Revenue continues to grow and losses shrink. 1H24 Premium (unrated) achieved revenue of 0.487 billion yuan (RMB, same below), an increase of 86.6% year over year; gross profit of 0.185 billion yuan, up 213.8% year on year; and gross margin increased 15.4 percentage points to 38.0%. In terms of cost ratio, sales/management/R&D expenses decreased by 23.1/25.9/39.2 percentage points to 47.9%/44.1%/46.7%, respectively. Net loss decreased by 8.1 million yuan to 0.54 billion yuan compared to the same period last year.

The customized intelligent robot business for other industries continues to grow rapidly, and the expansion of the industry is beginning to bear fruit. The revenue of 1H24 educational robots/consumer robots increased 113.0%/105.4% year over year to 0.161 billion/0.175 billion yuan, and gross margin increased 14.9/13.8 percentage points year over year to 50.7%/30.3%. Logistics robot revenue fell 22.4% year over year to 59.56 million yuan, revenue share fell 17.2 percentage points to 12.2%, and gross margin fell 6.3 percentage points to 6.1%. Revenue from customized intelligent robots in other industries surged 308.5% to 90.88 million yuan, and the revenue share increased 10.1 percentage points to 18.7% year over year, indicating that the company is accelerating the application of commercial service robots in various industries and is beginning to see results.

Another breakthrough in robotics and artificial intelligence technology. The company continues to invest in robot research and development, and has made significant progress in many core technologies. In terms of robotics technology: 1) Facing the requirements of stability, reliability and safety in industrial scenarios, the company released the ROSA v2 version, which provides the basic communication capabilities of the algorithm module to ROS middleware. 2) In terms of gait movement, the company continues to improve the stability of the machine's gait algorithm to achieve stable walking for nearly 2 kilometers under a high load of 15 kg. Furthermore, in response to the problem that traditional positioning and navigation cannot satisfy spatial scene understanding, the company has achieved a breakthrough in pure visual semantic Vslam. The industrial prototype can independently position and navigate in different scenarios based on the natural characteristics and semantic information of the scene. Among them, L4 class driverless logistics vehicles have already begun to be delivered.

Focus on automobiles and 3C manufacturing to accelerate the implementation of humanoid robot industry scenarios. For the industrial manufacturing scenario, the company proposed an overall solution to meet handling, material decomposition, quality inspection and other customized requirements, and released iterative products with high load capacity based on Walker S. This product has already been tested extensively internally, and will be launched at partner factories one after another to conduct related practical training, and it is expected that small batches will be delivered by the end of the year. Based on one-stop technical capabilities and safe, stable and reliable use services, the company's robots have entered some applications in BYD, NIO, Geely, Audi, Hongqi, and FAW-Volkswagen, and have reached cooperation with Foxconn and SF Express.

Implications: 2024 is a year of accelerated development of humanoid robots. The active layout of car companies represented by Tesla, Xiaopeng and Xiaomi is expected to drive the development of the industry. Judging from the revenue structure of the preferred choice, in addition to education/consumption/logistics robots, humanoid robots are gradually expanding to other application scenarios, and recently cooperated with Medi Technology in the medical field. Although humanoid robots are currently engaged in experimental work with relatively standardized and simple processes, they are expected to enter a wider range of commercial services and home care industries in the future as movement tasks and training data are accumulated.