I do believe HPC 3.0 with that dual SOAR X chipset is a game changer. Why is that? Because the computational power is absolutely next level. Previously, competitors, computational platform is around anything between 500 tops to at most 1000 tops. But now our fully auto grade computational platform is 2000 tops. And also, this actual horsepower allows us to process more sensor data using large models and have lower latency all in real time. So, that will lead, that must lead to much better user experience. And I also want to emphasize making a computational platform of 2000 tops is quite hard. Make it full auto grade is much harder. This is actually really critical. And there's a lot of industry standards such as ISO 26262 and functional safety and AEC Q100 for quality. We have to handle all of this and actually HPC 3.0 meets these standards. And also, HPC also cuts our manufacturing cost by up to 50%. So, it's ready for large scale mass production. That's very important breakthrough. And also, major improvement in terms of our planning algorithm is actually, with this enhanced computational platform, we can launch groundbreaking free pickup drop off called to-do setup for users. Now, at Beijing Yizhong, we achieve this kind of to-do functionality. So, pick up drop off. Of course, you cannot drop off at any place, any street that is not allowed to pick up and drop off. But as long as the municipal government allows us to pick up and drop off, we can achieve that kind of functionality. So, the user experience has been improved a lot. Okay. That's my answer to the question.

That's super helpful. Thank you, Tony. And second question is also about the robot taxi. As Jennifer mentioned during the presentation, Rewise leads the pack to hold six ADE permits in six countries. And I think Tony also mentioned this is just beginning. So, just want to know that how many permits currently are in our pipelines where we can get by end of this year? And separately, excluding China, what's Rewise current resize in those countries globally? And what's our expansion target for robot taxi by end of this year and for 2026? That's my second question. Thank you.

I'll take this question.

So, about the permit side, right? The granting of the permit is a rigorous program in each country. We are making responsive progress every step along the way. Now, we have obtained the driverless testing permit in Abu Dhabi, and we expect to upgrade the testing permit to driverless commercial permit in the coming months, which is a huge step for Abu Dhabi. And we will have the similar progress will take place in other countries. Fleet size wise, we have now the totally, we have a fleet size of more than 1,300 autonomous vehicles globally, and we're just still growing. And now about a little bit less than one third of the fleet is outside of China. In the domestic market, so our focus will be just on static policy aligned expansion. So, wherever the policy allows us, we'll just go to those places. We are building on those existing open zones and open regulator progress. And recently, we just got the autonomous driving permit in Shanghai to gather its chari. And in China, we expect by end of this year, we aim to add hundreds more vehicles to our fleet. And internationally, which is more a focus, like for the earning, and you can see, you can tell that we can see that tremendous upside, especially in those regions like say, Middle East, Singapore, Europe, where the market potential and a unit economic are highly attractive for robot taxi deployment. Governments in those regions are also setting very ambitious goals. I'll give you one example. The Saudi Arabia Transport General Authority has publicly committed that they will reach 25% autonomous driving penetration by 2030. Similar plans were also announced by Abu Dhabi and by Dubai. So, that sends a clear signal that autonomous driving products will be a key part of the region's future mobility. So, we did a simple math. If by hitting like a similar penetration rate in the region, that will give us the room of 30,000 or more like 80 products like in this region, like for robot tax as an example. Yeah, so we are moving fast to capture those early opportunities in those developed countries. So, our goal is to develop hundreds and maybe next year thousands of vehicles globally. This year we'll do hundreds and next year hopefully, if the permit allows, we would love to do thousands. And focusing, we would like to focus on those markets where the demand, the support and the infrastructure are already lining up. Those are the targeted areas. I hope that answers your question,

Tim. Yes, thanks for sharing all the details and congratulations again. Looking forward for more good news. Thank you.

Thank

you,

Din.

And our next question will be coming from Jiazhe Shen of JPMorgan. Your line is open.

Yeah, thank you for taking my question. This is Jiazhe from JPMorgan. I have two questions. The first one is regarding the business model of your robot taxi in long run. How should we think about it? Through your collaboration with ride-hailing platforms, what kind of role will they play? And my second question is regarding the HPC. It's glad to see you launch the new generation of the computing platform. And my question is how is HPC 3.0 going to drive through our scaling from here? And what's its implications to your unit economics? Thank you.

