WeRide Inc. Q3 FY2025 Earnings Call

Greetings, and welcome to WeRide's Third Quarter 2025 Earnings Conference Call. Please note that today's event is being recorded. The company's unaudited financial and operating results were released by 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 Li. 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 today's call that includes forward-looking statements, including WeRide's strategies and future plans. These forward-looking statements are made under the safe harbor provisions of the U.S. 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 these forward-looking statements as a result of various important factors, and please refer to Risk Factors section of the company's Form 20-F filed with the SEC and announcements on the website of the Hong Kong Stock Exchange for the full disclosure 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 management's prepared remarks are in RMB terms, and we will discuss non-IFRS measures today, which are more truly explained and reconciled to the most comparable measures reported in the company's earnings release and filings with the SEC and the Hong Kong Stock Exchange. With that, I'll now turn the call over to the company's Founder, Chairman and CEO, Dr. Tony Han. Please go ahead, sir.

Thank you. Hello, everyone. Thank you for joining us today. I would like to begin by highlighting some of the key milestones we achieved this past quarter. Q3 was a period of extraordinary progress for WeRide. Most notably, we made history in Abu Dhabi by securing the world's first city-level fully driverless robotaxi commercial permit outside the United States. We have already started the driverless operation through Uber, which I will detail in later slides this week. With our recent expansion into Belgium and our inaugural driverless robotaxi license in Switzerland, WeRide has become the only company with autonomous driving permits for eight countries. By October, we have developed an L4 fleet in 11 countries and more than 30 cities, with over 1,600 L4 level autonomous driving vehicles in operation worldwide. So as mentioned earlier, WeRide has been officially approved to provide full driverless commercial robotaxi service in the UAE's capital, Abu Dhabi. This landmark authorization removes the requirements for an in-car safety officer and demonstrates the regulators' strong confidence in our technology. Following this approval, WeRide and Uber jointly launched the region's first fully driverless wireless-charging robotaxi service this week, starting from Yas Island and with a citywide rollout underway. Our commercial operation in Abu Dhabi began last December. Our service now covers roughly 50% of the city's core area. In half of 12 hours, our single vehicle can complete up to 20 trips per day. I think this is quite exciting progress. In the midterm, we aim to extend our service hours to 24/7, increase vehicle utilization to more than 25 trips per day, and improve the human-to-vehicle ratio to 1:10. These numbers will lead us to very healthy unit economics. We believe Abu Dhabi will set a global benchmark for large-scale and commercially viable robotaxi operation. And with all of these numbers, I think our unit economics are very, very healthy and can be profitable. So I just want to emphasize this kind of breakthrough is quite exciting, and we worked very hard for a whole year to achieve this full driverless robotaxi operation in Abu Dhabi. This is the first city-level robotaxi service outside of the United States, and it is actually provided through the Uber platform. So with all of these important factors, this is unparalleled, and we are very excited that we are making history. Now let's talk about our current operation in Dubai. In September, we secured a self-driving vehicle trial permit from Dubai's Roads and Transport Authority and have begun road testing for our driverless operation in Dubai. Our goal is to launch a supervised trial on Uber this year and the driverless commercial operation in 2026. I mean, next year, we are going to provide driverless robotaxi service in Dubai. Then we are going to discuss our current operation in Saudi Arabia. In Riyadh, we began offering robotaxi rides through Uber in October, making our robotaxi service the first and only publicly accessible robotaxi service in the Kingdom. With our development in the 3 largest cities in the Middle East, that is Riyadh, Abu Dhabi, and Dubai, we have more than 100 robotaxi vehicles in the region. The launch of driverless operation in Abu Dhabi is paving the way to scale the fleet to more than 500 vehicles by next year and tens of thousands by 2030. So we are very excited and very confident about our full driverless robotaxi operation in the Middle East. But that's not our only operation region. I want to talk about East Asia and Europe. First, in Singapore, together with Grab, we received approval from the Land Transport Authority for both robotaxi and robobus in the Punggol District. We plan to increase our AV test volume by 4x by the end of this year. We are also integrating our technology into Grab's fleet management and routing system so that in the future, we can provide driverless robotaxi through Grab in Singapore, just as we have done in Abu Dhabi through Uber. All of these efforts will lay the groundwork for commercial service in the next phase. And then let's talk about Switzerland. In Europe, the expansion continues to lead our robotaxi deployment. We received the country's first driverless robotaxi license, enabling