WeRide's main business

WeRide has limited sales in the Robotaxi field, with nearly 200 vehicles, mainly concentrated in Guangzhou and Beijing. The Robobus business was launched in 2021 and was once the main source of the company's revenue, but sales have declined significantly in recent years. Sales in 2022 are close to 100 units, but only 60 are expected in 2023. The main customers are the domestic government and the Middle East, but weak demand has led to a decrease in orders. The company's annual R&D expenses are close to US$150 million, mainly used for technology development. The unmanned truck business has progressed slowly, mainly due to insufficient market demand and weak willingness of partners. Although there is an intention to cooperate with SF Express and ZTO, the actual orders are limited, and business development is limited by the willingness of logistics companies to invest. Unmanned sanitation vehicles have a certain sales volume in Guangdong, mainly relying on government support. They are technically mature, but high prices and difficulties in market development limit their expansion. Cost and operating area are the two core factors that limit the expansion of our robotaxi business. The cost of each vehicle is currently close to 600,000 to 700,000 yuan, and it needs to be reduced to about 200,000 yuan in the future to achieve a break-even point. From 2021 to date, robotaxi has not yet reached the critical point for large-scale expansion, and it may take five years or more to truly achieve L4 level fully unmanned driving.