NEW YORK, Nov. 29, 2024 (GLOBE NEWSWIRE) -- WeRide Inc. (“WeRide” or the “Company”) (Nasdaq: WRD), the world’s first publicly traded Robotaxi company and a global leader in the autonomous driving industry, today announced its unaudited results for the third quarter and nine months ended September 30, 2024.
Recent Highlights
After the successful listing on Nasdaq, the Company continued to make progress towards its long-term strategic objectives in the development of autonomous driving technologies and applications both directly and in partnership with others.
WeRide Reinforces Technology Leadership and First-mover Position in the World
- In October 2024, WeRide introduced GXR, a first-of-its-kind, next-generation Robotaxi platform, leveraging over 1,800 days of Robotaxi public operation experience. GXR integrates WeRide's proprietary L4 autonomous driving systems, the advanced Sensor Suite 5.6, and the HPC 2.0 computing platform, built on Farizon SuperVan's steer-by-wire architecture.
- The new HPC 2.0 high-performance computing platform delivers over 1,300 TOPS of AI computing power, efficiently meeting the vehicle's computing demands.
- The Sensor Suite 5.6 is designed with an aerodynamic, compact form and includes over 20 sensors, ensuring 360° blind-spot-free perception and 200-meter front detection, even in challenging conditions such as high-speed maneuvers and low-light environment.
WeRide Expands Global Presence with Key Partnerships and Milestones
- Strategic Partnership and Robotaxi Deployment in the UAE with Uber: In September 2024, WeRide and Uber Technologies, Inc. (“Uber”) announced a strategic partnership to integrate WeRide’s Robotaxis onto the Uber platform. In October 2024, Uber invested in WeRide’s Initial Public Offering (IPO), underscoring the strength of their partnership. By December 2024, WeRide will begin deploying a fleet of Robotaxis powered by WeRide on the Uber app in the United Arab Emirates.
- Strategic MoU with Beti for Robobus Services in France: In November 2024, WeRide signed a Memorandum of Understanding (MoU) with Beti, a leading automated mobility operator in France. The partnership aims to launch Robobus services in France as early as January 2025, marking a significant step in expanding WeRide’s autonomous mobility solutions in Europe.
- Robosweeper Expansion in Singapore: In November 2024, WeRide further advanced its operations in Singapore with the successful acquisition of the Milestone Testing and Assessment License for its Robosweeper S6 and S1 from the Singapore Land Transport Authority (LTA). WeRide is expected to commercialize Robosweeper operations in collaboration with Chye Thiam Maintenance (CTM), a prominent sanitation company in Singapore.
- Launch of Singapore’s First L4 Autonomous Robobus Service: In July 2024, WeRide launched Singapore's first publicly accessible Level 4 (L4) autonomous Robobus service. This pioneering initiative features an integrated manual-autonomous shuttle system connecting luxury hotels and resorts, positioning WeRide as a trailblazer in premium, autonomous transportation solutions.
New Commercialization Milestones Achieved in China
- Launch of the latest end-to-end ADAS solutions: In November 2024, EXEED, Chery Auto's high-end brand, unveiled the Falcon intelligent driving system, empowered by WeRide and Bosch jointly. WeRide provides the comprehensive end-to-end solution that enables the vehicles to navigate complex urban environments, ensuring a seamless driving experience without relying on HD maps.
- Obtaining fare-charging Robobus approval: In September 2024, WeRide secured approval for a fare-charging Robobus service in Hengqin, Guangdong Province, after receiving the approval for the first-ever fare-charging Robobus service in Guangzhou in December 2023.
- First L4 autonomous sanitation project in Shantou: In August 2024, WeRide deployed the S1 Robosweeper in Shantou, China, marking the first L4 autonomous sanitation project in eastern Guangdong Province.
- First L4 autonomous sanitation project in Dongguan: In July 2024, WeRide launched the first commercial unmanned sanitation project in Dongguan, Guangdong Province, covering an area exceeding 270 standard football fields daily.
