AI TRENDS | Pateo Reports Wider Interim Loss As Revenue Jumps 110%

Pateo Connect Technology (02889) reported an interim loss of RMB 306 million for the six months ended June 30, wider than the RMB 227 million loss a year earlier, and said it will not pay an interim dividend. ETNet reported that revenue rose 110% to RMB 2.228 billion, driven by heavier investment in AI-related businesses and a sharp increase in sales from AI smart cockpit and AI solutions. Gross profit climbed 64.7% to RMB 257 million, while gross margin narrowed 2.9 percentage points to 11.5%. The company said selling expenses rose 38.9%, administrative expenses increased 79%, and research and development expenses grew 33.5%.