WeRide (NASDAQ:WRD) reported first-quarter financial results on Wednesday. The transcript from the company's first-quarter earnings call has been provided below.
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Summary
WeRide reported a strong Q1 2026 with total revenue of RMB 114 million, a 58% increase year-over-year, driven by the expansion of its autonomous driving and robo taxi services.
The company is rapidly expanding its international presence, launching fully driverless services in Dubai and Singapore, and planning to deploy 1,200 robotaxis across the Middle East by 2027.
WeRide's ADAS solution, WRD 3.0, has been adopted by nearly 30 vehicle models and supports multi-chip compatibility, enhancing production and cost efficiencies.
The global robotaxi fleet reached approximately 1,300 vehicles, with significant operational expansion in China and the Middle East, and plans to extend into Europe.
Management emphasized the importance of regulatory compliance and safety, noting that the recent regulatory scrutiny in China is a short-term adjustment rather than a long-term structural change.
WeRide maintains a strategic partnership with Uber and is pursuing an asset-light business model for its international operations to optimize scalability and cost efficiency.
The company is focused on both technology development and operational efficiency to drive down the cost of autonomous vehicle deployment, aiming for long-term profitability.
Full Transcript
OPERATOR
Good morning and good evening ladies and gentlemen. Thank you for standing by and welcome to WeRide's first quarter 2026 earnings conference call. Please note that today's event is being recorded at this time. All participants are in a 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 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 purposes only. In the case of any discrepancy, management statement in the original language will prevail. Joining us today, WeRide's founder, chairman and CEO Dr. Tony Hahn 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 earning press release which also applies to the call as Today's call will include forward looking statements including We Write 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 and Please refer to the Risk Factor section of the Company's form filed with the SEC and announcements on the website of the Hong Kong Stock Exchange for full closure of these risk factors. 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's prepared remarks are RMB Terms and will be discussed in non-IFRS measures today which are more thoroughly explained and recalled on those 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 Investor Relations website. With that, I will now begin the Company's video presentation. 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 service is available not only through our WeRide Go app, but also via WeRide Go, WeChat mini program, Tencent Mobility, WeChat 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 robo taxi service covering 70% of the city's core area. We expanded this leadership further with the launch of fully driverless robo taxi services in Dubai in March. We also launched robo taxi public operations in Riyadh in October 2025. In April, in partnership with Grab, we launched Singapore's first autonomous public ride service in Punggol. Bring Robotaxi GXR service to residential communities we are accelerating commercialization through key partnerships with Geely Farazan to deliver 2000 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 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 WeRide 3.0, our one stage end to end ADAS solution bringing proven L4 technology capabilities to mass market L2 vehicles. The Chery Xeed Stera model equipped with WeRide 3.0 has won four consecutive championships at the China Urban Intelligent Driving Competition, setting a historic record. WeRide 3.0 has secured production design wins across nearly 30 vehicle models and is now in mass production across multiple models including the Cherry Xeed Stera Eset, Cherry Xceed EX7 and GAC Ion N60. WeRide 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. 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 Hahn. Please go ahead sir.
Tony Hahn
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 RMB114 million, 58% up year over year. These results are driven by our accelerating robo taxi 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. 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. 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 Intelligence 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, but WeRide is one of very few companies that have publicly demonstrate 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 the complex interactions between vehicles and the surrounding objects. More importantly, we can edit this environment components 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. 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 L2ATIS to L4Robotaxi and 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 the 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 vWrite is comparable to the performance of FSD 14.3 from Tesla in California. You know I personally own two Tesla and I drive 14.3 with FSD 14.3 from Tesla every day. I look forward to entering a global urban intelligence driving competition directly facing FSD 14.3 from Tesla 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 continue to make strong progress in scale, operational efficiency and commercialization debt. First in China, our robotaxi business continue 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 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 robo taxi users also doubled almost every year. We believe these metrics continue to demonstrate growing user adoption and improving unit economics as robo taxi commercialization scales. In this quarter, we also continue to deepen our partner ecosystem. In April, we extended 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. Together with geely far reason, we plan to deliver 2000 upgraded purposely built robo taxi gxr in 2026. We believe 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 the second half of last year, the fleet has built a trustworthy operational track record in a highly regulated international market. In the Mid east, we have launched fully driverless commercial robo taxi operation in Dubai. Together with Uber and Dubai's rta, this is the city's first fully driverless commercial robo taxi service. Meanwhile, Abu Dhabi service coverage expanded to around 70% of the city's core area. Across the Mid east, together with Uber, we remain on track to deploy at least 1,200 robotaxis 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 commercialized