WeRide Inc. reported its second-quarter financial results on the evening of August 12, showing revenue of 231.7 million yuan, up 82% year-over-year and exceeding the market consensus estimate of 170.7 million yuan. The gross profit margin stood at 37.5%.
The company posted a net loss of 400.7 million yuan in the quarter, which was wider than market expectations. Excluding share-based compensation and changes in fair value of financial assets, the non-IFRS adjusted loss was 338.5 million yuan, expanding 12.6% from the same period last year. Research and development expenses reached 343 million yuan, nearly double the quarterly revenue.
During the earnings call, management emphasized that R&D spending growth of 36% was significantly lower than the 82% revenue growth rate, indicating a narrowing gap. In response to questions, management stated that R&D expenditures would be kept under strict discipline, and the company expects to achieve breakeven by 2029.
On the balance sheet, total equity stood at 6.40 billion yuan as of June 30, down from 7.90 billion yuan at the end of 2025. Cash, time deposits, wealth management products, and restricted cash totaled 5.40 billion yuan, a decrease of approximately 1.70 billion yuan from the end of 2025. The company emphasized that its business expansion follows an "asset-light model," with WeRide Inc. licensing its technology. However, the consolidated financial statements tell a different story. Net property and equipment increased by more than 50% in six months, lease liabilities more than doubled, and inventory rose 36.8%. The financial report did not disclose the composition of these assets, but based on the company's disclosed information that its Middle East fleet has reached approximately 400 vehicles and its Guangzhou service area has tripled in size compared to the end of 2025, the additions are likely driven by expansion investments in domestic and Middle Eastern fleets. The asset-light model is currently more evident in newly entered markets, such as Europe.
During the earnings call, management noted that overseas revenue now accounts for 40% of the group's total. Among different business lines, L4 business revenue was 125.2 million yuan in the quarter, up 47.3% year-over-year. L2++/L3 business revenue surged 2,593.8% compared to the same period last year.
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