The mid-term report reveals that MINIEYE (02431) has realized the path of "layout to cash": revenue increased by 46%, with breakthrough growth in L4 business.

Although competition is always present, flexible strategies and continuous innovation can often help companies navigate through cycles. Taking the phenomenon-level company Xiaomi Group as an example, the company started out in the mobile phone business and later entered the home appliance arena, then nurtured the automotive business into a third growth curve, forming a diversified and progressive development path that has created an ecosystem resonance. Xiaomi is not a unique case, as similar growth paths can also be found in companies in the intelligent driving field. Taking MINIEYE (02431) as an example, the company initially focused on intelligent driving business and established the Intelligent Cockpit Business Unit in 2019 to achieve "walking on two legs," followed by the establishment of the V2X business sector the following year. By the end of 2024, MINIEYE, with a simultaneous development pattern in its businesses, officially listed on the Hong Kong Stock Exchange. According to the company's recent interim report, by the first half of this year, the L4 business of MINIEYE had achieved a breakthrough in key revenue, with emerging formats such as logistics vehicles expected to become new growth drivers for the company in the future. Looking back at the growth trajectory of Xiaomi and MINIEYE, it is easy to see that each expansion of these two companies was not blindly rushed, but rather solidly realized strategic commitments with high execution. In the view of GMTEight, Xiaomi's success has validated the effectiveness of the diversified development model for companies, and MINIEYE, with similar traits of "solidity" and "diversity," may also be able to replicate Xiaomi's success in its own field and trigger an ecological flywheel effect. Consolidating the foundation while successfully nurturing new growth MINIEYE's mid-year report for 2025 is a report card that steady delivers on growth expectations and also opens up new channels for growth. The financial report shows that the company achieved revenue of 346 million yuan in the first half of the year, a year-on-year increase of 46.1%; gross profit of 52 million yuan, with a gross profit margin of 15%, an increase of 0.9 percentage points year-on-year, indicating that while the scale is growing, the profitability of MINIEYE is also strengthening. Due to the company's increased investment in medium-to-high-level assisted driving and L4 autonomous driving technology, MINIEYE is still in a strategic loss phase, but this is a necessary process for a technology company like MINIEYE. Looking at the business segments, during the reporting period, MINIEYE's two core businesses, Intelligent Driving Solutions and Intelligent Cockpit Solutions, achieved revenues of 241 million yuan and 61 million yuan, respectively, representing increases of 32.4% and 99% year-on-year, with impressive growth rates. During the same period, the company's Vehicle-Road Cooperative business also saw an increased revenue of 39 million yuan, a 63.4% increase year-on-year. As the largest business segment accounting for nearly 70% of revenue, MINIEYE's Intelligent Driving Solutions segment kicked off a strong product cycle in the first half of the year. In February, the company launched the iPilot 4 Plus, built on the Horizon Journey 6M chip; in June, MINIEYE introduced the iPilot 4 Pro with 256 TOPS of computing power for higher performance. Driven by the strong products, MINIEYE secured four medium-to-high-level assisted driving projects in the first half of the year and added six vehicle platform projects from four OEM customers, demonstrating significant efficiency improvements in standardized development. In the field of L4 autonomous driving, MINIEYE's iRobo solution landed commercial applications and generated revenue of over ten million yuan within six months. In the first quarter, the company completed the first iRobo unmanned bus project in Suzhou, followed by the delivery of an autonomous driving bus to China Telecom Corporation in the second quarter. During the period, MINIEYE's unmanned bus business has been operational in multiple locations such as Heilongjiang, Shanghai, and Hangzhou, with over 10 projects accumulated. With the successful doubling of the Intelligent Cockpit business, the revenue share of this segment in the first half of the year has also risen to 17.6%. MINIEYE introduced a new large-scale cockpit solution "Smart Butler BamBam" in the first half of the year, which integrates large-scale capabilities to enhance vehicle safety and provide users with personalized, comprehensive, and proactive intelligent services. Additionally, the company launched the self-developed all-stack Intelligent Cockpit DMS integrated system, combining DMS cameras with controllers to achieve integrated innovation goals at the product level. As a rare player deeply rooted