Gasgoo Munich-PATEO (2889.HK) released its financial report for the first half of 2026. For the six months, the company booked 2.228 billion yuan in revenue — a 105.1% surge from a year ago, delivering a robust growth scorecard.
Even more significant than the doubling of total revenue is the rapid growth in its AI business.
In the first half, revenue from AI solutions hit 209 million yuan, soaring 588.6% year-on-year. Its share of total revenue leapt from 2.8% a year earlier to 9.4%, with the scale expanding nearly sevenfold in just 12 months. That signals PATEO' AI strategy is moving rapidly from technical positioning to commercial realization.
For PATEO, AI is no longer just a futuristic narrative; it is now a tangible second engine driving performance growth.
Smart Cockpit Foundation Solid, AI Business Explodes
Breaking down the 2.228 billion yuan in revenue for the first half of 2026, the biggest shift isn't the doubled volume, but the qualitative change in revenue structure.
Specifically, smart cockpit solutions remain PATEO' "core foundation." The business generated 1.988 billion yuan in the first half, up 97% year-on-year and accounting for 89.2% of total revenue. Growth was primarily driven by high-end domain controllers capable of supporting AI functions.
According to the interim report, as of June 30, 2026, PATEO secured three new model awards from top domestic automakers for overseas and domestic models based on the Qualcomm 8295 chip platform. It also won five awards for AI cockpit models based on the Kirin 9610A platform, and secured a global first: an award for a new-generation smart model from a new energy vehicle (NEV) maker, featuring PATEO's AI Box software-hardware integrated solution.
Meanwhile, PATEO is advancing R&D and mass production for AI cockpit projects built on Qualcomm's fifth-generation Snapdragon cockpit platform (QAM8397P/QAM8797P). Notably, an award from a leading domestic NEV company entered mass production in the second quarter of this year.
Image Source: PATEO
Building on that, PATEO recently won another project award from a top OEM NEV maker to equip its next-generation new model with the fifth-generation Snapdragon cockpit platform (QAM8397P). This platform has now been integrated into the OEM's standardized configuration system, achieving multi-generational coverage of the automaker's cockpit platforms. The partnership is extending further into mainstream, best-selling models.
As Qualcomm's core platform for next-generation on-device AI cockpits, the 8397 offers a powerful computing foundation capable of supporting cutting-edge features like multimodal perception and local large language model (LLM) inference. Based on this platform, PATEO's new in-car interaction system not only ensures stable, high-performance operation of on-device LLMs but also enables intelligent functions such as real-time environmental inference, proactive travel services, and natural human-vehicle interaction. This drives cockpit interaction from "passively responding to commands" to "proactively understanding and serving the user," redefining the experiential boundaries of the next-generation smart cockpit.
If the steady growth of the smart cockpit business is PATEO' "ballast," then the explosion in AI solutions is the incremental value with the greatest potential in this financial report.
In this field, leveraging deep AI technical capabilities accumulated through AI cockpit R&D and software-hardware integration, PATEO provides OEMs with R&D services covering the entire AI lifecycle. These include model development and on-device deployment, automated testing and quality assurance, data closed-loop and simulation validation, AI agent platform construction, security and compliance governance, and AI-aided engineering efficiency — helping automakers quickly build a complete AI capability system from algorithm development to mass production delivery.
In the first half of this year, as the AI industry wave accelerated its penetration into the automotive sector, PATEO' AI application solutions saw a concentrated release of demand.
On the AI cockpit application R&D front, PATEO continued to win AI R&D projects based on high-end cockpit chips, providing early-stage R&D support for the mass production implementation of AI functions for relevant OEMs. On the AI infrastructure front, it further expanded compute infrastructure and related services based on AI servers. Meanwhile, PATEO's proprietary AI R&D efficiency tools secured multiple external commercial projects, continuously widening the scope of customers and industries served and becoming an important extension of its business footprint.
This means PATEO is not only redefining the value boundaries of the smart cockpit with AI capabilities, but also accelerating the "spillover" of these in-vehicle AI capabilities into broader intelligent manufacturing scenarios. Moving from "Automotive AI" to "Industrial AI," it is opening up a second growth space with even greater potential.
