Robosense Technology Co Aktie

Good evening, ladies and gentlemen. Thank you for standing by, and welcome to the First Quarter Results of 2026 Robosense Technology Company Limited Earnings Conference Call. [Operator Instructions]. Please note, this conference is being recorded.

I would now like to turn the conference over to Ms. Grace, the Investor Relationship Director. Thank you. Please go ahead.

Thank you, operator. Hello, everyone, and welcome to Robosense Earnings Conference Call for the first quarter of 2026. The company's earnings results was released earlier today and are available on our IR website, www.ir.robosense.i, the website of Hong Kong Stock Exchange, www.hongxchangenews. Hong Kong as well as on News. Today, you will hear from Mr. Kevin Lo, our CFO; and Mr. Johnson, our Deputy CFO, who will take you through the company's operational and financial results for the first quarter of 2026. After their prepared remarks, Kelvin and Johnson will be available to answer your questions.

Before we continue, please note that the discussion today may contain certain forward-looking statements, which involve known and unknown risks, uncertainties and other factors which are beyond our control and may cause our actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements exed or implied by the forward-looking statements.

In light of risks and uncertainties, the inclusion and the forward-looking statements in this discussion should not be regarded as representation by the Board of Directors or Rob objectives will be achieved and shareholders and investors of the company should not place undue reliance on such statements. RoboSense does not assume any obligation to update any forward-looking statements except as required under applicable law. Also, please note that some of the information to be discussed, including non-IFRS financial measures are not reified present in accordance with IFRS. IFRS financial measure and inform those non-IFRS financial measures to Robosense financial results prepared in accordance with IFRS are included in Robos which has been posted on the company's IR website at www. ww.ir.bos and the website of Hong Kong Stock Exchange, www.hongexchangemews.com.

Finally, as a reminder, this conference call is being recorded. In addition, a webcast of this conference call is available on Robalatvestor Relations website.

I will now turn the call over Kelvin Lau, CFO.

Thank you, Chris. So Robo delivered a solid start to 2026, posting robust revenue growth while accelerating the industry shift to next-generation digital LiDAR. The company's leadership at the center of AI powering intelligent vehicles and a broad range of robotic ropip2. 30 2%ipbliebbal backlog on hand featured a seasonal pattern of lower sales volume of products for ADAS in the first half of the year and higher shipment of products for ADAS application in the second half of the year.

Our overall gross margin dropped slightly to 21.7% in Q1 2023 in Q1 2025, mainly attributable to higher overhead incurred in manufacturing our LiDAR products in the initial stage. However, benefiting from concentrated delivery of automotive vehicles in the second half of the year, market demand in the utilss26lf-de Sorchgthprietary chips. The first one is Phixhoptrignleip and single optical [indiscernible] product.

Meanwhile, the [indiscernible] and install within 26noockld's highest resolution larger SoC chips as well as the highest specification mass producible area array chips in the current industry, VGA3Dsroipenc small to kick off large-scale mass production in the third quarter of this year. This in-house SoC chip for the core vertical that will drive leadership for the next global industry shift from traditional analog and mechanical LiDAR architecture to digital LiDAR system. This industry transition raises the overall te,[indiscernible] adoption of L3 and L4 fun over the next few years and mechanical LiDAR solutions fund limited by the hardware resolution and density, making them unable to meet the evolving requirement of high continues to lead the industry's digital transformation anchored by our proprietary chip architecture.

The company is scheduled to start the mass production of our new in-house developed perception chip Phoenix and in the second half of the year. With our early technology advantage, [indiscernible] is at the forefront of driving the industry-wide shift towards pure digital LiDAR. We expect gradual gross margin improvement as more product lines migrate to our fully in-house chip solution.

Our cost structure will be optimized step by step, supporting steady margin recovery over [indiscernible] sensing solution to our OEM and customers strengthen our long-term product and market positioning amid the rapid evolution of AI driven by new vehicle explosive robotic demand, ongoing chip cost optimizing capacity utilization, [ RoSs-Iutomot ] and robotic strategy, we are well positioned to capture the multiyear growth of the AI market delivering value for shareholders while -- looking forward, Ros remains dedicated to innovation in AI equipment and hardware technologies while continuously reinforcing its leading position in ADAS driving and robotic industry. We are committed to becoming a global leading robotic technology type of company and creating long-term and stable market value and benefits for the industry.

Now I would like to turn the call to John.

Thank you, Kelvin. So you've just heard from our CFO, Kelvin, that walk you through our Q1 highlights. Now I wanted to first address some of the key questions I know you guys will ask a lot of the people online also my friends. So I wanted to answer some of the top questions that I know I'll be getting from you guys, let me open the floor for questions. And I also want to set the scene on how one should think about RoboSense going forward.

Now first and foremost, RoboSense is a physical AI company, right? Humans receive 80% to 90% of the world through vision. Our LiDAR and next-generation LiDAR camera solutions are the eyes, and we are delivering super human vision to power the physical world of AI. And that is, of course, built upon our in-house SoC that we've already spent 8 years researching and developing.

This breakthrough will unlock substantial new TAM across many sectors have actually not explored previously for LiDAR, which will enable us to capture market share from traditional cameras in a wide range of industrial scenarios, including factory automation, human robots, passenger vehicles.

Now the market right now is heavily focused on upstream AI infrastructure names as a core investment. and have largely overlooked the booming physical AI segment. And as you can tell from our strong shipment growth, all our business lines are gaining strong momentum and the LiDAR adoption cycle is still in the early stages. It's only a matter of time before the market fully recognizes this tremendous opportunity.

Now turning back to our Q1 results. We have very strong top line growth, 40% growth year-over-year, shipment more than 200%. Now simply put, the strategic priority for RoboSense in 2026 is market share expansion. We'll continue to extend our competitive advantage, especially in robotics LiDAR, which is a segment that we see a structurally healthier gross margin of around 30% to 40%.

Now we're very happy to announce that we are #1 in market share across many, many robotic runways such as robotic robotaxis, lawn mowers, commercial cleaning, robotocs, mining trucks and many more. And we plan to steadily scale these high-margin businesses to strengthen the overall profitability of our company.

Now on the ADAS front, gross margins faced temporary gross margin pressure, and that is a function of a deliberate and strategic product transition that we've undertaken. We're actually proactively driving all our major OEM partners to migrate from legacy analog and mechanical LiDAR to our SA SoC-based solutions, and we've actually made substantial progress so far. Now today, approximately 50% of our ADAS shipments are actually SA-based units. Our first-generation Sat chips are, however, currently sourced externally, which will, however, push up the component cost and weigh on short-term gross margins.

Now additionally, we've actually ramped up factory automation to prepare for in-house chip production, and that has also contributed to the year-over-year margin compression. Now that said, we want to reiterate that the current margin pressure is temporary. Our self-developed SA SoC chips will enter mass production in the second half, and this will help us bring notable chip cost reductions.

Now even so -- and we have to admit that our ADAS gross margin stayed below 20% in Q1 and is expected to remain below this level for most of 2026. Now as a result, RobosSense will strive to achieve profitability for the full year of 2026. We view these investments as highly value accretive rather than a negative outcome.

Onboarding top-tier OEMs onto our SA architecture will actually build lasting customer stickiness, raise switching costs and further fortify our long-term technological moat. We are already in active discussions with OEMs on the next-generation vehicle LiDAR projects and all our partners have expressed to us a clear demand for higher line count products for next year, which will create a distinct technological gap between RoboSense and our peers by 2027. It is clear that our OEM partners are positioning themselves and for our -- it is clear that our OEMs are positioning themselves for higher line count products and our external chip procurement strategy in first half will lead us to a cost headwind. So you can think of us as taking the pain first.

Now I know you guys will also ask about our ASP, which fell 55% year-over-year in the first quarter. And I think that is a function of the higher Q1 base from last year, but the pace of decline will moderate as we go towards the second half of the year. And broadly speaking, our ASP decline, even though it's comparable to peers, the underlying causes are fundamentally different.

Our ASP compression is actually driven by mainly changes in the product mix and not so much a function of the price competition. First, if you look at our lawn mower LiDAR volume, that was close to 0 in first Q 2025, but that contributed meaningfully to our robotics volume in Q1 2026. Second, we shipped a meaningful amount of our E1 blind spot LiDAR in this quarter.

Now these 2 product lines collectively accounted for more than 50% of our Q1 total shipments and that -- and those products carry a lower average selling price compared to our flagship automotive LiDAR products.

So with that, I want to open the floor now for questions.

[Operator Instructions].

This is Joey Yang from BOFA Securities. I question regarding ASP. We see a shift towards higher performance products or more premium products overseas or joint venture clients. I was wondering if there is any chance that there will be a potential inflection point for ASP in second half of 2026 or in 2027?

Yes, good question and also a company asked by a [indiscernible] So you aware that okay, LiDar Cast 2 years on the phasing from in gene industry, I think in 2023 the LiDAR like ASP is around RMB 3,000 and then used 20 and then further dropped around 1,000 units in the second half or dividends. But I would tell you I did this type of gas price division or the close long term, okay, posted. What I'd say is because I think if you aversion we are the divesting to cash expenditures, I think the high performance, high entire lives.

And the other 1 is, I think the brexit lower lease cut -- as far John mentioned a bit in his remarks, right now, I think we will see the neos of the automate now transition at least we have to high performance and high recent current lives. And this type of trend will become the major midstream in cycle of operation for all those 2 years.

I think for highly seller specification going forward be visible at the initiative trend going forward. Of course, this is a high performance, highly recent time either deserve or higher ASP high-price However, I think as we say some of high-delight be press to higher production costs because because our sales team house state citrate other in think most next cost advantages to reduce the tacos.

So -- like all those highly being like I think for some term and 720 lease has already going forward, we would have a medium-term competition for all those leaders. Therefore, for all those targets, again, we billing the air space can be status. And also, first, I think we stand update in on those higher laser fee lines. But I think for all those lowering like line.

I mean going forward, I think with the increase in the installation and titration of this level based on like we can enter a higher to of scale and further reduce the cost. And then again, we forecast, I think, for this number so that going forward the ASP would visit. So net-net, I would say, the overall ASP for a beating will not really happen again at a 3 to a petrostation even we have it again. This is what we did Yes. So yes.

[Operator Instructions]

This is Cherry Liu from JPMorgan. And also want to congrats on the robust volume and revenue growth, and we're also glad to see a very more balanced product mix in terms of volumes but we do see the blended gross margin dropped basis. I think Jonson already mentioned margin pressure from also. But could you elaborate a bit more on the reasons behind the margin connection.

Thank you, Cherry, for the question. To elaborate, I think there are probably a few reasons and externally sourced chips is only one of the few reasons. First of all, we all know this year's auto market is slower than previous years because of the overdraft in subsidies. So as a result of poor sales on the automotive side, that has actually led to lower utilization rate of our facilities and that actually increased our fixed costs.

Second of all, as we are now upgrading to upgrading all our lines to digital LiDAR, we've actually had to put in new pieces of machinery and that actually increased our costs. And until they're fully ramped up, that will also impact our gross margins.

Third, we've also seen increase in some of the raw material costs, as you are aware that there is a global commodity inflation that is happening only on certain products. And also our cost reductions with our upstream suppliers in terms of those negotiations have not yet fully been completed, and those negotiations will be completed throughout the year.

So -- and of course, the last reason was the externally sourced chip question, which is as we can migrate to more of our in-house SoC chip, that will actually help improve the margin profile of our company in the coming quarters and months once we fully migrate to our in-house.