in both intelligent driving and intelligent cockpit development, MINIEYE leverages its self-developed full-stack, standardized development capabilities for integrated hardware and software to amplify the cost-effectiveness of its technology and products. In terms of performance trends, the positive feedback generated by business collaboration has been repeatedly emphasized in the financial reports. With the rise of the Chinese automotive industry on the international stage, the trend of supply chain companies going overseas to "strike gold" is growing, and MINIEYE is part of this trend. The financial report shows that MINIEYE's solutions have been adopted by multiple export vehicle models from various OEMs, covering markets in the European Union, Australia, Mexico, and other countries. At the same time, through cooperation with international Tier 1 companies, MINIEYE has successfully entered the supply chain of international OEMs. Throughout the first half of the year, MINIEYE added 18 new projects, and by the end of the reporting period, the company had delivered products for mass production to 42 automotive OEMs, indicating the continued expansion of its cooperation range. Steady development continues to deliver on growth commitments Failed companies each have their fatal flaws, while successful companies often have similarities between them. Reviewing MINIEYE's growth trajectory, GMTEight found that, like Xiaomi, each new business opened by MINIEYE is not blind or random, but each business demonstrates deep synergies, and both companies have adopted a progressive development strategy, which has successfully triggered an ecosystem flywheel effect at a certain stage. To begin with, MINIEYE, like Xiaomi, is deeply flexible in its strategy. Although the company started in the intelligent driving business, it leveraged its flexibility to enter new tracks as soon as opportunities in the intelligent cockpit and vehicle-road cooperative markets were identified. Looking at MINIEYE's past financial reports from 2022 to 2024, the revenue from intelligent driving increased from 270 million to 480 million yuan; revenue from intelligent cockpit increased from 20 million to 104 million yuan; revenue from vehicle-road cooperation increased from 7 million to 63 million yuan, with compound annual growth rates of 33.3%, 621.1%, and 848.7% respectively, demonstrating rapid growth in various business areas. Combined with the mid-year results, MINIEYE's "three drivers" are clearly continuing to accelerate growth in the first half of the year. In this regard, each expansion of MINIEYE's business has resulted in positive financial feedback, indicating that "solidity" and "commitment" are the core values of the company. Furthermore, the focus on innovation is also ingrained in MINIEYE's "genes," which is similar to Xiaomi. In the first half of this year, R&D expenses for MINIEYE increased by over 50% year-on-year. Last month, MINIEYE also announced the completion of a private placement of 6.8 million shares, with the proceeds mainly earmarked for the research and deployment of medium-to-high-level assisted driving and L4 autonomous driving. Considering that the revenue from the iRobo solution has already exceeded tens of millions in the first half of the year and the substantial contribution of the L4 business, it is expected that with MINIEYE's increased investment, the growth potential of this business will accelerate. It is reported that MINIEYE has gradually replicated its autonomous driving technology from passenger scenarios to freight scenarios, including unmanned logistics, long-haul transportation, airports, and mines. Among them, the cargo vehicles that are close to the commercialization tipping point are expected to lead the way in volume and become the company's new growth point. It is reported that the first generation of MINIEYE's unmanned logistics vehicles has entered the road testing phase and is expected to be officially delivered to the public in the fourth quarter of this year. It can be seen that in the highly promising L4 autonomous driving field, MINIEYE has continued its commitment to "saying and doing." In conclusion, with the characteristics of flexible strategies and increased innovation, MINIEYE has successfully cultivated three major growth engines. With subsequent positive resonance in the business, the company's growth visibility and resilience are high. Professional institutions also have an optimistic outlook on MINIEYE, with analysts from GF Securities International predicting the company will significantly reduce its losses next year and achieve profit turnaround in 2027. Looking at the company's current financial situation, MINIEYE has a low debt-to-equity ratio and sufficient cash on hand to support its long-term development. In summary, MINIEYE has both a solid fundamental outlook and good growth expectations, and as the momentum for growth continues to steadily unfold, the investment value of the company is expected to be deeply realized.