our autonomous operation in the Furttal region. A full driverless public service is expected to be launched in the first half of 2026. That is our current operation in Europe and in East Asia and Singapore. And now let's talk about China. In our China market, we continue to expand and innovate. As we scale our commercial fleet, we also launched a 24/7 driverless commercial service in Huangpu District in Guangzhou. This is an area of 150 square kilometers. As of October, we have deployed more than 300 robotaxies in Guangzhou and over 100 in Beijing. For all of these services, you can hail a driverless robotaxi in this region through our WeRide Go app. User value is kept very close to our heart, and we recently introduced China's first free pickup and drop-off feature for robotaxi service we call PU/DO service, allowing our system to intelligently recommend optimal boarding locations. This greatly improved both operational flexibility and user experience, which is well captured by our operational data. In November, each robotaxi completed up to 25 daily trips in Guangzhou and 23 in Beijing, which is clear evidence of accelerated adoption. Next, let's talk about our other applications. First, robobus. Our robobus obtained Belgium's first Level 4 test permit, and we launched our operation in Leuven, making Belgium the 11th country covered by our service. In Guangzhou, after serving more than 1 million passengers since 2021, we received an order for an additional 100 midsized robobuses. This is a very exciting achievement. Actually, this is a newly developed robobus. In Hong Kong, we established a partnership with Kwoon Chung Bus Holding to deploy more than 500 Level 4 vehicles over the next 3 years. For our L2+ Level ADAS system, WeRide and Bosch achieved a major milestone in November with the start of production of WePilot 3.0. This is an end-to-end system. It's just like what Tesla has achieved through their FSD system. Our WePilot is totally comparable to what Tesla can do with FSD. The WePilot 3.0 will debut with the refreshed Chery EXEED ES and ET model, and existing owners will receive OTA upgrades. With this kind of new feature, every owner of Chery EXEED ES and ET can enjoy the experience of Tesla's FSD. With this exceptional end-to-end system, WePilot has also been selected as the major ADAS system provider by Guangzhou Automotive Group, GAC, for several of their passenger car models. So that part is actually a very exciting progress, demonstrating that WeRide can not only do L4 level robotaxi, but also is capable of L2++ level ADAS for mass production cars. This page actually summarizes our footprint globally. WeRide's strategy prioritized balanced development in the global market. I want to explain this slide a little bit. You can see like in these 11 countries, we have different levels of operation. We have tested or we can operate it without a driver. They are shown in the legend. So you see our multiproduct offering has maximized the value of our strategy, making us the only company whose technology is available in the 11 countries shown here. We actually have a wide spectrum of applications and services available for the global market. Next, let me discuss the backbone of our technology. This is called WeRide One Universal platform. By starting from supporting L4 applications alone in the early days, WeRide One has gradually grown into a more powerful platform that empowers the full spectrum from L2 to L4 while continuously breeding new tools and systems. One of the most preeminent is our world model, WeRide Genesis. In our Genesis model, you can see that it allows autonomous vehicles to be tested in a digital twin of the real world safely, efficiently, and at a large scale. It features the data loop, algorithm loop, and simulation validation loops that are essential for scalable autonomy. This is our world model, and it's seamlessly integrated with our end-to-end system. So this is a unique technology advantage. Our world model can be seamlessly integrated into the end-to-end ADAS system, and our L4 system can leverage the data we collected from our L2 level data. So this Genesis forms the core flywheel, actually, we call it a double flywheel. We can leverage L2++ level massive production car data to improve our robotaxi. In turn, our robotaxi data with redundancy can help us boost the performance of our ADAS system. I want to emphasize that in this world, there's only one company, WeRide, that can do so. On one hand, we have a large-scale robotaxi fleet that makes WeRide capable of leading robotaxi service like Waymo and other companies do in the U.S., so that we can capture all the characteristics of full driverless operation. At the same time, WeRide applies the WePilot 3.0 and a very advanced ADAS system comparable to Tesla's FSD, and we can leverage mass production car data and collect all this kind of data in a very broad sense across all kinds of scenarios to help us improve the performance of the robotaxi. We believe we can combine the benefits of L4 and L2+. This hybrid architecture enhances adaptability, reliability, safety, and transparency, ultimately enabling robust commercial deployment. We look forward to sharing more about this advantage soon. In summary, Q3 was a quarter of exceptional execution. We expanded our global leadership, and we translated technology innovation into commercial reality. With that, I will hand the call over to our CFO, Jennifer, to discuss our financial performance. Jennifer, please go ahead to discuss the financial numbers.