Management Commentary
Tony Han, WeRide’s Founder, Chairman, and Chief Executive Officer, commented, “WeRide continues to advance the global adoption of our autonomous driving products. By leveraging our cutting-edge technology, we are delivering innovative products that meet the evolving needs of the market. The launch of our next-generation GXR Robotaxi platform, backed by over 1,800 days of operational experience, reflects our commitment to upholding the highest safety standards, ensuring customer satisfaction, and prioritizing commercial viability. Our commercial expansion into seven countries and our strategic partnership with Uber demonstrate the global scalability of our technology. We are dedicated to stay at the forefront of technological advancement in making autonomous driving accessible worldwide.”
Jennifer Li, WeRide’s Chief Financial Officer, added, “Our successful Nasdaq IPO reinforced our vision and our progress. With cutting-edge technology, a strong balance sheet, and a talented team, we are committed to maintaining financial discipline while driving innovation in the industry. There are fluctuations in our gross profit which is largely driven by the mix-shift in our revenues from quarter to quarter. However, we are confident to establish greater customer base through further commercialization of our technologically leading product and services hence, stabilizing revenue and cost of goods structure. Additionally, we are committed to optimizing operational efficiency through economies of scale while strategically investing in R&D and market expansion to deliver long-term value to our shareholders.”
Third Quarter 2024 Financial Results
Revenues
Total revenues decreased to RMB70.0 million (US$10.0 million) from RMB74.2 million in the same period of 2023.
- Product revenue increased to RMB15.0 million (US$2.1 million) from RMB0.1 million in the same period of 2023. The increase was primarily attributable to an increase in the sales of Robosweepers in the third quarter of 2024.
- Service revenue was RMB55.0 million (US$7.9 million) compared to that of RMB74.1 million in the same period of 2023. Service revenue from ADAS research and development services was lower as customized R&D services for certain client were completed during the quarter. Renewal contracts are expected to take effect in 2025.
Cost of Revenue
Cost of revenue increased to RMB65.5 million (US$9.3 million) from RMB51.3 million in the same period of 2023.
- Cost of product sold increased to RMB11.8 million (US$1.7 million) from RMB4.7 million in the same period of 2023 which were consistent with revenue growth.
- Cost of services increased to RMB53.7 million (US$7.6 million) from RMB46.6 million in the same period of 2023. The increase was primarily attributable to an increase in cloud service fee and personnel expense associated with ADAS research and development services for certain client. Higher costs were incurred during the quarter with regards to certain client contract, including cloud computing fees and labor costs, in order to achieve the final contract milestone.
Gross Margin
Gross profit comprised of gross profit for products of RMB3.2 million (US$0.5 million), representing a gross margin of 21.3%, and gross profit for services of RMB1.4 million (US$0.2 million), representing a gross margin of 2.4%.
Operating Expenses
Operating expenses increased to RMB895.7 million (US$127.6 million) from RMB765.8 million in the same period of 2023. The increase in operating expenses was mainly due to a 32% increase in personnel-related expenses compared to the same period in 2023.
- Research and development (R&D) expenses were RMB254.2 million (US$36.2 million), compared to RMB440.4 million in the same period of 2023. Excluding share-based compensation, R&D expenses were RMB206.3 million, compared to RMB160.4 million in the same period of 2023, representing an increase of 28.6%, as the Company continued to attract top R&D talent and focus on the testing, trial, and commercialization of its autonomous driving technology and to invest more resources to improve its technological capabilities.
- Administrative expenses were RMB626.0 million (US$89.2 million), compared to RMB308.6 million in the same period of 2023. Excluding share-based compensation, administrative expenses were RMB60.0 million, compared to RMB40.1 million in the same period of 2023, representing an increase of 49.6%, as the Company continued to execute its growth strategy, strengthened its organizational infrastructure, and increased headcounts across relevant functions and higher professional service fee as it transitions to a publicly listed company.
- Selling expenses were RMB15.5 million (US$2.2 million), compared to RMB16.8 million in the same period of 2023. Excluding share-based compensation, selling expenses were RMB13.8 million, compared to RMB6.2 million in the same period of 2023, representing an increase of 122.6%, as the Company continued to expand its sales network, build brand awareness and inform market participants on the benefits of its autonomous driving products and services.
