Technology

NetDragon Announces 2024 Interim Financial Results

Published

2 years ago

August 29, 2024

EBITDA up 13% as stage is set for next growth phase

HONG KONG, Aug. 29, 2024 /PRNewswire/ — NetDragon Websoft Holdings Limited (“NetDragon” or the “Company”; Hong Kong Stock Code: 777), a global leader in building internet communities, today announced its financial results for the first half of 2024. NetDragon’s management team will hold a results presentation and webcast at 10:00am Hong Kong time on 30 August 2024 to discuss the results and recent business development.

Dr. Dejian Liu, Chairman of NetDragon, commented: “In the first half of the year, we delivered results that demonstrate both our resilience in the face of short-term challenges and our focus in building products to strengthen our competitive position and drive long-term growth. Our domestic PC gaming business delivered revenue of RMB1.36 billion, an increase of 2.1% YoY driven by our focus in driving engagement and retention of players. We believe as players’ spending habits are clearly trending towards games with high quality contents and highly acclaimed IP, our iconic and non-replicable flagship IPs, together with our business model of building high quality games around these IPs, put us in a great position to differentiate and drive sustainable growth. With that being said, our overall gaming revenue in the first half was affected by our overseas revenue which declined by 12.9% YoY due to short-term temporary issues, and we are confident to emerge in the second half with a stronger performance. Our confidence stems from the fact that the execution of our growth strategy remains on track with many positive news to share. Our new game Code-Alpha is expected to be launched in the second half and will be expanding into several countries. We also received encouraging metrics from our testing of Under Oath Overseas Version which puts us on track to launch this new ACGN game in the Japanese market within the next 6 to 9 months. In addition, we have received very positive players’ feedback for our new roguelike top-down shooter game Nebula Rangers that featured a second place on the TapTap platform’s ranking of new games, coupled with a user score of 8.0. We expect this game to launch globally in 2025 and has the potential to become a new major title with high DAU.”

“Turning to our education business, our overseas education subsidiary, Mynd.ai, continued to go through a stage of industry transformation that presents both challenges and opportunities. On the one hand, we continued to see softening hardware shipment as education authorities are still reacting to a broad normalization of budgets post-Covid, and from a macro standpoint, inflation also played a role in affecting budget allocation decisions of schools. On the other hand, we believe the market is in a very early stage of transitioning from a hardware-centric model to an integrated software and service-based model, which presents a transformational opportunity, especially for Mynd.ai as the incumbent market leader in our addressable markets with an installed base of over 1 million classrooms.”

“In recent months, NetDragon has also made remarkable progress in our country-level initiatives in Thailand and the Kingdom of Saudi Arabia. In particular, we have announced a strategic initiative to develop aom-ai, a state-of-the-art AI education platform, with the support by the Ministry of Higher Education, Science, Research and Innovation in Thailand. This learning platform, which combines our cutting-edge education technologies with deep local insights of learners in the local market, is set for launch later this year. In Saudi Arabia, we are also working closely with the Ministry of Education on several exciting education technology initiatives in markets including K12 learning as well as technical and vocational training segments.”

2024 First Half Financial Highlights

Revenue was RMB3.30 billion, representing a 10.3% decrease YoY.Revenue from the gaming and application services was RMB2.12 billion, representing 64.3% of the Company’s total revenue and a 0.8% decrease YoY.Revenue from Mynd.ai was RMB1.18 billion, representing 35.7% of the Company’s total revenue and a 23.5% decrease YoY.Gross profit was RMB2.20 billion, representing a 3.8% decrease YoY.Core segmental profit[1] from the gaming and application services was RMB688 million, representing an 11.5% decrease YoY.Core segmental loss1 from Mynd.ai was RMB111 million, compared to a loss of RMB48 million in the first half of last year.Operating profit was RMB634 million, representing a 9.3% decrease YoY.Non-GAAP operating profit[2] was RMB640 million, representing a 7.5% decrease YoY.EBITDA was RMB1.04 billion, representing a 12.9% increase YoY.Non-GAAP EBITDA2 was RMB1.15 billion, representing a 33.1% increase YoY.Profit attributable to owners of the Company was RMB400 million, representing a 20.0% decrease YoY.Non-GAAP profit attributable to owners of the Company2 was RMB558 million, representing a 5.3% decrease YoY.The Company declared an interim dividend of HKD0.40 per ordinary share for the six months ended 30 June 2024.