[Operator Instructions].

This is Kai from Sinofert. My question is about halted. We note that compared with major suppliers such as Sony, 1 of key performance advantages of our in-house by technology and also compared with third-party solutions, how much impact do in-house chips have on product pricing and overall cost structure -- in addition, how is the mass production ramp up from products based on the company's in-house chips, such as Sonix and [indiscernible.

Thank you for your question. Okay. Also to answer your question itself in terms of the core lineages, our share development retail the most number 1 is, I mean, our superior and comprehensive performance of our share repurchase. Again, our elite early helps higher later in life efficient and also to optimize the cost structure, okay? -- is number one. I think it's very poignant PPE that on operations our in-house chip again is the capacity and we are possibly 45% of the PPE, which is well above having the industrial average is very important.

I think those 2, I mean another important point of that, I think it's the cost efficiency. So if you compare with, I mean, all those chips, we have the similar chips of our equipment ships we purchased parts, in terms of cost, again, we decided cost by about 20% by half. So I mean it's a very vocally important of the cost efficiency factors we have proceeded. Another advantage of chips is that I say, okay, our chips get support, I think out high the spot again like we mistreat 2020 date.

And going forward, our next-generation products and 10 achieve the reason being existing be 4,000 4,000 less this life. The last is a of course, it provide more contacts I mentioned in teen. Tests are all the core as I think we we do focus on because our e-mails provide trip is very important for the future competition in this industry.

So in terms of the position same time, we mentioned this before in exchange. Opioids are this, we always can decide mean from some easy OEMs on the market already. and we expect to start it the last position of our pettiness in the second half of this year. Culture is we already are now starting we already achieved the small cash delivery as we mentioned in my remarks and you end in a discussion in Q3 of this year. So you will see the top of high performance customized there's so many have been rain the market. Going forward, we then business there, sort besetting high performance is later to our OEM customer and also our bucket customer will be some captions initial trend moving forward.

[Operator Instructions]. We now invite the participant whose phone number ends in 7131 to ask a question.

Congrats on your strong results. So my question is about your RGBD solution and technology. We see the peers also launched the 6D color products. Could you help us understand and share more details on the difference between your RGBD solution and peers boodcllor approach. Also, you have already established a leading position in B technology. So going forward, what product or pricing strategy will you plan to adopt to strengthen and monetize this advantage?

Thank you for the question. I think you have seen on the media that some of our competitors peers have actually launched similar RGBD camera products, for example, Ouster in the U.S. also launched the product recently. But I think the core difference of our products versus that of others is that, first of all, we have our own in-house SoC chip, right? And that our line count has now reached 2,160 lines and our next-generation product is going to be double that, right, in terms of the line count.

Now if you think back to LiDAR, we always communicated our LiDAR be count using lines, right? Now if I was to convert that into resolution of pixels, 120 lines is only 150,000 pixels. So it's actually very, very poor in terms of resolution. But when we get to 2,160 lines, that's actually 4 million pixels. When we get to 4,300 lines, it's going to be 8 million pixels.

Now the human eye, the cornea of your eye is actually 6 million to 8 million pixels. So the first time ever, we are able to create a sensor that is better, if not on par with the human eye. So -- and that's why I referred to our LiDAR solution or LiDAR camera solution as the super human vision solution that many people have actually not thought about that LiDAR is capable of doing. So it is definitely going to replace a lot of the camera solutions that are in the market right now. And I want to give you a couple of examples of whether -- where we can deploy these products.

First of all, you can think about just an auto itself, right? A typical car can have, let's just say, 1 LiDAR, 12 cameras, 6-millimeter ultrasonic radars. But what if I was to tell you that we can start replacing a lot of the cameras on the cars now by using our LiDAR camera. That in itself is a significant TAM.

Second of all, you will also see that there are a lot of scenarios on the industrial side, such as industrial inspection that the LiDAR solution is probably cheaper and more precise versus that of some of the 3D vision solutions that are out there. So this RGB camera or LiDAR camera that we're going to be launching very soon, it's going to be game changing. So I don't want to disclose too many details of our product until it's officially launched, but please be on the lookout for this product.

We now invite the participant whose phone number ends in 4,503.

This is Sara from China Gas International. So my first question is about our chip business. We established the in-house chip strategy back in 2017. Could you please share more what are the key advantages we have observed now?

My second question is about the market share. What are the key factors that will help the company continue gaining market share going forward? And how will the company further strengthen its leading position and capture a bigger market share in the future?

Good section. Okay. yes, gas quite a lot of is that you are asking us why we establish our in-house ship development teams have been 2017. At this time factor 2017 I think starting back to 2017, we already realized that, going forward, we want to capture a larger market share in the industry, we have our own self develop in-house chip. Why?

First of all, in-house developers semoniplfipsgen our core competitive advantages, okay? We keep on going forward, in terms of let all the competition will focus on the semicon already become a very sophistic [indiscernible] develop chips. And our chips will also constitute another core technical are for those in the future.

Second reason is that, in-house develop chips can facilitate the LiDAR performance upgrade. So you can see right now based on our and also our chips, we can achieve LiDAR to laser to 3,160 in the future will go up to more than the accurate. So this is very important for those the efficiency in my last question I also mentioned that the cost of those in-house in terms of cost.

So in terms of efficiency we can get more advantage right now those [indiscernible] market chips can develop more robotic in past years, I think we already developed some new products and some [indiscernible] we are holding a leading position in the industry with of, okay, why those pureipipfurer, they don't know how to do LDAnot0quse -- another is to remember that all those OEMs want to ship from one to another, we have to add...

So those are terms of the people, some of the investors say, okay, why are these pure chip especially we cannot provide to some of chips for later company a little bit more as a air all those pure chips, manufacture they don't know how to do lines we cannot come out of all those products, which 100% to be the requirement of a supply line company. So I think all this, I think we've got to be light on our in-house gives to support more and lesser portfolio for -- Okay. That's a very important point is you have to remember that for all those OEMs, okay, you look if you want to see a test from 1 line of spread and other supply to another largest print we have to additional shipping costs, I think on the shipping I think after -- so at this stage, we've got a leading position in terms of the highest list ensure the business of the kind of customer relationships for those in the year.

So goes to say kind of type of in-house development technology. we come there going forward, again, we can capture a lot of later shares in the leases and also in copresenter.

We now invite the participants to phone number and in 6237 to ask a question.

This is Shiwen Li from CICC. Congratulations on the consecutive and strong Y-o-Y growth on our shipment and also revenue. So I have 2 questions. The first one is we found that LiDAR players are all pushing for higher beam count and RoboSense has already reached 2,160 beams. So the question for me is how much real-world improvement do you actually get from higher resolution for Level 2+, Level 3 and Level 4 robotaxi applications? What would you say is the rough upper limit of beams that is really needed?

And my second question is, looking ahead over the next 2 to 3 years, where do you see the main competition in ADAS and robotic sensors? Is it higher resolution sensor fusion or cost? And how is RobosSense positioning itself in this direction?

Thank you. I'll take this question. So I think, first of all, if you look at safety, safety for autonomous vehicles, I don't think there is a limit in terms of safety, right? So -- and obviously, with a higher beam count to a LiDAR, you are enabling the vehicle to drive safer. So for example, our 2,160 beam LiDAR can see objects that are 600 meters away or the same LiDAR that was only 128 lines, you can only see the object that's only 100 or so meters away. So in which scenario is it safer? Is 100 scenario or the 128 beam scenario, right?

So currently, if you look at a lot of the L2+ vehicles in this year, they are now adopting EMX, which is the 192 line solution, but we're already in talks with a lot of the OEMs for next year's product. And don't want to disclose too many details, but the jump is going to be a lot higher, and it's not going to be 300 lines, right? Now L3, I think currently will -- this year will require 500 lines because the L3 and L4 lines quite good.

Our EM4 products are typically about 520 lines. And a lot of the robotaxi players right now are equipping their main LiDAR with our EM4 LiDAR. But the 500-plus line lineup for L4 is likely going to go to more than 1,000 lines next year. Now I think the breakthrough is when we start producing this 2,69, 4,320 line because, like I said, we're creating a sensor that is better than the human eye. And we think about it because LiDAR gives you the depth information, right? So in the past, we've always been training a lot of the autonomous driving by 2D data that we're getting from the cameras. But we're not using the 3D depth information that you actually get from our LiDAR camera.

So in the future, I actually think a lot more OEMs will adopt our LiDAR camera because it actually can actually help them save on the compute capacity, right, going forward. And basically, we're at the point where the competition, right, for LiDAR is now all going to be digital based and the competition, therefore, on a digital-based LiDAR is on your chip. And I think we have a head start from a lot of our peers since we spent the last 8 years doing R&D.

We now invite the participants whose phone number ends in 6,922 to ask a question.

This is Bin Wang from Deutsche Bank. I have a question for BIP most important in to make you share more detail about the Talmoperation with CID no exclusive all those move any new developments in additional activity this year to use what is is to be an event and no not evening. Is there any code or can tomorrow?

Yes, yes, we is major of around the total 40,000, so of our more customers on the ES business. So if you do a little last year were part the later in penetration of all those in order as last year, I think the is a new vehicle in all 3 of the meter. So they are like bus from global and our competitors do around 40,000 marketing. -- the are rates of 10% sometimes. So as what we mentioned before, very now we capture the larger stuff the shares from already so because of our new progenic -- so I think which ever in terms of specification of our are being involved most products.

So we charge more operational -- so this year, we forecast, I think the shipment of light as go to is around -- from 1 center around 45,000 6,000. So I think the total number of the domestic, we are pushing this year is $35 million to end last year. So that means that the penetration we work on the estimation about equal to about 12% to 70% on is some small number, and we salute 70%.

So let us see, okay, what they are tonalite most some -- also wondering if you think government, I think the beating opposite see that effect for VIBecles or those paces estate to install lives in this lower price vapes. We really hope to see again going forward specific we will increase epitope vehicles on .

I want to add a quick comment also. I think not only do we have BIB and Geely, I think that have effectively given us not as the primary supplier to LiDAR. If you look at the penetration rate of these 2 companies combined, they're only -- their penetration rate for LiDAR stands at about 10% to 15%. So over the next few years, we're going to see a lot of growth from these 2 customers alone, and that will actually help us regain our market share in the LiDAR market. So it's safe to say that the market share for RobosSense in terms of -- in the ADAS market will bottom out. We will probably regain a leading position likely in 2027, if not 2028, just by the sheer size of these customers. And that's why I started the call by telling our friends here that market share is a strategic priority for OboSense in this year and getting them on board, switching them to our digital LiDAR solutions is key to this.

And also starting of this year, you can see that in more and more lower price [indiscernible] slightly a bit more than like it. So we we're very [indiscernible] in terms of the lighter demonstration at a comfort.

We now invite the participants whose phone number ends in 7,820 to ask a question.

This is Xiaoyi Lei from Jeffries. I've got a couple on the Lower business. So first, on the RoboRock partnership you just announced. Any color you can share on the incremental shipment contribution we should expect? And just to get a better sense of the landscape, where does RoboSense sit in terms of market share in the Lower today? And most of your key customers sourced with you.

And my second question is regarding the shipment trend from here. So looking into the second half, what does the order cycle typically look like with these customers? I'm also curious how you are factoring the potential EU tariff changes at the end of June and whether you've already seen any pull forward demand earlier this year that might impact the second half run rate?

