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PATEO's 2025 Interim Report: A Testament to Growth and Innovation

In a recent disclosure, PATEO CONNECT Technology (Shanghai) Co., Ltd., commonly known as PATEO, published its first interim report following its initial public offering (IPO). The report showcases the remarkable strides the company has made in the first half of 2025, with gross profit seeing a striking increase of 38.3%.

Financial Highlights

According to the report, PATEO achieved a revenue of RMB 10.86 billion, which equates to a year-on-year growth of 26.2%. This surge in revenue is complemented by a gross profit totaling RMB 1.56 billion, solidifying PATEO's stature in the competitive technology landscape. The gross profit margin also experienced a positive shift, rising by 1.3 percentage points compared to the same timeframe last year.

Strategic Implementation Leading to Growth

The robust growth metrics presented in the interim report can be attributed to PATEO's well-executed high-end product strategy and enhanced core business operations. The company has made significant inroads in the intelligent cockpit domain. The number of shipments for intelligent cockpit domain controllers rose from approximately 300,000 units in the same period last year to an impressive 400,000 units in the first half of 2025. Notably, out of these, 160,000 units were high-end System on Chip (SoC) domain controllers, cementing PATEO's competitive advantage within this advanced sector.

In addition to cockpit solutions, revenue generated from PATEO's smart cockpit solutions reached RMB 1,039.6 million, marking a 25.9% year-on-year increase. Revenue from connected services also saw positive growth, totaling RMB 44.2 million, reflecting a 37.9% increase compared to the previous year. PATEO's unwavering commitment to research and development (R&D) is evident, as expenditures in this area increased by 17.4% year-on-year.

Innovation at the Forefront

As of June 30, 2025, PATEO has established itself as a leader among domestic smart cockpit and connected service solution providers, boasting an impressive portfolio of 1,785 granted patents, 935 of which are classified as invention patents. Furthermore, during this period, the firm has applied for 6,088 patents, reinforcing their innovative capabilities, with invention patents comprising roughly 82.6% of these applications.

To further showcase its innovative edge, PATEO has announced a strategic collaboration with the renowned Porsche brand aimed at developing next-generation in-vehicle infotainment systems tailored specifically for the Chinese market. This partnership underscores PATEO's dedication to not only maintaining its position in the domestic market but also expanding its influence internationally.

Future Outlook

Chairman Ying Zhenkai, known as Ying Yilun, emphasized the company's commitment to leveraging core business collaborations across its supply chain as a pivotal strategy for sustained growth. As stated in the semi-annual report, "PATEO has achieved fruitful results through deepening collaboration across the upstream and downstream supply chains of its core businesses, with outstanding performance from high-end products, steady progress in overseas business, and significant growth in revenue."

With the foundational achievements in place and a clear trajectory for future growth, PATEO is poised to deliver meaningful returns to its stakeholders. The combination of solid financial growth, strategic partnerships, and an unwavering focus on innovation positions PATEO as a significant player in the ever-evolving technology landscape.