1 Core segmental profit (loss) figures are derived from the Group’s reported segmental profit (loss) figures (presented in accordance with Hong Kong Financial Reporting Standard (“HKFRS”) 8), but exclude non-core/ operating, non-recurring or unallocated items including government grants, impairment loss (net of reversal), fair value change and exchange gain on financial assets at fair value through profit or loss (“FVTPL”), fair value change and exchange loss on derivative financial instruments, interest expense and exchange loss on convertible and exchangeable bonds and convertible note, redundancy payments, legal and professional fees for spin-off and reversal of impairment loss of intangible assets.

2 To supplement the consolidated results of the Group prepared in accordance with HKFRSs, the use of non-GAAP measures is provided solely to enhance the overall understanding of the Group’s current financial performance. The non-GAAP measures are not expressly permitted measures under HKFRSs and may not be comparable to similarly titled measures for other companies. The non-GAAP measures of the Group exclude share-based payments expense, amortisation of intangible assets arising on acquisitions of subsidiaries, write-down of inventories, fair value change on investment properties, fair value change on financial assets at FVTPL, fair value change on derivative financial instruments, finance costs, deferred tax, reversal of impairment loss of intangible assets, gain on disposal of intangible assets and exchange gain on pledged bank deposits, financial assets at FVTPL, convertible and exchangeable bonds and derivative financial instruments.

Segmental Financial Highlights

2024 First Half

2023 First Half

Variance

(RMB million)

Gaming
and
application
services

Mynd.ai

Gaming
and
application
services

Mynd.ai

Gaming
and
application
services

Mynd.ai

(Restated)

Revenue

2,121

1,180

2,139

1,542

-0.8 %

-23.5 %

Gross profit

1,849

351

1,896

392

-2.5 %

-10.5 %

Gross margin

87.2 %

29.7 %

88.6 %

25.4 %

-1.4 ppts

+4.3 ppts

Core segmental profit
(loss)1

688

(111)

777

(48)

-11.5 %

+131.3 %

Segmental operating
expenses3

– Research and
development

(595)

(101)

(542)

(99)

+9.8 %

+2.0 %

– Selling and marketing

(210)

(139)

(240)

(187)

-12.5 %

-25.7 %

– Administrative

(324)

(200)

(361)

(145)

-10.2 %

+37.9 %

3 Segmental operating expenses exclude unallocated expenses/income such as directors’ fee and salaries, amortisation and exchange difference that have been grouped into SG&A categories on the Company’s reported consolidated financial statements, but cannot be allocated to specific business segments for purpose of calculating the segmental profit (loss) figures in accordance with HKFRS 8.

Gaming Business

Our gaming revenue, which represents 87.8% of gaming and application services revenue, reached RMB1.86 billion in the first half, representing a 1.3% increase HoH and a 3.0% decrease YoY. Our focus in the first half was two-fold. On the one hand, we focused on deepening engagement of users through our ever-increasing quality of gaming experience for our existing games, hence leading to strong retention of users that pave the way for long-term sustainability of our existing games. On the other hand, we made remarkable progress in the development and testing of our new games in the pipeline, and we are pleased to have seen some promising metrics and feedback that put us in a strong position to grow our revenue in the next 6 to 12 months.

During the first half, domestic PC game revenue was RMB1.36 billion, marking a YoY increase of 2.1% and a HoH increase of 5.3%. Our three major IPs, Eudemons, Conquer and Heroes Evolved, all recorded both YoY and HoH growth for their respective domestic PC gaming revenues. The stable growth of our existing games is a result of our focus in expanding our gaming contents towards an optimal combination of content-driven and numerical attributes-driven spending that leads to higher quality of gaming experience over time.

