Chongqing Afari Technology (601777.SH) accelerates commercialization of "AI + vehicles": research and development expenses double, technology business revenue breaks through.

Chongqing Afari Technology (601777.SH) released its annual report for 2025, with double growth in revenue and profit, achieving a breakthrough in the commercialization of "AI + vehicles". During the reporting period, the company achieved annual operating income of 9.99 billion yuan, an increase of 42.13% year-on-year; net profit attributable to shareholders reached approximately 84 million yuan, an increase of 111% year-on-year. The manufacturing business unit's revenue reached 9.319 billion yuan, an increase of 37.33% year-on-year. Among them, the revenue from the automotive business unit reached 6.44 billion yuan, an increase of 52.71% year-on-year. Vehicle sales volume increased by 83.93% year-on-year; revenue from motorcycle and engine businesses reached 2.879 billion yuan, with motorcycle sales increasing by 15.11% year-on-year; revenue from the technology business unit reached 0.35 billion yuan. 2025 is a crucial year for Chongqing Afari Technology's transformation breakthrough. Under the strategic guidance of "AI + vehicles", Chongqing Afari Technology is focusing on accelerating the smart transformation of vehicles around AI technology, exploring new sectors in the technology business unit, and forming a core pattern of "manufacturing business + technology business" dual-driven model. The company achieved stable overall development in operations, with the strategic transformation of "AI + vehicles" beginning to show results, laying a solid foundation for future development. In the manufacturing business unit, the automotive and motorcycle businesses performed well, with strong performance in overseas markets. In 2025, Chongqing Afari Technology's automotive business unit achieved a year-on-year revenue growth of 52.71%, with continued optimization of the operational structure. By establishing a positive research and development platform, Chongqing Afari Technology has built a diversified power matrix covering fuel and battery exchange, and is making continuous efforts in the SUV, MPV, and premium electric vehicle markets. At the same time, both the retail and corporate markets are advancing together, with coordinated layouts in domestic and international markets, achieving an 83.93% year-on-year growth in sales volume. The motorcycle unit focuses on cruise, cross-border scooter, retro scooter, and rally, and has launched many new products such as the V400, continuously enhancing the product matrix. The products have successfully broken through the technological barriers in the European market, expanding further overseas, with an export sales volume increasing by 25%, and the business now covering more than 80 countries and regions. In the technology business unit, research and development investment continues to increase, with successful breakthroughs in commercialization. As the core engine of strategic transformation, the technology business unit has intensified its research and development efforts, with research and development expenses reaching 8.22 billion yuan in 2025, an increase of 102.13% year-on-year. By strengthening its technical research and development capabilities, Chongqing Afari Technology has made key breakthroughs in its technology business. Around the end-to-end model architecture, Chongqing Afari Technology has developed cutting-edge AI technologies such as the Visual Language Model (VLM), Visual Language Action Model (VLA), and World Model, aimed at building a high-modulus assisted driving solution covering levels L2 to L4. During the reporting period, the "Qianli Zhijia 1.0" L2+ level intelligent assisted driving solution was released and scaled up. At the same time, Chongqing Afari Technology and Geely jointly released the "Qianli Haohan" (G-ASD) advanced intelligent driving system; the intelligent cabin ASC 100 platform has been successfully developed, promoting the upgrade of human-vehicle interaction experience; Robotaxi road tests in key cities such as Chengdu are steadily advancing. This fully demonstrates Chongqing Afari Technology's substantial breakthrough in the commercialization of "AI + vehicles" loop. In 2025, Chongqing Afari Technology presented a solid report: revenue approaching ten billion, net profit doubling, and most importantly, the commercial breakthrough in technology business, showing the market the possibility of its "AI + vehicle" strategy transitioning from investment to output. The continued increase in research and development investment also demonstrates its determination to drive strategic transformation. In 2026, the industry will pay more attention to Chongqing Afari Technology's commercialization process. In the fierce market competition, whether Chongqing Afari Technology can steadily promote the growth of its manufacturing business while accelerating the breakthrough of core technologies and products such as smart driving, smart cabin, Robotaxi, and accelerate their implementation process will be a key test of whether its "AI + vehicle" strategy can truly establish a successful business loop.