Yahoo Finance

Jennifer Li

Thank you, Tony. Hello, everyone. Before we get into the financials, please know that all amounts are in RMB and all comparisons are on year-over-year basis, unless otherwise stated.
Now let's discuss our first quarter financial performance. Total revenue for the first quarter of 2025 increased 1.8% to RMB72.4 million, primarily driven by the growth in product revenue, which was partially offset by a slight decline in our service revenue.
Robotaxi has been one of the core drivers in our business following our -- achieving the record high Robotaxi revenue for the financial year of 2024. We continue with the momentum in the first quarter of this year, with Robotaxi revenue of RMB16.1 million.
RoboTaxi's contribution in group revenue reaches 22.3%, rising from 11.9% of the same period of 2024. Product revenue delivers strong growth, increasing by 46.7% to RMB9.5 million for the first quarter. This encouraging growth was primarily driven by a substantial increase in the sales of RoboTaxi and Robosweepers, which were introduced into a new international market with expanded operations.
And RMB62.9 million, primarily due to a reduction of RMB33.5 million in revenue from ADAS research and development services as the customized R&D project for a certain client has been completed in 2024.
This decline was partially offset by an increase of RMB29.8 million in revenue from intelligent data services and an increase of RMB1.9 million in revenue from operational and technical support services as technical support engagement increases quarter along with the transition into the operation phase of certain projects.
We recorded a group level growth margin of 35.0%, representing a gross margin for a product of 49.9% and a gross margin for service of 32.8%, respectively. This reflects a sustaining improvement of our business structure in line with our Robotaxi business expansion and globalized commercialization.
We are building a sustainable business model by engaging trusted partners and localize deployment. It helps us sustain a healthy gross profit level.
Now, turning into our operating expenses, we recorded a rise of 14.2% for the first quarter, amounting to RMB463.5 million. The increase was driven by a 48.4% rise in personnel-related expense compared to the same period of 2024.
We remain highly cost cautious and disciplined. The increase of operating expense is mainly driven by our incremental R&D efforts. In this important phase of development, we prioritize strategic investment in talent acquisition and retention to drive our technological advancements. Combining with our expansion of selling and marketing activities, we aim to solidify our leading position by laying a sustainable foundation.
To further break down, R&D expense represents 70.3% of operating expenses. This [line] item increased by 17.3% to RMB325.7 million compared to the same period of 2024, excluding share-based compensation, R&D expenses increased by 54% to RMB278 million.
Administrative expense increased by 5.2% to RMB123.9 million compared to the same period of 2024, excluding SBC, administrative expense increased by 105.8% to RMB73.9 million. Selling expense increased by 32.4% to RMB13.9 million compared to the same period of 2024, excluding [SBC]. Selling expenses were up 66.7% in the first quarter.
Our net loss decreased by 17.7% to RMB385.1 million in the first quarter of 2025. On a non-IFRS basis, the net loss increased by 108.2% to RMB294.6 million, which was mainly contributed to our continuous investment in R&D.
As of March 31, 2025, we held a total capital reserve of RMB6.2 billion, including RMB4.4 billion in cash equivalent, and time deposit.
RMB14.7 million in restricted cash and RMB1.7 billion in financial assets, mattered at fair value through profit and loss. We believe that our strong cash capital position will continue to support our ongoing R&D initiative and facilitate the expansion of our growing global business.
On a separate note, our board has recently authorized a share repurchase program under which the company may repurchase up to $100 million of its class A ordinary shares over the next 12 months. It indicates a vote of confidence in our business fundamentals, growth trajectory, and long-term outlook.
In conclusion, we feel encouraged by our financial performance of the first quarter. As we continue to scale our operation with additional deployment underway in international markets, we are confident to build on the success and turn global opportunity into long-term value for our stakeholders. With that operator, we are not ready to take on questions.

Question and Answer Session

Operator

(Operator Instructions)
Tim Hsiao, Morgan Stanley.