Thank you Xiaoyi for your question. So I want to first update our friends here on our 2026 full year volume guidance. So we do expect our annual shipments to grow 2 to 3x this year. So last year, our total shipments was about 900,000, among which 600,000 was ADAS and 300,000 was robotics. So we're going to build on that and grow our volume 2 to 3x this year.

Now if I look at by segment, the robotics LiDAR segment is probably going to be on the higher end of that range, so closer to 3x. The ADAS LiDAR growth segment will be closer to the lower end of that guidance. Now if I was to look at the -- to answer your question in terms of the lawn mower business, yes, we just signed a huge contract or strategic partnership with RoboRrok. So that is going to increase our volume.

So on the lawnmower side, we think the volumes are going to be going to closer to 600,000 plus. So last year, we were about 200,000 in lawnmowers. And 2 years ago, we actually had almost no lawnmower volume. So you can actually see how fast the robotics segment is growing. They just come from nowhere, right? And our market share in the robotics segment right now is about -- in the lawnmower segment right now is about 70%.

So a lot of the key customers like hao, Puma, right, Go Rock, basically, they use our company's products. Now there is seasonality though, right, with lawnmowers and a lot of the shipments from lawnmower happen in Q1 and Q4 of each year because they're used in Q2 and Q3 typically. So therefore, what you will see in the Q2 is that we're going to have very little contribution from lawn mowers, but higher contribution from the ADAS side.

Now in terms of the tariff, so far in terms of our shipments, we've actually not seen an impact. We've actually seen customers coming in and placing orders for the back half of this year, and that will obviously be already past June. And I think a lot of our partners, they also have capacity overseas also. So the tariff impact is actually minimized or not as big as what the market thinks it is. We are still seeing extremely strong growth on the long haul.

We now invite the participants whose phone number ends in 2650 to ask a question.

This is [indiscernible]. I'd like to ask about the robotaxi business. How is the robotaxi business trending as a share of Rboense's overall business? Which clients are driving the incremental growth? Could you also provide some guidance on this year's shipment volume and overall business progress? And lastly, have there been any new breakthroughs with the overseas robotaxi clients?

Thank you for the question. I will leave it up to the above tax segment. Give us right now on the safe oversales holding permanent have been positioned in the tent. So everybody get is good to go very fast this year that we did the previous in terms -- I think because of the occasion to increase is significantly to -- so what I think we are on the way to the local tax sector is that we have seen last year. I think in terms of harvesting this moves center, I think the industry instrument we estimate group rates caps.

But in the month think this type of global tax center is going to have rubles. So we look at our customers, I think this was mobile sector. All those for fixation of our business, so does include TV, Roy and I mean then we go to icon for PC, all the lighter radar installed in Doberstein, including the forming line and also the fixed price solar at all surprised by late. Okay.

And also recently, we already get opportunities from. So the armies will be actually to adopt our main like our light emanate. So you mentioned before Misery very powerful like long-range also long in China. We reaction of meters and also in terms of 1 recently up to 5 candidates of another big time be right, okay. realizing the next generation rotors high possibility that we will adopt our EM -- and also, they are using our -- for bite as the FX for line. Not a lot of these studies are similar for factories also seriously considering, okay, to see our year or even as a new market in the next generation of testing -- so you'll see far we are right now very dominant and position in the global KFC sectors, both because of our in-house set more powerful like us.

So in terms of OCs worker tax business specialists close to do is that every is a thin focusing slowly were coming the orders are big moats in overseas market. So -- going forward, we will disclose more I think that we can come to a more appropriate moments on this. But I think in terms of , don't be okay disclosing and other call, I know you mentioned you also certain all the investors can make now in platform.

Okay. All the global tax business both logic and others, just a separate life will look at Australia still on a very low level. So in 3 years, I think the market and also the revenue position become more minute. So I will come up of our separate lines to discuss more real, mean the reset contribution for.

Due to time constraints, we will now conclude the Q&A ession and turn the call back to management for closing remarks.

Should you don't have any questions or for additional information we encouraged to visit our investor relations www.irrobosense. com. Thank you much for everyone.

Thank you. Ladies and gentlemen, that does conclude our call for today. Thank you for participating. You may all disconnect.

Good evening, ladies and gentlemen. Thank you for standing by, and welcome to Robosense Technology Company Limited 2025 Full Year Results Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded. I would now like to turn the conference over to Ms. Grace Ye, the Investor Relationship Director. Thank you. Please go ahead.

Thank you, operator. Hello, everyone, and welcome to Robosense 2025 Full Year Results Earnings Conference Call. The company's earnings results were released earlier today and are available on our IR website, www.ir.robosense.ai, the website of Hong Kong Stock Exchange, www.hongkongexchangenews.Hong Kong as well as on Newswire services. Today, you will hear from Mr. Mark Qiu, our CEO; and Mr. Kevin Lau, our CFO, who will take you through the company's operational and financial results for the full year of 2025. After their prepared remarks, Mark and Kevin will be available to answer your questions. Before we continue, please note that the discussion today may contain certain forward-looking statements, which involve known and unknown risks uncertainties and other factors, which are beyond our control and may cause our actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements preferred or implied by the forward-looking statements.

In light of risks and uncertainties, the inclusion of forward-looking statements in this discussion should not be regarded as representations by the Board of Directors of Robosense that plans and objectives will be achieved and shareholders and investors of the company should not place undue reliance on such statements. Robosense does not assume any obligation to update any forward-looking statements, except as required under applicable law. So please note that some of the information to be discussed, including non-IFRS financial measures are not referred by or presented in accordance with IFRS. The IFRS financial measures and information recycling this non-IFRS financial measures to Robosense financial results prepared in accordance with IFRS are included in Robosense's annual results announcement, which has been posted on the company's IR website at www.ir.robosense.ai and the website of Hong Kong Stock Exchange, www.hongkongexchangenews.HongKong. Finally, as a reminder, this conference call is being recorded. In addition, a webcast of this conference call is available on Robosense's Investor Relations website. So now I will turn to the call over to Mr. Mark Qiu, the CEO of RoboSense.

Okay. Thank you, Grace. Hello, everyone. Thank you all for taking the time to join Robosense 2025 Fourth Quarter and Full Year Earnings Conference Call. We delivered exciting results for the fourth quarter of 2025. And through our efforts over the past year, we have laid a solid foundation for our next phase of development in 2026. Today, I would like to walk you through 3 key areas in a more structured way. First, in 2025, Robosense successfully reached an operational turning point, achieving its first ever quarter profit in the fourth quarter of 2025. Second, I will review our core strategy deployment and key achievements in 2025. Third, I will share our outlook for 2026, including how we utilize the solid foundation laid in 2025 to achieve more predictable and sustainable growth and create sustained value for our shareholders and partners.

Let me begin with the financial results, which I know are top of mind for everyone on the call. I'm very pleased to announce that in the fourth quarter of 2025, we achieved our first quarterly profit since the company's establishment, making a critical operational turning point. In the fourth quarter, Robosense recorded total revenue of RMB 750.7 million, representing a year-on-year increase of 46.1% and a quarter-on-quarter increase of 84.4%. Total LiDAR sales volume reached 459,600 units, up 183.2% year-on-year and 147.6% quarter-on-quarter. In terms of profitability, our overall gross margin improved to 28.5%, up 6.4 percentage points year-on-year and 4.6 percentage points quarter-on-quarter.

Operating profit reached RMB 1,130.1 million and net profit amounted to RMB 103.7 million. Behind this performance was 3 structural drivers that came together and were fully realized in the fourth quarter. First, our digital products entered into the stage of large-scale delivery. In the fourth quarter of 2025, the total shipments of LiDAR products for ADAS application reached approximately 238,400 units, up 54.8% year-on-year. More notably, sales of LiDAR products for robotics and others experienced explosive volume growth. with total shipment reached approximately 221,200 units, surging 2,565.1% year-over-year and 523.1% quarter-on-quarter, becoming the core engine of the quarterly growth. Second, our revenue contribution mix continued to optimize with the robotics business achieving its profit growth.

In the fourth quarter, revenue from sales of LiDAR products for robotics and others rose to RMB 346.7 million in the fourth quarter of 2025, up 427.5% year-on-year and 133.4% quarter-on-quarter. It become the primary driver to the quarterly revenue growth, significantly enhancing the company's overall gross profit margin and optimizing our revenue contribution means. Third, cost reduction benefit from our self-developed chips reflect in the income statement. Gross margin of LiDAR products for ADAS application rose to 22% in the fourth quarter of 2025, up 5.7 percentage points year-on-year and 3.9 percentage points quarter-on-quarter. The sustained gross margin improvement validates the effectiveness of our structural cost optimization strategy by using our proprietary chips. Gross margin of LiDAR products for robotics and other remains stable at 37.3%, maintaining at a comparable high level amid rapid volume expansion and ASP trends.

Looking at the full year, we achieved a total revenue of RMB 1.941 billion, up 17.7% year-over-year. Total annual LiDAR product sales volume reached approximately 912,000 units, up 67.7% year-over-year. Overall gross margin improved to 26.5% in 2025, an increase of 9.3 percentage points from 2024, with gross profit reaching 81.3% year-over-year. Net loss narrowed to RMB 145 million in 2025 and adjusted net loss further narrowed to RMB 53.5 million.

Our growth was not driven by a single factor, but structurally supported by technological and product leadership, optimized revenue contribution mix and full unleashed supply chain capabilities and et cetera. Next, let me walk you through our core strategic deployment and key achievements in 2025. Frankly speaking, 2025 was an extremely challenging and high productive year for Robosense.

As many of you may know, starting from the first quarter of 2025, our cooperation with 2 major customers, the H company and X company was suspended. These 2 customers have represented a substantial portion of our ADAS sales volume in 2024. This made 2025 a high unusual and critical year for the company. At the same time, we saw highly positive signal in the LiDAR industry.

On one hand, intelligent driving technologies and commercial application gradually form a reinforcing cycle, driving a sharp surge in LiDAR demand. On the other hand, the rapid development of robotics and physical AI leads to the emerging of different LiDAR application scenarios. And each application scenario is expanding at a scale comparable to the size of the automotive market.

We firmly believe that 2025 marked an inflection point for LiDAR industry and a critical year for our business development. It represents a key window for the company to expand our business to other markets and the optimal time to optimize our business structure so as to mitigate performance volatility from over resilience, overreliance on single market or 1 or 2 major customers. In 2025, we led the LiDAR industry into the digital era.

In the first quarter of 2025, leveraging our long accumulated digital architecture, we launched a full portfolio of digital LiDAR products, including EMX, EM4, E1R and Airy, et cetera, officially initiating the paradigm shift of LiDAR from analog to digital architecture. This technological transformation is revolutionary, much like the transition from the film camera to digital camera. In terms of resolution, traditional analog architecture using discrete component struggle to mass production LiDAR products exceeds 128 beams.

By contrast, digital LiDAR can easily surpass 1,000 beams while maintaining high cost performance. This fundamentally overturns the conventional perception that LiDAR has limited performance ceiling and prohibitively high cost. Digital LiDAR has therefore become high attractive for both advanced automotive autonomous driving function and a wide range of robotics applications. In the second quarter of 2025, we start our market expansion activities.

To date, our digital LiDAR products have achieved encouraging progress across robotaxi, ADAS and general robotics segments, securing a large number of purchase orders. In the first quarter of 2025, alongside with the market expansion strategy, we also fully focused on preparing for mass production of digital LiDAR, including production capability -- capacity expansion and supply chain optimization, making final preparation for large-scale product delivery expected to become -- occurred in the fourth quarter of 2025.