Net Loss
- Net loss was RMB1,042.7 million (US$148.6 million), compared to RMB846.8 million in the same period of 2023.
- Non-IFRS adjusted net loss1 was RMB240.3 million (US$34.2 million), compared to RMB154.5 million in the same period of 2023.
Basic and Diluted Net Loss Per ADS
- Basic and diluted net loss per ordinary share were RMB4.93 (US$0.70), compared to RMB7.15 in the same period of 2023.
- Basic and diluted net loss per ADS were RMB14.79 (US$2.10), compared to RMB21.45 in the same period of 2023.
Balance Sheet
- As of September 30, 2024, the Company had RMB2,705.9 million (US$385.6 million) in cash and cash equivalents and time deposits, RMB13.8 million (US$2.0 million) in restricted cash and RMB850.2 million (US$121.1 million) in financial assets measured at fair value through profit or loss.
- As of September 30, 2024, the Company had long-term bank borrowings of RMB50 million (US$7.1 million).
Business Outlook
Macroeconomic economic uncertainties are expected to remain in the near term. The Company expects its total revenues to be between RMB350 million and RMB380 million for the full fiscal year of 2024. This forecast reflects management’s current and preliminary views on the market and operational conditions, which are subject to change.
About WeRide
WeRide is a global leader and a first mover in the autonomous driving industry. Empowered by the smart, versatile, cost-effective and highly adaptable WeRide One platform, WeRide provides autonomous driving products and services from L2 to L4, addressing a vast majority of transportation needs across a wide range of use cases on the open road, including in the mobility, logistics, and sanitation industries. In September 2023, WeRide earned a prestigious position among the top ten on Fortune Magazine’s “2023 Change the World” list. For more information, please visit https://www.weride.ai.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.0176 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2024.
Use of Non-IFRS Financial Measures
In evaluating its business, the Company considers and uses the non-IFRS financial measure of adjusted net loss as a supplemental measure to review and assess operating performance. The Company believes that adjusted net loss provides useful information to investors and others in understanding and evaluating the Company’s consolidated results of operations in the same manner as it helps the Company’s management. The Company defines adjusted net loss as net loss for the year/period excluding share-based compensation expenses, fair value changes of financial liabilities measured at FVTPL, fair value changes of financial assets at FVTPL and changes in the carrying amounts of preferred shares and other financial instruments subject to redemption and other preferential rights.
The Company presents the non-IFRS financial measure because it is used by its management to evaluate its operating performance and formulate business plans. Adjusted net loss enables the Company’s management to assess the Company’s operating results without considering the impact of the aforementioned non-cash adjustment items that it does not consider to be indicative of its core operations. Accordingly, the Company believes that the use of this non-IFRS financial measure provides useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors.
This non-IFRS financial measure is not defined under IFRS and is not presented in accordance with IFRS. The non-IFRS financial measure has limitations as an analytical tool. One of the key limitations of using the adjusted net loss is that it does not reflect all items of expenses that affect the Company’s operations. Further, this non-IFRS measure may differ from the non-IFRS information used by other companies, including peer companies, and therefore its comparability may be limited.
