Revenue doubles, profit turning point begins to emerge, CIDI (03881) shows results from its "Heavy-load Intelligent Body" strategic phase.

If we were to identify the strongest theme in the global capital markets this year, technology assets would undoubtedly take the lead. For growth stocks, financial reports are undoubtedly the most objective measure to gauge their value. With the earnings season upon us, GMTEight has observed that CIDI (03881) recently disclosed its mid-year results for the fiscal year 2026. The report shows that CIDI's revenue nearly doubled in the first half of this year, while its profitability has continued to improve, with the company's losses substantially narrowing. The comprehensive optimization of financial data is just a glimpse of the positive changes revealed in CIDI's report. From a business perspective, the company's traditional strength in the autonomous driving sector accelerated its growth, securing the largest single formal purchase order in the global driverless mining truck field during this period; not only that, the Siasun Robot & Automation business has progressed from conceptual planning to a new stage of practical application, marking remarkable results in CIDI's evolution towards "heavy-duty embodied intelligence." Additionally, the companys smart hardware and services sectors have also made notable advancements, with product lines such as V2X, TAPS, and security intelligence flourishing. CIDI's multiple breakthroughs in its business are not coincidental. Nine years of deep cultivation has allowed the company to develop a profound understanding of various scenarios and achieve systematic accumulation of its core technologies. Building on this foundation, CIDI has accurately identified the deep-seated pain points within the mining production chain, proactively extending its business radius from transportation to the entire production chain, including drilling, blasting, excavating, and loading, leveraging hardcore technology to unlock wider production scenarios in the physical AI world. In my view, CIDIs latest financial report not only reveals a feasible path for "heavy-duty embodied intelligence" from concept to implementation but also provides a rare case study for the large-scale commercial application of physical AI. Strong financial reports validate powerful growth potential CIDIs first interim financial report since going public has sent a strong value signal to the market. On the revenue side, the company achieved an operating income of 804 million yuan in the first half of the year, a year-on-year increase of 97%, nearly doubling. The main engine of this growth is its core business in autonomous driving, which contributed 784 million yuan in revenue during the period, representing a year-on-year increase of 107.3% and accounting for 97.6% of total revenue. By the end of the reporting period, CIDI had cumulative shipments of over 1,900 driverless mining trucks, covering nearly 40 mines worldwide; among these, seven mines achieved regular operations of more than 100 driverless trucks, with the highest single mine operating over 220 trucks. This confirms that CIDI has mastered the full-stack capabilities of building, delivering, and operating large-scale driverless transportation systems. It is worth mentioning that in February, CIDI also secured the largest single formal purchase order in the global driverless mining truck field to datesigning a procurement agreement for 500 driverless trucks with Guangna Group. The business of driverless heavy trucks is also rapidly expanding, with CIDI obtaining bulk order contracts totaling over 400 trucks both domestically and internationally in the first half of the year. Currently, the fully automated customs clearance solution being developed by CIDI for the China-Vietnam Smart Port has achieved regular operations of driverless import trucks; another driverless project at Chengdu International Railway Port, in which CIDI is deeply involved, has also entered the phase of normalization testing. With the significant landing of the "heavy-duty embodied intelligence" strategy, CIDIs Siasun Robot & Automation business has also achieved a breakthrough in generating revenue, yielding 3.082 million yuan during the period. Currently, CIDI is pursuing an open ecosystem strategy to develop embodied intelligent brains in collaboration with companies dealing with quadrupedal and humanoid Siasun Robot & Automation, quickly constructing a product matrix of Siasun Robot & Automation for multiple forms of operations. This business is expected to become another "engine" for sustained rapid growth. As the scale continues to expand, it is equally remarkable that CIDIs profitability has welcomed a significant turning point. In the first half of the year, the company's gross margin increased from 17.1% during the same period last year to 26.4%, while the adjusted net loss narrowed to 19.68 million yuan, decreasing by 82% year-on-year, and the adjusted net profit margin improved to -2.4%. All signs indicate that the company's WINOX platform is becoming increasingly clear. The increase in gross margin, in particular, warrants attention, as the significant enhancement in profitability stems from optimization in product structure: the share of high-margin autonomous driving solutions sold separately has increased, effectively boosting the overall gross margin; in addition, improvements in delivery capacity