Wenjuan Zhixing's Hong Kong Listing Bid: The Profitability Dilemma Behind the World's Second-Highest Revenue in Level 4 Autonomous Driving

ZC Asia has learnt that autonomous driving enterprise WeRide Inc.-W (hereinafter referred to as ‘WeRide’, WRD.US) passed the listing hearing for the Main Board of the Hong Kong Stock Exchange on 19 October, with China International Capital Corporation Limited and Morgan Stanley acting as joint sponsors. This self-proclaimed global pioneer in Level 4 autonomous driving is entering the Hong Kong stock market with its operations spanning 30 cities across 11 countries and the distinction of being the ‘world's second-largest revenue generator’. However, its persistently widening losses and declining revenue have raised market doubts about its commercialisation capabilities.

According to its prospectus, WeRide has indeed demonstrated strong global competitiveness in Level 4 and above autonomous driving. Per a report by China Insights Consultancy, the company ranked second globally in revenue for urban road Level 4 and above autonomous driving in 2024, capturing a 21.8% market share. To date, it has deployed over 1,500 autonomous vehicles, including more than 700 autonomous taxis, with over 100 deployed in the Middle East alone.

Particularly noteworthy is Wenjuan Zhixing's first-mover advantage in international markets. The company stands as the sole enterprise to date to successfully deploy Level 4 autonomous driving solutions in France, Switzerland, and Belgium. In Singapore, it is the only operator running both autonomous taxis and minibuses, maintaining a lead of at least 1.5 years over the next market entrant. In the United Arab Emirates and Saudi Arabia, it holds a competitive edge of approximately two years over rivals. These overseas deployments not only provide diverse technical validation but also yield substantial commercial returns. In Abu Dhabi, ride fares are approximately four times those in China's tier-one cities, demonstrating a superior unit economics model.

Yet behind this impressive global footprint lies persistently strained financial performance. Financial data reveals WeRide's total revenue declined from RMB 528 million in 2022 to RMB 402 million in 2023, further falling to RMB 361 million in 2024, marking a continuous downward trajectory. More critically, losses have intensified: the company recorded losses of RMB 1.298 billion in 2022, which widened to RMB 1.949 billion in 2023 and further increased to RMB 2.517 billion in 2024. Losses for the first half of 2025 alone reached RMB 792 million. This pattern of ‘declining revenue and expanding losses’ highlights the widespread challenges autonomous driving enterprises face on their path to commercialisation.

Market analysts note that Wenjuan Zhixing's push for a Hong Kong IPO coincides with a critical juncture for the autonomous driving sector, marked by capital withdrawal and the need to validate business models. The company's performance on the US stock market has been lacklustre; by May 2025, its share price had fallen approximately 43% from its IPO price, with market capitalisation shrinking by around 71% from its peak. Institutional analysis suggests that its lacklustre revenue growth and unproven business model pose significant challenges to its Hong Kong listing journey.

From an industry perspective, the Level 4 autonomous driving sector is navigating a protracted period of high investment and slow returns. In recent years, multiple autonomous driving enterprises have encountered difficulties due to funding constraints, with the entire industry actively exploring sustainable business models. Although Wenjuan Zhixing ranks among the global leaders in revenue scale through its technological strengths and worldwide deployment, achieving genuine profitability remains a protracted and arduous challenge.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.