00:00Ten-year-old company, you've come to fruition here with a capital raising 752 million U.S. dollars.
00:07Give us an idea to the investors in the audience where you tend to take this company
00:11because you've licensed your autonomous driving solutions and technology
00:17to a lot of the big legacy car makers, Toyota, Mercedes, BYD, of course,
00:22not a legacy car maker but a big EV player.
00:24But you're also going to spend a large chunk of your proceeds on AI compute.
00:30Are you an AI company or a robo-taxi company or both?
00:34Actually, it's both.
00:36We believe autonomous driving is the first and also currently the biggest application of the physical AI
00:44because a huge amount of data and also a good loop of the business.
00:49So we have enough funding for the R&D investment,
00:54not only from the capital market but also from the gross margin of our revenue.
00:59So by a large amount of data and a large amount of R&D investment,
01:05we can scale our model.
01:07The model is the world model and the foundation model for autonomous driving,
01:11not only for one scenario but also for all kinds of autonomous driving scenarios
01:17including passenger vehicle, robo-1, robo-truck and robo-taxi, all robo-applications.
01:22How do you make sure to offset the rising cost of chips and also data storage?
01:28Yes, your revenue was up 82% in 2025.
01:31You're still not profitable though, a loss of a little bit more than $500 million.
01:36How do you offset with those licensing of software and your autonomous driving software solutions,
01:43how does that offset the rising cost of chips and data center if you're going to become more of an
01:47AI company?
01:48Yeah, it's a good question.
01:49Our revenue in the past, every year the Kager is more than 80% and we have the confidence in
01:54the future.
01:55The Kager also more than 80% and the gross margin will be more than 70%.
02:02So by more and more revenue and gross margin, we can continuously increase our R&D investment.
02:10However, we can keep narrowing our loss.
02:13Compared to last year, this year our loss will keep narrowing and next year break even and
02:20in 2028 we will be profitable.
02:24Okay, so there you go.
02:25There's news.
02:26Break even next year in 2028, you're going to see profitability, right?
02:30Yeah, profitability.
02:31Okay, so where do you go from here as far as expansion overseas?
02:37You have a number of different legacy car makers.
02:39Your partners and one of your clients is Toyota, also Mercedes.
02:43GM is one of your backers.
02:45But right now about, I think, two-thirds or so of your revenue comes from five main clients.
02:50How do you broaden that out?
02:52It's a good question.
02:53Two approaches.
02:54First approach is, of course, domestic OEM.
02:57Now their overseas progress is also very good.
03:01They want to enhance the product competitivity by autonomous driving.
03:07So together with domestic OEM, go to overseas markets.
03:11That's one approach.
03:12Another approach, you know, we already collaborated with Mercedes, BMW, Audi, Toyota, Honda.
03:18We have a very good collaboration and a very good technology and product in China markets.
03:23They also want to reuse the success in China to overseas markets.
03:27So two approaches to further expand our global market.
03:31So trials in Germany, I believe, with Uber.
03:34You're also doing trials in the UAE with Mercedes.
03:37We're hearing as well that maybe tying up with Grab in Singapore.
03:41What can you confirm and how far away from commercialability is it?
03:45Yeah, the progress is good.
03:48I believe the robo business is one of the largest markets of all costs is China.
03:53Another pioneer market is Middle East.
03:56The progress is very good.
03:57The policy there is very supportive for robo business, all kinds of robo, including Robo One, Robo Taxi, and also
04:10Robo Truck.
04:11What does the domestic market tell you right now on regulars?
04:14We know that there were some accidents and there were some outages that kind of slowed the regulatory approval process,
04:21whether it was Baidu's service in Wuhan and others.
04:23Where are we right now at a time when Tesla also trying to roll out FSD, full self-driving in
04:30China?
04:30And Huawei, we all know they have a suite of Harmony OS solutions that would be competing directly with you.
04:36I think China progress is safety and good progress.
04:42So it's like our two-legged strategy.
04:45You need a two-legged strategy to have very good synergy to work steady and running faster and faster.
04:53That's very important.
04:55Any plans to do your own AI chip?
04:57DeepSeq is doing that and others to kind of hedge against the export restrictions of NVIDIA chips.
05:03Yeah, it's a very good question.
05:04Our collaboration with NVIDIA, with Qualcomm is very good and also we have a sister company who do large model
05:13SOC.
05:14The progress is also very good.
05:15So our software solution is hardware agnostic and we can support all of them and we give the freedom and
05:24give the free choice to our customers.
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