and customer recognition have also positively impacted the results. The substantial reduction in losses during the period fundamentally reflects the significant improvement in CIDIs operational quality. The core drive comes from the substantial increase in gross profit due to high revenue growth, indicating that the operational leverage effect is continuously being released. The company has entered a positive cycle where scale growth drives improvements in profitability. Additionally, there are no longer any expenses related to public listing during the period, while CIDI had significant expenses during the preparation for its IPO in the same period in 2025; combined with a reduction in non-cash expenses related to stock incentives from 267 million yuan to 93 million yuan, these factors have released some of the profit potential. Leading the in-depth development of heavy-duty embodied intelligence The comprehensive optimization of financial data is a result of CIDIs strategic execution. However, while financial reports can describe the past, what truly determines how far a company can go is its ability to position itself for future opportunities. Looking ahead, CIDI has developed a clear strategic depth layout around the physical AI trackvertical deep cultivation, horizontal expansion, and globalization, with these three dimensions jointly constructing a replicable and scalable growth wheel. Firstly, from an industry perspective, the high prosperity of driverless mining trucks can be seen as an opportunity window for the physical AI industry. The penetration rate in this niche segment is at a key transition stage from 10% to 50%, with the market size expected to approach 40 billion yuan by 2030. However, what deserves real attention is that the success of driverless mining trucks validates not just the feasibility of a single trackit proves that the commercial logic of "machines replacing humans" has been realized under heavy load scenarios. When the feasibility of automation in mining transportation is confirmed, higher-value operational aspects such as drilling, blasting, excavating, and loading, as well as logistics, infrastructure, and civil engineering, will all welcome a window for intelligent transformation. This represents an industrial chain opportunity that evolves from point to line to a broader context. Vertical deep cultivation of mining scenarios will remain a key focus for CIDI. The mining production chain consists of five major processes: drilling, blasting, excavating, loading, and transporting; the driverless mining trucks address only the transportation aspect. CIDIs positioning in "heavy-duty embodied intelligence" essentially extends its accumulated capabilities in heavy load control, extreme environment perception, and cluster scheduling from the transportation sector to the complete operation chain of drilling, blasting, excavating, and loading. Currently, revenue from CIDI's operational Siasun Robot & Automation business has exceeded zero, with excavating Siasun Robot & Automation, open-pit mining charging Siasun Robot & Automation, and smelting cargo Siasun Robot & Automation already in use, while the design and manufacturing of underground mining excavation Siasun Robot & Automation has been completed. This is not just crossing industries; it is a deeper exploration of the physical world along the same technological lineage. Of course, mining is just the starting point; CIDI will also expand horizontally into multiple scenarios. CIDI is replicating its validated capabilities to more heavy-load scenarios such as bulk logistics, large infrastructure, and civil engineering. Driverless heavy trucks have already completed routine validations in benchmark projects such as the China-Vietnam Smart Port and Chengdu International Railway Port, with a clearer path extending from closed scenarios to trunk logistics. A glimpse into a larger picture reveals that CIDI possesses the foundational capabilities for scenario cross-replication: the same technological architecture, adaptable to multiple forms, allows for cross-scenario reuse. Globalization brings further possibilities. CIDI is launching operations in resource-rich countries such as Australia, Brazil, and Indonesia under the "products, scenarios, and overseas" framework, with plans to progressively expand into Africa, Central Asia, and the Middle East. It is foreseeable that as the domestic penetration rate continues to rise, the scaled replication in overseas markets will also open up a second growth space for CIDI. In summary, the significance of CIDIs latest financial report lies in the solid evidence it provides for the following matter: As the only physical AI enterprise in the industry to secure large-scale orders across various heavy-load scenarios such as resource extraction and transportation, logistics, and large infrastructure, CIDI is building a unique competitive barrier. While the capital market continues to value it under the framework of "driverless mining truck company," this company's revenue has continuously doubled, bringing WINOX closer to completion. From transportation extending to operations in its business landscape, to accumulating orders across multiple heavy-load scenarios, CIDI has demonstrated itself as a platform-type physical AI enterprise. This rarity will gradually be recognized and priced by the market in the ongoing process of sustained performance fulfillment.