Okay, so can you hear me? Can you hear me clearly? I'm not sure. Yeah. Okay, good. Okay. So, first of all, about the robot taxi business model, I think, I think, you know, to rewrite, so the key, keywords for rewrite business model is actually partnership. So, for rewrite robot taxi strategy, we want to develop and build a deep win-win with top mobility players in the market. And that means like we focus on what we are good at. Okay, we are good at developing L4 level autonomous driving technology. And while at the same time, our strong partners will bring their expertise in fleet operations, maintenance, marketplace, and customer service. So, this kind of collaboration will build up a kind of union which supply the best service to our users. So, just give an example, right? Our partnership with Uber not only led to their second investment in rewrite, but also set up blueprint for how we new international markets gather. We prove that autonomous technology, we provide actually autonomous driving technology, and they bring operational home. Across the whole mid-east, we collaborate, we also collaborate with Steer AI in Saudi Arabia and Text AI in UAE. In Europe, we have launched robot bus service with Renault and T-Corp robot taxi texting with SBB and STL. And in Southeast Asia, our strategic alliance is Grab and also SMRT. And others helping us in the relative regions, we are very actively seeking for the collaborators. So, with all that is critical. And by partnering with strong local operators, global operators, we are not only shortening our time to market, but also build a very robust, scalable ecosystem that combines cutting-edge technology with proven operation excellence. So, that's how we push for the large scale. That's our strategy.

And one moment for our next question.

Our next question comes from Zin-Yu Fang of UBS. Your line is open. And our next question comes from Zin-Yu Fang of UBS. Hi, can you

hear me, please? Hi, can you hear me? Yes, we can. Okay, great. Thank you

for taking my question. I have two questions. My first one is that recently we've seen OEMs like Tesla entering the space of the robot taxi operation. Could you kindly share your thoughts on the future competitive landscape of the robot taxi, both domestic and overseas? Thank you.

Okay, so I'll take this question. So, it's about like a competitive landscape. So, first of all, I want to mention like the robot taxi because it is such an important area and with huge market potential. In this field, over the past 10 years, there have never been one day that without lots of competitors. Since we founded this company in the year 2017, there are many very well-known giants and also very well-known startups like Enter This Field. The robot taxi competition actually has been ongoing for more than eight years. But over the eight years, WeRide has grown into a top autonomous driving and robot taxi company in this world. And we have expanded our operations in more than 10 cities and many, many countries. We hold taxi permits from six countries. So, I think we really are very confident about our competition capability. And so, I want to emphasize what really is that WeRide apart is actually WeRide's proven ability to deliver safe, reliable, and scalable public transportations. And we have been offering public robot taxi service since the year of 2019. And we are still proud to say over the past 2,200 days operation, there is zero regulatory displeasement caused by our autonomous driving system failure. This is a very, very good safety track record. And in the future, what is our competitive edge? I think we have many capabilities. Just to name a few, one is our HPC 3.0. I just mentioned, computational platform is the most advanced. WeRide's computational platform is the most advanced around the world. And our products and algorithms are highly adaptable. In some cities, we can go from zero to deployment in just two weeks. This agility has helped us to secure permits for our products in six countries. And also, we have already successfully built a win-win collaboration model with local partners. So, with all that said, I think the other things, we have a very strong mission. That is, we want to provide safe, reliable, and greater rider experience to our drivers with our cutting edge autonomous driving technology. So, with all of this, I think we are very confident in the competition for the competition today and for competition of tomorrow.

Okay, thank you for your answer.

That's very clear. Can you also, my second question is, can you also elaborate on how weRide leverage new AI models such as the World Model or VRM or VLA? How would you think about the future technology trend for robotarx taxi and other autonomous vehicles? Thank you.

