1. The intelligent and premium cockpit strategy has achieved remarkable results, with premium solutions showing robust momentum;

2. The contribution of overseas markets continues to rise, and the aftermarket smart cockpit project for an internationally renowned luxury brand has entered the delivery phase for the global market;

3. AI software and cloud-based intelligent services have begun to contribute new incremental gains.

Smart cockpit solutions represent a crucial component of the company's operating revenue. Currently, the company's high-end flagship Snapdragon 8295 platform-based products continue to ramp up among mainstream domestic OEMs. Meanwhile, cooperation on Kirin 9610A platform-based smart cockpits is deepening further, with downstream demand maintaining a strong momentum. With the mass production and delivery of Qualcomm's next-generation 8397/8797 platform-based products and the successive market launches of new HIMA (Harmony Intelligent Mobility Alliance) models, the penetration rate of large AI models in the cockpit is expected to accelerate. The company will continuously benefit from the “simultaneous volume and price surge” trend of premium smart cockpit solutions.

Multiple projects of the company have completed acceptance and entered the mass production preparation stage. Among them, the premium aftermarket smart cockpit project in partnership with an internationally renowned luxury brand has successfully passed customer acceptance, with relevant products set to become available for sale and delivery in markets such as Europe and the Middle East; the testing and validation work for another overseas luxury brand's factory-installed smart cockpit project is nearing its end, gradually moving into the customer acceptance and mass production preparation stage; simultaneously, to strongly support its global footprint, the company has officially appointed Dr. Stefan Ortmanns as the head of European business, accelerating the construction of its localized operational capabilities.

Recently, the company has sequentially secured multiple strategic collaborations: signing an agreement with AUMOVIO SE to carry out joint development centering on high-computing-power cross-domain fusion and Artificial General Intelligence (AGI) technologies, jointly expanding the global SDV (Software-Defined Vehicle) domain controller and AGI application markets; entering a partnership with Horizon Robotics to deliver platform-level overseas expansion solutions across the two core sectors of smart cockpit and intelligent driving, integrating both domestic and international customer resources to promote the global output of “Chinese solutions.”

In the first half of the year, the company sequentially secured heavyweight financial support: Ping An Capital issued a letter of intent, planning to provide various forms of funding support totaling USD 1 billion over the next five years; simultaneously, China Minsheng Bank extended an indicative credit facility of RMB 2.5 billion. The aforementioned funds will be primarily directed toward the company's M&A initiatives, boosting industrial integration and ecosystem construction.

Notably, as a current key focus of PATEO's investment, the AI strategy has achieved multiple substantive advancements in the first quarter. Relying on the NVIDIA DRIVE AGX Thor accelerated computing platform, the company has developed its on-vehicle large model and actively promoted the deployment of the AI Box on the vehicle side. Currently, the AI Box solution developed based on this platform has secured a mass production nomination for the next-generation intelligent models of a leading new energy vehicle OEM, marking the official transition of the AI Box from technical validation to commercialization. Meanwhile, the company is actively exploring innovative business models centering on cutting-edge scenarios such as physical AI and AI Agents, including computing power monetization and in-vehicle token-based billing, stocking up new momentum for future commercialization.

PATEO's deep partnership with NVIDIA marks another strategic milestone in teaming up with top global chip giants to jointly define next-generation AI Agent applications, following its collaborations with Qualcomm and Kirin. Currently, PATEO has built a comprehensive AI technology system encompassing on-device model deployment, cloud-based service synergy, multimodal interaction, and AI Agents.

PATEO will continue to adhere to its strategic direction of “centering on AI technology with hardware, software, chip, and cloud integration” to provide leading AI solutions for vehicles and mobile terminals, and to continuously build a broad-based AI application ecosystem. Fueled by synergies across multiple growth drivers, the company is poised to gradually unlock its strategic value in subsequent operations, opening up broader space for long-term development.