During this quarter, a series of our in-house chips obtained the automotive grade certification and finalized the product reliability verification test. Production lines for digital LiDAR products launched earlier in the year began trial production operations, as I mentioned during the third quarter earnings call. The delivery performance in the first 3 quarters largely reflect that the final phase of our legacy analog era products.

The mass production readiness and order backlog of digital LiDARs are the key factor to define and determine our future. Then in the fourth quarter, all these efforts tend to -- in the fourth quarter, all this efforts came to fruition. Digital LiDAR product for the first time officially start large-scale delivery to customers. In the automotive sector, both EM4 and EMS products entered mass production. Notably, we helped Zeekr and IM Motors become the first SOP core model equipped with LiDAR featuring more than 500 beams, achieving Level 4 LiDAR perception capabilities.

In the general robotics sector, we also saw an explosive growth. E1R and Airy Light both entered into large-scale mass production stage. We helped customers deploying high-performance solid-state LiDAR technology at scale in different robotics applications. In the general robotics sector, we achieved a quarterly product shipment exceeding 200,000 units in the fourth quarter of 2025.

Technological breakthrough, market expansion and production capability readiness were all realized in the fourth quarter of 2025, resulting in our quarterly LiDAR shipment volume hit a record high. We complete the full cycle from strategic layout and commercial harvest. Now that I have reviewed the core development quarterly by quarterly.

And let me summarize our key achievements in 2025. In the robotaxi segment, our EM4 ultra long-range main LiDAR and E1 blind-spot LiDAR combination, relying on their industrial-leading performance and high level of product and technology sophistication quickly become the preferred solution for robotaxi customers.

In the analog era, our market share in this sector was approximately 10%. In the digital era, we have established cooperation with more than 90% of the world's core robotaxi and robot-truck players, including Baidu, Apollo Go, DiDi Autonomous driving, WeRide, Pony.ai, and leading North American Level 4 players and et cetera. We expect that our digital LiDAR will serve as the core safety sensors on the robotaxis players' next-generation mass production and commercially operated vehicles.

We also strengthened our ecosystem position by joining NVIDIA's Jetson, DRIVE and Omniverse ecosystem, building a comprehensive network covering mainstream automakers, mobility service providers and Level 4 automotive autonomous driving companies, laying a solid foundation of LiDAR adoption for the large-scale deployment of robotaxi.

In ADAS for the Level 2 market, our digital EMX with 192 beams, high-density point and 300 meters detection range has become the mainstream industry configuration. For high-level Level 3 intelligence driving, our EM4 has become the industry only mass production digital LiDAR with more than 500 beams.

Today, our digital platform product has secured design win for over 100 vehicle models. In the domestic Chinese market, in addition to our long-term partners such as BYD and Geely, we have obtained more vehicle model design wins from other OEMs due to the industry-leading technology and high performance of our digital LiDAR products. We add new names in our OEMs customer list, including a prominent emerging EV brand, Great Wall Motor, Leap Motor and series.

Beyond main LiDARs, multiple OEMs were -- for the first time, install our digital fully solid-state blind-spot LiDAR in their SOP vehicle models this year. Our international automotive business achieved comprehensive progress, covering all major automotive markets in Asia Pacific, Europe and North America. Today, we have secured vehicle model design wins from 14 overseas and Sino-foreign joint venture OEMs.

According to the 2025 market share of LiDAR suppliers for joint venture automotive brands released by Shujubang, Robosense ranked first with a market share of over 70%. In the Asia Pacific market, project with Japan's top 3 automakers progressed steadily, and we continue to obtain new vehicle model design wins from Sino-foreign joint venture of leading Japanese OEMs.

Among those European, Sino-foreign joint venture OEMs, we have secured new vehicle model design wins from the joint venture of a leading European luxury automakers as well as multiple new design wins from several single foreign joint ventures established by the large European automotive group. In the North American market, we have attempted exclusive design wins for multiple vehicle models from several OEMs. In 2025, overseas revenue increased by more than 90% year-on-year, marking a leap from being a leader in China to become a global frontrunner. As of the end of 2025, in the automotive ADAS sector, we secured a total of 183 vehicle model design wins from 34 OEMs and Tier 1 suppliers.

In the robotics and general robotics sector, by using our core digital LiDAR products, including E1R, Airy, Fairy et cetera, we have developed various perception solutions applying in diverse robotics scenarios. In lawnmower robots market, in addition to Mammotion we secured an exclusive design win with Navimow, a brand owned by Segway-Ninebot.

Notably, we recently obtained an exclusive design win from a leading cleaning robot brand for its new lawnmower robotics business with our digital LiDAR product delivery scheduled to commence with this year -- within this year. In unmanned delivery vehicle sector, we now serve more than 90% of leading customers in the industry.

Our digital LiDAR products have already been deployed at scale on the next-generation augmented delivery vehicle deployed by these global industry leaders, including Neolix, Zelos, Ryno.ai, JD, Meituan, Cainiao, Minieye, Coco Robotics and et cetera. In the embodied robotics sector, the demand for robotics -- the demand for LiDAR products is rising rapidly. We have already established partnership with nearly 50 leading customers, including AgiBot, Unitree and EngineAI, to jointly accelerate the deep adoption of robotics across a wide range of application scenario.

We are also expanding our LiDAR supply business into more demanding applications such as autonomous mining trucks and low altitude drones. According to public data issued by multiple third-party research house, we achieved 3D LiDAR products sales volume #1 in the robotics sector in China. We have also been awarded with LiDAR products sales volume #1 in global lawnmower robotics sector.

In commercial cleaning robotics sector, in China, humanoid robotics sector, in China, unmanned delivery vehicle sector and in China embodied robotics sector, the business of LiDAR products for robotics and other has truly become the second major driver for the company's growth. After reviewing the past, let's look ahead to 2026. We are highly confident with our business development in the year ahead.

We will continue to validate our growth through the actual quarterly performance. We will convert the competitive advantage in technologies, customer base and product performance accumulated in 2025 into tangible results in 2026 and beyond. In terms of technology, we will continue to further strengthen our leadership in digital era.

The superior of digital architecture has gained industry-wide recognition. We believe that chips development will become the next core focus of competition. We will further deepen the advantages of our self-developed chips capabilities and continuously launch new proprietary chips to create generational product differentiation.

Meanwhile, we will continue to explore the opportunities for applying our products into more different market from automotive to general robotics from large enterprise customer to small business customers and eventually to consumer applications.

Our goal is to make LiDAR a ubiquitous product category, much like cameras today. In terms of market segment, our business will no longer rely on any single market segment or a small number of key customers. We expect the revenue from ADAS business sector while maintaining a strong growth. At the same time, revenue from robotics and other business sector will enter into another year of breakout growth. And we anticipate that Robosense will again lead the industry in sales volume across the general robotics market in 2026.

Ultimately, we target an approximately 50-50 revenue mix between ADAS and robotics business. In terms of production capability, we have completed on production layout with an annual capacity of 4 million LiDAR units, which will sufficiently match the ramp up needs of both ADAS and robotics business and fully ensure large-scale product deliveries in 2026.

In terms of product deliveries, we expect -- we expect the sales volume of our LiDAR products in both ADAS and robotics applications to increase by at least 2 to 3x year-over-year. We are very confident in this level of growth that we will achieve. We remain firmly believe that LiDAR products are our core foundation. Automotive and general robotics business will serve as our dual growth engines, while innovation -- innovative new business represent our long-term growth driver.

In 2026, our strategy is clear. Robosense is a robotics company. We will continue to expand our boundaries of physical AI, firmly securing our position in robotics ecosystem by developing key components and core capabilities in mobility and manipulation functions, and holding our mission, Safer World, Smarter Life. We will continue to invest in building a stronger technological moat and create long-term value for society, our partners and shareholders. Once again, thank you all for your support.

Next, I'd like to hand it over to our CFO, Kelvin Lau, who will provide a detailed breakdown of the financial data. After that, we'll open the floor to your questions.

Thank you, Mark. Now I would like to take you through the 2025 full year results financial highlights. Our total revenue increased by about 17.7% to RMB 1,941 million for the year ended December 31, 2025, from RMB 1,648.9 million for the year ended December 31, 2024.

The increase was primarily due to the increase in sales of product in 2025. Our revenue from sales of products increased by about 18.4% to RMB 1,815.8 million in 2025 from RMB 1,533.7 million in 2024, primarily due to the increase in sales of product for robotics and others, partially offset by the decrease in sales revenue of products for ADAS application.

The total number of our LiDAR products sold increased by about 67.6% to approximately 912,000 units in 2025 from approximately 544,200 units in 2024. In 2025, despite the increase in number of LiDAR products sold for ADAS application by about 17.2% to approximately 609,000 units in 2025 from approximately 519,800 units in 2024. Our revenue from sales of LiDAR products for ADAS application decreased to RMB 1,105.9 million in 2025 from RMB 1, 335.3 million in 2024, representing a year-on-year reduction of about 17.2%.

The reduction in revenue from LiDAR products for ADAS application was mainly due to the decrease in the average unit price of products for ADAS applications to approximately RMB 1,800 per unit in 2025 from approximately RMB 2,600 per unit in 2024, resulting from the increase in sales of our lower-priced MX and EM series LiDAR products in 2025. Our revenue from sales of products for robotics and others increased significantly to RMB 709.8 million in 2025 from RMB 198.5 million in 2024, representing a year-on-year increase of about 257.7%.

The total number of LiDAR products sold for robotic and others increased significantly by 1,141.8% to approximately 303,000 units in 2025 from approximately 24,400 units in 2024. Whilst the average unit price of product decreased to approximately RMB 2,300 per unit in 2025 from approximately RMB 8,100 per unit in 2024. In 2025, the sales of our lower-priced new E1R and Airy LiDAR products to robotic customers, especially lawnmower manufacturer increased significantly. In 2024, most of our products sold in this category were those mechanical LiDAR such as Helios and Bpearl series, which had higher average unit price. Our revenue from sales of solutions decreased by about 20.8% to RMB 77.6 million in 2025 from RMB 98 million in 2024.

Despite the decrease in number of delivered solution projects to 98 projects in 2025 from 331 projects in 2024. The average selling price per project increased to approximately RMB 792,200 in 2025 from approximately RMB 296,000 in 2024, primarily attributable to the increase in demand from customers for more customized perception-related solutions.

Our revenue from provision of services and others increased by about 177% to RMB 47.6 million in 2025 from RMB 17.2 million in 2024, primarily due to the number of completed technology service projects has increased in 2025. Our cost of sales increased by about 4.5% to RMB 1,426.9 million in 2025 from RMB 1,365.3 million in 2024, primarily driven by the increase in sales of product in 2025.

Our gross profit increased by about 81.3% to RMB 514.2 million in 2025 from RMB 283.6 million in 2024. Our gross profit margin improved by about 9.3 percentage points to 26.5% in 2025 from 17.2% in 2024. Our overall gross profit margin was largely affected by the changes in the sales contribution from different product categories.

The increase in overall gross profit margin was mainly attributable to the gross profit margin improvement of both our LiDAR products for ADAS applications and LiDAR products for robotics and others. For LiDAR products for ADAS application, the gross profit increased by about 70.7% to RMB 210.9 million in 2025 from RMB 179.2 million in 2024. The gross profit margin for this product category improved to 19.1% in 2025 from 13.4% in 2024, increased by about 5.7 percentage points.