Thank you, Tony. Hello, everyone. Before we dive into the third quarter financials, I want to highlight that all figures are in RMB and comparisons are year-over-year unless otherwise stated. Now let's discuss our third quarter financial performance. We delivered total revenue of RMB 171 million with a year-over-year growth of 144%, driven by our continued fleet expansion and increase in service penetration. The revenue growth also reflects the significant milestone we achieved during this quarter, supported by our advanced technology, robust deployment, and operational capabilities. Our revenue came from both product revenue and service revenue. Product revenue delivered strong growth of 428% to RMB 79 million this quarter, an encouraging result driven by the increased sale of our robotaxis and robobuses. Service revenue grew 67% to RMB 92 million in Q3, supported by an increase of RMB 29 million from intelligent data service and an increase of RMB 8 million in autonomous driving-related operational and technical services. Service revenue has surpassed product revenue this quarter, demonstrating a continual growth momentum and healthy business structure. Among our product lines, what really stood out in Q3, same as in the last 2 quarters, was our robotaxi business. Robotaxi revenue increased 761% year-over-year to RMB 35 million in Q3, accounting for 21% of total revenue in this quarter. With our new federal permits in the UAE, we are the first and only robotaxi company that has begun full driverless robotaxi operation in the UAE. Removing the in-car safety officer is a critical milestone from a financial perspective, which will enable our robotaxi service to achieve unit economic breakeven. The quality of our growth is also compelling. Group level gross profit increased 1,124% to RMB 56 million for the third quarter with a group level gross margin of 33%, demonstrating our industry-leading gross margin as our business continues to grow. We aim to keep delivering business value along with our globalization strategy. Operating expense decreased 51% to RMB 436 million, with R&D expense accounting for 73% of the total operating expenses. To break down further, R&D expense increased by 24% to RMB 316 million in the third quarter of 2025 compared to the same period of 2024. Excluding share-based compensation, R&D expense grew 39% to RMB 288 million as we further strengthened our global data compliance and advanced R&D efforts for our pre-installed robotaxi. The increase in R&D expense was primarily due to an increase of RMB 31 million in service fee for R&D projects, an increase of RMB 21 million in personnel-related expense from headcount increase, and an increase of RMB 23 million in material consumption and depreciation and amortization expenses. Administrative expense decreased by 84% to RMB 100 million in the third quarter of 2025 compared to the same period in 2024. Excluding share-based compensation, administrative expense increased by 23% to RMB 74 million. The increase was primarily due to an increase of RMB 6 million in professional service fees, mainly related to legal compliance service and a RMB 4 million increase in personnel costs as we continued to build necessary supporting functions to grow our business. Selling expenses increased 23% to RMB 19 million in the third quarter of 2025 compared to the same period in 2024. Excluding share-based compensation, selling expenses increased by 36% to RMB 19 million, which was well below the sales increase. Our commitment to R&D is the backbone of our strategy. We will continue to direct our resources there to pioneer industry innovation and keep building our competitive advantage. Alongside this, we will strategically grow our global team with a clear focus on regions that have accelerated the adoption of L4 solutions. This ensures that we have the world-class talent needed to support our business expansion. Our net loss narrowed by 71% to RMB 307 million in the third quarter of 2025. On a non-IFRS basis, adjusted net loss increased 15% to RMB 276 million, largely due to ongoing R&D investment and broader operational support required for the expansion of our business. As of September 30, 2025, we had RMB 4.5 billion in cash and cash equivalents and time deposits, RMB 926 million in investment in wealth management products, and RMB 18 million in restricted cash. We had short-term bank borrowing of RMB 245 million. Our current liquidity reserve, along with the proceeds from our recent Hong Kong due primary listing in November, has enabled us with a resilient position for our R&D-focused strategy and our globalization deployment process. Our fully driverless robotaxi commercial permitting in Abu Dhabi is not just a local milestone; it's a scalable blueprint for the global industry. It demonstrates a viable path for city-level full driverless cooperation outside the U.S., along with the potential for profitable unit economics in major international markets. Our strategy is to scale this model globally. We have the complete package: the technology, operational experience, a proven safety record, and regulatory trust. In the next 5 years, we will achieve large-scale L4 deployment, creating a sustainable business and delivering tremendous value of autonomous driving to the shareholders. With that, operator, we are now ready to take on some questions.

