PATEO Reports Significant Profit Growth of 38.3% in Interim Results

PATEO's Financial Triumph: Gross Profit Jumps 38.3%

PATEO CONNECT Technology (Shanghai) Co., Ltd., listed under the stock code 2889.HK, has recently unveiled its first interim report since its public listing, showcasing remarkable growth in several key financial metrics that signal a strong business trajectory. The interim report reveals that PATEO's revenue for the first half of 2025 reached an impressive 10.86 billion RMB, marking a notable increase of 26.2% compared to the previous year. The gross profit soared by an astonishing 38.3%, amounting to 1.56 billion RMB, with the gross profit margin reflecting a rise of 1.3 percentage points from the same period last year.

This unprecedented growth can largely be attributed to PATEO's strategic focus on high-end products and an enhancement of its core competencies alongside industry-leading research and development capabilities. In a standout achievement, PATEO's deliveries of intelligent cockpit domain controllers grew from approximately 300,000 units in the corresponding period last year to 400,000 units this year. This growth included 160,000 high-end SoC domain controllers, reinforcing the company's competitive edge in the high-end intelligent cockpit market.

Further dissecting the financial highlights, the interim report noted a significant increase in intelligent cockpit solutions revenue, which reached 1.04 billion RMB, reflecting a 25.9% rise year-on-year. Revenue from connected services also saw a considerable boost, climbing to 44.2 million RMB, up 37.9% compared to the previous year. These figures underline the sustained demand and growth potential for PATEO's innovative automotive solutions.

R&D investment is another cornerstone of PATEO's success story, with expenditure rising by 17.4% over the past year. As a testament to its commitment to innovation, PATEO has emerged as the leading domestic provider of smart cockpit and connected service solutions, securing 1,785 patents, including 935 invention patents, by June 30, 2025.

Adding to the excitement surrounding PATEO's growth, the company recently announced a collaboration with Porsche to develop a next-generation infotainment system tailored for the Chinese automotive market. The partnership aims to leverage both companies' strengths to deliver high-quality integrated solutions in a rapidly evolving industry.

Chairman Ying Zhenkai (also known as Ying Yilun) expressed confidence in the company's trajectory, stating, "PATEO has achieved fruitful outcomes by deepening collaboration across upstream and downstream supply chains of our core businesses, with outstanding performance in high-end products, steady progress in our overseas business, and notable revenue growth."

PATEO's impressive interim financial results, paired with their clear growth strategy and market focus, continue to present promising returns for investors looking to capitalize on the burgeoning automotive technology sector.

In summary, as PATEO CONNECT Technology charts its path in the automotive market, its robust financial health and strategic initiatives position the company as a key player in delivering advanced smart cockpit solutions for the future.

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