Tim Hsiao

Hi, thanks for taking my question. This is Tim from Morgan Stanley. I have two questions, and both are related to collaboration with Uber.
So the first question, we noticed that Tony briefly touched on the collaboration with Uber at the beginning of the call. I just want to quickly follow up on why WeRide and Uber decided to expand this partnership. It'd be great if you can share more callers on the deal with us. That's my first question. Thank you.

Tony Han

Okay, I will take this question. Thank you, Tim, for this question. So first of all, I think our expanded partnership with Uber builds on a proven model. This model is demonstrated by our successful integration of WeRide Robotaxi into Uber's in Abu Dhabi.
Under this collaboration, WeRide delivers our tried and tested autonomous driving product. With Uber manages -- Uber will manage fleet operations and the customer success via its platform.
Together, we also announced a joint global taxi launch in Dubai, where we are currently finalizing mapping and expect to begin operations soon.
So, I want to talk about this strong collaboration. So we have committed to deploying services across 15 major global cities within the next five years. This is a significant milestone for scalable autonomous mobility. And I think this partnership combines WeRide's world-class, autonomous driving technology and the international expertise with Uber's unparalleled marketplace reach and the operational excellence.
And also, I want to reemphasize as a testament of this alignment. Uber is already our shareholder, and we will invest an additional $100 million in WeRide over the next six months. To my best knowledge, this ranks among Uber's largest investment in non-affiliated autonomous driving companies.
Besides, beyond the technology, I think mission is very important. Our shared mission is to make autonomous mobility affordable and accessible worldwide. WeRide operates in over 30 cities across 10 countries with our research, R&D testing commercial deployments.
When into new markets, we are not just solving the mobility challenges. We want to invest in local ecosystem by creating jobs in management, maintenance, and customer support. So we have a community-oriented approach to ensure sustainable growth and I think we share this kind of mission with Uber.
We also believe that by leveraging both companies' leadership in our respective fields, we can accelerate the global adoption of autonomy of autonomous mobility service. So I think in terms of [not] to some technology and mission and approach and the shared value, I think Uber and WeRide are well-aligned. We are very excited for the next five years and 15 cities, globally.

Tim Hsiao

Great. Thank you very much for sharing all the details, Tony. And just another quick follow-up on the collaboration. So according to the announcement, also what you just shared, out of the 15 cities and probably others, the potential global market, which regions or market would be the main focus to rewrite for the Robotaxi right out?
And then, in the following quarters, any signposts or milestones, the investors should monitor? Yeah, that's my second question. Thank you.

Tony Han

So about the regions of focus currently, we are focusing on markets mainly in Europe and the Mid East. So we are going to take a phased approach. So basically, we are not going to roll out like a Robotech service in one night in 15 cities, simultaneously.
Basically, we want to add cities one by one. So new cities will come online each year, maybe probably three new cities every year. It's just a rough estimate. And we will be following a pattern of regulatory approval and then testing and then commercial operation and then scale deployment. So there are four stages.
As for this fourth stage has been approved in our current deployment in Abu Dhabi, and I think soon it will also be improved in Dubai. And cities will be chosen based on favorable policies, guidelines, and the initiatives for autonomous driving.
And also we are -- we want to, we are looking forward to really maximize social value and also want to create value for our long-term stakeholders.

Operator

Li Ping Zhao, CICC.

Li Ping Zhao

Good evening, Tony and Jennifer. Congrats for the strong Robotaxi revenue in this quarter. I got two questions here.
First, could you, share with us your Robotaxi economics? How should we consider the cost structure as you scale?
And second, could you please share more about your recent rollout at Guangzhou City Center? When should we expect you to start to provide a Robotaxi service in the whole city? Thank you.