The first question comes from Tim Hsiao at Morgan Stanley.

This is Tim from Morgan Stanley. Congratulations on the strong results and continuous expansion in robotaxi operation globally. I have 2 questions. The first question, we noticed that WeRide officially started commercial deployment of driverless robotaxi in Abu Dhabi, UAE. So in addition to the volume upside to revised fleet sales, as Tony just mentioned, how should we quantify the revenue opportunities of vehicle sales, revenue charge, and profit sharing in the long run? That's my first question.

Thank you, Tim, for your great question. I'll address the first part. To provide clarity for all listeners, I would like to explain our robotaxi business model. In China, we primarily own and operate our vehicles on our own ride-hailing platform, WeRide Go. Once we achieve breakeven in the next few years in China, we plan to gradually partner with third-party vehicle owners. At the moment, we own all the vehicles ourselves. The international market operates differently. From the beginning, we have partnered with platforms like Uber, Grab, SBB, and TXAI, generating revenue through three primary streams: a share of the ride fare, annual licensing fees, and vehicle sales, with vehicle sales categorized as product revenue. We can scale our robotaxi fleet more rapidly with a lighter asset-based business model since the operating fleet does not impact our balance sheet; we simply sell the vehicles to our partners. The recurring service revenue from revenue sharing and annual licensing lasts for the vehicle's lifespan, typically 5 to 7 years. Notably, revenue sharing will significantly increase as we expand the fleet. For instance, in the U.S., a robotaxi operating at full capacity can complete about 25 rides per day, generating over USD 90,000 in annual revenue. If WeRide retains 30% of that, we earn USD 30,000 per car annually in service revenue, or USD 60,000 if we take 70%. Currently, in Abu Dhabi, we have a strong presence with nearly 100 robotaxis covering 50% of the city core. Our commercial model integrates with platforms like Uber, and we charge similar rates to UberX and Uber Comfort. Users can access our rides at the same prices as traditional ride-hailing options, showing our competitiveness from day one. The key metric is utilization, and we currently average 12 rides per vehicle on a 12-hour shift, with peaks exceeding 20. This performance indicates strong user preference. Importantly, reaching 12 rides per vehicle per day already puts us at breakeven in this market, highlighting significant profit potential. With our current cost structure for driverless operations and plans to extend service to 24 hours next year, we expect to average 25 rides per vehicle per day, which would further enhance profitability. While the exact revenue share percentages vary by partner and are confidential, this strategy fosters sustainable win-win relationships within the ecosystem.

My second question is also related to WeRide's global business. So looking forward, in addition to operations in Abu Dhabi and Switzerland, which markets could step up as a key volume driver for WeRide? And does WeRide need to accelerate R&D and selling, spending more aggressively into next year for 2026 to finance the company's robust expansion overseas? That's my second question.