The gross profit margin improvement was primarily attributable to the decrease in raw material procurement costs and the adoption of our in-house developed SoC processing chips, which have lower cost as compared to the FPGA chips acquired from third-party suppliers. While sales of LiDAR products for robotics and others, the gross profit increased by about 311.4% to RMB 281.6 million in 2025 from 68.5% (sic) [ RMB 68.5 million ] in 2024.

The gross profit margin for this product category increased to 39.7% in 2025 from 34.5% in 2024, increased by about 5.2 percentage points. This was primarily attributable to the reduction of raw material procurement costs and production overheads resulting from the increase in scale of production. For provision of LiDAR perception solutions, the gross profit decreased by about 24.9% to RMB 39.5 million in 2025 from RMB 52.7 million in 2024.

The gross profit margin for this product category decreased to 50.9% in 2025 from 53.8% in 2024, dropped by about 2.8 percentage points. The decrease in gross profit and gross profit margin was mainly attributable to the increase in raw material procurement costs for customized solution projects. For our -- services, we recorded a gross loss of RMB 16.8 million and RMB 17.9 million in 2024 and 2025, respectively.

The gross loss margin for this product category improved to 37.7% in 2025 from 97.6% in 2024. Our R&D expenses increased by about 5.1% to RMB 646.7 million in 2025 from RMB 615.4 million in 2024. The increase was mainly due to, number one, the increase in employee benefit expenses by about RMB 21.6 million, which were mainly attributable to the increase in employee remuneration packages and share-based compensation; and number two, the increase in raw material consumable design and development expenses by about RMB 9.5 million incurred in developing new and more advanced products.

R&D expenses excluding share-based compensation as a percentage of revenue reduced to 29.9% in 2025 from 33.6% in 2024. Our sales and marketing expenses increased by about 16.1% to RMB 128.1 million in 2025 from RMB 110.3 million in 2024. The increase was primarily due to the increase in employee benefit expenses by RMB 18.5 million, which was mainly attributable to the increase in employee remuneration package and share-based compensation.

Our sales and marketing expenses, excluding share-based compensation as a percentage of revenue reduced to 6% in 2025 from 6.1% in 2024. Our G&A expenses increased by about 2.5% to RMB 168 million in 2025 from RMB 164 million in 2024.

The increase was primarily due to, number one, the increase in employee benefit expenses by RMB 18.4 million, which was mainly attributable to the increase in employee remuneration package and severance payment, partially offset by number two, the decrease in professional service fee. Our G&A expenses, excluding share-based compensation and listing expenses as a percentage of revenue reduced to 8% in 2025 from 9.1% in 2024.

Net impairment losses on financial assets decreased by about 90% to RMB 1.2 million in 2025 from RMB 11.8 million in 2024. The reduced was mainly due to -- the decrease was mainly due to the decrease in provision for impairment on trade receivables. Other income increased by about 146.8% to RMB 129.6 million in 2025 from RMB 52.5 million in 2024. The increase was primarily due to the increase in government grants, interest income and a lump sum monetary compensation received from one of our customers in 2025.

Other gain or losses improved from a loss of RMB 18.8 million in 2024 to a gain of RMB 115.9 million in 2025, representing an improvement of RMB 134.7 million. The increase was primarily due to the increase in fair value gains on financial assets at fair value through P&L in 2025.

Net finance income decreased by about 11.1% to RMB 88.6 million in 2025 from RMB 99.7 million in 2024. The decrease was primarily due to the decrease in interest income from cash and cash equivalents. Share of net loss or profit of associates accounted for using equity method turned from a net profit of RMB 10.5 million in 2024 to a net loss of RMB 13.4 million in 2025, representing a deterioration of RMB 23.9 million.

The share of net loss was primarily due to the operating loss incurred by one of our associates in 2025. Impairment loss of an associate accounted for using equity method increased to RMB 16.5 million in 2025 from nil in 2024. The loss was primarily due to the impairment of goodwill incurred by one of our associates in 2025. Our net loss decreased by about 69.9% to RMB 145 million in 2025 from RMB 481.8 million in 2024. All right. This finish my report about the 2025 full year result. Please let me continue to present to you briefly, okay, the fourth quarter of 2024 financial results highlights.

In Q4 2025, our revenue -- our total revenue increased by about 46.1% to RMB 750.7 million in 2025 Q4 from RMB 513.9 million in 2024 Q4. Our revenue from the sales of products increased by about 53% to RMB 707.6 million in 2025 Q4 from RMB 462.4 million in 2024 Q4. The total number of our LiDAR products show increased by about 183.2% to approximately 459,600 units in 2025 Q4 from approximately 162,300 units in 2024 Q4.

The number of LiDAR products sold for ADAS application increased by about 54.8% to approximately 238, 400 units in 2025 Q4 from approximately 154,000 units in 2024 Q4. Revenue from sales of our LiDAR products for ADAS application decreased to RMB 360.9 million in 2025 Q4 from RMB 396.7 million in 2024 Q4, representing a year-on-year reduction of about 9%. The decrease in the average unit price of product for ADAS application to approximately RMB 1,500 per unit in 2025 Q4 from approximately RMB 2,600 per unit in 2024 Q4. Revenue from sales of products for robotics and others increased significantly to RMB 346.7 million in 2025 Q4 from RMB 65.7 million in 2024 Q4, representing a year-on-year increase of about 427.5%.

The total number of LiDAR products sold for robotics and others increased significantly by about 2,565.1% to approximately 221,200 units in 2025 Q4 from approximately 8,300 units in 2024 Q4. The average unit price of products decreased to approximately RMB 1,600 per unit in 2025 Q4 from approximately RMB 7,900 per unit in 2024 Q4. Revenue from the sales of solutions decreased by about 63.9% to RMB 14.5 million in 2025 Q4 from RMB 40.2% in 2024 Q4.

The number of delivered solution projects decreased to 36 projects in 2025 Q4 from 145 projects in 2024 Q4. The average selling price per project increased to approximately RMB 403,100 in 2025 Q4 from approximately RMB 277,500 in 2024 Q4. Revenue from the provision of services and others increased by about 153.6% to RMB 28.6 million in 2025 Q4 from RMB 11.3 million in 2024 Q4. Cost of sales increased by about 34.2% to RMB 537.1 million in 2025 Q4 from RMB 400.1 million in 2024 Q4. Gross profit increased by about 87.7% to RMB 213.6 million in 2025 Q4 from RMB 113.8 million in 2024 Q4.

The overall gross profit margin improved to 28.5% in 2025 Q4 from 22.1% in 2024 Q4, increased by 6.4 percentage points. For our LiDAR products for ADAS application, the gross profit increased by about 23% to RMB 79.3 million in 2025 Q4 from RMB 64.5 million in 2024 Q4. The gross profit margin for this product category improved to 22% in 2025 Q4 from 16.3% in 2024 Q4 increased by about 5.7 percentage points.

For our sales of LiDAR products for robotics and others, the gross profit increased by about 345.1% to RMB 129.4 million in 2025 Q4 from RMB 29.1 million in 2024 Q4. The gross profit margin for this product category decreased to 37.3% in 2025 Q4 from 44.2% in 2024 Q4, dropped by about 6.9 percentage points. For provision of LiDAR percentage solution, the gross profit decreased by about 79.1% to RMB 4.4 million in 2025 Q4 from RMB 21.2 million in 2024 Q4.

The gross profit margin for this product category decreased to 30.3% in 2025 Q4 from 52.7% for 2024 Q4. Our R&D expenses increased by about 5.2% to RMB 158.2 million in 2025 Q4 from RMB 150.3 million in 2024 Q4. The increase was primarily due to increase in employee benefit expenses by RMB 10 million and the increase in raw material consumable expenses by RMB 12.9 million incurred in developing new and more advanced products. Our sales and marketing expenses increased by about 35.3% to RMB 36.3 million in 2025 Q4 from RMB 26.8 million in 2024 Q4. The increase was primarily due to increase in employee benefit expenses by RMB 8.1 million. G&A expenses decreased by about 7.8% to RMB 41.8 million in 2025 Q4 from RMB 45.3 million in 2024 Q4.

The decrease was primarily due to the decrease in professional service fee. Net impairment losses on financial assets decreased by about 44% to RMB 6 million in 2025 Q4 from RMB 10.8 million in 2024 Q4.

Other income increased by 484% to RMB 68.4 million in 2025 Q4 from RMB 11.7 million in 2024 Q4. Our gain or loss improved from a loss of RMB 44.3 million in 2024 Q4 to a gain of RMB 90.5 million in 2025 Q4, representing an improvement of RMB 134.8 million. Net finance income decreased by about 21.3% to RMB 17.2 million in 2025 Q4 from RMB 21.9 million in 2024 Q4.

Right. Finally, our result improved from a net loss of RMB 131.1 million in 2024 Q4 to a net profit of RMB 103.7 million in 2025 Q4, representing an improvement of RMB 234.8 million.

All right. This concludes my financial highlights. Okay. Operator, we are ready for questions.

[Operator Instructions] We now invite the participant whose phone number ends in 7820 to ask the question. Please state your name and institution before asking your question.

This is Xiaoyi Lei from Jefferies. I've got one question for management. Could you walk us through the customer mix of your ADAS business in '26? And how should we think about the shipment expectations for this year, particularly contributions from BYD and Geely? Also maybe a little bit more color about the new customers such as Leapmotor, Great Wall Motor, Xiaomi and others.

Okay. Thank you for your question, Xiaoyi. I'm delighted to share with you further about our business in ADAS. As mentioned in the earnings call just now, the launch of this LiDAR marks an extremely significant milestone, and it has spurred industry adoption, boosted penetration rate and further accelerate the arrival of Level 3.

The fourth quarter of 2025 marks our first mass production quarter, and we delivered strong results. 2026 will be our first full year of mass production for this to LiDAR, and we expect this momentum will continue.

In ADAS sector, on the one hand, we have secured more customers, which will further reshape our customer mix in 2026, making our revenue more resilient and better able to withstand risks. In the other hand, we are doing our very best to work together with some top OEMs target to further drive the widespread adoption of LiDAR across the industry.

But since evolving too rapidly, the growth logic, project timelines and opportunity points are different across different customers. In order to give a more responsible answer, I believe I have to break down our key customers individually.

So first, the customer [ G and V ], unfortunately, are not able to disclose their name directly, Xiaoyi. So about [ G and V ], both of them have a very strong sales volume. As industry leader, they are setting the trend. So we're going all out with them to get LiDAR equipped across all models and price range, and we are seeing very positive signals.

But since this is really a big deal, timing and progress may still change. Therefore, our guidance has to be relatively conservative, but we keep the possibility of upward adjustment. Our current forecast for each of them, these two companies, is about 450,000 to 550,000 units in 2026.

And customer W is a milestone new client for us. Their vehicle come with a relatively high price tag, so they have very high requirements for LiDAR performance. And they also have a strong intention to adopt LiDAR on a large scale. Since we launched our digital LiDAR, we're basically been selected for all their new models.

Several of their high-profile models with supplier now has successfully entered the land-up phase. We expect to start mass production and deliver in the second quarter, with more models in the pipeline. But some of them -- some of their main models haven't reached their face lift cycle yet.

Other companies' LiDAR are still selling. So we don't expect to have a dominant share with this customer in 2026. Therefore, the estimate volume for this year is around 150,000 to 200,000 units.

Likewise, we won both customer [ F ] and customer X as new clients last year with our outstanding digital LiDAR. It is really exciting because they are both phenomenal Chinese EV new players.