Okay, very good question. I think, you know, so for VLA, now everybody's talking about VLA and in the era of developing AGI, great programming AGI, of course, everybody's talking about this VLA language model. And one thing I want to mention is like, there are some good technology, but, you know, in order to really adopt this good technology, you have to have very good pool of talents to develop this technology. These days, we all witness like this kind of competition against the talents in Silicon Valley, right? So luckily, weRide has a pool of great talents working on deep learning, large language model and the VRM. We have lots of very, very, very excellent talented engineers. And, you know, one thing I want to point out is like, we actually working on the VRM at the same time, we actually build a proprietary -to-end architecture that can function independently on other systems. And our L4 fleet, actually, we can make this other system integrated into our L4 system. And to my best knowledge, this is very unique. So we have this kind of visual language model based -to-end system, and it's already integrated into our L4 system. And so we actually are also working on how to really utilize this VRM with lots of data. But of course, the data labeling is kind of very, very tedious and also sometimes very expensive. So to work with visual language model and all kinds of deep learning algorithms, we actually developed very, very important platform, Genesys. This Genesys stands for Generative Engineered Neural Environment for Simulated Intelligence in Self-Driving. It's actually our core part of training and validate our system. And with this new deep learning algorithm, we can actually have a mechanism or an environment to generate word. We write Genesys can actually reconstruct full urban environments in minutes and also complete with camera and radar views, help us to simulate all kinds of scenario. And also it's capable of 3D reconstruction of everything with all the location information and very realistic. And with the Generative AI function, we can support actually different scenarios like snowing weather, raining weather, all of this kind of scenario we can generate and put all of this generated data to train our visual language model. I believe this is one of our muscles, one of our competitive edge. So with all of this new developed technique and algorithm, we hope to develop the best autonomous driving technology for our users.

Dao Jie, thank you. Mm-hmm.

One moment for our next

question. Our next question will be coming from Olivia Niu of BOTI. Your line is open.

Hi Tony, hi Jennifer. Thanks for taking my questions. And here I have two questions. The first one is regarding the global market expansion. Because we see that the ride is accelerating the global market expansion to deploy robot taxi business in recent quarters, especially in Middle East. So just wondering, do you see any challenges of deploying global taxi service in such destination markets, maybe from the perspective of markets adaptation and compliance related issues? That's my first question.

Yeah, Olivia, I'll take your question.

For the challenge side of deploying overseas, let's start with adaptation. Taking our tech globally means we have to tailor everything to the local conditions, which are always often very different from what we have seen in China. I'll give you a few examples. Like say in some regions, it's climate changes. We have a climate of difference. Some extreme temperature, like heavy snow. And like say in the Middle East, we deal with the extreme desert heat and on your own counter, like the very large construction site on the road. And sometimes the road direction changes like on a monthly basis for those construction sites. So yeah, to prepare, we've leaned heavily on the robust model we have developed over the years, as well as all the diverse data we collect locally. Tony just explained our model progress. Genesis, it's extremely helpful. It's not only a world model, but it's a closed loop simulation system. And all of that has given us a very solid base to fine tune our algorithm before we scaling the operation locally. And then if we move on to the compliance side, every market has its own sense on autonomous driving vehicles. And many countries, they're still figuring it out. Some, like say the Middle East, they are pushing aggressively to bring in autonomous driverless solutions. And there are other countries, they are taking a more -by-step approach. So but for both scenarios, early movers, they have a real advantage. But getting early, we can help to shape the regulatory framework itself. Just like Tony just mentioned, he sits on the regulatory board in Singapore. And that in turn will help to smooth our path into those new regions. Yeah. Licensing together with the regulatory side, licensing is another major piece of the puzzle. And every market follows a phase regulatory path that's pretty common. And you have to get from the testing permit and then do it for a while and then move it into commercial license if the regulator is happy with the performance. And then you do it with a safety driver onboard and gradually you move it to full driverless. It's a rigorous progress. And we're very proud to say we are now, if you look at the results, we are the only tech company with products, grant, autonomous driving license in six different countries. We run all of our autonomous driving products in 10 countries in more than 30 cities. That's a very strong testament of the maturity and the readiness of our technology and our getting permit know-how. Last on our list, we would like to mention on the data privacy and localization. We do take those very seriously and we don't engage in cross-border data transfer. And all the data we collect, they stay within the country where it's generated. And usually we definitely strictly follow the local data like governance, privacy, and cybersecurity are the requirements. So yeah, so with all this years experience, overseas deployment, and we have built a very deep understanding of what it really takes to succeed in different markets. This kind of like hands-on know-how were earned through the actual deployment. And it's not just like signing some MOU and some very beginning pilot program. We believe this is our one of our core modes. And this was set up for scale up efficiently and confidently around the world.

Yeah. Thanks, Jennifer. It's quite clear. And my second question is about the technology competency. If we look at all autonomous driving software developers of maybe traditional F4 players that focus on developing fully automated vehicles like Waymo, and also the others originally focused on developing L2 or L2 Plus ADAS systems, but now play catch up in F4 competition such as Tesla. So just wondering if from the technological perspective, how do we think about the competitive edge of Wayride and how to sustain the tech leadership in future? Thanks.