Jennifer Li

Okay, I'll take the first question, Tony. We'll take a second. And so the first question on the Robotaxomics, let's just take a look at the number.
In the conventional rackuline, driver takes home roughly like 60% of each fare that's like 6 out of every 10. RoboTaxis revolutionized its model by reducing the driver cost to nearly nothing. Yes, we do have the vehicle cost for RoboTaxi, which is slightly higher than traditional taxi, but eliminating the 60% cost changes everything about the business model.
And cost optimization has been one of our key focuses, and we are making cautious, continuous progresses.
First, let's talk about the vehicle cost. Leveraging on the booming and like more mature EV supply chain here in China, we have access to components of high quality and competitive pricing.
Second, we have also build in-depth collaboration with global OEM such as Reno and Nissan, and thirdly, we got a mobilized design of our sensors which enable -- enabling 90% shared component across different like autonomous driving products. We also converted to the more -- to the most cost effective semi-solid leather a few years ago.
So leveraging on all of those, our autonomous vehicles are quite cost competitive. For instance, the cost of our sensor suite has reduced by more than 70% over the past five years. And going forward with the more integrated design and increasing adoption of redundant drive-by wire services, we anticipate another 20% to 30% headroom for a future, cost reduction for the next gen of Robotaxi.
And today, we operate one of the world's largest AV fleet globally, over 1,200 vehicles, and with more than 500 dedicated robotaxis. All of our vehicles using the standardized tech as well as the similar sensors, same computing platform.
This gives us -- this will give us tremendous buying power and make the maintenance so much simpler in the long run. Our OEM partnerships will help -- helps us keeping optimizing every part of the supply chain.
So in short, compared to the traditional taxi and road [dealing] services, RoboTaxi is expected to be 50% or more cost effective in developed markets. We're doing testing and operation of AV in 10 countries already.
We're seeing that on the ground, confirms a very critical pinpoint, many markets are facing very severe driver shortage, also this growing challenge in hiring and retention of the drivers. This is exactly where our solution and by working hand in hand with our local partners, we're not just deploying technology. We're solving real transportation prices caused by the labor shortage, yeah.
That's all for this first question, Li Ping [weighs]. Tony, I'll leave you to the second question on the Guangzhou plan.

Tony Han

Yeah, I believe the second question is about like we want to discuss a little bit about our recent rollout at Guangzhou City Center.
And also, you know, want some details about our local taxi service. So first of all, I want to say, last week, we launched China's first 24/7 autonomous ride-hailing network, covering the core areas of Guangzhou. As I mentioned, Guangzhou is a number 3 city in China.
And then our expanded Robotech service features actually 8 pilot operation routes in the city center, connecting landmarks and transport hubs such as the airport, Guangzhou South Railway Station, Canton Tower, and the Canton Fair complex.
If you are familiar with Guangzhou, they are all the most -- busiest and also the most important place and the hubs and you probably if you come to Guanghou, you will visit these places. And when we first kick off commercial taxi service back in the year of 2019, we started in Guangzhou, this is a mega city with traffic, very busy traffic and the population is at least 20 million.
To date, we have been providing autonomous mobility service to the local citizens for more than 200 days, so I'm quite confident and quite proud for this achievement. The expansion of this service is very important milestone in the industry.
For the first time, Robotaxis is allowed in the central area of such a big city. That's not easy, actually. It incorporates some of the most complicated scenarios we have ever seen, including really various road types and traffic conditions as well as very subtle interactions with a wide range of road users like passenger cars, engineering cars, pedestrians, cyclists, the three wheelers. You have to handle all of these things.
So it is a big challenge to our technology, but I think we solve all these issues quite well. And also being allowed to operate in central Guangzhou underscores our confidence in safety records and robust technology.
And we will strive to maintain a high standard of service and we will also be very careful. We will expand progressively and responsibly in accordance with the requirement of local authorities. So I think that's all I want to say about this question.

Operator

Joel Ying, Nomura.

Joel Ying

Thank you for taking my question. This is Joe from Nomura, and I have two questions. For the first one, what's the implication of the recent launch of driver testing in Abu Dhabi? Is there any operation plan as the next step?
And my second question is since we see some aggressive OEMs, also plan to enter into a Robotaxi business. So what's our company's view on it? Are they comparative, compared to level 4 players given their, they have more driving data and what is our edge on this? Thank you.