For customer X, the platforms we have won so far are expected to enter mass production around Q4. Since it's only 1 quarter, we won't get very high guidance. We expect around 50,000 to 100,000 units. I guess we can see higher expectation for 2027.

Customer [ F ], their project was supposed to start mass production in March, but it's been delayed for reasons that are beyond our control. So we're only forecasting 50,000 to 100,000 units for this project, too.

And just an important point, joint venture and overseas business are becoming a really strong growth area for us. Their market share has dropped a bit, but joint ventures still make up nearly half of Chinese annual sales car sales. and they are going all in for the next stage for autonomous driving.

Last year, 2025 report saw RoboSense was #1 in LiDAR supplier for joint venture brands with over 70% market share. This year, that advantage is continuing and will build up a considerable order volume. Based on our current ADAS outlook, 4 of our top 10 volume customers are joint ventures. They will gradually become a major contributor starting this year, and we expect around 200,000 units to 250,000 units this year. That's all.

We now invite the participant whose phone number ends with 6237 to ask a question. Please state your name and institution before asking your question.

This is Shiwen Li from CICC. Firstly, congratulations on the breakeven and solid development in the past quarter. I have a further question related to the robotics business, which has become a key growth driver in 2025, especially quarter 4. Could you share the shipment guidance for robotics LiDAR in 2026? And if possible, could you break it down by subsegments such as lawn mower, robovan, industrial safety applications and others?

Okay. I'll take this. Thank you, I'm glad to notice -- I'm glad you are able to notice that. And as Jensen Huang put it, the AI revolution of the past 10 years has mostly happened on screen. But in the next decade, AI will truly move into the physical world. And Elon Musk has also said that human robots market would one day be 10 to 100x the size of the auto industry. So we place very strong emphasis on business development in the robotics field.

So we were probably the LiDAR company that invested the most in this sector. Actually, LiDAR is already widely used in many robot applications and is now ramping up quickly, benefit from our digital LiDAR and our heavy investment in robotics over the past few years. We have achieved unparalleled results.

In the fourth quarter of last year alone, our robotics shipment hit 230,000 units. This is a historical moment and for our company and for the entire industry. And this is truly an extraordinary achievement. So let me emphasize, just like in automotive application, Q4 marks only the first quarter of mass production for our digital LiDAR. In 2026, we are set to carry forward and scale it to new heights. This year, we expect our robotics LiDAR sales will triple last year's volume, bringing us to nearly 1 million units. To be precise, we are targeting a sales volume of 800,000 units to 1 million units. So as you mentioned, lawn mowing robots are currently one of our largest, most mature and highest volume segment. It was also the core scenario that saw in the most significant volume growth in 2025.

So thanks to the leading edge of our digital LiDAR products, we have secured a majority share along the top-tier customers. So like the Ninebot, Mammotion, and I also mentioned today that we have recently secured an exclusive design win for another leading cleaning global brand for their lawnmower segment. Deliveries will also start within this year. For 2026, we expect shipments in the lawn mowing segment to reach 450,000 to 600,000 units.

And autonomous delivery is characterized by rapid growth and broad customer coverage. We already work with over 90% of the industry's leading players, including, like I mentioned in the earnings call, Neolix, Zelos, Rino.ai, JD, Meituan, Cainiao, et cetera, et cetera, and all of which are using our solution as robovan moves into mass production and deployment.

The industry gearing up to boost operational speed, product requirements are increasingly aligned with those for Robotaxi. Our EM platform and [ E ] platform fully meet this demand, as you know, it achieved a very successful result in the Robotaxi area. So each vehicle is likely to be equipped with 2 to 4 units. We expect shipments in this industry can be reach 100,000 to 150,000 units.

So other segments like the industrial safety, the cleaning and sanitation and -- rather scattered put this field, has a wide -- this field has a wide range of scenario and various customer type. Altogether, we expect shipments for around 150,000 units this year.

While the current total volume of embodied intelligence is still modest, but it holds very important strategic position, much like the automotive or other robotics sectors several years ago, we are investing earlier to prepare for the upcoming market explosion.

Our LiDAR has been adopted by nearly 50 key global customers. Our AC series and hand-eye coordination solution are now undergoing scenario validation with leading customers. making this a key strategic focus for our future.

In short, beyond our automotive business, our robotics segment has clearly become an important growth driver. In 2025, our strategy of multi-application growth and diversified customer and customer and business structure has paid off. Compared with focusing on a single market and a few major customers, I believe this will make our development more healthier and more sustainable.

We now invite the participant whose phone number is 0676 to ask a question. Please state your name and institution before asking your question.

This is Cherry from JPMorgan. I just want to say congrats for achieving breakeven in Q4 last year and also all the positive progress mentioned earlier. I actually just have one question that we kind of noticed that both [ RoboSense ] and peers have recently announced orders from like Baidu Apollo Go and WeRide. Could you kindly share more details on these orders?

And also, I think for Robotaxi, it seems like RoboSense has captured most of customers and also orders. I'm just curious, when do you expect to see these orders to ramp up?

All right. Thank you, Cherry. First of all, thank you very much for recognizing RoboSense achievement in Robotaxi last year, and I'm really proud of it. And as you know, during the [ analog ] architecture area, Robosense only held around 10% market share because we focused on developing our next-generation platform.

And it even led to doubt about our technical capabilities, but everything changed with the launch of our digital LiDAR. We have built deep partnership with over 90% of the major players in the market, DiDi, Baidu, WeRide and Pony.ai. The industry's leading companies you mentioned are all among them. This means a lot to us.

Now I'd like to share more details about our cooperation. For Baidu Apollo Go and DiDi, we have secured exclusive design for their next-generation vehicle models, providing the full solution of main LiDAR plus the blind-spot LiDAR. With WeRide, we supply both the top main LiDAR and blind-spot LiDAR, while a competitor will provide their mid-range solution.

In other words, we have secured orders from most leading customer for products at the most critical sensing position with the highest performance requirements. This reflects our generational advantage in technical capabilities. I believe these top players will all put their next-generation solution into mass production this year, and our LiDAR will soon be featured in these next-generation vehicles.

A single Robotaxi is typical equipped with 6 to 10 LiDAR units this year. Leading companies are all advancing their iteration of their new models, making 2026 to 2027 a critical window. As these vehicles are gradually put into operation, our orders will be fulfilled accordingly.

We now invite the participant whose phone number ending 6368 to ask a question. Please state your name and institution before asking a question.

This is Joey Yang from BofA Securities. And again, congratulations on the strong results. My question is on the high-resolution LiDAR. So we see that Huawei recently released 896 beam high-resolution LiDAR. We also see RoboSense EM4 can be the maximum number of beams to reach around 500.

So I'm wondering if the maximum number can customize to 1,000 or even higher level. How do you see the trend of LiDAR evolving towards higher beams?

Okay. Yes, it's an extraordinary insight. High-performance LiDAR is a highly certain trend going forward. And here are two key logics behind this.

The first one is autonomous driving has real demand for performance upgrades from urban NOA to full scenario unmanned driving. The perception system needs sensor point card to detect more distant opticals and low users at complex intersections. This is a strict requirement for safety redundancy.

The second is our digital architecture can deliver high-channel LiDAR at a reasonable cost. Analog architecture can achieve high channel too, but they come with huge backdrops inside power consumption and cost. In other words, the higher the channel count, the more and even exponentially more advantaged digital architecture has.

The H company launch of the 896 channel LiDAR is a perfect testament to this trend. We made our bet on digital architecture much earlier and have built far deeper expertise.

In fact, we introduced the EM4 in 2025, the world's first mass production -- the world mass production bulk, 1,000 channels LiDAR, and it can be customized from 520 [ beams ] to 2,160 channels.

I believe that in the high performance rates, we will go all out to be the definer, not a follower. Starting from Q4 last year, we have Zeekr and IM Motor become the industry's first volume production customers to launch vehicle equipped with LiDAR with more than 500 channels.

Today, our EM4 platform has secured design wins for more than 10 vehicle models across over 6 automakers. As the market increasingly recognized the advantage of high-channel LiDAR and as more models migrate from Level 2 to Level 3 functionality, this number continue to grow.

We now invite the participant whose phone number ends with 2650 to ask a question. Please state your name and institution before asking your question.

This is Song from Huatai Securities. I have two questions. First is about cost in the trend towards high-performance LiDAR. Do the numbers of beams and cost still have a most proportional relationship? For example, would the cost difference between a 100 beam LiDAR and a 500 beam or even a 1,000- or 2,000-level beam LiDAR make a big difference?

And the second question is about new products. We've seen that Robosense launched a series of new products last year. Will you continue to launch new products this year? And what's the new direction?

Okay. Thank you for your question. Generally speaking, higher channel count do require more advanced technology and usually come with higher cost. But this is exactly where the real advantage of digital architecture begin to show.

Under the traditional analog architecture, increasing channel count mainly means tie up more like the discrete components. Digital LiDAR is different. The channel count upgrade is driven much more by chip design and it follows the Moore's Law.

In the other words, higher channel count does not mean cost rise in a one-to-one linear way. In fact, it's much more closer to how the evolution of cameras. Cameras move from thousands -- hundreds of thousands of pixels to millions of pixels. Performance keep improving over time, while costs keep coming down.

Of course, at any given point in time, cameras with different performance level are priced differently. That is exactly how we see the future of digital LiDAR. For our next-generation chips, we are pushing forward higher integration, strong performance and better cost effectiveness.

More importantly, we have already made very solid progress. So this year, we can expect to see a series of new chips and new products launched from us. So it is foreseeable that as chips continue to iterate, LiDAR will witness a chip-level generational gap.

We now invite the participant whose phone numbers ends in 5100 to ask a question. Please state your name and institution before asking your question.

This is [indiscernible]. My question is from the industry evolution perspective. I was wondering if we are seeing the shift in competition between L2 and L4 as L2 used to be more about automotive grade, mass [ reduction ] and cost, while L4 focus more on system performance scenario adaptability and commercialization. So how do you see this change? And what kind of capabilities are you prioritizing right now?

Okay. This is a good question, also a tough one. So let me try to answer. First, from my perspective, both Level 2 and Level 4 are pushing hard on performance just a different way. So people used to think the Level 2 segment was only about cutting costs, but that's really a supply-side problem in my perspective. The industry just couldn't offer good enough products at a reasonable price. But we can see a clear shift this year as high-resolution LiDAR become available at roughly the original cost.

Level 2 customers are also upgrading fast. That means that the Level 2 market is shifting its focus from yes or no. That means if I equipped with LiDAR or not to how good it is. Back in 2025, when 192 channels LiDAR hit the market, customers who use 64 or 128 channels LiDAR also started evaluating carefully and making regional choice.

Like I said earlier, once LiDAR goes digital, channel count and cost no longer have a linear relationship. We can even expect Level 3 with LiDAR currently around 5,500 channels to trickle up to Level 2 applications.

As for Level 4, it always choose the best. The point is it focus more on system-level configuration, how many LiDARs per vehicle? What combination to be used to cover more scenarios? For Level 4, safety redundancy even an option is a must.

The real fundamental shift is this. The minimum bar for Level 2 is raising and the threshold for Level 4 also go rising. As the Level 3 mature and trickle down, the boundary between Level 2 and Level 3 will be redefined. Competing in Level 2 just by low cost or in Level 4 just by high performance alone will not be enough to build long-term barriers.

So it's very clear for us, we use the same core technology to serve both type of customers. It's all built on our own digital chip architecture, so we can boost performance and keep cost down at the same time. For Level 2, we let customers get much better performance at a competitive price.