Our top flagship IP Eudemons generated a total revenue of RMB1.69 billion during the period, representing a 0.6% HoH increase and a 3.8% YoY decrease. The performance of Eudemons IP in the first half was affected largely by two factors, namely (1) stable HoH performance of our existing Eudemons games during the period while we put our focus in working towards the launch of our next new Eudemons game, Eudemons Remake Version, which is scheduled to launch in Q1 of next year, and (2) short-term disruptive bot issues experienced in the overseas version of Eudemons Online, where measures have already been put in place to put the game back on growth track.

We continued to focus on enhancing quality of experience for our players leading to YoY growth of both gameplay-driven and content-driven revenue of our flagship game Eudemons Online in the domestic market during the first half. In particular, our measures include enhancing the depth and richness of different character roles, optimizing our graphics and in-game music, and integrating “Guofeng” and cultural elements to resonate with the interests and passion of many of our players.

Going forward, we expect to implement a multi-pronged growth strategy for the Eudemons IP, including achieving stable growth for our existing games, launching the Eudemons Remake Version and Eudemons Pocket Version 2.0 (in early 2025 and 2026 respectively) to target the huge existing pool of Eudemons IP players with a market-proven revenue model, as well as developing a new Eudemons PC game to be launched in the second half of 2025 to target both brand new players and existing player pool. We believe this strategy will bring the revenue scale of the Eudemons IP to a new level, and will drive revenue growth for many years to come.

Our Heroes Evolved IP continued to make positive progress in the first half, both from a revenue growth standpoint and a long-term strategic development standpoint. In particular, our Heroes Evolved PC game continued its momentum and delivered three consecutive reporting periods of revenue growth with a 29.6% increase in revenue YoY in the first half, driven by significant enhancements in overall gameplay and success in utilizing e-sports events to “activate” our players, leading to increase in players’ retention, APA and ARPU during the period. We also saw a 28% increase in the number of e-sports teams participating in our summer season competition, as well as a 71% increase in the audience number compared to the same competition in the autumn season last year. In terms of expanding our mobile revenue for Heroes Evolved, we are in testing stage for our new mobile game Code-Nirvana and target to launch the game in 2025.

Our Conquer IP delivered strong result in the domestic market with a 6.6% YoY increase in revenue, driven by two major content updates and the introduction of new innovative gameplays. In Egypt, our largest overseas market for Conquer Online, user spending dropped slightly by 1.3% YoY (on basis of local currency) mainly due to short-term restriction in electricity consumption (such restriction has subsequently been suspended in July, and it is expected that the electricity shortage will be resolved by the end of this year4). Despite the short-term revenue decline, we continued to gain traction with monetization, as our APA grew by 16.7% YoY. We are also making notable progress in expanding the casual gameplay within the game, with casual players increasing by 12.7%, laying the foundation for a larger revenue base going forward.

We also made great strides in executing our long-term strategy of expanding our IP and genre. Our new roguelike top-down shooter game under development Nebula Rangers started testing on TapTap in July and received a user score of 8.0. The game is expected to launch globally in 2025 and has the potential to become a new high DAU title. Furthermore, our new casual game Code-Alpha started testing in the overseas markets in June with positive results, and we expect meaningful revenue contribution from this game for the rest of the year with the potential to open up a new track for a casual entertainment genre. We are also making inroad in the ACGN genre as we received positive testing metrics in the overseas market for Under Oath after several rounds of game refinement in the past 12 months, and we currently believe there is strong visibility to launch the game in the first half of 2025. Last but not least, we are in the testing stage for our other new games including Miracland Saga, a new MMORPG to focus on the overseas market, and Huan Kong Cheng Zhan Ge to target the idle card game segment.

Looking forward in terms of our new game pipeline as a whole, we expect to drive growth of our overall revenue and profitability by delivering on our new game launches in the number of 4-5 new titles in the coming 6-9 months spanning across both our existing flagship IPs and new IPs.

4 According to news article: Egypt to stop load-shedding power cuts on Sunday: PM Madbouly, Ahram Online, 17 July 2024

Mynd.ai

Our overseas education subsidiary, Mynd.ai, has experienced a continued industry-wide softening demand trend throughout most of its key geographic markets. After several years of high funding as a result of COVID-related government relief programs, local education authorities are still reacting to a broad normalization of budgets which affected hardware revenue for all players in the interactive flat panel market during the period. In addition, inflation has also led to higher recurring overhead costs for schools that affected budget allocation decisions for many of our customers.

