PATEO CONNECT Technology (Shanghai) Corporation reported interim results showing revenue of RMB 2.23 billion for the six months ended 30 June 2026, more than doubling year on year.

Smart cockpit solutions accounted for 89.2% of total revenue, rising 97.0% to RMB 1.99 billion. AI-related solutions grew 588.6% to RMB 208.76 million, representing 9.4% of revenue, while vehicle-connectivity support services fell 32.5% to RMB 29.88 million.

Gross profit increased 64.7% to RMB 257.13 million; however, the gross margin slipped to 11.5%, down 2.9 percentage points, reflecting early-stage expansion costs for new cockpit projects.

The company recorded a statutory net loss of RMB 307.23 million, versus a RMB 227.37 million loss a year earlier. After adding back share-based payments and prior listing expenses, adjusted net loss narrowed 35.2% to RMB 105.02 million.

Operating metrics showed higher expenses linked to business scale-up and talent investment. R&D spending rose 33.5% to RMB 148.22 million and represented 6.7% of revenue. Selling expenses climbed 38.9% to RMB 83.07 million, while administrative expenses nearly doubled to RMB 303.45 million, largely due to increased share-based compensation. Finance costs increased 16.2% to RMB 32.01 million as borrowings expanded.

Net cash used in operations amounted to RMB 526.98 million, reversing an RMB 80.34 million inflow in the prior-year period, mainly because of working-capital needs. Cash and cash equivalents stood at RMB 1.54 billion at period-end, compared with RMB 1.44 billion at end-2025. Total bank borrowings reached RMB 2.97 billion, lifting the gearing ratio to 66.0% from 63.1% six months earlier.

Capital expenditure totaled RMB 255.70 million, chiefly for production-capacity expansion. Contracted but unrecognised capital commitments were RMB 329.03 million.

During the period PATEO CONNECT completed the RMB 300 million acquisition of an 84% stake in a fabless high-speed optoelectronic-chip design company. Post-period, on 7 August 2026 the company agreed to acquire a 70% stake in Chengdu Meenyi Electronic Technology for up to RMB 1.40 billion, and on 21 August 2026 it announced plans to purchase a 20% stake in Guangzhou Seagull Kitchen and Bath Products for RMB 800 million, both subject to closing conditions.

Fund-raising activity included an H-share subscription in May that raised HK$113.61 million and a placing in June that raised HK$381.62 million. All proceeds remain unutilised, earmarked mainly for M&A, AI technology development, working capital and other corporate purposes as detailed in the interim report.

Management reiterated its strategy of integrating software, hardware, chip and cloud capabilities while accelerating global expansion of AI cockpits and advancing chip-sector investments. No interim dividend was declared.