For Level 4, we offer full system perception and multi-sensor coordination so that they can get scenario coverage and safety redundancy they need. This ability to fight on two fronts essentially come from our consistent focus on platform and chip itself rather than simple split the market into two separate parts.

We now invite the participant whose phone numbers ends in 0221 to ask a question. Please state your name and institution before asking your question.

This is Nora Min from UBS. So after the EM4 platform products were mass produced and delivered last year, ASP has shown a declining trend. So looking into this year, do you expect the downward pricing trend to continue? And with the benefits of scale and in-house chips, how much further room do you see for price reductions?

Okay. Thank you, Nora. And I don't deny that the ASP go down. And over the past 2 years and 3 years, the biggest change in industry about the ASP mostly come from optimizing and shifting platform architecture. Now the architecture has largely converged. And most of the components that will mean to be chips integrated have already gone through all that process.

So in the short term, I'm not going to see those sharp ASP drops driven by tech transition like we did in the past 2 to 3 years from RMB 3,000 down to RMB 2,000 and then down to RMB 1,000. But to be honest, our gross margin, especially ADAS, still under pressure in the near term.

On one hand, the automotive industry is extremely competitive. And on the other hand, we are proactively pushing LiDAR from being an option on more models to achieve higher penetration and eventually to becoming standard.

Along the way, both pricing and gross margin will face pressure. However, I don't think it will be a long-term situation. And as new product ramping continue to stabilize, yield keeps improving, sales volumes scale up further and our product and chips advantage continue to play out, we expect ADAS gross margin to gradually improve and stabilize.

Due to time constraints, we will now take the final question. Next, we invite the participant whose phone number ends in 4503 to ask a question. Please state your name and institution before asking your question.

Congrats on the strong results. Here is [ Dara Chen ] from China Galaxy International. So my question is around our innovation business. During CES 2026, the company showcased its AI manipulation solution. Could you provide an update on the current progress of your hand-eye coordination solution, including the active camera and [indiscernible]?

For the innovation business, particularly the AC series, what's the production ramp-up schedule for this year? Any recent orders or revenue expectations you can share? And more broadly, what's your outlook for other robotics products and applications this year? Also, what's the level of investment should we expect for the innovation business going forward as a percentage of total R&D spending?

Okay. Thank you, [ Dara ]. And that's a lot of questions, and let's break it down one by one.

And yes, it is actually a topic I've been especially eager to discuss with everyone. I want to say that our target is to become the boss of the robotics industry to provide incremental components and solution for robots. For us, LiDAR is just one category. We are working hard to launch different categories to keep growing our business and to further embrace the incredible robotics edge.

So for humanoid robot, the mobility of the low body is already quite mature, while upper body, I mean, the manipulation capability has driven a whole new industry revolution. That is all about the hand, the app and a full closed-loop system that from models to data.

I'm glad you noticed the hand-eye coordination solution we showcased at CES. And what's special about it is that it demos a long horizon test with nearly 20 low-level operation steps, including a large number of flexible manipulations. This is something very real in on-site generalized demos so far. So we're still refining this technology, and we don't plan to commercialize it in the short term.

As for components, the Active Camera went through two iterations last year and is continuously being refined together with many leading labs. This type of early customers have given us very valuable feedback, and we plan to launch the third version this year, which will be a production-ready model.

And this expected to enter mass production at the end of this year, starting to generate revenue for us. We anticipate that over the next 3 to 5 years, this product could grow into a category even larger than LiDAR.

Regarding the Dexterous Hands, we also released two versions last year. We're continually developing and hope to achieve satisfied results this year. And it's obviously a huge category, and we're not pushing too hard to commercialize it, but you can look forward to our technological progress by the end of this year, too.

And robotics is our second growth curve, and we will continue to invest heavily. Currently, innovation business, including robotics, account for about 1/3 of Robosense's total R&D spending. We will adjust our investment if it needs and may even increase it further in the future.

Unlike ADAS, which is already in a scale-up phase, the robotics business is still in an investment phase. So our goal right now is to build our product and build our solution and reference customers, laying a solid foundation for future growth at scale.

Now we don't have any other questions as of the moment. Presenters, please continue.

Thank you, operator. If there is no further questions at present, we would like to conclude by thanking everyone for joining our conference call today. We welcome you to reach out to our Investor Relations department directly by e-mailing at [email protected]. Should you have any questions or requests for additional information, we encourage you to visit our Investor Relations at www.ir.robosense.ai. Thank you. Bye, everyone.

Goodbye, thank you.

Ladies and gentlemen, that does conclude our call for today. Thank you for participating. You may all disconnect.

Thank you, operator. Hello, everyone, and welcome to Robosense earnings conference call for the third quarter of 2025. The company's earnings results were released earlier today and are available on our IR website, www.ir.robosense.ai, the website of Hong Kong Stock Exchange, www.hkexnews.hk as well as on [ Newswire ] services.

Today, you will hear from Mr. Mark Qiu, our CEO; and Mr. Kelvin Lau, our CFO, who will take you through the company's operational and financial results for the third quarter of 2025. After their prepared remarks, Mark and Kelvin will be available to answer any questions.

Before we continue, please note that the discussion today may contain certain forward-looking statements, which involve known and unknown risks, uncertainities and other factors, which are beyond our control and may cause our actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

In light of the risks and uncertainties, the inclusion of forward-looking statements in this discussion should not be regarded as a representation by the Board of Directors or Robosense that plans and the objectives will be achieved, and the shareholders and the investors of the company should not place undue reliance on such statements. Robosense does not assume any obligation to update any forward-looking statements, except as required under applicable law.

Also, please note that some of the information to be discussed, including non-IFRS financial measures are not required by or represented in accordance with IFRS. The IFRS financial measures and information reconciling this non-IFRS financial measure to Robosense's financial results prepared in the accordance with IFRS are included in the Robosense's third quarter results announcement, which has been posted on the company's IR website at www.ir.robosense.ai and the website of Hong Kong Stock Exchange, www.hkexnews.hk.

Finally, as a reminder, this conference call is being recorded, including a webcast of this conference call is available on Robosense's Investor Relations website.

I will now turn the call over to Mark Qiu, the CEO of Robosense.

[Foreign Language]

Thank you, Mark. Now I would like to take you through the third quarter of 2025 results financial highlights. Our total revenue was RMB 407.1 million for the third quarter of 2025, representing a slight decrease of 0.2% from RMB 407.9 million for the same period of 2024. Our revenue from the sales of products was RMB 387.1 million for the third quarter of 2025, representing a slight increase of 0.6% from RMB 384.8 million for the same period of 2024. The modest growth was driven by a sharp increase in sales of LiDAR products for robotics and others, which offset the decline in sales of LiDAR products for ADAS applications.

The total number of our LiDAR products sold increased to approximately 185,600 units in the third quarter of 2025 from approximately 138,500 units in the same period of 2024, representing a year-on-year increase of 34%. In the third quarter of 2025, our revenue generated from sales of LiDAR products for ADAS applications reduced to RMB 244.7 million from RMB 329.5 million in the same period of 2024, representing a year-on-year reduction of 25.7%. However, the number of LiDAR products sold for ADAS application increased to approximately 150,100 units in the third quarter of 2025 from approximately 131,300 units in the same period of 2024, representing a year-on-year increase of 14.3%.

The reduction of revenue from sales of LiDAR products for ADAS application was mainly due to the decrease in average unit price of products for ADAS application to approximately RMB 1,600 per unit in the third quarter of 2025 from approximately RMB 2,500 per unit in the same period of 2024. The decrease in the average unit price of product for ADAS applications was mainly because the sales volume of our lower-priced MX series products has been increased in the third quarter of 2025.

Our revenue generated from sales of product for robotics and others increased from RMB 55.3 million in the third quarter of 2024 to RMB 142.4 million in the same period of 2025, representing a year-on-year growth of 157.8%. The total number of LiDAR products sold for robotics and others increased to approximately 35,500 units in the third quarter of 2025 from approximately 7,200 units in the same period of 2024, representing a year-on-year increase of 393.1%, primarily attributable to the increase in demand from robotic customers for our new E1R and Airy LiDAR products as well as for our mechanical LiDAR products such as Helios and Bpearl series in the third quarter of 2025. The average unit price of product decreased to approximately RMB 4,000 per unit in the third quarter of 2025 from approximately RMB 7,700 per unit in the same period of 2024, primarily because the unit price of our new E1R and Airy products were lower than that of those mechanical LiDAR products in the third quarter of 2025.

Our revenue from the sales of solutions was RMB 11.9 million for the third quarter of 2025, representing a decrease of 45.9% from RMB 22.1 million in the same period of 2024. Despite a decline in the of delivered solution projects to 27 projects in the third quarter of 2025 from 119 projects in the same period of 2024, the average selling price per project increased to approximately RMB 442,400 in the third quarter of 2025 from approximately RMB 185,500 in the same period of 2024, primarily attributable to the increase in demand from customers for more customized perception-related solutions in the third quarter of 2025.

Our cost of sales was RMB 309.7 million for the third quarter of 2025, representing a decrease of 8% of RMB 336.7 million for same period of 2024. The year-on-year decrease was mainly attributable to the decrease in raw material procurement cost and the adoption of our in-house developed SOC processing chips.

We recorded a gross profit of RMB 97.4 million for the third quarter of 2025, representing an increase of approximately 36.8% from RMB 71.2 million for the same period of 2024. Our gross margin improved to 23.9% for the third quarter of 2025 from 17.5% for the same period of 2024.

Our overall gross margin was largely affected by the changes in the sales contribution from different product categories. The increase in overall gross margin was mainly attributable to the gross margin improvement of our -- of both our LiDAR product for ADAS applications and LiDAR products for robotic and others.

For our LiDAR products for ADAS applications, we reported a gross profit of RMB 44.3 million in the third quarter of 2025 as compared to a gross profit of RMB 46.5 million in the same period of 2024. The slight decrease in gross profit was mainly attributable to the decrease in revenue from sales of LiDAR products for ADAS applications. However, the gross profit margin for this product category improved to 18.1% in the third quarter of 2025 from 14.1% in the same period of 2024. The improvement of the gross profit margin was primarily attributable to the decrease in raw material procurement costs and the adoption of our in-house developed SOC processing chips, which have lower cost as compared to the FPGA acquired from third-party suppliers.

For our sales of LiDAR products for robotics and others, the gross profit increased to RMB 53 million in the third quarter of 2025 from RMB 19.1 million in the same period of 2024, representing a year-on-year increase of 176.8%. Such increase was mainly attributable to the significant increase in revenue from sales of LiDAR products for robotics and others. The gross profit margin for this product category increased to 37.2% in the third quarter of 2025 from 34.6% in the same period of 2024. This was primarily attributable to the reduction of raw material procurement cost and production overheads resulting from the increase in scale of production.

For our provision of LiDAR perception solutions, we recorded a gross profit of RMB 7.9 million and RMB 13.2 million in the third quarter of 2025 and 2024, respectively. Such decrease was mainly attributable to the decrease in revenue from the provision of LiDAR perception solution. However, the gross profit margin for this product category increased to 66.4% in the third quarter of 2025 from 59.6% in the same period of 2024. This was primarily attributable to the increase in average selling price per project in the third quarter of 2025.

