Momenta nears break-even in first earnings report since Hong Kong IPO

Momenta, the Chinese autonomous-driving supplier that listed in Hong Kong on July 8 in an offering raising about HK$6.8 billion ($868 million), has filed its first results as a public company. First-half revenue jumped 75.9 percent year-on-year to 1.6 billion yuan ($236 million), split between 995 million yuan from technical development services and 607 million yuan from licensing services. Gross margin edged up 1.4 percentage points to 73.2 percent.

Excluding share-based compensation, preferred-share fair-value swings and listing expenses, the adjusted net loss narrowed 96.6 percent to 14.1 million yuan, leaving the company within reach of adjusted break-even. Under IFRS, however, the net loss widened to 16.54 billion yuan from 1.7 billion yuan a year earlier, driven almost entirely by a 16.31 billion yuan noncash charge from the revaluation of preferred shares, which all converted into ordinary shares at the time of the listing.

The operating business scaled quickly. Installations of its mass-production solutions reached about 321,000 units in the half, up 83.7 percent, lifting cumulative deployments past 1 million units across 105 models from 26 automakers. Momenta holds 219 model nominations, 114 of which have yet to reach production, and says it still leads independent third-party providers of Urban NOA solutions, with equipped models exported to 10 countries and regions. R&D spending of 1.16 billion yuan grew far more slowly than revenue, a sign of improving operating leverage, while its systems have logged more than 13 billion kilometers of real-world driving data plus over 100 million clips of what it calls "Golden Data."

On the roadmap, the R7 world model enters production cars in the third quarter of 2026, the first mass-produced robotaxi follows in the fourth quarter, and the company targets hundreds of robotaxis in operation with licenses in more than 10 cities by year-end. L3 functions developed with several automakers could reach production models from 2027, pending regulatory approval. Momenta ended June with 10.3 billion yuan in cash, no borrowings and about 780 million yuan of undrawn credit lines.