In 2025, China's automotive intelligence sector moved beyond the phase of mere "feature accumulation" and entered the challenging era of "AI-defined vehicles." During this critical transition, PATEO (02889) adhered to its strategic positioning as "an AI technology-centric provider of integrated hardware-software-chip-cloud solutions for automobiles and mobile terminals, as well as an ecosystem builder," achieving a leap in both quality and scale. This outstanding performance is reflected across three core dimensions: firstly, a breakthrough in revenue, with annual revenue exceeding 3.51 billion yuan, a year-on-year increase of 37.26%. Secondly, a significant rise in R&D investment, which grew by 83% year-on-year, with patent numbers remaining at the forefront of the industry. Finally, the company leads the high-end AI smart cockpit segment with an absolute advantage, holding the top market share in China for pre-installed standard cockpit domain controllers in self-branded passenger vehicles priced above 250,000 yuan. Simultaneously, its global layout is accelerating, marking a key transition from domestic leadership to global competition. PATEO's ability to achieve simultaneous growth in volume and quality during this industry transformation is no coincidence; it results from the company's long-term commitment to proprietary technology research, high-end leadership, and a forward-looking strategy for global expansion.
AI-driven full-chain synergy is creating a new growth paradigm. The 2025 annual results announcement released by PATEO on March 30th revealed that the strong momentum for "quality and quantity growth" stems from the deep synergy of its three business segments under the drive of an AI engine. During the reporting period, the AI Cockpit and Applications segment, as the core foundation, achieved breakthroughs in both market share and gross margin through fully self-developed technology and a high-end strategy. In 2025, the company delivered 1.3 million smart cockpit domain controllers, a 40% year-on-year increase, driving revenue from smart cockpit solutions to 3.41 billion yuan, accounting for 97.3% of total revenue. Meanwhile, leveraging its full-stack self-developed technology comprising the "Qing OS + Qing Core + Qing Cloud," and partnering with SenseTime to launch the "Qinggan Large Model," PATEO has built a technological moat in the high-end market with its integrated "hardware-software-cloud" solutions. Market position corroborates this advantage – according to data from Gaogong Intelligent Automotive Research Institute, in 2025, PATEO held the leading market share in China for pre-installed standard cockpit domain controllers in self-branded passenger vehicles priced above 250,000 yuan. The Connectivity Services segment, empowered by AI throughout the entire process, has achieved comprehensive intelligence in telematics operations, OTA updates, and data services. Its delivery capabilities continue to gain client recognition, with 24 new designated delivery projects added, further demonstrating sustained client confidence in the company's service quality and delivery execution.
Beyond domestic leadership, PATEO is also accelerating the implementation of its global strategy. During the period, building on R&D, integration, and engineering delivery experience accumulated in the Chinese market, the company steadily advanced its global strategy: cooperation with a European luxury automaker on cockpits continues to deepen, with mass-production products covering various AI applications expected to begin delivery in 2026; collaboration with a renowned international OEM has expanded beyond existing designated projects to include demand for more models. The company has completed qualification certifications for over 100 countries and will initially cover regions including Australia, Southeast Asia, South America, and the Middle East. PATEO has now established a dual-track model of "serving global automakers + supporting Chinese brands going overseas," with its global footprint rapidly taking shape. Progressing from hardware delivery to ecosystem empowerment, and from domestic leadership to global competition, PATEO is using AI as its engine to integrate the entire "technology-product-service" chain. Driven by both high-end positioning and globalization, the company is building a new paradigm for growth characterized by simultaneous gains in scale and quality.
A foundation of R&D and strategic ecosystem positioning solidifies the technological moat. In a technology-driven industry, technological depth determines growth potential. In 2025, PATEO continued to strengthen its technological barriers, using upgraded R&D as its foundation, strategic ecosystem positioning as its wings, and innovative AI products as its spear, providing a solid base for its quality and volume growth. Revenue related to AI approached 100 million yuan, achieving nearly 210% growth compared to the previous year, validating the commercial viability of its AI applications. On one hand, PATEO actively promotes R&D innovation with AI at its strategic core, accelerating the transition towards the new stage of "AI-defined vehicles." During the reporting period, the company significantly increased its R&D investment, with R&D expenses growing 83% year-on-year to 379 million yuan, providing ample resources for technological breakthroughs; cumulative patent applications exceeded 6,000, with the number of granted patents and invention patents steadily rising, building a deep intellectual property barrier. This forward-looking investment in core technology provides a continuous stream of innovative momentum for PATEO's transition from "functional cockpits" to "AI-defined cockpits."
On the other hand, PATEO leverages its unique ecosystem advantages to capture a leading position in the HarmonyOS track, focusing on building an AI ecosystem community. Specifically, the company's self-developed Qing OS boasts high openness and compatibility, deeply integrating with mainstream operating systems like HarmonyOS, Linux, Android, and QNX, and synergizing deeply with the Kirin 9610A processor, forming a unique "domestic chip + independent OS" advantage. Concurrently, capitalizing on the rapid growth in deliveries of HarmonyOS Intelligent Driving models, the company utilizes its full-stack capabilities in "software + manufacturing + AI" to deepen its services for these models and facilitate the expansion of the HarmonyOS ecosystem into diverse product forms, jointly creating new growth space. Through sustained increases in R&D innovation, PATEO has fortified its technological moat, with several innovative products targeting new growth drivers in the sector. At the chip level, it has a multi-pronged layout involving the Qualcomm 8295P/8397P and Kirin 9610A, with high-end cockpits scheduled for mass production advancement in 2026.
In conclusion, in 2025, PATEO used AI as its engine to achieve simultaneous growth in performance quality and quantity. By deepening R&D and strategically positioning itself within key ecosystems, it has solidified its technological barriers and established a clear leading position in the automotive intelligence sector. Looking ahead, the company is confident – it will continue to deepen the application of AI technology in automotive intelligence, leading industry development. Furthermore, on March 30th, the company also announced an extension of the lock-up period for its cornerstone investors. This action demonstrates firm confidence in the company's fundamental strengths and future prospects, serving as full recognition of its current operational quality and a strong endorsement of its long-term value. With a solid performance foundation, a clear strategic direction, and growing market consensus, PATEO's value in the wave of smart vehicle development is poised for continued realization, and its long-term growth potential warrants anticipation.
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