WETO · Webus International Limited Ordinary Shares

Webus International Limited's interim results for the six months ended December 31, 2025, reflect a strategic pivot from legacy mobility services to Physical AI infrastructure via the Orchestra platform, while legacy operations provided the revenue base. Revenues declined 45% to RMB9.6 million, primarily from 46.9% drop in packaged tours (85.5% of total) and 46.7% in commute shuttles, attributed to lower overseas volumes in North America, Japan, and South Korea amid intensified competition, plus deliberate downsizing of shuttle services. U.S. subsidiary revenues fell to RMB7.7 million (80.3% of total) from RMB15.7 million. Gross margin compressed to 16.6% from 20.5% due to pricing pressures overseas, though shuttle margins turned positive from prior loss via cost alignment. Operating expenses surged 71.8% to RMB12.6 million, driven by G&A tripling to RMB8.7 million from post-IPO compliance and director compensation, outweighing slight marketing decline and 70.8% R&D cut via headcount reduction. This yielded a net loss of RMB11.4 million versus RMB2.8 million prior year. Cash burned to RMB0.7 million from RMB11.4 million at June 30, 2025, with operating cash inflow of RMB10.9 million from receivable collections offsetting investing outflows for office prepayment. Debt stands at RMB21.7 million short-term, renewable. Recent PIPE raised $5.2 million. Management emphasizes Orchestra development (Conductor, Vision-Link, OS), U.S. expansion from Austin, and cost controls amid going concern considerations tied to revenue stabilization.