F-1/A: WeRide Inc. Eyes Nasdaq Listing with Initial Public Offering

WeRide Inc., a Cayman Islands-based autonomous driving technology company, is planning an initial public offering (IPO) of its American Depositary Shares (ADSs) on the Nasdaq Stock Market.

Summary

• WeRide Inc., a Cayman Islands holding company, is preparing for an IPO of its American Depositary Shares (ADSs) on the Nasdaq.
• The company is offering 6,452,000 ADSs, each representing three Class A ordinary shares, with an anticipated IPO price between US$15.50 and US$18.50 per ADS.
• Concurrently with the IPO, certain investors have committed to purchase US$320.5 million in Class A ordinary shares through private placements.
• Robert Bosch GmbH has expressed interest in purchasing up to US$100 million of the ADSs in the offering.
• WeRide's revenue was RMB401.8 million (US$55.3 million) in 2023, a decrease from RMB527.5 million in 2022.
• The company reported a net loss of RMB1,949.1 million (US$268.2 million) in 2023.
• WeRide operates one of the world's largest autonomous driving fleets, with operations in 30 cities across seven countries.
• The company's L4 autonomous driving vehicles are capable of navigating dense urban environments and operating in various weather conditions.
• WeRide has a strategic partnership with Bosch for ADAS solutions, with mass production commencing in March 2024.
• The company intends to use the IPO proceeds for research and development, commercialization, capital expenditures, and general corporate purposes.

Sentiment

Score: 6

Explanation: The document presents a mixed picture. While WeRide highlights its technological achievements and global presence, the financial results indicate a decrease in revenue and an increase in net loss. The potential for future growth and the strategic partnerships are positive, but the risks associated with the industry and regulatory environment temper the overall sentiment.

Positives

• WeRide is the most commercially successful L4 autonomous driving company globally as measured by commercialization revenue in 2021, 2022 and 2023.
• The company has a strategic partnership with Bosch for ADAS solutions, with mass production commencing in March 2024.
• WeRide operates in 30 cities across seven countries, making it a global leader in L4 autonomous driving.
• The company's L4 autonomous driving vehicles are capable of navigating dense urban environments and operating in various weather conditions.
• WeRide has received intent orders for over 10,000 units of its robovan as of the date of this prospectus.
• WeRide has received intent orders for approximately 2,000 units of robobuses as of the date of this prospectus.

Negatives

• WeRide's revenue in 2023 was RMB401.8 million (US$55.3 million), a decrease from RMB527.5 million in 2022.
• The company reported a net loss of RMB1,949.1 million (US$268.2 million) in 2023.
• The company has a limited operating history and financial track record in the emerging and fast-evolving autonomous driving industry, which involves significant risks and uncertainties.

Risks

• The autonomous driving industry is subject to extensive and evolving governmental regulations.
• The company's business generates and processes a large amount of data, requiring compliance with privacy and cybersecurity laws.
• The company faces competition from current and future competitors.
• The company depends on the experience and expertise of its senior management team and key employees.
• The company's expansion into new geographical areas and jurisdictions involves inherent risks.
• The company may be required to complete filing procedures with the China Securities Regulatory Commission in connection with future offerings.
• The PCAOB had historically been unable to inspect our auditor in relation to their audit work.
• Our ADSs may be prohibited from trading in the United States under the HFCAA in the future if the PCAOB is unable to inspect or investigate completely auditors located in China.
• The trading price of our ADSs may be volatile, which could result in substantial losses to you.

Future Outlook

WeRide intends to build on its technological and business milestones to advance towards full commercialization across all use cases, continue to innovate and maintain its leadership in autonomous driving technology, expand its global presence, and exercise financial discipline and improve operational efficiency.

Management Comments

• We believe WeRides autonomous driving technology is among the most advanced and commercially proven in the world, designed to cater to a broad spectrum of scenarios from urban environments to highways.
• We endeavor to unlock the true power of autonomous driving by building our WeRide One platform, our foundation model and business backbone empowered by advanced smart models and our unparalleled experience from open-road operations.

Industry Context

The autonomous driving market is expected to see tremendous growth, with the global market size reaching US$1,745 billion by 2030. L4 autonomous driving is expected to dominate the market, accounting for 88% of the overall autonomous driving market globally in 2030.

Comparison to Industry Standards

• WeRide is the most commercially successful L4 autonomous driving company globally as measured by commercialization revenue in 2021, 2022 and 2023.
• WeRide operates one of the world's largest autonomous driving fleets, with operations in 30 cities across seven countries.
• WeRide is the only autonomous driving company in the world to obtain test permits for autonomous driving vehicles in four countries.
• WeRide is the first company in the world to offer paid L4 robotaxi services to the public with the longest operation track record.
• WeRide is the first company in the world to develop a purpose-built L4 robobus designed for open road, as well as the first to launch driverless robobus services on open road to the public.
• WeRide is the first company in the world to develop an L4 robovan dedicated to intra-city delivery of goods and to obtain test driving permit for the robovan on open roads.
• WeRide is the first company in the world to develop a purpose-built L4 robosweeper designed for open road as well as the first to launch driverless robosweeper urban cleaning services.
• WeRide is the first autonomous driving company in the world to accumulate 10,000 purpose-built L4 autonomous driving vehicle orders, and the most advanced in commercialization milestones across industries.
• WeRide is the only autonomous driving company to achieve mass production of an ADAS solution within 18 months into development, the quickest among peers.

Related Party Transactions

• The company has entered into various transactions with related parties, including sales of goods and services to Yutong Bus Co., Ltd. and Alliance Automotive R&D (Shanghai) Co., Ltd., and purchases of services from Guangzhou Yuji Technology Co., Ltd.

Stakeholder Impact

• The IPO will create a public market for the company's shares, benefiting existing shareholders.
• The company's growth strategies aim to transform urban living with autonomous driving, impacting communities and the environment.
• The company's partnerships with OEMs and Tier 1 suppliers will accelerate the commercialization of its technology.
• The company's success depends on attracting and retaining talented employees, benefiting its workforce.

Next Steps

• The company aims to commence commercial production of its robotaxis and achieve readiness for large-scale commercialization in 2024 and 2025, respectively.
• WeRide intends to build on its technological and business milestones to advance towards full commercialization across all use cases.
• WeRide will continue to innovate and maintain its leadership in autonomous driving technology by improving its algorithms and by refining and building up the technical maturity of its autonomous driving products.
• WeRide plans to continue to recruit top-notch industry talent for these purposes.
• WeRide intends to transform mobility and urban services around the world and plans to establish a larger presence internationally by providing its robust autonomous driving products and services with compelling value propositions.

Key Dates

Keywords

autonomous driving, IPO, WeRide, ADS, robotaxi, robobus, robovan, ADAS, China, commercialization, technology, fleet