Jennifer Li

And then I'll take the first question. We're very excited about the driverless test in Abu Dhabi. To my knowledge, this is the first of its kind in the Middle East, and it's also the first time that Robotaxi without safety driver on public road is allowed outside China and the US.
WeRide is a veteran in the Middle East. We started Robotaxi trial in UAE as early as 2021. The desert climate of the country, including high temperature and the sunny environment, created all the special challenges to the autonomous vehicles. Nevertheless, our Robotaxi delivered a high level of reliability and safety during the initial two-year public operation.
Building on this confidence, so WeRide secured the first national autonomous driving permit in UAE in 2023, which also remains the only national permit in the world as of today. Last year, our local operation entered into a new chapter. I'm sorry. (inaudible)

Tony Han

Have some water and then, we have plenty of time.

Jennifer Li

Yeah, speaking of our our join forces with Uber, it also allows us to provide local citizens with better services and accessibilities. So the driverless testing marks a major milestone as we begin driverless testing. This is a significant leap forward in the journey, in our journey in the Middle East.
We are also particularly excited to have received approval to expand our service area to include Abu Dhabi's Al Maryah Island and our community. So both islands, they'll be most like dynamic urban center in Abu Dhabi. We're very excited to bring the cutting-edge transportation solution to those places.
So now, Tony, I'll leave you to to the next question. Thank you.

Tony Han

Okay, yeah. You can take this time to really clear the throat. Okay. I'll answer the question. So, I think -- thank you, this question is really deep, and I really appreciate this question.
So question is about like our competition about against major car [audience] for Robotaxi service and my view and our edge. So first of all, I want to say the competition is ubiquitous. If you are [wild], if you are afraid of competition, you are not eligible to be a leading company. We already is the first mover and a leading company, autonomous industry.
So we welcome competition and as long as the winner can bring the best quality of service, most reliable robotaxi service to ordinary people, the citizen, I think that will be great enough. But we are confident with WeRide because, first of all, I think our proven record has already shown, the superiority of our technology and also the reliability of our technology.
And we -- over the past seven years, we have been closely working with some major car OEMs. The major car EMs help us to build the reliable vehicle platforms for global taxi service. And I want to say OEM actually plays a very important part in the whole ecosystem. We did learn a lot from them.
Having all this said, I want to emphasize the difference between the ADAS system and the global tax system. Okay. ADAS system stands for advanced driver assistance system. So the major component who are responsible for driving a car is the person. L4 level Robotaxi is for autonomous driving vehicle. There are two different things, two different species.
Mistakenly using ADAS for Robotaxi, it's just like mistakenly using an L2 system for L3 system will lead to very tragic accidents. I think some accidents we have already experienced.
So I want to emphasize, if you really want to do Robotaxi to L4, you really need to spend lots of time, lots of energy in simulation platform in Robotaxi fleet, sharper technology and test for millions of miles, only have a big user base is not enough.
Okay. Lots of time, a big user base only tells you that your car is very good, can produce a very good L2 system, but there's nothing to do. You have -- you can do an L4 system. So basically, a warrior, a great warrior on the land, maybe not so good warrior in the seafare, the sea warfare. So they are totally different.
So today, we ride real-world Robotaxi operation in multiple locations is actually supported by continuous investment in building and improving our platform. And it has, it's -- the safety has been proved over -- we want to pro -- very proudly announced like over the past seven years, we have a very good record that we haven't experienced any autonomous driving system failure. I think that's a very remarkable score.
And currently, we write is one of very few companies that have brought level 4 mobility to the public and we are really confident to maintain a leading position in this industry. Okay. Thank you for this question. That's all I want to say about this question.

Operator

Yawen Tan, BMP Paribas.