commercial operation in Zurich. Overall, we continue to believe VRISE remains the most globally deployed autonomous driving company today, with deployments across 12 countries and permits in eight markets. This global footprint not only diversify our revenue, but also demonstrates operational and regulatory capabilities that are hard for borrowers to replicate. It also keeps us on track toward our long term vision of deploying tens of thousands of robo taxi globally by 2030. Beyond global taxi, our ADASS business is also seeing growing commercial traction. Our current version of ADASS system, WRD 3.0 has been adopted by nearly 30 vehicle models including vehicles from leading OEMs such as GAC and Cherry. In April, GAC Ion launched pre sales for the ion n 60, the first mass production vehicle with VRI solution. Leveraging the generalization capability of Genesis, our WRD 3.0 solution is now supporting three major chip Nvidia Drive, Qualcomm, Snapdragon and the Cengine Starlight. We believe this level of multi chip compatibility for 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, Lapis, Omanda JCO bringing WeRide powered AWS solution to consumer globally. Finally, for Robopass, we also continue making progress globally. We are collaborating with the Geneva public transport operator TPG on autonomous bus deployment. Meanwhile, we are preparing for the robo bus operation with Renault at the Holongarho French open for the third consecutive year. To summarize, the first quarter of 2026 was about substantiating technology leadership of VRIDE into commercial scalability through growing robo taxi operations, expansion into new international market, growing deployment pipelines or continued unrivaled winning momentum in adas. We believe we are exciting, 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 Lee for a deeper view of the financial results this quarter.
Jennifer Lee
Thank you, 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. And we will discuss non IFRS measures today which are more solely explained and reconciled to the most comparable matters reported in the company's earnings release and filing with SEC and the Hong Kong Stock Exchange. 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 Robo taxi and other L4 vehicles. 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. Considering the seasonal impact of Chinese New Year and Ramden in Middle east, our business performance surpassed our original internal targets. Group level gross profit increased 56% to 40 million in the first quarter with a group level gross margin of approximately 35%. We maintain top line expansion without sacrificing margin discipline, underscoring the inherent profitability of our autonomous driving business as we further scale. This was also supported by the increased exposure of our ex China market where we continue to see the structural stronger margin profile as we expand into new additional international territories. Operating expense were at $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. To break down further, R and D expense increased by 12% to $363 million in Q1 2026. Excluding share based compensation, R&D expense grew 16% to $322 million. This consistent investment in R and D underpin our technology roadmap and ensures we stay at the forefront of autonomous driving innovation. 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 and partially offset by increased personnel costs for the expansion of our team. As a foregoing business selling expense increased by 63% to 23 million in Q1 2026. Excluding share based compensation, selling expense increased by 81% to 22 million, the increase corresponding to ongoing expansion for our business underscoring our commitment to support growth appropriately. 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. The slight uptick was largely driven by ongoing R and D expanding and separate. We continue to invest ahead of scale in our long term technology leadership. As of 3-31-2026 we had total capital reserve of 6.22 billion, 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. We maintain short term bank loans of 294 million to support daily operation. We have well positioned our capital base to match our cash deployment need. It had room to support ongoing growth and strategic initiatives. Under the US$100 Million share repurchase program authorized by our Board of Director on March 23, 2026, we have repurchased approximately 24.4 million Class A ordinary share including in the form of American depository shares as of market close on May 12th for a total consideration of approximately 61.4 million in US dollar. This reflects our firm belief in companies 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. 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 quest to take some questions.
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 11 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 Wang from Morgan Stanley. Please go ahead.
Stanley Wang (Equity Analyst)
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 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. 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. 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 robo tax expansion. I think overall we are very optimistic and confident in our global robo tax expansion and we have, we have been making the steady progress all the time at the. You know I would share some numbers I have already told to the market. That is as of at the end of April, our global robotaxi fleet reached approximately 1300 vehicles. That is to my best knowledge one of the biggest robotaxi fleets globally in China. Our robo taxi fleet has grown to approximately 1000 vehicles with solid demand, healthy daily order volume and a growing user base. And I want to share you a number. Our average daily order per vehicle exceeded 17 trips during the first quarter. That is an amazing number. And our overseas robo taxi 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 robo taxi, 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. We ride robo taxi in Abu Dhabi or Dubai. Okay, that's the our current stage with regional tensions created from. I know regional tensions create some short term softness in utilization, but we remain very confident. 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, Riyadh. As additional driverless odd to be added in Europe, we are expanding our footprint in Switzerland. We obtained regionals 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 VRIDE has established a meaningful advantage first mover advantage through years of global expansion. 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 our global roadmap and our plan. Okay, about profit profitability. Would you pick up the question, Jennifer?
