Highlights

• Revenue beat expectations at US$36.2m (+68.8% yoy) on a 691.2% yoy surge in robotaxi services.
   

• Net loss attributable widened 12.7% yoy to US$59.8m on a US$25.0m one off impairment provision on the prepayments for long-term investments, and higher-than-expected SG&A.
   

• Gross margin rose 1.4ppt yoy to 17.5%, but 1H26 missed our forecasts. We cut our 2026 gross margin assumption from 18% to 17.5%.
   

• We raise our 2026 revenue forecast by 6.1%, but increase our 2026-27 net loss estimates by 10.9%/7.4% to US$208m/US$132m, and cut 2028 net profit forecast by 35% to US$18m, based on lower gross margin and higher SG&A. • Maintain BUY and cut target price from US$16.00 to US$15.00.
   

Analysis

• 2Q26 net loss attributable to shareholders widened 12.7% yoy and 18.7% qoq to US$59.8m, 4.2% narrower than our US$62.5m estimate. A one-off US$25.0m impairment on prepayments for long-term investments was offset by an US$18.6m attributable fair-value gain; non-GAAP net loss attributable was flat yoy at US$44.4m.
   

• Revenue beat at US$36.2m, 16.1% above our US$31.2m estimate, as robotaxi services revenue jumped 691.2% yoy to US$12.1m.