Yawen Tan

Hi, this is Yawen from BMP. Thanks for Tony and Jennifer's time. And thanks for the opportunities to discuss the exciting industry here. And I have two questions.
The first one is there any specific plan for further expansion of the full size and operation area? And secondly, what's your view on regulations in different markets? Have we seen there are countries that is accelerating the adoption of L4 technology? Thank you.

Jennifer Li

Thank you. I will take the first question for the plan for future expansion. So as Robotaxi is penetrating, traditional mobility in different regions will remain a balanced strategy, between China market and international markets.
So in China, we will gradually increase the deployment in selected tier-one cities. Our service was throughout step by step and which is in accordance to this adoption was map by the local authority. We have a track record of more than five years public operation in China and our recent development that entered into the city center in both Beijing and Guangzhou, it's a natural progress built on the existing momentum.
And we'll keep the momentum, keep on the momentum, already on the momentum. And in overseas market, we'll be scouting through strong global partnerships, so by working together with mobility and transportation stakeholders worldwide, will be able to localize and accelerate our deployment in the market, more in the international market more, effectively.
For example, some of our global partners including like say UAE, we have the integrated transportation center in Abu Dhabi and the road and the transportation authority in Dubai that are extremely helpful.
And in France, we have -- we have Renault, Beti, and Macif as our partner. And in Switzerland, we have the SPB which is the Swiss National Railway and we have the Canton of Zurich and Swiss Transit Lab, that are also, we are working on multiple projects in Switzerland as well.
And in Singapore, we have Chye Thiam Maintenance in Singapore. And we also have in Germany, we have Bosch as a key partner. So, last but not least, Uber is a key partner with our plan rolling out commercial Robotaxi service in 15 new cities, globally.
So, like say, if we're talking about the size, the expansion plan, so all those cities we're planning to enter typically have -- already have an existing red healing and taxi ecosystem that ranges from a few thousands to tens of thousands of shared mobility vehicles.
So this is an ideal environment for L4 technology to integrate and to scale up. So as part of this partnership, we [rush] Robotaxi service will be available through Uber's app, and Uber will be responsible for the big operation.
So as you can see, our global partner strategy is based on our shared execution, risk management, and local market insight. We're not entering into the new market alone, so alone, we're building a network of trusted global collaborators to accelerate adoption, to shorten the deployment cycle, and to meet the regulators expectation of each region together.
Tony, I'll leave you to the next question on the regulation in different markets.

Tony Han

Okay, so I'll talk about like the regulations of different markets. And actually, there are markets that are favorable to autonomous driving vehicles. And so currently, I want to name a few like several countries in Mid East like UAE and Saudi and also several countries in Europe and of course, China.
China is very welcome and it's also very -- China is actually fostering auto driving vehicle. And so they are the major markets we want to deploy. So actually, there are also for the cities actually, for the countries like, if they really want to welcome or embrace the autonomous driving vehicle, that's because of, there are several factors they can consider.
Number one is the safety, number two is the cost of labors. So we -- you need to take all of these factors into account. And also, for in this region, for the countries that's favorable autonomous driving or need autonomous driving, or need global taxi service, I think that represents huge opportunities for first movers like WeRide.
Actually, we experience like this kind of increasing interest in every technology and actually, this kind of increasing interest can be demonstrated by our expansion and our operation.
I just want to name a few actually, in January and May, we roll out our Robotaxi and Robobus service in Guangzhou City Center successfully. And that's what I have already mentioned. And in February, we actually received approval to launch our GXR for fully online paid red handing service in Beijing, just only four months after we officially announced the new purposely built Robotaxi GXR.
And in March, we obtained level 4 operation permit in France. In April, we parted with Dubai, Dubai's Road and Transportation Authority and Uber to integrate our local taxi fleet into Dubai's public transportation system. I'm -- I can't wait for this to come because in our dream, our mission is like to deploy local taxi all over the world.
In May, we have started for the driver is testing in Abu Dhabi. Actually, I'm currently -- in Abu Dhabi, I just tested, and I think it's fantastic.
We now have deployed in 10 countries across Asia, Mid East, and Europe. From our experience, we understand that regulators are generally supportive towards autonomous driving, but condition on -- we can keep our track record for safety.
Overall, we are really optimistic about the future and we believe WeRide is well positioned to capture the expanding penetration for autonomous driving technology. That's my answer to this question. Thank you for this question.

