PATEO CONNECT Technology (2889) Q4 2025 earnings summary

Executive summary

• FY2025 revenue rose 37.26% YoY to RMB3,509.7m; smart cockpit domain-controller deliveries reached 1.3m units, up over 40% YoY.

• IFRS loss for the year widened to RMB1,093.7m from RMB540.8m; adjusted net loss, excluding share-based payments and listing expenses, narrowed to RMB239.8m from RMB352.4m.

Financial highlights

• Gross profit increased 44.2% YoY to RMB434.2m; gross margin improved 0.6 percentage points to 12.4%.

• Cost of sales rose 36.3% to RMB3,075.5m; operating expense growth included administrative expenses up 130.4% to RMB853.5m and R&D up 83.0% to RMB379.3m.

• Other gains and losses swung to a RMB51.8m loss from RMB50.9m gains, mainly reflecting fair-value losses on an equity investment in a new energy vehicle manufacturer.

Outlook and guidance

• Priorities include on-device AI, end-cloud collaboration, multimodal interaction and AI Agents, alongside high-end market expansion, globalization and operational efficiency; no numerical FY2026 guidance stated.

• High-end cockpit design wins integrating AI applications are targeted for mass production in 2026; overseas luxury-car cockpit products are also expected to begin delivery in 2026.

• Plans include advancing cockpit-driving integration, expanding overseas customer and localized service capabilities, and strengthening chip and component supply resilience.