I'll take the question. Firstly, aside from Abu Dhabi and Switzerland, we see other markets that could become important volume drivers. In the Middle East, the UAE has two major cities, Dubai and Abu Dhabi, where we have already secured permits and are conducting extensive road testing. The UAE is a crucial market for us. We are also looking at Saudi Arabia and other significant countries in the Middle East. Additionally, Europe and developed Asian markets such as Japan, Singapore, and South Korea present good opportunities to increase our volume. You raised an important question about our target markets and where we can make our services and products profitable. Through our experience in Abu Dhabi, we have identified a successful model in collaboration with Uber, which has shown promising unit economics, indicating that we can establish a profitable service in this region. This Abu Dhabi model serves as a guide for other cities, and together with Uber, we aim to replicate it in similar urban areas. We are also looking to implement this model in Singapore through a partnership with Grab, which is a key strategic ally, and potentially in all of East Asia. In China, we are focused on creating a robo-testing service based on our own application. Regarding our expansion, while we are ramping up R&D investments to strengthen our technology platforms and recruit top talent, we expect our growth in expansion to be moderate. We want to adopt a satellite model to balance scaling and investment. One of our midterm objectives is to achieve profitability while maintaining a robust market share. We are committed to innovation, so we need to balance our investment, expenditures, and development. Based on our current progress, I am optimistic because the Abu Dhabi model has already been successful. Our next step is to identify potential markets where we can replicate this model and leverage our strengths to achieve profitability soon.

Thank you so much for sharing great insight. Congratulations, and looking forward to more exciting projects around the world.

The next question will come from Alex Yao from JPMorgan.

I have 2 questions. Number one, what is your take on the robotaxi business in China? How do you envision economics to change in the future for China and for the international market, respectively? The second question is how quickly can the driverless milestone of Abu Dhabi operation be replicated in other markets? What can we expect for your fleet expansion plan globally? And what are the catalysts or hurdles for your plan?

Okay. Let me address these questions one at a time. Although there are two questions, they comprise two groups of inquiries. The first question pertains to our perspective and strategy regarding the China market and its economic environment. To start, China is a distinct market with the largest user base and dynamic economics. It has served as both a testing ground for our technology and a great opportunity for operational experimentation with our innovative ideas. However, we do not view it merely as a laboratory. During our robotaxi operations or trials, safety remains our highest priority. Given the diverse scenarios and varying weather conditions across this vast country, we have tested numerous methods and algorithms. China stands out as a significant and unique market. We believe that profitability in Tier 1 cities can be achieved through a combination of three key elements: first, city-level driver permits; second, maintaining an average daily order of high double digits, aiming for over 20 orders per day in the Middle East; and third, maintaining a relatively healthy pricing structure. While current taxi fares in China are still low, we anticipate that fares will rise modestly while remaining relatively healthy. With these three factors in mind, we see the necessity to expand our presence in China, particularly in Tier 1 cities. As I previously mentioned, we have deployed around 300 robotaxis in Guangzhou and an additional 100 in Beijing over an area of 150 kilometers, with plans for further expansion. We have incorporated pickup and drop-off features to enhance user experience. Our goal is to provide a superior robotaxi service compared to traditional taxis operated by human drivers, thus increasing our order frequency and improving overall user satisfaction. We expect the economics in all these markets to improve over time. Our aim is to leverage our experiences in China to inform our global strategy and use those insights as a competitive advantage internationally. Hence, we regard China as one of our most pivotal markets and will continue to invest resources there. Okay. The second group question is about how quickly we can replicate the Abu Dhabi model in the rest of the world. Thanks for asking this question. We believe we have found this Abu Dhabi model. It's kind of like a Matthew Effect. WeRide is a unique first mover because we just got a city-level driver permit. It is the only one so far outside of the United States that you can have a citywide driver permit and provide service through Uber. This availability makes our service model quite competitive. I believe we can quickly copy this model to similar markets like Dubai in UAE—same country—Riyadh in Saudi—same region—and Singapore with Grab's support. We are trying to copy to these kinds of countries. I believe the regulatory conditions and other factors are quite similar. We also want to emphasize that Europe is a very important market, and we are trying to see whether we can replicate this model there. The catalysts for this growth are actually due to this Matthew effect; other countries are more prudent about allowing our operations and giving us permits. But we want to make sure we leverage our successful experience to get more driverless permits so we can deploy the service.

