WeRide Hong Kong IPO Filing Shows Losses Mounting and Revenue Shrinking

WeRide在香港的IPO申请显示，随着业务的扩张和市场竞争的加剧，该公司面临亏损加剧和收入缩减的问题，尽管该公司积极探索新的商业模式和技术创新，但仍面临行业内的挑战和不确定性，此次IPO申请的结果将对其未来发展产生重要影响。

Chinese autonomous driving startup WeRide Inc. is moving ahead with plans for a Hong Kong initial public offering, even as its latest filings reveal deepening losses, declining revenue, and heavy reliance on research spending.

The Guangzhou-based company, backed by Nissan Motor Co. and Bosch Group, disclosed in its post-hearing information pack that losses widened to $342 million in 2024, with revenue dropping 32% to $49 million. Cumulative losses have now reached $1.28 billion since its founding in 2017.

WeRide remains one of the most advanced players in China’s autonomous driving race. It ranked second globally in 2024 by revenue from Level 4 and above autonomous driving systems used on urban roads, claiming 21.8% of global market share, according to CIC Consulting.

Its operations span 30 cities across 11 countries, including China, the United Arab Emirates, Saudi Arabia, Singapore, and Japan. Yet its financials contrast sharply with its technological footprint — showing a company still far from profitability even as commercial deployments expand.

Revenue fell from $72 million in 2022 to $49 million in 2024, a compound annual decline of 17%, and further slid to $27 million in the first half of 2025. The decline was mainly driven by shrinking orders from a key customer, referred to in filings as Client A, whose purchases plunged more than 60% year-on-year to $12 million in 2024.

That client’s contribution to WeRide’s total revenue fell from 55% to 24%, before disappearing from the top five customers this year — a loss that underscores WeRide’s dependence on a limited client base and the volatility of its contract-driven business model.

WeRide’s annual net losses swelled from $177 million in 2022 to $265 million in 2023 and $342 million in 2024, with another $108 million lost in the first half of 2025.

The company poured heavily into research and development, spending $103 million in 2022, $144 million in 2023, $148 million in 2024, and $88 million in the first six months of 2025. R&D outlays represented as much as 323% of revenue, reflecting WeRide’s race to commercialize its technology despite limited sales traction.

Even so, efficiency is slipping. Gross margins dropped from 45.7% in 2023 to 30.6% in 2024, suggesting higher costs or weaker pricing power as the company scales operations.

Despite its losses, WeRide maintains a strong liquidity position. As of June 2025, it held $522 million in cash and equivalents, making up 54% of total assets. However, the company’s operating cash flow has remained deeply negative — with cumulative outflows of $326 million since 2022.

The upcoming IPO is expected to raise additional funds for R&D, mass production, and working capital. Analysts say the capital infusion could provide a temporary buffer as WeRide faces rising costs and intensifying competition from Baidu’s Apollo Go, Pony.ai, and AutoX.

The global market for Level 4 and above autonomous driving systems is projected to expand from $1 billion in 2024 to $1.46 trillion by 2030, a 238% compound annual growth rate, according to CIRC Consulting. By 2035, it could reach $8.1 trillion.

Despite this explosive outlook, WeRide’s financial results underscore how far the technology remains from large-scale commercialization. The company has yet to achieve positive operating cash flow or profitability in any reporting period.

WeRide was founded in 2017 by Tony Han, a former chief scientist for Baidu’s autonomous driving unit. It was once valued at over $4.4 billion in private funding rounds. Its IPO in Hong Kong would make it one of the first Chinese robotaxi operators to test investor appetite amid global skepticism over the near-term economics of autonomous mobility.