To date, PATEO has established deep partnerships with over 50 automakers, covering more than 200 vehicle models, with cumulative installations reaching several million units, firmly establishing it as a top-tier domestic smart cockpit service provider.
While steadily advancing in the domestic market, PATEO is also exporting the AI cockpit technology, engineering capabilities, and delivery experience accumulated in China to global markets.
Recently, PATEO announced it has entered the global supply system of an international automotive group for the first time. It will provide high-end smart cockpit domain controllers and AI in-car interaction systems based on the Qualcomm SA8295P for the group's high-end luxury brand global models and the export models of its mid-to-high-end brands. The relevant vehicles are destined for core overseas markets including Europe, the Middle East, and South America.
Prior to this, a smart cockpit project PATEO undertook with a renowned international luxury brand successfully passed customer acceptance in the first half, with related products set to begin sales and deliveries in markets such as Europe and the Middle East.
Securing this new award not only marks PATEO' official upgrade of its globalization strategy from "serving Chinese brands going overseas" to "entering the global supply chain of top international automakers" — a critical leap from "single-point breakthrough" to "scaled advancement" — but also establishes a firm foothold in the high-value luxury car segment.
There is reason to believe that as mass production and delivery of Qualcomm's new QAM8397P/QAM8797P platforms begin, and with the intensive launch of new HIMA models, combined with overseas projects entering mass production, the synergy across multiple lines between domestic and international markets will make PATEO' performance even more worth watching.
148 Million Yuan R&D Boost to Crack On-Device AI Mass Production
Behind the dazzling performance lies PATEO' sustained and substantial investment in core technology foundations.
According to statistics, as of June 30, 2026, PATEO had filed over 6,000 patent applications, with more than 2,000 granted, including 1,140 invention patents, ranking it at the forefront of the industry.
Specifically for the first half of this year, R&D investment reached 148 million yuan, a 33.5% year-on-year increase. This was primarily directed toward infrastructure construction for underlying AI technologies such as on-device LLMs and world models, as well as mass production R&D for core products like AI cockpits and AI Boxes. Every investment is aimed at the clear target of "mass production of on-device AI."
First, supplementing on-device computing power with AI Box to solidify the "computing foundation" for bringing LLMs into vehicles.
It is widely believed that 2026 marks the first year for the smart cockpit industry to enter mass production of on-device AI, with the focus of industry competition shifting from accessing cloud LLMs to the underlying reconstruction of on-device model capabilities.
However, integrating LLMs into vehicles is easier said than done, placing high demands on in-vehicle computing power. In particular, the cockpit chips in many current and legacy models were not designed with LLM computing power in mind, making it difficult to support the local deployment of high-parameter models.
Facing this industry-wide challenge, PATEO developed the AI Box, acting as a "second brain" and "compute add-on" for smart vehicles. In the first half, it won an award for a new-generation smart model from a top OEM NEV maker. According to the plan, the solution is expected to achieve large-scale vehicle integration in 2027, officially ushering in the mass production era.
Relying on the NVIDIA DRIVE AGX Thor accelerated computing platform, the product can provide automakers with a cost-controlled, on-device AI LLM solution compatible with existing cockpit architectures when cockpit AI computing power is insufficient. It quickly makes up for the computing shortfall of existing in-vehicle platforms, thereby providing an upgrade path for multimodal, voice, and LLM capabilities for existing vehicles.
AI-generated image, Source: Doubao
Second, driving LLM integration with AI Agents and a Token system to build a "smart hub" that is capable of growth and operation.
For on-device AI to truly land at scale in the smart cockpit sector, computing power is just the foundation. Even more critical than compute is the ability to enable LLMs to run on-board with low cost and high reliability.