The key financial milestones for Mynd.ai in the first half of the year are as follows:

Revenue of RMB1.18 billion compared to RMB1.54 billion in the first half of the prior year, with the decrease primarily driven by reduced spending by key customers due to the softer industry demandGross margins increased 430 basis points to 29.7% primarily due to increased operational efficiencies leading to cost savings in a number of areas, including lower component material pricing, freight and other savings as a result of moving part of the manufacturing process to Mexico, as well as lower warranty costs due to observed lower failure rates on our ActivPanel 9 and our ActivPanel LX modelsCash flow from operations improvement of RMB34 million compared to the same period in the prior year[5]Cash position of RMB494 million with available existing credit lineAdjusted EBITDA loss of RMB40 million, a slight 7.5% YoY improvement (despite the decline in revenue) primarily driven by optimization of overhead costs5Net loss of RMB340 million compared to a loss of RMB109 million in the same period in the prior year, primarily due to the recording of a one-time non-cash valuation allowance against deferred tax assets in the amount of RMB294 million5 (excluding this one-time effect, net loss narrowed by 58.0% YoY)Management continuing to implement cost saving measures to mitigate effects of headwinds in the hardware market

5 From Form 6-K filing of Mynd.ai, in accordance with U.S. GAAP

Despite the near-term challenges, we are confident in our business model and are well positioned to prioritize and streamline our operations and navigate the market challenges, as evidenced by our margin improvement. As we continue to pursue cost optimization initiatives and evaluate our capital allocation strategy, we believe we are competitively well positioned to continue as the market leader in this space.

On a broader scale, we are facing an unprecedented opportunity as we believe the global classroom education technology market is still in a very early stage of evolving from a hardware-centric model to an integrated software and service based model. We believe Mynd.ai’s position as the incumbent market leader in our addressable markets, our installed base of over 1 million classrooms, a well-established network of distribution channels and a head-start advantage in launching its first SAAS offering in Explain Everything Advanced earlier this year are competitive moats that put us in a unique position at this market juncture. In view of the opportunity ahead of us, we are dedicated to delivering hardware and software solutions with groundbreaking tools and new technologies for the education, business, and public sectors in line with our long-term strategic vision.

We expect our subsidiary Mynd.ai to host a capital markets day in the near future to detail our strategic plan to our shareholders and the investor community.

Management Presentation and Webcast

NetDragon’s management team will hold a results presentation and webcast at 10:00am Hong Kong time on 30 August 2024 to discuss the results and recent business developments.

Details of the presentation are as follows:

Time:

10:00 AM, Hong Kong Time on 30 August 2024, Friday /

10:00 PM, Eastern Time on 29 August 2024, Thursday

Format:

Physical Presentation at The Executive Centre, Hong Kong

OR Online Webcast

Venue:

Level 2, No. 28 Stanley Street, Central, Hong Kong

Webcast：

https://webcast.roadshowchina.cn/Ym82eDBGWlozOGdtNjY5TUF6L3RDQT09

The live and archived webcast of the conference call will be available on the Investor Relations section of NetDragon’s website at http://ir.nd.com.cn/en/category/webcast. Participants in the live webcast should visit the aforementioned website 10 minutes prior to the call, then click on the icon for “2024 Interim Results Presentation and Webcast” and follow the registration instructions.

About NetDragon Websoft Holdings Limited

NetDragon Websoft Holdings Limited (HKSE: 0777) is a global leader in building internet communities with a long track record of developing and scaling multiple internet and mobile platforms that impact hundreds of millions of users, including previous establishments of China’s first online gaming portal, 17173.com, and China’s most influential smartphone app store platform, 91 Wireless.  