The non-IFRS financial measure should not be considered in isolation or construed as an alternative to loss for the year/period or any other measure of performance information prepared and presented in accordance with IFRS or as an indicator of the Company’s operating performance. Investors are encouraged to review the Company’s historical non-IFRS financial measure in light of the most directly comparable IFRS measure, as shown below. The non-IFRS financial measure presented here may not be comparable to similarly titled measure presented by other companies. Other companies may calculate similarly titled measures differently, limiting the usefulness of such measures when analyzing the Company’s data comparatively. It is encouraged that you review the Company’s financial information in its entirety and not rely on a single financial measure.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Statements that are not historical facts, including statements about WeRide’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in WeRide’s filings with the SEC. All information provided in this press release is as of the date of this press release, and WeRide does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Contacts
Investor inquiries: ir@weride.ai
Press inquiries: press@weride.ai
| WeRide Inc. | ||||||||
| Unaudited Condensed Consolidated Statements of Financial Position | ||||||||
| As of | ||||||||
| September 30, | September 30, | December 31, | ||||||
| 2024 | 2024 | 2023 | ||||||
| RMB’000 | USD’000 | RMB’000 | ||||||
| ASSETS | ||||||||
| Non-current assets | ||||||||
| Property and equipment | 109,387 | 15,588 | 98,574 | |||||
| Right-of-use assets | 68,583 | 9,773 | 51,658 | |||||
| Intangible assets | 21,250 | 3,028 | 24,594 | |||||
| Goodwill | 44,758 | 6,378 | 44,758 | |||||
| Restricted cash – non-current | 9,002 | 1,283 | 1,575 | |||||
| Deferred tax assets | 1,246 | 178 | 1,994 | |||||
| Financial assets measured at fair value through profit or loss ("FVPL") – non-current | 96,728 | 13,784 | - | |||||
| Other non-current assets | 18,392 | 2,620 | 21,082 | |||||
| Total non-current assets | 369,346 | 52,632 | 244,235 | |||||
| Current assets | ||||||||
| Inventories | 277,013 | 39,473 | 218,220 | |||||
| Contract assets | 20,739 | 2,955 | 82,826 | |||||
| Trade receivables | 295,049 | 42,044 | 266,933 | |||||
| Prepayments, deposits and other receivables | 170,955 | 24,361 | 192,530 | |||||
| Amounts due from related parties | 45,306 | 6,456 | 26,923 | |||||
| Financial assets measured at FVTPL - current | 753,444 | 107,365 | 317,042 | |||||
| Time deposits | 1,642,460 | 234,049 | 2,550,279 | |||||
| Cash and cash equivalents | 1,063,488 | 151,546 | 1,661,152 | |||||
| Restricted cash – current | 4,748 | 677 | 10,194 | |||||
| Subscription receivables | - | - | 43,924 | |||||
| Total current assets | 4,273,202 | 608,926 | 5,370,023 | |||||
| Total assets | 4,642,548 | 661,558 | 5,614,258 | |||||
| DEFICIT IN EQUITY | ||||||||
| Total deficit | (4,382,426 | ) | (624,491 | ) | (3,051,918 | ) | ||
| WeRide Inc. | ||||||
| Unaudited Condensed Consolidated Statements of Financial Position | ||||||
| As of | ||||||
| September 30, | September 30, | December 31, | ||||
| 2024 | 2024 | 2023 | ||||
| RMB’000 | USD’000 | RMB’000 | ||||
| LIABILITIES | ||||||
| Non-current liabilities | ||||||
| Lease liabilities – non-current | 33,577 | 4,785 | 22,309 | |||
| Put option liabilities | - | - | 40,449 | |||
| Long-term bank loan | 50,000 | 7,125 | - | |||
| Deferred tax liabilities | 4,735 | 675 | 5,483 | |||
| Other non-current liabilities | 4,677 | 666 | 6,522 | |||
| Total non-current liabilities | 92,989 | 13,251 | 74,763 | |||
| Current liabilities | ||||||
| Trade payables | 12,575 | 1,792 | 16,962 | |||
| Preferred shares and other financial instruments subject to redemption and other preferential rights (Note (1)) | 8,485,391 | 1,209,159 | 8,181,722 | |||
| Other payables, deposits received and accrued expenses | 304,953 | 43,455 | 271,306 | |||
| Contract liabilities | 16,132 | 2,299 | 12,498 | |||
| Lease liabilities – current | 28,608 | 4,077 | 31,098 | |||
| Amounts due to related parties | 41,550 | 5,921 | 77,827 | |||
| Put option liabilities | 40,934 | 5,833 | - | |||
| Income taxes payable | 1,842 | 262 | - | |||
| Total current liabilities | 8,931,985 | 1,272,798 | 8,591,413 | |||
| Total liabilities | 9,024,974 | 1,286,049 | 8,666,176 | |||
| Total deficit and liabilities | 4,642,548 | 661,558 | 5,614,258 | |||
Note (1)
The Company has adopted Amendments to IAS 1, Classification of liabilities as current or non-current, on January 1, 2024. The amendments apply retrospectively for annual reporting periods beginning on or after 1 January 2024. As such, as of December 31, 2023 and September 30, 2024, all the preferred shares and other financial instruments subject to redemption and other preferential rights were classified as current liabilities as the preferred shares and other financial instruments subject to redemption and other preferential rights may be converted into ordinary shares at the option of the holders at any time and the conversion feature does not meet the definition of an equity instrument.