To this end, PATEO adheres to a dual-drive approach of self-development and ecosystem cooperation. On one hand, it continuously advances independent R&D of core technologies; on the other, it deepens cooperation with LLM and algorithm partners. Providing R&D and engineering services to OEMs around AI Agents, full-modal model encapsulation, and edge-cloud platforms, it also actively explores innovative business models such as Token billing and compute billing, jointly lowering the barrier for on-device AI deployment and accelerating the process of bringing LLMs into vehicles.
For instance, recognizing that the large-scale deployment of AI Agents cannot rely on stacking single-point algorithms, PATEO has constructed a three-layer progressive mass production architecture based on its "Software-Hardware-Chip-Cloud" full-stack technology system: "Dual Computing Base + Dual Model Fusion + Agentic Autonomous Drive."
Based on this architecture, PATEO' AI Agent solution has been deployed at scale in multiple automakers, covering diverse markets from mainstream to high-end customization and from domestic to overseas. It has formed a positive cycle of "mass production deposits user feedback — data feeds algorithm iteration — OTA pushes optimization results," allowing the AI Agent to truly evolve into a continuously growing "smart partner."
As the Token economy accelerates its penetration into high-frequency scenarios like smart vehicles, PATEO also established a deep cooperation with Minglue Technology in June. The goal is to use the Token economy as the underlying commercial logic to bridge the "brand budget — in-vehicle computing — user service" closed loop. Additionally, it is jointly developing a Token-based physical AI world model with Xunce Technology and Saomeng Technology, co-building the "Token World Model Alliance."
This series of layouts aims to drive in-vehicle AI from the current "one-time hardware sales" model to a continuous operation model of "hardware entry point + AI platform + Token value circulation" through Token metering, settlement, and value flow, participating early in the construction of next-generation in-vehicle AI business rules.
Third, opening up new space for AI integration by enabling multi-chip ecosystem connectivity through platform-based reuse.
The development of smart vehicles cannot be separated from chip support. However, the current landscape of smart vehicle chips is fragmented, with insufficient adaptation to vehicle scenarios, high customization costs, and long implementation cycles, which severely constrains the speed of AI integration.
Addressing this industry-level challenge, PATEO is actively laying out its strategy. Relying on over a decade of full-stack technology accumulation and starting from real usage scenarios, it is "co-defining chips" with chip manufacturers. This achieves "develop once, reuse on multiple platforms," supporting the rapid adaptation and volume production of AI solutions on more models, reducing customization costs, and shortening implementation cycles.
Image Source: PATEO
By now, PATEO has achieved extensive deployment across three core platforms: Qualcomm SA8295P/QAM8397P and Huawei Kirin 9610A. Notably, the domestic high-end cockpit module based on Kirin 9610A has been mass-produced by a large domestic automaker, placing PATEO at the forefront of the industry in the mass production landing of domestic high-end cockpit chips.
Furthermore, PATEO recently secured the industry's first award for a high-end AI cockpit based on a purely domestic cockpit-driving integrated chip. Built on Horizon Robotics' Journey chip, this solution allows dynamic scheduling of computing power between the cockpit and intelligent driving. This marks the official commercial landing of PATEO's AI strategy, advancing from a smart cockpit leader to a cross-domain leader in "cockpit-driving fusion."
Notably, PATEO is one of the few smart cockpit core suppliers in the industry that is deeply integrated with both the Qualcomm and Huawei ecosystems, while also securing a leading position with NVIDIA and Horizon Robotics.
It is precisely this "cross-ecosystem universal Agent middleware platform" capability — which does not bind to a single camp and spans mainstream chips — that makes PATEO a "compatible bridge" connecting different technology systems and builds a difficult-to-replace niche advantage.
Holding 1.537 Billion Yuan in Cash, "Software-Hardware-Chip-Cloud" Strategy in Full Swing
After gaining a firm foothold in the smart cockpit sector, PATEO is poised for the next stage of "AI-defined vehicles."
As of the end of the reporting period, PATEO held a cash and cash equivalents balance of 1.537 billion yuan, with net assets of approximately 2.5 billion yuan, indicating a solid financial foundation.