Okay. So thank you. I'll take this question. I think people have been debating about whether Waymo's approach will realize autonomous driving, or is there a possibility like Tesla's approach will reach autonomous driving? So people can debate this for a long time. But I want to point out actually, so you have to actually finally you have to show all the people like with real operation. So here I just want to say no matter what kind of approach you mention, finally you have to supply very reliable, very affordable, and all-new taxi service with very good user experience. So having that said, I just want to emphasize like there's only one company in the world like can currently is doing both all-new taxi service using L4 level autonomous driving technology at the same time supplying ADAS systems for massive production car. That is Wayride. Wayride actually we can do all range of autonomous driving system or algorithm starting from L2 plus plus to L4 system. Our L4 vehicles actually already operate with with some very good performance in Beijing and Guangzhou. And I think they are comparable to Waymo's operation in San Francisco or in LA or potentially in New York. Our ADAS said we have built -the-art one stage -to-end model and also we are integrating VLM as I mentioned before. And so our ADAS system has been adopted by many mass production car and have very good ADAS experience. And so by advancing L4 autonomous driving system and ADAS technology in parallel, we are building a tech foundation with the potential to break past traditional of autonomous driving systems performance ceiling and achieve a much higher level of generalization. That's exactly why we are able to support a wide range of urban mobility applications and has been successfully deployed, has successfully deployed in 10 diverse countries in all different conditions. So that's actually just want to share with all the people like no matter which approach people think have high likelihood, actually Wayride is the only company doing very very significant progress and actually generates significant results in the both end. So hopefully in future we will have a great system, have the merits of the both pre have the merits of the both approach with a very efficient model and to and then we can bring the best quality of service of robot tech service to the world.

Thanks Sonic, quite helpful. I have no further questions and I'm looking forward to hearing more good news next quarter. Thanks. Thank you, Oli.

Thank

you. Thank you everybody. Thank you.

Do we have more questions coming? And we have one more question for Tianyu Lu of CITIC Securities. Your line is open.

Okay, good morning. I'm Lu Tianyu from CITIC Securities. Thank you very much and congratulations on the results. We believe that the level for autonomous driving is an international topic, not only in China. And my question is that as some companies are also eyeing the Middle East, what's your take and how does V-Ride stand out? Thank you.

I'll take your question, Tianyu.

So yeah, like we just mentioned, the Middle East is a dynamic market with huge potential and which exactly why we chose it as the launchpad for our global expansion back in 2021. So even then, back then, we weren't the first one to announce plans there. But today, V-Ride operates the largest commercial robot tech facility in the entire region and we're just the first and only autonomous driving company to have to receive a national autonomous driving permit in the UAE granted to us by the UAE prime minister. And that also opens the door for our flagship partnership with Uber, which actually kicked off last December. And yeah, so now we have strong partnerships like in the region with Uber, with TXAI, with TGA, with AI Driver. And to the best of my knowledge today, we are the only robot tech player based operation in Abu Dhabi. And we're the one of the two that who has started testing in Abu Dhabi in Dubai. And obviously, we're the only one in Riyadh in the King Saudi Arabia as well. And if we're coming back to like say Abu Dhabi, our robot tech fleet already covers half of the urban city. So that is unprecedented for the region. So yeah, so what makes all of that possible is like we have a very standardized deployment playbook and the proven localized capabilities. It's not easy for everyone to, it's not like anyone can just go into the computer region and start it to deploy. There are a lot of localized issues that they have to solve. But we have already gotten the, we can get the fleet up and running in weeks. And also we have the local team to support. Yeah, even in the region's extreme environment, like say two weeks ago, I was down there to in Riyadh for the robot tech deployment ceremony. The weather is already 46, 47 degrees. And you can imagine when we first hit it, like open the car, the temperature within the vehicle is even higher. So all of other issues that every participant in the region have to overcome. And it takes a strong team to overcome those challenges. With all the expertise that we build there, we think we will remain to be the leading one in the Middle East. And we'll take it global to scale faster, smarter, and this very strong local impact. I hope that answers your question.

Ladies and gentlemen, this does conclude today's

conference. Thank you for your participation and you may now disconnect.

Thank you. We'll see you next quarter. Thank you.

Thank you.