Jennifer Lee
Yeah, yeah, answer the second one. Yeah. So just now Stanley also mentioned the various core advantage is having like operating license in eight countries actually now comparing the total number of robo taxi deployed and driverless permit hold by any autonomous vehicle autonomous driving company outside China and the US VRide ranks first across like among all the different companies outboard companies. 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 account for approximately one third of the total group the group revenue last year and our Middle east subsidiary was already profitable at net level. And also Tony just discussed just already talked through our key developments in some of the regions of China this year. And we will announce some more exciting announcements in robotaxis deployment in due course. So this year we expect international revenue to grow even faster and contribute a even larger share of group revenue supported by the positive unit economics. And maybe I would like to just to also to 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 so do you still want to expand to more cities or focusing on the current ones? So our strategy is to focusing on scale in existing city as well as interning additional cities under a more selective criteria. 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 because both scale and unit price matter significantly for long term robo taxi unit economics. And 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, and 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. Yes, that concludes my answer for this question.
OPERATOR
Thank you. Just a moment for the next question please. Next we have Ming Sun Li from Bank of America. Please go ahead.
Ming Sun Li (Equity Analyst)
Hi Tony and Jennifer, thank you for giving me the opportunity to raise a question. I also have two questions. So the first one, how do the recent report about China holding a new self driving approvals to impact we rise? And a second question, it's about the technology difference. So 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 Rewrite's view? Thank you. Questions? I think I will take them one by one. Okay, I did take some notes. So 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 accidents of Baidu in Wuhan and we have seen reports. So 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. 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 wewride has a very good safety and operational record and both central government and local local Government just like gave us very strong support. And through our discussion we were assured that the central government, local government supporting support to the autonomous driving remains very, very strong. That is what we have learned and 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 added autonomous driving vehicles. But current autonomous vehicles remain actively operational for Vritt and our orders are increasing, as I have already mentioned to you. 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 think this is definitely a very responsible, responsible action and we fully support this. From our perspective, this is automatically positive for the long term development for the industry. A company with a safety with a very good safety record should be rewarded. A company 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 without a good safety record got eliminated. And we do suggest like the regulatory framework should favor companies with proven technology, operational experience and 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 VRI 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, sustainable competitive landscape. I don't want a kind of company with lousy safety record to ramp around in the market. It's not safe to the public, not safe to our community. So we are very confident that safety company with very safe with very good safety record like Vride have a higher motor and we write will continue as a leading, leading player, first mover to keep our very good safety record and keep our reliable operation. We try every effort 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. The second question is just want to remind everybody a question is about actually it's the long term debate that is LIDAR versus HDMAP and approach from Waymo versus Tesla. So my view is single. Okay. I spent many years in Missouri, okay. More than 1012 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 robo taxi today. I think everybody have already seen that Waymo deployed thousands of Robo taxi and safely operated in many city in the United States. There are all kinds of claimers but I just want to say for L4 level robo taxis, driverless autonomous driving vehicle and safety is very important. 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 the LIDAR combining together build a strong robust autonomous driving system. And this approach actually is broadly aligned with the direction adopted by leading global robo taxi players like Waymo. At the same time we are closely watching the progress of vision only based on 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. However, it is still not Robo taxi, not driverless. But we took a similar approach as I mentioned at the opening remarks, right? Our ADA system based on one stage end to end world model has achieved four consecutive championships in China. Basically we beat all other ADA system solutions. I think the 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 comparison and give our consumers back. So with that, with that said I said I just want to emphasize we are very 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'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 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. But with our genesis model we believe we can really combining the HCMAP H MAP approach with the Map Light version. So one of vwrite's strength 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. But 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. But gradually we may use Map Light approach to accommodate emergency emergency road construction and the MAP change and we can keep the freshness of map. But overall we have to cherry pick the advantage of camera solution, map light solution based on world model like Tesla support into L4 system. That's our approach and I think currently only company are capable of doing this in the world is vray. Because our ADAS progress in ADAS programs and because our L4 level deployment operational experience. Okay, that concludes my answer. Thank you. Thank you Tony. That's all my question. Thank you.
