#China #Shanghai #Gross Profit #Porsche #PATEO

PATEO CONNECT Technology Reports Substantial Profit Growth

In its first interim report following its IPO, PATEO CONNECT Technology (Shanghai) Co., Ltd., known as PATEO, has reported a remarkable 38.3% increase in gross profit. This impressive growth can be attributed to several key factors, including the company's strategic focus on high-end product offerings and continuous investments in research and development (R&D).

Financial Highlights

During the first half of 2025, PATEO's revenue soared to 10.86 billion RMB, reflecting a 26.2% increase year-on-year. Gross profit reached 1.56 billion RMB, with an increase also seen in the gross profit margin, which improved by 1.3 percentage points compared to the same period the previous year.

The solid financial indicators outlined in the report are largely credited to PATEO's strategic product positioning and strengthened core business capabilities. Specifically, the company witnessed a significant rise in shipments of smart cockpit domain controllers, increasing from approximately 300,000 units in the previous year to 400,000 units. Of these, 160,000 were high-end SoC domain controllers, further consolidating PATEO's competitive edge in the premium smart cockpit sector.

Innovations and Market Position

The report emphasizes the consistent growth witnessed in two critical areas for PATEO: revenue from smart cockpit solutions surged to 1.04 billion RMB, reflecting a 25.9% year-on-year growth, while connected services revenue reached 44.2 million RMB, representing a 37.9% increase from the previous year.

Moreover, PATEO's commitment to R&D is evident as its automotive division increased R&D investments by 17.4% year-on-year. The company holds the title of the leading national provider of smart cockpit solutions and connected services, evidenced by the number of registered invention patents. As of June 30, 2025, PATEO had obtained 1,785 patents, including 935 invention patents. In total, the company submitted 6,088 patent applications, with 5,026 being invention patents, accounting for 82.6% of all patent applications.

Strategic Partnerships

In tandem with its successful IPO in Hong Kong, PATEO announced a collaboration with Porsche to develop a next-generation infotainment system tailored for the Chinese market. This partnership illustrates PATEO's ambition to expand its market presence and enhance product offerings in the premium segment.

Management Insights

Ying Zhenkai, the Chairman of PATEO, remarked in the company's semiannual report, "PATEO has achieved fruitful results by deepening collaboration in both upstream and downstream supply chains of our core businesses, demonstrating exceptional performance in high-end products, steady progress in international business, and significant revenue growth."

The ongoing growth in financial figures, combined with the company's clear growth trajectory and market-oriented focus, promises attractive returns for investors.

Conclusion

PATEO CONNECT Technology stands as a strong player in the smart cockpit technology industry, leveraging innovation and strategic partnerships to drive significant growth. As the company continues to expand its product line and services, investors and market observers will be watching closely to see how it capitalizes on these trends in the future.