Operator

Tian Wang Hu, China Securities.

Tian Wang

Hi, everyone. Can you hear me?

Tony Han

Yes, we can.

Tian Wang

Yeah, my first question is there any new product development that you could share, especially Robotaxi?

Tony Han

Okay. So, new products, we are actually, last October, we launched a new generation of Robotaxi GXR which is really a purpose-built Robotaxi tailored for L4 driverless. We also trimmed it for the deployment in the Mideast in like for like in today, like the temperature is like 40 degrees Celsius, or you have to have a car that is with very powerful AC and a very big battery.
We actually upgrade our GXR to make it more suitable. It's a purpose to build global taxi to make it more suitable for the market of Abu Dhabi and the Dubai. And we -- to work on this, we worked closely with the GD Verizon to customize GXR. We spent tons of time and efforts on it.
Now, our proprietary sensors with 5.6 and our HPC are ready and integrating into GXR and it's very suitable for the extreme heat weather condition. And we also work on some redundant system. Okay. So the whole system, the GXR is full redundancy, several round of redundancies so that we have very reliable and stable braking and steering system.
And there's another thing I want to mention like for the new products and new things like that is we are going to further upgrade GXR with the computational platform. In the second half of the year, we will build our computational platform for by newest Nvidia DRIVE Thor platform as you have already probably noticed.
Nvidia is the next generation Thor platform, extremely powerful and it has like, has a computational power, the whole computational power in our controller is actually more than 2000 tops. So, for the past five years, we also try to reduce the cost, like the cost of our census we have reduced by more than 70%.
So we want to do it through innovation and new products. And for the next generation will taxi currently under development, I think we look forward to another 20% to 30% cost reduction and further details, we will review it after the spec be finalized.
So there are a lot of things, new things ongoing, that's the really happenings working on Robotaxi and this AI stuff, the new things comes every day. And we believe that with a powerful and smart brain, the new GXR will not only provide a high level of safety and comfortability, it will also our new purpose-built GXR will redefine the Robotaxi business and this car is ready for large deployment.
I really look forward to see the large deployment of GXR in Abu Dhabi and Dubai. Okay, that's my answer to this question.

Tian Wang

Thank you. And my -- and I have another question. My second question is what's your view on the growing level of competition in China as more companies are rolling out autonomous driving technology?