| WeRide Inc. | |||||||||||||||||
| Unaudited Condensed Consolidated Statements of Profit or Loss | |||||||||||||||||
| Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| RMB’000 | USD’000 | RMB’000 | RMB’000 | USD’000 | RMB’000 | ||||||||||||
| Revenue | 220,312 | 31,394 | 257,076 | 70,014 | 9,977 | 74,207 | |||||||||||
| Cost of revenue(a) | (160,959 | ) | (22,936 | ) | (150,227 | ) | (65,450 | ) | (9,327 | ) | (51,333 | ) | |||||
| Gross profit | 59,353 | 8,458 | 106,849 | 4,564 | 650 | 22,874 | |||||||||||
| Research and development expenses(a) | (771,370 | ) | (109,919 | ) | (816,493 | ) | (254,160 | ) | (36,218 | ) | (440,372 | ) | |||||
| Selling expenses(a) | (38,317 | ) | (5,460 | ) | (31,418 | ) | (15,533 | ) | (2,213 | ) | (16,799 | ) | |||||
| Administrative expenses(a) | (834,278 | ) | (118,884 | ) | (525,652 | ) | (625,985 | ) | (89,202 | ) | (308,551 | ) | |||||
| Other income/(loss) | 8,715 | 1,242 | 13,289 | 776 | 111 | (303 | ) | ||||||||||
| Impairment loss on receivables and contract assets | (22,036 | ) | (3,140 | ) | (29,308 | ) | (8,612 | ) | (1,227 | ) | (1,312 | ) | |||||
| Operating loss | (1,597,933 | ) | (227,703 | ) | (1,282,733 | ) | (898,950 | ) | (128,099 | ) | (744,463 | ) | |||||
| Net foreign exchange gain/(loss) | 5,670 | 808 | 4,276 | 1,011 | 144 | (1,023 | ) | ||||||||||
| Interest income | 131,966 | 18,805 | 89,975 | 42,672 | 6,081 | 30,542 | |||||||||||
| Fair value changes of financial assets measured at FVTPL | (34,564 | ) | (4,925 | ) | 37,563 | (39,067 | ) | (5,567 | ) | 11,699 | |||||||
| Other finance costs | (2,140 | ) | (305 | ) | (2,690 | ) | (784 | ) | (112 | ) | (906 | ) | |||||
| Fair value changes of financial liabilities measured at FVTPL | - | - | (4,549 | ) | - | - | - | ||||||||||
| Changes in the carrying amounts of preferred shares and other financial instruments subject to redemption and other preferential rights | (424,175 | ) | (60,444 | ) | (408,841 | ) | (145,949 | ) | (20,798 | ) | (142,321 | ) | |||||
| Loss before taxation | (1,921,176 | ) | (273,764 | ) | (1,566,999 | ) | (1,041,067 | ) | (148,351 | ) | (846,472 | ) | |||||
| Income tax | (3,191 | ) | (455 | ) | (2,852 | ) | (1,600 | ) | (228 | ) | (287 | ) | |||||
| Loss for the period | (1,924,367 | ) | (274,219 | ) | (1,569,851 | ) | (1,042,667 | ) | (148,579 | ) | (846,759 | ) | |||||
| Deemed distribution to a preferred shareholder | - | - | (32,767 | ) | - | - | - | ||||||||||
| Loss attributable to ordinary shareholders of the Company | (1,924,367 | ) | (274,219 | ) | (1,602,618 | ) | (1,042,667 | ) | (148,579 | ) | (846,759 | ) | |||||
| Loss per ordinary share | |||||||||||||||||
| Basic and diluted loss per ordinary share(b) | (12.74 | ) | (1.82 | ) | (13.67 | ) | (4.93 | ) | (0.70 | ) | (7.15 | ) | |||||
| Loss per ADS | |||||||||||||||||
| Basic and diluted loss per ADS(b) | (38.22 | ) | (5.46 | ) | (41.01 | ) | (14.79 | ) | (2.10 | ) | (21.45 | ) | |||||
Notes:
(a) Includes share-based compensation expenses as follows:
| Nine Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| RMB’000 | USD’000 | RMB’000 | RMB’000 | USD’000 | RMB’000 | ||||||||||||
| Cost of revenue | (4,826 | ) | (688 | ) | (8,547 | ) | (1,806 | ) | (257 | ) | (2,600 | ) | |||||
| Research and development expenses | (198,199 | ) | (28,243 | ) | (379,436 | ) | (47,832 | ) | (6,816 | ) | (279,973 | ) | |||||
| Administrative expenses | (699,274 | ) | (99,645 | ) | (406,552 | ) | (565,944 | ) | (80,647 | ) | (268,461 | ) | |||||
| Selling expenses | (6,930 | ) | (988 | ) | (13,549 | ) | (1,747 | ) | (249 | ) | (10,617 | ) | |||||
| Total share-based compensation expenses | (909,229 | ) | (129,564 | ) | (808,084 | ) | (617,329 | ) | (87,969 | ) | (561,651 | ) | |||||
(b)
In July 2024, the Board of Directors and shareholders of the Company approved the issuance of a total of 12,806,568 ordinary shares to holders of Series D and Series D+ preferred shares at par value of USD0.00001, for an aggregate consideration of USD128.1, which were issued in August 2024. The Company was entitled an option to repurchase these ordinary shares at USD128.1 if an initial public offering (“IPO”) does not consummate on or before March 31, 2025. Because these ordinary shares were contingently returnable, they were not treated as “outstanding” for EPS purposes and excluded from the calculation of basic EPS prior to the consummation of the IPO. Upon the consummation of the IPO, the Company did retrospective adjustments for basic and diluted EPS of all periods presented since those shares are no longer subject to recall.
| WeRide Inc. | ||||||||||||||||||||
| Reconciliation of IFRS and Non-IFRS results | ||||||||||||||||||||
| Nine Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| RMB’000 | USD’000 | RMB’000 | RMB’000 | USD’000 | RMB’000 | |||||||||||||||
| Loss for the period | (1,924,367 | ) | (274,219 | ) | (1,569,851 | ) | (1,042,667 | ) | (148,579 | ) | (846,759 | ) | ||||||||
| Add: | ||||||||||||||||||||
| Share-based compensation expenses | 909,229 | 129,564 | 808,084 | 617,329 | 87,969 | 561,651 | ||||||||||||||
| Fair value changes of financial assets at FVTPL | 34,564 | 4,925 | (37,563 | ) | 39,067 | 5,567 | (11,699 | ) | ||||||||||||
| Fair value changes of financial liabilities measured at FVTPL | - | - | 4,549 | - | - | - | ||||||||||||||
| Changes in the carrying amounts of preferred shares and other financial instruments subject to redemption and other preferential rights | 424,175 | 60,444 | 408,841 | 145,949 | 20,798 | 142,321 | ||||||||||||||
| Adjusted net loss | (556,399 | ) | (79,286 | ) | (385,940 | ) | (240,322 | ) | (34,245 | ) | (154,486 | ) | ||||||||
____________________
1 Adjusted net loss is defined as net loss for the year/period excluding share-based compensation expenses, fair value changes of financial liabilities measured at FVTPL, fair value changes of financial assets at FVTPL and changes in the carrying amounts of preferred shares and other financial instruments subject to redemption and other preferential rights.
