PATEO CONNECT Technology (2889) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue rose 105.1% YoY to RMB2,228.4m, led by smart cockpit solutions and rapid AI-related growth; gross profit increased 64.7% to RMB257.1m.

• IFRS net loss widened to RMB307.2m from RMB227.4m, while adjusted loss narrowed to RMB105.0m from RMB162.1m after excluding share-based payments and listing expenses.

• Strategic focus includes on-device AI cockpits, AI services, computing infrastructure, manufacturing capacity and semiconductor expansion; AI Box secured a design win and entered scaled mass production.

Financial highlights

• Revenue was RMB2,228.4m, up 105.1% YoY; cost of sales rose 111.9% to RMB1,971.3m, primarily reflecting business scale growth.

• Gross profit increased 64.7% to RMB257.1m; gross margin fell 2.9 percentage points to 11.5%, mainly as new projects remained in early expansion stages.

• Loss before tax was RMB307.6m versus RMB227.4m; loss attributable to owners was RMB305.6m versus RMB227.2m.

• Share-based payment expense rose to RMB202.2m from RMB52.0m; listing expenses were RMB13.2m versus none in H1 2025.

Outlook and guidance

• Priorities include scaling on-device AI models, device-cloud and cockpit-driving integration, and AI agents across Qualcomm, Kirin, NVIDIA and Horizon platforms.

• Overseas cockpit rollout is planned across Europe, the Middle East, Southeast Asia, Australia and South America; luxury-brand projects are progressing toward acceptance and mass production.

• AI Box configurations are being developed as a lower-cost upgrade path for existing vehicles; AI services will expand into agents, multimodal models and token- or computing-power-based charging.

• Plans include commercializing AI computing platforms and engineering-efficiency tools, broadening AI services beyond automotive, and extending into embodied intelligence and smart terminals.