Established in 1999, NetDragon is one of the most reputable and well-known online game developers in China with a history of successful game titles including Eudemons Online, Heroes Evolved, Conquer Online and Under Oath. In the past 10 years, NetDragon has also achieved success with its online education business both domestically and globally, and its overseas education business entity, currently a U.S.-listed subsidiary named Mynd.ai, is a global leader in interactive technology and its award-winning interactive displays and software can be found in more than 1 million learning and training spaces across 126 countries.

For investor enquiries, please contact:
NetDragon Websoft Holdings Limited
Ms. Maggie Zhou
Senior Director of Investor Relations
Email: maggiezhou@nd.com.hk / ir@netdragon.com
Website: ir.netdragon.com

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND

OTHER COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2024

Six months ended 30 June

2024

2023

(Unaudited)

RMB million

Revenue

3,301

3,681

Cost of revenue

(1,102)

(1,394)

Gross profit

2,199

2,287

Other income and gains

139

120

Selling and marketing expenses

(352)

(443)

Administrative expenses

(551)

(570)

Research and development costs

(696)

(641)

Other expenses and losses

(105)

(54)

Operating profit

634

699

Exchange gain (loss) on pledged bank deposits,
financial assets at fair value through profit or loss,
convertible and exchangeable bonds and derivative
financial instruments

(35)

Fair value change on financial assets at fair value
through profit or loss

Fair value change on derivative financial instruments

Finance costs

(81)

(135)

Profit before taxation

702

579

Taxation

(397)

(126)

Profit for the period

305

453

Other comprehensive income (expense) for the period,
net of income tax:

Item that may be reclassified subsequently to profit
or loss:

Exchange differences arising on translation of foreign
operations

Item that will not be reclassified to profit or loss:

Fair value change on equity instruments at fair value
through other comprehensive income

(12)

(1)

Other comprehensive (expense) income for the period

(11)

Total comprehensive income for the period

294

513

Profit (loss) for the period attributable to:

– Owners of the Company

400

500

– Non-controlling interests

(95)

(47)

305

453

Total comprehensive income (expense) for the period
attributable to:

– Owners of the Company

388

557

– Non-controlling interests

(94)

(44)

294

513

RMB cents

Earnings per share

– Basic

75.46

92.61

– Diluted

75.46

92.61

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2024

30 June 2024

31 December 2023

(Unaudited)

(Audited and
restated)

RMB million

Non-current assets

Property, plant and equipment

2,357

2,422

Right-of-use assets

458

380

Investment properties

Goodwill

320

325

Intangible assets

783

868

Interests in associates and joint ventures

Equity instruments at fair value through other
comprehensive income

Financial assets at fair value through profit or loss

509

453

Loan receivables

Other receivables, prepayments and deposits

352

351

Deferred tax assets

151

433

5,064

5,392

Current assets

Properties under development

Properties for sale

281

280

Inventories

269

405

Financial assets at fair value through profit or loss

124

Loan receivables

Trade receivables

745

702

Other receivables, prepayments and deposits

667

492

Tax recoverable

Pledged bank deposits

624

315

Bank deposits with original maturity over three months

215

329

Cash and cash equivalents

2,382

2,241

5,497

4,990

Current liabilities

Trade and other payables

1,390

1,518

Contract liabilities

379

491

Lease liabilities

Provisions

110

127

Derivative financial instruments

107

Bank borrowings

1,318

1,033

Convertible and exchangeable bonds

274

256

Convertible note

375

357

Tax payable

4,052

4,045

Net current assets

1,445

945

Total assets less current liabilities

6,509

6,337

Non-current liabilities

Other payables

Lease liabilities

110

Bank borrowings

–

Deferred tax liabilities

229

163

Net assets

6,280

6,174

Capital and reserves

Share capital

Share premium and reserves

6,075

5,856

Equity attributable to owners of the Company

6,114

5,895

Non-controlling interests

166

279

6,280

6,174

UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS

Six months ended 30 June

2024

2023

(Unaudited)

RMB million

Operating profit

634

699

Gain on disposal of intangible assets

(51)

–

Amortisation of intangible assets arising on
acquisitions of subsidiaries

Fair value change in investment properties

–

Share-based payments expense

Reversal of impairment loss of intangible assets

–

(43)