OPERATOR
Thank you. Next we have Purdy Hu from Hometown Securities. Please go ahead.
Purdy Hu (Equity Analyst)
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 are seeing more and more level two totally announcing plans to enter level four market. So what's your view on this? And then also can you give us more details on your multi chip platform compatibility for level 2? And I understand that this chip. So how do you achieve this chip divergence?
Tony Hahn
Okay, so thanks, thank 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 like overview about like the so called L2 company or ADAS company 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 like you know currently I still want to emphasize there's only one quantity to my best knowledge. Like doing L4 level robo taxi at the same time doing L2 ADA system. I have some standard that is for company. You claim yourself as a robo taxi company or elbow level automobile driving vehicle. You have to have a robo taxi fleet of 100 driverless robo taxi fleet open to public operate for more than half a year and without any significant or serious serious accidents. So I'm sorry may I remind like the listeners if you are not speaking please mute your mic because I hear some background noise. So please mute your noise if you are not speaking. Okay? Okay. So I 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 robo taxi company. For ADAS company you have to deploy your system to mass production car. You know previously I would say three years ago or four years ago, we although have some ADA solution in our lab but we cannot call ourselves ADAS company because we hadn't deployed our system to mass production car. 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 by tens of thousands every month. Okay, so now we know the difference. I believe with all of that said, I believe there is still a significant gap between advanced driver assistance system IA system and a true L4 robo taxi driverless system. The challenge is fundamentally about system robustness, operation capability and scalability. So there are some numbers I want to share with you. Okay, so usually most of the most of the ADA system Today according to our test, you know, mile per critical intervention, if you, if you measure in kilometers, although it's called MPCI and mild percritical intervention, you know lots of competitors in China they aim at to be to reach 1000km of MPCI. But you want to show you a number that for L4 level autonomous driving you can see numbers from VWA and from Waymo. And the mileage per critical intervention is at above 1 million km level. So there's a 3 magnitudes difference. So although some quality claimed they can boost their MPCI by a factor of 10 every year, that's still three years away. But let me tell you, like you boost your MPCI every 10 times, every year is a formidable task, mission impossible. Because if some company can do that, then you know, we write Waymo. So many good companies start autonomous driving in the year of 2017, you know, within seven years think about the MPCI. So, so basically all I'm saying is like you really need to operate for half a year before you know the difficulties about L4. 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. And you know from our past experience, it takes 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 happened. And 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 to answer. I think the key, the key source is the secret source is our genesis model. Our genesis model creates 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 SOAX dual Soarex Orin X Orin Wax system. And also we roll out our system GAC N60 based on Qualcomm 8650 and we are going to roll out system based on 5 gene on 5 engines of chipset. Okay. So basically we believe, we believe, you know 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. And again to my best knowledge, we haven't seen any other company can can support such a wide spectrum of chipset at the same time make them available for ADA solution as well as for Robo taxi solution. Okay, that's my answer to these two questions. Thank you.
OPERATOR
Thank you. Just a moment for our next question please. Next we have Kai Xiao from cicc. Please go ahead.
Kai Xiao (Equity Analyst)
Thank you. Tony and Jennifer, this is Kai from cscc. So Michael, 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. Okay, so basically the main reason is like different OEMs have different hardware preference. Some OEMs they want extremely cost effective chipset. Some chipset some OEMs want very high tops computational platform and 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. But the secret sauce is really our genesis model because genesis model can help us to tune a spectrum of onboard AI model which accommodates different tops requirements like 8650, 200 tops, SOR U700 tops, SOAX 1000 tops, RNX 250 tops. 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. And so that one, you know, if a company, if ADAS company or tunnel driving software company can apply a spectrum of solutions based on different chipsets, the car OEM tends to work with you more closely. And we believe this flexibility also help us secure more production, more vehicle type. And we also look forward to deploy all these systems for the over for the abroad market. 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. It's actually growing, but most of them don't have a very good ADAS system. And we actually have already secured more than Thai vehicle models to supply ADA system for them. So maybe next year you will see some overseas models. You can maybe drive a car with vride ADA system in Mideast Asia. Mideast Asia, Southeast Asia. In some countries even in Europe. Please stay tuned. Thank you.
OPERATOR
Thank you. Just a moment for our next question please. Next we have Xin Yu Fang from ubs. Please go ahead.
Xin Yu Fang (Equity Analyst)
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. And Werai 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.