Tony Han

As I mentioned in my answers in the previous question, right, as a leading global company, you have to face all kinds of competition, either globally or inside China, either from [Haoyue] or from ADAS system company or from Robotaxi, another Robotaxi company.
So, for my view over my view is like the competition is good. I love the beauty of the free market, right, so through trading through competition, the customers can get the most cost-effective and high-quality products. What's wrong with that? That's a great thing.
And but based -- are you worried about losing in this competition? I think for the past eight years of record has already shown, we might growth from 10 people start up to leading autonomous driving company with more than 2000 employees.
It has already proven that, when we have nothing, we only have a few people, a very small farm, we can start to grow, and now, we are in very advantagous and in a leading position. We are very confident.
So, I always mention like we have 4-core pillars that we write apart from the competition. The four pillars, I want to name them one by one. They are tech competence; technology is always our foundation. Second, proven business model, and we are really looking to the large-scale deployment and also deploying global market.
Third one is the safety and reliability collaboration record. Please go ahead to check your record. I believe we have the best safety record all over the world. And we have the first pillar is a strong partnership network.
If I have a time, do I still have some time? I want to elaborate actually these four pillars. Thanks for this question. So first of all, technology one, over the past eight years, we build up, we write one universal platform that can be deployed to use for Robotaxi, Robobus, Robosweeper, Robovan, and ADAS system.
At the same time, you get data from all over these five branches. So basically you are five times more efficient in collecting data, collecting common cases and five times more efficient improve your idea. You are deploying a large scale, not only in Robotaxi fleet, but also in Robo -- when in Robosweeper. That's a grand vision from me right?
And I think no other company has such a grand vision, and I see no other company has achieved the concrete steps for such grand vision.
And for proven business, look at our operation, I think I'm quite proud and every step we have create a repeatable, scalable, and monetizable business model across multiple verticals, including mobility, logistics, and the sanitation.
So that proves actually our autonomous solution can address a variety of real-world challenges. So, we operate in 30 cities across 10 countries. So that means like the business-model approved, not in a time frame but also globally.
Third pillar, safe and reliable record. I want to read you something about some record. So our L4 autonomous vehicles have undergone successfully, successful tests, and commercial deployment in diverse and extreme environments including urban village in China such as congested and unpredictable road environments in downtown Guangzhou.
And in a very northern part of China, Heihe, and that is like 30 degrees below, 30 Celsius degrees below zero in winter and also, in Abu Dhabi, the high heat where I'm currently sitting in the office, 40 degrees Celsisu. We show that we can still operate safely.
Last one, very strong partnership, we emphasize many times our collaboration with Uber, with all different local authority in Switzerland, with France, Singapore, UAE, and Japan.
And we also have partners with multiple partners in Singapore, like in Resort World Sentosa and the robots operation. So I won't be able to name them this way long list and also for ADAS system, we work with the top one, tier-one supplier Bosch. So with all of this, I think, from the competition, we are confident, and I think that's also the value of WeRide. Okay, that's my answer to this question.

Operator

Leo You, CLSA.

Leo You

Hi. Good evening, management. Thank you for the opportunity. So I want to ask about the use of cash. So we're quite excited about the share repurchase program. So would you please share more about your thoughts behind rolling out the program now? And how would you strike the balance between the shareholder return and investing in technology and products.

Jennifer Li

I'll take this question. Thank you.
So, the board has authorized a share repurchase of $100 million, which reflecting their -- reflects their strong confidence in the company's solid foundation, and the leading position in the autonomous driving industry and the compiling long-term growth trajectory.
And the proposed restructure can be made from time to time in the form of compliant transactions. So yeah, so, we think this initiative can allow us to opportunistically to buy back shares, we miss these opportunities, which also demonstrating our commitment to deliver value to the shareholder while maintaining financial flexibility for future growth. Yeah.

Leo You

Okay. Thank you, Jennifer. And I have another question on the financial part, so can you share more about the growth drivers behind the product revenue and service revenue in the first quarter and how do you see the trend of the revenue line?

Jennifer Li

Yeah, so, at this stage, so our growth momentum for the first quarter, it's primarily attributed to the growth of the Robotaxi business and our global expansion.
So at this stage, given, all the revenue for different product line is still relatively small, so we think we'll just like focusing on the product itself, instead of like breaking down for -- because the product and service makes changes every quarter as sometimes when we deliver like a mega project for one quarter, so the product revenue can significantly increase and on a different quarter while the service revenue can be the dominant factor for the quarter.
And then, let's -- if they're talking about the Robotaxi service at Robotaxi as a business. So this is our core business from day one and so the revenue contribution for Robotaxi witnessed a significant increase of 10.4% year on year, which marking up like 22% of the total revenue of this quarter. This is based on our knowledge and it's also like largest, like published, like announced the Robotaxi revenue among the peers.
Yeah, and the margin level, we're still at a very healthy like level of around like gross margin of around 35%. So yeah.

Operator

Thank you. If there are no further questions, I'd like to hand the conference back to our management for closing remarks.

Tony Han

Okay. So, everyone, thank you again for your participation. I would also like to take this opportunity to thank our partners and our employees. I have to say none of the progress is possible without their support and hard work.
And we look forward to speaking with everyone again in our next call. Thank you. Goodbye.

Operator

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your lines.