Our R&D expenses were RMB 179.7 million for the third quarter of 2025, representing an increase of 18.5% from RMB 151.7 million for the same period of 2024. The year-on-year increase was mainly due to, number one, the higher employee benefit expenses resulting from the increase in share-based compensation. And number two, the increase in raw material consumable expenses and design and development expenses incurred in developing new and more advanced products. Our R&D expenses, excluding share-based compensation as a percentage of revenue increased to 37.6% in the third quarter of the 2025 from 34.9% in the same period of 2024.

Our sales and marketing expenses were RMB 34.9 million for the third quarter of 2025, representing an increase of 32% from RMB 26.4 million for the same period of 2024. The year-on-year increase was really due to, number one, the higher employee benefit expenses, which was mainly attributable to the increase in employee remuneration package and share-based compensation. And number two, the increase in business development and promotional activities as the number of customer and relevant business activities have been increased. Our sales and marketing expenses excluding share-based compensation as a percentage of revenue increased to 7.7% in the third quarter of 2025 from 5% to 9% (sic) [ 5.9% ] in the same period of 2024.

Our G&A expenses were RMB 47.9 million for the third quarter of 2025, representing an increase of 31.6% from RMB 36.4 million for the same period of 2024. The year-on-year increase was mainly due to the higher employee benefit expenses, which were mainly attributable to increase in employee remuneration package, severance payments and share-based compensation. Our G&A expenses excluding share-based compensation as a percentage of revenue increased to 10.5% in the third quarter of 2025 from 8.5% in the same period of 2024.

Our net loss was RMB 100 million for the third quarter of 2025, representing an increase of 20.2% from a net loss of RMB 83.2 million for the same period of 2024.

All right. This concludes my financial highlights section. Operator, we are ready for questions.

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[Foreign Language] If there is no further questions at present, we would like to conclude by thanking everyone who joined our conference call. We welcome you to reach out to our investors relations department directly by e-mailing www.ir.robosense.ai. Should you have any questions or request for additional information, we encourage you to visit our Investor Relations site at www.ir.robosense.ai. Thank you.

Thank you. [Foreign Language]

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[Foreign Language].

Thank you, operator. Hello, everyone, and welcome to Robosense Earnings Conference Call for the interim results of 2025. The company's earnings results were released earlier today and are available on our IR website, www.ir.robosense.ai, the website of Hong Kong Stock Exchange, www.hongkongexchangenews.hongkong as well as on Newswell services. Today, you will hear from Mr. Mark Qiu, our CEO; and Mr. Kelvin Lau, our CFO, who will take you through the company's operational and financial results for the first half of 2025. After their prepared remarks, Mark and Kevin will be available to answer your questions. Before we continue, please note that the discussion today may contain certain forward-looking statements, which involve known and unknown risks, uncertainties and other factors which are beyond our control and may cause our actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

In light of the risks and uncertainty, the inclusion of forward-looking statements in this discussion should not be regarded as representations by the Board of Directors or Robosense that plans and the objectives will be achieved and the shareholders and investors of the company should not place undue reliance on such statements.

Robosense does not assume any obligations to update any forward-looking statements, except as required under applicable law. Also, please note that some of the information to be discussed, including non-IFRS financial measures are not required by or represent in accordance with IFRS. The IFRS financial measure and information reconciling this non-IFRS financial measure to Robosense's financial results prepared in accordance with IFRS are included in Robosense's interim results announcement, which has been posted on the company's IR website at www.ir.robosense.ai and the website of Hong Kong Stock Exchange, www.hongkongexchangenews.hongkong.

Finally, as a reminder, this conference call is being recorded. In addition, a webcast of this conference call is available on Robosense's Investor Relations website.

I will now turn the call over to Mr. Mark Qiu, the CEO of Robosense.

[Foreign Language].

Thank you, Mark. Now I would like to take you through the 2025 interim results financial highlights. Our total revenue was RMB 783.2 million for the 6 months ended June 30, 2025, representing an increase of 7.7% from RMB 727.1 million for the same period of 2024. The year-on-year increase was mainly attributable to the increase in sales of products during the first half of 2025. Our revenue from the sales of products was RMB 721 million for the first half of 2025, representing an increase of 5% from RMB 686.5 million for the same period of 2024, primarily due to the increase in sales of products for robotics and others. The total number of our LiDAR products sold increased to approximately 266,800 units in the first half of 2025 from approximately 243,400 units in the same period of 2024.

For the first half of 2025, our revenue generated from the sales of our LiDAR products for ADAS applications decreased to RMB 500.3 million from RMB 609 million for the same period of 2024, representing a year-on-year reduction of 17.9%. The number of LiDAR products sold for ADAS applications decreased to approximately 220,500 units in the first half of 2025 from approximately 234,500 units in the same period of 2024, primarily attributable to the increase -- to the decrease in sales of LiDAR products to two of our major OEM customers.

One of them has adopted to install LiDAR products developed by its strategic Tier 1 supplier in its vehicles, and the other one has ceased to install LiDAR products in its vehicles. Such decreases have been partially compensated by the increase in sales of LiDAR products to another two major OEM customers in China. The average unit price of products for ADAS applications decreased to approximately RMB 2,300 per unit in the first half of 2025 from approximately RMB 2,600 per unit in the same period of 2024. The decrease in the average unit price of products for ADAS applications was mainly because the sales of lower priced MX LiDAR products have been increased in the first half of 2025.

Our revenue generated from sales of products for robotics and others was RMB 220.7 million in the first half of 2025, representing an increase of 184.8% from RMB 77.5 million for the same period of 2024. The total number of our LiDAR products sold for robotics and others increased to approximately 46,300 units in the first half of 2025 from approximately 8,900 units in the same period of 2024, primarily attributable to the demand from robotic customers for our new E1R and Airy LiDAR products as well as mechanical LiDAR products such as Helios and Bpearl series has increased in the first half of 2025. The average unit price of product decreased from approximately RMB 8,700 per unit for the first half of 2024 to approximately RMB 4,800 per unit in the same period of 2025, primarily because the unit price of E1R and Airy products were lower than the unit price of those mechanical LiDAR products such as Ruby, Helios and Bpearl series.

Our revenue from the sales of solutions was RMB 51.2 million for the first half of 2025, representing an increase of 43.5% from RMB 35.7 million for the same period of 2024. Despite the number of delivered solution projects decreased from 193 projects in the first half of 2024 to 74 projects in the same period of 2025, the average price per project increased from approximately RMB 184,800 in the first half of 2024 to approximately RMB 691,500 in the same period of 2025, primarily attributable to the increase in demand from customers for more customized perception related solutions in the first half of 2025.

Our cost of sales was RMB 580.1 million for the six months ended June 30, 2025, representing a decrease of 7.7% from RMB 628.5 million for the same period of 2024. The year-on-year decrease was mainly attributable to the decrease in procurement costs for raw materials. We recorded a gross profit of RMB 203.1 million for the first half of 2025, representing an increase of approximately 106.1% from RMB 98.6 million for the same period of 2024. Accordingly, the gross profit margin improved significantly to 25.9% in the first half of 2025 from 13.6% for the same period of 2024.

Our overall gross margin was largely affected by the changes in the sales contribution from different product categories. The increase in overall gross margin was mainly attributable to the significant gross margin improvement of both our LiDAR products for ADAS applications and LiDAR products for robotic and others.

For our LiDAR products for ADAS applications, we recorded a gross profit of RMB 87.2 million for the first half of 2025 as compared to a gross profit of RMB 68.2 million for the same period of 2024, representing an increase of 27.9%. The gross margin for this category -- for this product category improved significantly to gross profit margin of 17.4% for the first half of 2025 from a gross profit margin of 11.2% for the same period of 2024. The gross margin improvement was primarily attributable to the decrease in the raw material procurement costs and the adoption of our in-house developed SOC processing chips, which have lower costs as compared to the FPGA chips acquired from third-party suppliers, in our MX LiDAR products.

For our sales of LiDAR products for robotics and others, we recorded a gross profit of RMB 99.3 million for the first half of 2025 as compared to a gross profit of RMB 20.3 million for the same period of 2024, representing an increase of 390.4%. The gross profit margin for this category -- for this product category increased to 45% for the first half of 2025 from 26.1% for the same period of 2024. This was primarily attributable to the reduction of raw material procurement costs and production overheads resulting from the increase in scale of production.

For our provision of LiDAR perception solutions, we recorded a gross profit of RMB 27.2 million for the first half of 2025 as compared to a gross profit of RMB 18.3 million for the same period of 2024, representing an increase of 48.3%. The gross profit margin for this product category increased to 53.1% for the first half of 2025 from 51.4% for the same period of 2024.

Our R&D expenses were RMB 308.7 million for the first half of 2025, representing a decrease of 1.5% from RMB 313.4 million for the same period of 2024. The year-on-year decrease was mainly attributable to #1, the decrease in share-based compensation of RMB 24.5 million, partially offset by #2, the increase in employee remuneration expenses of RMB 20.8 million, mainly because the number of our R&D personnel increased to 687 in the first half of 2025 from 601 in the first half of 2024. Our R&D expenses excluding share-based compensation as a percentage of revenue maintained at 36.3% in both first half of 2025 and 2024.

Our sales and marketing expenses were RMB 56.9 million in the -- for the first half of 2025, representing a slightly decrease of 0.2% from RMB 57 million for the same period of 2024. The year-on-year decrease was mainly attributable to #1, the decrease in professional service fee and advertising and promotional cost of RMB 3 million and #2, the decrease in share-based compensation of RMB 0.3 million, partially offset by #3, the increase in other employee benefit expenses of RMB 3.5 million due to the remuneration packages offered to our employees have been improved. Our sales and marketing expenses excluding share-based compensation as a percentage of revenue reduced to 6.7% for the first half of 2025 from 7.2% for the same period of 2024.

Our G&A expenses were RMB 78.3 million for the first half of 2025, representing a decrease of 4.8% from RMB 82.2 million for the same period of 2024. The year-on-year decrease was mainly attributable to #1, the decrease in audit remuneration and professional service fee of RMB 6.8 million, partially offset by #2, the increase in employee benefit expenses of RMB 5.5 million due to the remuneration packages offered to our employees have been improved. Our G&A expenses excluding share-based compensation and listing expenses as a percentage of revenue reduced to 9.3% for the first half of 2025 from 10.1% for the same period of 2024.

Net impairment reversal on financial assets increased to RMB 4.1 million for the first half of 2025 from RMB 1 million for the same period of 2024. The increase was primarily due to the decrease in provision for impairment on trade and notes receivables.

Our other income increased by 14% to RMB 39.8 million for the first half of 2025 from RMB 34.9 million for the same period of 2024, which was mainly attributable to the increase in government grants in the first half of 2025.

Our other losses decreased by 94.5% to RMB 0.2 million for the first half of 2025 from RMB 3.9 million for the same period of 2024. The decrease was primarily due to the fair value gains on financial assets and liabilities at fair value through profit or loss in the first half of 2025.

Okay, finance income net decreased by 7.3% to RMB 50.1 million for the first half of 2025 from RMB 54 million for the same period of 2024. The decrease was primarily due to the decrease in interest income from cash and cash equivalents.

Our net loss was RMB 148.6 million for the first half of 2025, representing a decrease of 44.5% from RMB 267.5 million for the same period of 2024.

All right, this concludes my financial highlights section. Operator, we are ready for questions.

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Okay. Thank you, operator. We would like to conclude by thanking everyone for joining our conference call today. We welcome you to reach out our Investor Relations department directly by e-mailing at [email protected]. Should you have any questions or request for additional information, we encourage you to visit our Investor Relations site at www.ir.robosense.ai. Thank you for everyone.

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