Write-down of inventories

–

Non-GAAP operating profit

640

692

Profit attributable to owners of the Company

400

500

Fair value change on financial assets at fair value
through profit or loss

(77)

(35)

Fair value change on derivative financial instruments

(53)

(15)

Gain on disposal of intangible assets

(51)

–

Exchange (gain) loss on pledged bank deposits,
financial assets at fair value through profit or loss,
convertible and exchangeable bonds and derivative
financial instruments

(2)

Deferred tax

219

–

Finance costs

122

Amortisation of intangible assets arising on
acquisitions of subsidiaries

Fair value change in investment properties

–

Share-based payments expense

Reversal of impairment loss of intangible assets

–

(43)

Write-down of inventories

–

Non-GAAP profit attributable to owners of the
Company

558

589

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SOURCE NetDragon Websoft Holdings Limited

Technology

CGI launches high-security sovereign AI platform in Finland for enterprise and public sector use

Published

8 minutes ago

April 27, 2026

Stock Market Symbols
GIB.A (TSX)
GIB (NYSE)
cgi.com/newsroom

New KATAKRI-compliant service enabling AI development and deployment with data sovereignty, compliance, and scalable infrastructure

HELSINKI, April 27, 2026 /PRNewswire/ – CGI (TSX: GIB.A) (NYSE: GIB), one of the largest independent IT and business consulting services firms in the world, has launched a high-security sovereign AI and data services platform in Finland. The service provides an KATAKRI-compliant (National Security Auditing Criteria) environment enabling organizations to develop and operate AI applications in a secure and compliant environment.

As clients accelerate AI adoption, organizations must address strict data protection, security, and sovereignty requirements. CGI’s new high-security sovereign AI platform offers a deployment model delivered from a Finland-based data center, supporting enterprise and public sector clients that require the highest levels of security aligned with KATAKRI standards and control over their data and workloads, while enabling scalable adoption.

“With CGI’s local proximity model, we are uniquely positioned to partner with clients across industry sectors as they address evolving data protection, security, and sovereignty requirements,” said Niraj Sood, President, Finland, Poland and Baltics operations at CGI. “Our consultants, experts and engineers work side by side with our clients here in Finland, enabling a deep understanding of their needs, while also drawing on our global capabilities. With the integration of Agentic AI into the enterprise a top-of-mind priority for clients, we act as a trusted advisor: helping clients assess and build the right solution for their specific context, whether in high-security, cloud, or on-premise environments. We are pleased to complement these options with a platform that supports secure and scalable AI adoption where enhanced control and compliance are required.”

The platform is delivered from CGI’s high-security hybrid service, one of the few data centers certified against Finland’s national KATAKRI security audit criteria, which assesses information, physical, and administrative security for environments handling classified and other sensitive workloads. It supports the secure deployment of modern AI applications, enabling multiple large language models, seamless integration with existing systems via an OpenAI-compatible API, and a standardized delivery model that provides cost efficiency and predictability for enterprise-scale use.

“CGI helps clients assess different AI implementation options and select the most suitable approach for each use case. Our sovereign AI platform complements this by enabling organizations to operate data and AI applications within CGI’s data centers in Finland, under client governance and control, in a KATAKRI-certified setting,” said Jenni Mikkola, Senior Vice-President and Business Unit Leader for Global Technology Operations, CGI Finland.

“Generative AI offers significant potential for innovation and efficiency, and organizations are currently evaluating different ways to integrate AI into their overall architecture. CGI’s high-security AI platform provides a trusted alternative to public cloud and hybrid solutions, enabling clients to adopt AI quickly and securely while maintaining strong control over their data and environment,” said Mikkola.

About CGI
Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 94,000 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2025 reported revenue is CA$15.91 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.

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SOURCE CGI Inc.

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PATEO Joins Forces with AUMOVIO: AI-Driven Intelligent Driving Globalization to Jointly Expand the Global High-Computing SDV Market

Published

8 minutes ago

April 27, 2026

BEIJING, April 27, 2026 /PRNewswire/ — On April 25, at the Beijing International Automotive Exhibition, PATEO CONNECT Technology (Shanghai) Corporation (Stock Code: 2889.HK) entered into a strategic cooperation memorandum of understanding with AUMOVIO Holding China Co., Ltd. on the joint development of high-performance cross-domain integration and artificial general intelligence technologies and global market expansion.