Next question comes from Ming-Hsun Lee of Bank of America.

I have 2 questions as well. So first question, we are seeing more OEMs and ride-hailing companies announcing plans to enter the robotaxi business. What are WeRide's key advantages? And how should we think about the competitive landscape in the future? That's my first question.

Okay. So I think these days because of the increasing discussion and the increasing maturity of robotaxi, you see so many car OEMs and platform companies starting to talk about robotaxi or announce their robotaxi strategy. But one thing I want to mention is that to do robotaxi is not easy. It takes many years of effort, technology accumulation, and regulatory exploration. That's why there are so few mature robotaxi companies in the world. If you count the mature robotaxi services once they have opened to public driverless robotaxi operations, you can count them on one hand. So it's not like you see a few companies getting mature and then you can announce your strategy. You need to show whether you have accumulated enough technology and experience to do robotaxi. Our competitive advantage is still in several areas. First, technology. WeRide's ability to massively deploy both L4 and L2++ level mass-production vehicles helps us gather data more efficiently and make our algorithm more generalizable. This also strengthens our technology. Second, our capability for fast iteration is there. Traditional OEMs usually have a small ADAS system development team. There's a significant gap in what you can achieve for L2++ FSD compared to L4 because L4 requires driverless operation. Over the past 9 years, we have accumulated a lot of experience; that's why we can roll out the robotaxi service. I haven't seen any other car OEM or ride-hailing company be able to do so. Lastly, the core of WeRide is really the AI technology. Since day 1, WeRide has been an AI company, and we have hired many top talents and set up our company to iterate our AI algorithms rapidly. I don't think traditional car OEMs or ride-hailing companies can achieve this kind of fast iteration. So let's wait and see. So far, I haven't seen any major car OEM or ride-hailing company successfully roll out any public driverless robotaxi service. That's my answer to this question.

Sorry, one more question from me. Following the last question, do you think the amount of data and the development of AI models have given OEMs certain advantages to enter and compete in robotaxi? Is it possible to evolve from L2 to L4?

Very good question. So first of all, I want you to think about one thing. The best L2++ or ADAS system companies in the world are probably Tesla. In China, companies such as XPeng and Li Auto could be named as well. However, if you look at their strategies, they are doing L2++ ADAS systems but when it comes to robotaxi, they tend to approach it directly from the L4 level. Why is there no L3 strategy? There's no L3 strategy from Tesla, XPeng, or Li Auto. They all skipped to L4 directly. Why is that? Because as they attempt to directly solve the L2++ problem, they have found it's very challenging. It's just like climbing a cliff. Instead, if you want to swim across the English Channel, you should probably start small before. We have already done this for the past 8 or 9 years. The technology has been there based on our experience. True car OEMs can leverage cutting-edge large language model technology, but it's not easy for them to build the required infrastructure, such as data simulation and cloud computing platforms. Early on, we have accumulated resources and relationships that allow us to gather enough data to achieve a functioning robotaxi. I want to emphasize that having a good ADAS system can let you drive for 100 miles without takeover, but it is far from rolling out a driverless robotaxi. To roll out a driverless robotaxi, you need to be capable of having that car drive itself over 10,000 miles. So one could argue that the traditional OEMs can gradually grow from L2++ to L4, but this will take a long time. Meanwhile, first-class tier 1 robotaxi companies such as WeRide are poised to take over the global market and become profitable.

We will now take the next question from Liping Zhao from CICC.

So first, I want to follow the previous technical question. And this question is for Tony because you are quite confident in maintaining the leadership in the industry. What tools and technology approaches help you stay ahead of the curve? Could you please share more color from a technical perspective? And then I'll have a follow-up.

