On August 31, Beijing time, physical AI company Momenta (06880) officially released its financial results for the first half of 2026. As its first report card since going public, Momenta posted several impressive financial metrics, and driven by its industry-leading world model foundation platform, the company is accelerating its technological and commercial advancement.

During the first half of 2026, Momenta's revenue and gross profit both reached record highs: operating revenue came in at 1.60 billion yuan, up 76% year-on-year; after excluding share-based compensation expenses, gross profit reached 1.21 billion yuan, an increase of 75%, with a gross margin of 75%, maintaining an industry-leading position. Notably, Momenta's adjusted net loss narrowed to 14.097 million yuan in the first half, contracting sharply by 97% year-on-year; cash outflow from operating activities narrowed by 47% compared with the same period last year. The marked improvement in these core profitability metrics highlights the company's steady and sound operations, while also sending a positive signal that the autonomous driving sector is gradually moving away from the "cash-burning" model and toward sustainable profitability.

Following its IPO fundraising in July, Momenta's cash reserves surpassed 15 billion yuan, laying a solid capital foundation for accelerating its scaled unmanned business and global strategic layout. As "the shared choice of global brands," Momenta maintains the number-one market share among third-party urban NOA suppliers. The company has established partnerships with 26 automakers worldwide, ranking first in the industry for international customers, and is the first Chinese company to achieve global scaled production of intelligent driving solutions. Currently, its mass-production solutions have been deployed in more than 10 countries and regions across Asia, Europe, Oceania, Latin America, and North Africa, continuously supporting mainstream automakers in their overseas expansion.

The continued breakthroughs in its mass-production business have fully activated Momenta's "flywheel effect": the cumulative number of mass-produced vehicles equipped with Momenta's systems has exceeded 1.1 million, with more than 110 production models delivered, cumulative designated models exceeding 230, and the latest 100,000-unit delivery completed in just 36 days. Furthermore, Momenta has initiated L3 development and expects to begin mass production by 2027. Momenta CEO Cao Xudong commented: "Upholding our mission of 'Better AI, Better Life,' we remain committed to data-driven development and building a world-leading world model foundation platform. By using the world model as a unified foundation, through the three levels of pre-training, simulation, and reinforcement learning, we enable autonomous driving to deeply understand the physical world, pushing the performance of autonomous driving systems to progressively surpass human levels. This technical capability has extended from mass-production scenarios to scaled unmanned businesses such as Robovan and Robotaxi, and is rapidly expanding into overseas markets, continuously strengthening our global leadership position."

Currently, the world model has emerged as the next core growth track following large language models. In the first half of the year, Momenta's R&D investment accounted for 73% of revenue, with R&D staff comprising 79% of the workforce, and high-quality R&D investment is driving accelerated model iteration. In March this year, Momenta released the R7 world model, marking the "prologue to physical AI." At present, leveraging over 15 billion kilometers of real-world driving mileage generated from mass-production operations, more than 100 million segments of "golden data" extracted from that mileage, and over 10 million kilometers of daily simulation, the R7 world model is able to conduct self-play evolution through reinforcement learning training, significantly enhancing capabilities in critical scenarios.

Momenta is dedicated to building a world model foundation platform, using one unified large model to support the scaled deployment of passenger vehicles, Robovan, Robotaxi, and Robotruck, with plans to expand into embodied intelligence and other domains. Relying on this unified world model foundation platform, all business lines share the same large model as their core foundation, and the massive accumulation of real-world driving data from different scenarios concurrently promotes a leap in model parameters, driving improvements in model capability and product experience while also amortizing R&D costs. Momenta's L4 and overseas businesses have become new growth engines, accelerating the opening of the trillion-yuan Robo market. Momenta's Robovan business has been deployed in Suzhou's Xiangcheng District, partnering with major express delivery companies including China Post, JD.com, SF Express, and the "Three Tong One Da" courier services, covering scenarios such as express pickup and delivery, nighttime distribution, fresh food, fast-moving consumer goods, community group buying, and hardware components, achieving around-the-clock, highly efficient unmanned transportation.

Built on the R7 world model, Momenta's Robovan unmanned technology meets automotive-grade standards, bringing exceptionally safe products and services to the unmanned logistics industry. In parallel, Momenta has taken the lead in introducing its "mapless solution," which has been validated through years of mass-production practice in passenger vehicles, into the Robovan sector, greatly improving the speed of city rollout and vehicle deployment efficiency while safely handling scenarios such as temporary road conditions. Within this year, Momenta's Robotaxi will commence operations in Shanghai and Abu Dhabi. Notably, Momenta obtained the unmanned driving operating permit in Shanghai's Pudong New Area in just eight months, setting an industry record. In July, Momenta officially received approval from Germany's Federal Motor Transport Authority to conduct L4 autonomous driving tests on urban roads nationwide in Germany, marking the first time a Chinese company has secured such qualification. To date, Momenta has deployed testing in cities including Shanghai, Suzhou, Wuxi, Shenzhen, Abu Dhabi, and Munich, and plans to reach more than 10 cities globally by the end of this year. Momenta's Robotaxi has established partnerships with global mobility platforms such as Uber, Grab, Lumo, and SAIC Mobility, and its global ecosystem continues to expand.

Leveraging its world model foundation platform, Momenta has been the first in the industry to successfully operate the "Data-Compute-Model-Business" positive growth flywheel, progressively deepening its dual moats in technology and commerce. Specifically, as real-world driving data continues to accumulate (Data Scaling) and training compute capacity grows (Compute Scaling), the parameter count of the world model will rapidly increase (Model Scaling), driving ongoing improvements in model capability and product experience, which in turn brings more model designations and commercial revenue (Business Scaling). More designations further accumulate real-world scenario data, and higher revenue feeds back into compute investment, ultimately forming the "Data-Compute-Model-Business" positive growth flywheel, continuously reinforcing Momenta's competitive advantage.

Recently, a number of prominent investment banks, including CICC, Deutsche Bank, Bank of America, CITIC, and BOCI, have initiated coverage on Momenta, all assigning "Buy" or "Overweight" ratings, with the highest target price set at HK$520. In July this year, Momenta officially listed on the Hong Kong Stock Exchange, where market subscription enthusiasm was robust, drawing unanimous endorsement from dozens of top-tier long-only funds. For instance, sovereign wealth funds focused on long-cycle value investing gathered investors including CIC, GIC, ADIA, Temasek, and OIA, while asset management and private equity institutions brought together a "star-studded lineup" featuring Fidelity International, BlackRock, J.P. Morgan Asset Management, Boyu Capital, and Hillhouse, fully reflecting their unanimous recognition of Momenta's financial performance and long-term value in the field of physical AI.