According to the cooperation agreement, PATEO and AUMOVIO Group will fully leverage their respective research capabilities in high-computing SoC platforms, integrated cockpit-driving domain controllers and AGI algorithm research and development, as well as their industry influence in global supply chains, OEM customer resources and intelligent manufacturing, to jointly promote the global implementation of high-computing SDV domain control and AGI automotive application demonstration projects, and jointly promote the sustainable development of intelligent mobility and SDV technologies.

Regarding the specific details of the cooperation, the parties will jointly develop cross-domain integrated product solutions based on high-computing SoCs that meet future market demands. Meanwhile, a joint team will be formed to focus on demonstration projects for artificial general intelligence (AGI) automotive application products. Furthermore, PATEO and AUMOVIO Group will combine their respective advantages in technology, products, customers, supply chain, production and quality to jointly expand global SDV domain control and AGI application businesses. Based on their respective advantageous fields, the parties will realize a strong alliance of “channel + product”. At the technical level, upholding the principles of joint investment and technology collaboration, the parties will develop technologically leading high-computing and intelligent SDV technologies and products.

The signing of this Strategic Cooperation Memorandum of Understanding reflects AUMOVIO Group’s high recognition of the Company’s AI-centric, integrated “Software-Hardware-Chip-Cloud” automotive and mobile terminal solutions and ecosystem construction. This also marks a critical step for PATEO under its “AI + Globalization” dual-wheel drive strategy.

As an AI-centric provider of automotive and mobile terminal solutions and an ecosystem builder with integrated “Hardware-Software-Chip-Cloud” capabilities, PATEO has more than 2,100 employees globally and an R&D team of over 700 people, with its number of registered invention patents ranking first in the industry. This strategic cooperation with AUMOVIO Group is not only a significant milestone in PATEO’s globalization layout but also a powerful testament to its technical strength in the fields of high-computing SDV domain control and AGI application.

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SOURCE PATEO

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ebike Market worth $74.98 billion by 2035| MarketsandMarkets™

Published

8 minutes ago

April 27, 2026

DELRAY BEACH, Fla., April 27, 2026 /PRNewswire/ — According to MarketsandMarkets™, the global ebike market is projected to grow from USD 46.39 billion in 2026 to USD 74.98 billion by 2035 at a CAGR of 5.5%.3

Browse 380 market data Tables and 156 Figures spread through 570 Pages and in-depth TOC on ‘ebike Market’

ebike Market Size & Forecast:

Market Size Available for Years: 2026-20352026 Market Size: 46.39 billion2032 Projected Market Size: 74.98 billionCAGR (2026–2035): 5.5%

ebike Market Trends & Insights:

>250W–<450W battery capacity ebikes to hold the largest market share globally.Mid-drive motors are expected to be the fastest-growing ebike motor type during the forecast period.North America is expected to be the fastest-growing ebike market during the forecast period.

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The global ebike market is growing gradually, with each region exhibiting different patterns. Asia Pacific dominates by volume, accounting for over 90% of global demand, driven by China’s large-scale adoption, affordability, and a strong manufacturing ecosystem, making ebikes a mainstream daily mobility solution. In Europe and North America, ebike demand has declined mainly due to structural and economic headwinds. In Europe, sales declined across key markets from 2023–2025 as high inflation, reduced consumer spending, and excess inventory from the pandemic surge led retailers to cut new orders. Some countries, like the Netherlands, reported a drop in bike sales in 2025, from 409,467 units in 2024 to 391,300 units; France dropped from 565,225 units in 2024 to 558,442 units; and Switzerland dropped from 151,772 units in 2024 to 142,223 units. The ebike market in Europe and North America is expected to recover in the second half of 2027.

>250W–<450W battery capacity ebikes to hold the largest market share globally.