This "ammunition" relies not only on a solid core business foundation but also benefits from continued recognition from the capital market. Since listing on the Hong Kong Stock Exchange in September 2025, PATEO has completed subscriptions from long-term strategic industrial investors and placements to institutional investors, fully highlighting the recognition of its long-term value by both industrial capital and institutional investors.
With ample financial support, PATEO is making moves simultaneously along its "Software-Hardware-Chip-Cloud" strategy, continuously increasing R&D investment, expanding production capacity, and extending the industrial chain.
Among these, "Optical Communication + Chips" is the top priority of the current layout.
On August 7, PATEO announced the acquisition of approximately 70% equity in Chengdu Mingyi for no more than 1.4 billion yuan. This transaction is PATEO' first major industrial M&A since its listing, marking a substantial step in the "Chip" segment of its integrated "Software-Hardware-Chip-Cloud" strategy.
Chengdu Mingyi is one of the very few companies in China capable of mass-producing single-channel 100G TIA electrical chips. Its products are widely used in 400G/800G optical modules, sitting at a key link in AI data center high-speed interconnects. Upon completion of this acquisition, PATEO will simultaneously enter two high-growth tracks: AI data centers and automotive optical communication, poised to reap the dual dividends of "import substitution" and "AI computing infrastructure."
Furthermore, PATEO is deeply expanding its layout along the upstream industrial chain. This includes cooperating with Fuyao University of Technology to tackle core materials for electro-optic modulators, silicon photonics integration, and fourth-generation semiconductors, and jointly promoting the construction of an automotive optical communication standard system with Zhongji Xinchuang and CATARC. This forms a complete chain of "materials — chips — modules — standards — ecosystem," building a more solid underlying support for its technical system in fields such as smart cockpits, in-vehicle AI Agents, and physical AI world models.
AI-generated image, Source: Doubao
Building on its automotive business, PATEO has begun migrating its business boundaries to broader physical terminals, accelerating from a smart cockpit leader toward a "global physical AI core infrastructure service provider."
Recently, PATEO announced plans to acquire 20% equity in Seagull Housing and obtain control, extending smart vehicle capabilities to smart homes and building a "car-home integration" layout. At the same time, PATEO is gradually reusing its mature AI computing power, interaction systems, and hardware engineering capabilities in the field of embodied intelligence.
In PATEO' view, in-vehicle agents not only share core technical logic with embodied intelligence, but the "Software-Hardware-Chip-Cloud" full-stack technology can also be consolidated into a reusable physical AI general base. Moreover, automotive-grade AI itself serves as a high-quality testing ground for embodied intelligence, where stringent standards across the product lifecycle highly match the implementation requirements of embodied intelligence.
Therefore, based on its accumulation in the automotive sector, PATEO is currently advancing multi-dimensional industrial layouts and has constructed a tripartite embodied intelligence technical solution: "Smart Brain + Collaborative Architecture + Interaction System." This includes a smart brain solution based on the NVIDIA DRIVE AGX Thor platform, a "big and small brain" collaborative solution based on Open Source HarmonyOS, and an integrated embodied intelligent voice interaction system, covering the full chain from the computing foundation to the interactive experience.
Notably, in the core link of the robot "brain," PATEO has already secured a project award from a leading domestic enterprise and will provide core component support.
It is reported that this is not only PATEO' first commercial award in the field of embodied intelligence but also marks the beginning of the realization of its strategic logic of "outward reuse of automotive-grade AI capabilities."
Looking back at this interim report, doubled revenue is the result, and the rise of AI is the signal. What is truly scarce is that PATEO simultaneously possesses three capabilities: the commercialization capability to turn cutting-edge AI into real revenue, the engineering capability to span mainstream chips and achieve mass production first, and the globalization capability to move from the Chinese market into the global top-tier supply chain.
In the critical window period where on-device AI moves from concept to mass production, there are very few players holding all three of these "cards." As a leader in the domestic smart cockpit track, PATEO is using solid orders and its "Software-Hardware-Chip-Cloud" full-stack technology foundation to participate in and secure a position in the high-level competition of on-device AI for the next decade.
