HK Stock Market Move | PATEO (02889) surged nearly 4% again as the company secured a designated partnership with a leading new energy vehicle manufacturer and acquired Chengdu Mingyi for the deployment of onboard optical communication.

The smart driving concept and optical communication sector have recently gained favor with market investors. PATEO (02889) is positioned in two major tracks, soaring 13% yesterday and continuing to rise against the market trend today. As of the time of writing, PATEO is up 3.67%, priced at HKD 186.6, with a trading volume of HKD 41.3139 million. On the news front, PATEO announced that it has recently received a project confirmation notification from a leading domestic new energy vehicle manufacturer, which will see it serve as the supplier for this client's new vehicle model platform, utilizing Horizon's Starry Sky chip solution. The announcement explicitly states that this is the industry's first purely domestic cabin-driving integrated chip high-end AI cockpit project allocation, marking the company's advancement from a smart cockpit leader to a cross-domain pioneer in "cabin-driving integration" as part of the commercialization of its AI strategy. It is worth noting that on August 7, PATEO announced its first significant industrial merger and acquisition since its listing, planning to acquire approximately 70% of Chengdu Mingyi's equity for no more than 1.4 billion yuan. The long-term potential of this acquisition lies not only in the rapid growth potential of AI data centers but also in onboard optical communication. The two parties will collaborate to layout the onboard optical communication track, seizing the opportunity presented by the explosive demand for high-speed data transmission in the context of smart vehicle architecture upgrades, jointly expanding into the trillion-yuan growth market for vehicle transport and creating a data closed-loop that collaborates between edge and cloud.