Okay. First of all, just as I discussed, there's only one company in the world, to my best knowledge, that is capable of doing robotaxi and has already achieved public operation while at the same time supplying ADAS to mass production car companies—that's WeRide. We have a so-called dual flywheel strategy: we gather data from our robotaxi fleet—corner cases—and this data is used to facilitate our L2++ development. We can also leverage what we collect from our L2++ system based on AI to improve L4 stability and generalizability. By combining these two sources of data and problem, we have evolved into a super platform capable of robotaxi while utilizing limited hardware and HD maps to cover the whole global market. All of this data collection allows us to evolve rapidly. Another advantage is our globalization. Since we have deployed fleets in the global market, we can collect data from various climates. We have data from very dry climates in the Middle East and very humid tropical areas in Singapore and frigid temperatures in Japan and China. I can't imagine any other company having this broad range of applications. With these data and our talented engineers, we evolve quickly. Our Genesis platform is based on physical AI models with various considerations, including a real-world model. It seamlessly integrates with our end-to-end system. This strong integration gives us a significant advantage. Combining all these algorithms and data provides us the ability to move quickly, which our competitors cannot match.

That's very helpful. And my second question is for Jennifer. The Board of the company has authorized a USD 100 million share repurchase program in May this year. Could you please update us on the status of this program?

Thank you, Liping. Regarding the USD 100 million share repurchase program, which was authorized by the Board in May, no purchases have been initiated to date. The reason is that the preparatory work for our Hong Kong IPO constituted a close period under securities regulation during which trading was restricted. As a listed company, we are also required to obtain specific shareholder approval to ratify this program. We are currently preparing to call an extraordinary general meeting to seek approval, which will allow the program to proceed. Thank you.

Our last question comes from Paul Gong from UBS.

I have 2 questions. The first one is regarding the robotaxi revenue contribution. We have noticed that while this is about 7x year-over-year growth, it seems to have a little bit of fluctuation compared to the second quarter. Could you please elaborate more on this? And my second question is regarding the European strategy. Congratulations on the permit in Switzerland recently. Can you share more about the next step of the company's plan for European expansion?

Okay. I'll take the first question. I think Tony probably wants to take the second. So regarding the fluctuation of robotaxi revenue, we will say for the past 3 quarters, you can see our robotaxi revenue made a 20% contribution in the first quarter, 36%, and 21% revenue contribution in the past 2 quarters, showcasing a very continuous momentum. The fluctuation was expected, given that our delivery schedule is in tandem with the permit upgrade and the corresponding expansion of our operating area. We made a significant step forward by securing the city-level driverless operation permit in Abu Dhabi, which will pave the way for accelerating expansion in the entire Middle East going forward. Thank you.

Yes, I will take the second one. Okay. The second question is about our strategy since we have already got the driverless robotaxi permit in Switzerland. What's our next step for Europe? The European market is an excellent market for robotaxies. The taxi fare in Europe is high, and also, most countries in Europe are short of labor. This scenario presents a great opportunity for robotaxi companies to deploy their service to fill the gap between the shortage of drivers and the increasing demand for taxis. After the pandemic, people increasingly prefer private transportation. If we can deploy robotaxi as a very cost-effective method, people will love this product. Since we got the permit in Switzerland, we are exploring other countries. We established an office in Stuttgart and are also trying to explore Paris. In the next 12 months, we will solidify our foundation with our trial operations in France, Belgium, and Switzerland while simultaneously discussing possibilities for our robobus. We want to use all of our applications like robobus to explore other opportunities for deployment. In certain European countries, they would prefer to adopt robobus before progressing to robotaxis. Gradually, we want to expand to Switzerland, Belgium, Germany, France, Spain, and Norway. I want to emphasize that our approach is dynamic. It depends on the availability of strong local partners and the regulatory environment as well as the local labor shortage. All of these factors are to be considered. For sure, we will gradually expand into the aforementioned countries and other potential European markets.

Thank you. If there are no further questions, I'll conclude the call today. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

Thank you very much. Thank you. Bye.