The 250–450W segment dominates the ebike market primarily because it is the standard configuration for city, trekking, and hybrid pedal-assist ebikes, which represent the largest use case globally. Also, ebikes in this range achieve optimal efficiency, with energy density, weight, and motor draw well matched to typical urban duty cycles. A 300–400 W pack paired with 250 W-class motors typically delivers ~40–90 km of real-world range at moderate-assist levels without pushing cells into high discharge rates that accelerate thermal stress and degradation, allowing simpler battery management systems and air cooling instead of heavier thermal controls. Keeping capacity below ~450 W also reduces pack mass by ~1–2 kg versus larger systems, preserving ride dynamics, frame integration, and braking performance while enabling standard charging (2–4 A) on household outlets.

This range has seen the highest adoption in Europe, where regulations cap motor power at 250W. This has led major manufacturers like Bosch, Yamaha, and Shimano to design their systems around this limit, ensuring mass-market compliance and efficiency. In the Asia Pacific region, the same range is widely used for its cost-effectiveness and suitability for short-distance daily commuting, while in North America it remains common in commuter models despite the availability of higher-power options. Overall, this segment leads because it offers the best balance of regulatory compliance, affordability, energy efficiency, and real-world usability, making it the most practical choice for large scale adoption.

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Mid-drive motors are expected to be the fastest-growing ebike motor type during the forecast period.

Mid-drive motors are widely preferred in Europe and North America for their higher torque, better weight distribution, and superior efficiency, which align with premium commuting and trekking needs. Leading OEM systems from Bosch eBike Systems, Shimano Inc., and Yamaha Motor Co., Ltd. are engineered for these performance-focused markets. In contrast, hub motors dominate in Asia Pacific, largely driven by cost-sensitive demand. Suppliers such as Bafang Electric specialize in affordable hub motor systems that are easier to mass-produce and integrate. Notably, while many APAC-based suppliers (e.g., Bafang, Ananda, Dapu) export mid-drive systems to Europe and North America, they still prioritize hub motors domestically because mid-drive integration requires higher R&D investment, complex frame redesign, and drivetrain engineering, whereas hub motors can be easily mounted on conventional bicycle frames at lower cost. Overall, the global motor supply is dominated by key players such as Bosch eBike Systems, Shimano Inc., Yamaha Motor Co., Ltd., Brose Fahrzeugteile SE & Co. KG, and Bafang Electric, with Bosch, Shimano, and Bafang alone holding significant global market share due to their extensive OEM networks and technological capabilities.

North America is expected to be the fastest-growing ebike market during the forecast period.

North America is emerging as the fastest-growing e-bike market, driven by policy support, shifting mobility preferences, and expanding use cases beyond recreation. Between 2024 and 2026, several US states introduced purchase incentives and rebate programs. California offered substantial statewide vouchers of up to USD 2,000 for qualifying residents, with a focus on safety certifications; Colorado provided a USD 225 instant, point-of-sale tax credit for qualifying electric bikes, with additional incentives for cargo bikes; and local and city programs, such as those in Denver, offered significant incentives of up to USD 1,400. These government incentives are promoting ebikes in North America. In addition, cities are investing in bike-lane infrastructure and safety regulations, alongside stricter standards for battery safety and UL certification, improving consumer confidence. At the same time, rising fuel costs and demand for last-mile and cargo mobility solutions are accelerating adoption, especially in urban areas, making e-bikes a practical alternative to cars rather than just a recreational product.

Meanwhile, mountain and trekking ebikes hold a dominant share in North America because of the region’s strong outdoor culture and diverse terrain, where consumers demand higher performance, durability, and longer range. These bikes are predominantly equipped with mid-drive motors from key players such as Bosch eBike Systems, Shimano Inc., and Yamaha Motor Co., Ltd., which provide greater torque, improved balance, and more efficient power transfer on steep or off-road terrain. This preference reinforces the premiumization trend in North America, where consumers increasingly prioritize performance-oriented ebikes over basic urban models.

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Top Companies in ebike Market:

The Top Companies in ebike Market are Giant Manufacturing Co., Ltd (Taiwan), Yamaha Motor Company (Japan), Accell Group NV (Netherlands), Yadea Group Holdings, Ltd. (China), and Pon Bicycle Holdings B.V. (Netherlands).

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