Jennifer Lee
Okay, I'll take your question. So we see both China and our international markets strategically important for vride in. Of course in near to medium term circle international market offers a clearer and faster path to commercially attractive Robotaxi economics. Thanks to the favorable pricing partnership and friendly like favorable regulations and demonstrating sustainable profitability early on in is critical for our industry where healthy cash flow enables self sustained growth. And in local market that's actually very important. We see it's very important to get into this, we call it the material effect type of like self sustained growth. So we started building a significant international Mode Starting in 2021 ahead of most of the PE and we have since then gained very hard to replicate expertise in global deployment, 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 and we continue to maintain a very strong presence here as well. So 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. So this accelerating the permits, audit expansion and commercialization. So yeah, so both are very important for us. 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. That's all she. Thank you.
OPERATOR
Thank you. Next we have Tan Liu from Sato Securities. Please go ahead.
Tan Yu
Hi Tony, I'm Jennifer, this is Tan Yu from PT and I have two questions. The first one is what's Uber's current shareholding? And how should investors think about the relationship between RERAT and Uber? And secondly, could you share your go to market model across different markets? Thank you very much.
Jennifer Lee
All right, thank you Tanyu. So Uber holds more than 5%. Uber is a strategic shareholder and a key partner for Vrite. So based on their latest public filing they hold over 5% of Vrite which we view as A strong endorsement of the technology and our solid deployment and commercialization strategy. So operationally, we're already deploying this 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. So we expect we will expand. There's like Echo Song. Can someone. Can you mute. Okay, thank you. Yeah, we expect to expand to. There's still echo. Okay. Yeah, we will enter into more cities over this year and, and we remain to be a trusted partner as they build up, as they build their global AV strategy. Of course, at the same time, our go to market approach is diversified. We work this partner that fits each other in each market. And in China we operate our own app and to build the brand awareness and operational capabilities. You can get our robotaxi on vrigo and you can also get it from the AMAP and then also the Tencent mini program. In Southeast Asia we partner with Grab and in Europe we collaborate with local platforms, operators and PTOs including SPB in Zurich, TPGA in Geneva and Elevate in Slovakia, et cetera. So all of this will accelerate our deployment and the permitting process. Yeah. So overall we see strong alignment with a platform like Uber in scaling our robotaxic 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. Thank you. And the second one, the other one is our asset line business model for robotaxi. Yeah, I think the time is running out. I'll just be short. I'll try to be quick. So outside China, we already implement asset live business model in all markets. It's a mature and proven structure for vride. So I'll just give you example. In some cases, robo taxis are purchased by the Rhythm platform or like local consumer customers. In some other cases they're owned by third party fleet owners. We have already executed in both models successfully. So the asset light model means like VY will focus on providing the tag and operation while leveraging the local capital to scale more efficiently. And in China right now, the priority is to continue improving the uni economic and of course operational efficiency with a larger odd so that the revenue share will become sizable enough for for it to become appealing to third party asset owner to participate. 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 as a life structure. Thank you, Dany.
OPERATOR
Thank you. Our last question comes from Mei Lu from hsbc. Please go Ahead.
Mai Lu (Equity Analyst)
Hi, thanks management for taking my questions. This is Mai from hsbc. So I will only have one question. So what's the trajectory for Robo taxi vehicle? Cost reduction. Thanks.
Jennifer Lee
Okay, I'll take this one. Thank you, Mei. So cost reduction of course always remains to be one of our key focus areas and we continue to see meaningful progress. 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 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 unit deployment. We are able to do better cost efficiency across different components and manufacturing. The last one is on operational efficiency. We already see that there's a strong efficiency improvement as fleet scales and utilization increase. For example, in last quarter we announced that our remote safety officer ratio has already improved to 1 to 40 from previously 1 to 10 to 120. Now it's already 11 to 40. Internationally we are following the same trend, but now of course it's not one to 40 yet, but we're moving in the same direction. We believe all of this is very important because remote operation efficiency has a very meaningful impact over per vehicle TCO and overall unit economics. Additionally, when we enter some new markets, there might be some upfront localization costs which sometimes temporarily increase the per vehicle cost in early stages. However, as deployment scales within each market, those costs are amortized and the overall impact will become very limited and manageable. This is a cost reduction as a combination of hardware as well as operational efficiency. Thank you, Mei.
OPERATOR
Thank you. Due to time restraints, I will conclude the call today. Thank you for your participation in today's conference. This concludes the program. You may now disconnect.
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