Revenue doubled, profit inflection point loomed, and Sidi Smart Driving (03881) showed results in the “Heavy Duty Embodied Intelligence” strategy phase

If we want to take stock of the strongest main lines in the global capital market since this year, technology assets must be uncompromising. For growth stocks, financial reports are undoubtedly the most objective yardstick for distinguishing between high and low levels of gold content. Coinciding with the earnings season, Zhitong Finance noticed that Sidi Smart Driving (03881) recently disclosed the 2026 interim results. Financial reports show that in the first half of this year, Sidi Smart Driving's revenue nearly doubled, while profitability continued the trend of continuous improvement. Currently, the company's losses have narrowed drastically.

Financial data has been optimized in all aspects, and this is only a small part of the positive changes revealed in the Cidi Smart Driving earnings report. Judging from business progress, the autonomous driving business, the company's traditional dominant sector, accelerated in the first half of the year, and received the largest single formal purchase order in the world's driverless mining card sector; not only that, the work robot business has also advanced from a conceptual layout to a new stage of actual use, marking remarkable phased results in the evolution of Sidi Smart Driving to “heavy duty physical intelligence”; in addition, the company's smart hardware and service business are also gradually improving. Product lines such as V2X, TAPS, and Smart Security have fully blossomed.

It is no accident that Sidi has made many breakthroughs in the smart driving business. Nine years of intensive cultivation gave the company a deep understanding of various scenarios and completed the systematic accumulation of core technology. Based on this, Sidi Smart Driving also accurately captures the deep pain points of the mine production chain, actively extends the business radius from the transportation process to the full chain of production operations such as drilling, explosion, excavation, and assembly, and uses hard core technology to leverage a wider range of production scenarios in the physical AI world. In the author's opinion, the latest financial report from Sidi Smart Driving not only reveals the viable path of “heavy duty physical intelligence” from concept to implementation, but also provides a rare observation sample for large-scale commercial applications of physical AI.

High-score earnings report verifies strong realization of growth potential

The first mid-term earnings report of Sidi Smart Driving since its launch sent a strong signal of value to the market.

On the revenue side, the company achieved revenue of 804 million yuan in the first half of the year, an increase of 97% over the previous year, which nearly doubled. The main engine of growth is autonomous driving for its core business. The sector contributed 784 million yuan in revenue during the period, an increase of 107.3% over the previous year, accounting for 97.6% of total revenue.

By the end of the reporting period, the cumulative shipment volume of Sidi Smart Driving unmanned mining cards had exceeded 1,900 units, covering nearly 40 mines around the world; 7 of these mines had achieved normalized operation of over 100 unmanned mining cards, with a maximum of 220 unmanned mining cards. This confirms that the company has mastered the full-stack capabilities for the construction, delivery and operation of large-scale unmanned transportation systems. It is worth mentioning that in February, Sidi Smart Driving also won the largest single formal purchase order in the global driverless mining card sector so far — signing a purchase agreement with Guangna Group for 500 unmanned mining cards. The unmanned heavy truck business is also accelerating. In the first half of the year, Sidi Smart Driving simultaneously received large short-term business orders at home and abroad, totaling more than 400 units. At present, the driverless full-process customs clearance solution built by the company for the China-Vietnam Smart Port has achieved normalized operation of unmanned collection cards. In addition, the Chengdu International Railway Port driverless project, in which Cidi Smart Driving is deeply involved, has also entered the normalized trial operation test stage.

With the major implementation of the “heavy load, embody intelligence” strategy, Sidi Smart Driving's work robot business also achieved a breakthrough of zero revenue. During this period, the business generated a total revenue of 3.082 million yuan. At this stage, Sidi Smart Driving uses an open ecological strategy to embody an intelligent brain, cooperating with major companies such as four-legged robots and humanoid robots to quickly build a multi-modal work robot product matrix. In the future, this business is expected to become another “locomotive” for the company to continue to grow rapidly.

While the scale continues to increase, what is also rare is that the profit performance of Sidi Smart Driving has also reached an important inflection point. In the first half of the year, the company's gross margin increased from 17.1% in the same period last year to 26.4%, and the adjusted net loss narrowed to 1.68 million yuan. The adjusted net interest rate was optimized to -2.4%. All signs indicate that the company's profit schedule has become more and more clear.

The increase in gross margin is particularly noteworthy. The significant increase in profitability stems from the optimization of the product structure: the share of separate sales of high-margin autonomous driving solutions has effectively driven the overall gross profit margin; in addition, the increase in delivery capacity and customer recognition has objectively had a positive impact.

What is behind the sharp narrowing of losses during the period is actually a fundamental improvement in the quality of Sidi's smart driving operations. The core driving force comes from a sharp increase in gross profit due to high revenue growth, which indicates that the operating leverage effect continues to be unleashed, and the company has entered a positive cycle of increasing profitability driven by growth in scale. Furthermore, there were no expenses related to the listing during the period, and in the same period of 2025, Sidi Smart Driving was still in the preparation period for listing, and related expenses were high; in addition, non-cash expenses related to share incentives fell from 267 million yuan to 93 million yuan, all of which unlocked profit potential to a certain extent.

Leading the in-depth development of heavy-duty personalised intelligence

The comprehensive optimization of financial data is a result of the execution of Sidi's smart driving strategy. However, financial reports can explain the past. What really determines how far a company can go is its ability to place cards on future racetracks. Facing the future, Sidi Smart Driving has developed a clear strategic and in-depth layout around the physical AI circuit — deep vertical cultivation, horizontal expansion, and global layout. The three dimensions have jointly built a replicable and expandable growth flywheel.

First, from an industry perspective, the boom in unmanned mining cards can be seen as a facet of opportunities in the physical AI industry. The penetration rate of this segmented racetrack is in a critical window of transition from 10% to 50%, and the market size is expected to be close to 40 billion yuan in 2030. What is really noteworthy, however, is that unmanned mining card verification is more than just the viability of a racetrack — it proves that the commercial logic of “machines replace people” in heavy load scenarios has worked. When unmanned mine transportation is proven to be feasible, higher-value operations such as drilling, blasting, excavation, and assembly, as well as more heavy load scenarios such as logistics, infrastructure, and traffic engineering, will all usher in a window of intelligent transformation. This is an industrial chain opportunity from point to line to surface.

Deepening vertical mining scenarios will still be a key focus of Sidi's smart driving. The mining production chain consists of five major processes of “drilling, blasting, excavation, loading, and transportation”. Unmanned mine cards only solve the transportation process. The Sidi smart driving card “heavy duty physical intelligence” essentially extends the heavy load control, extreme operating condition sensing, and cluster scheduling capabilities accumulated over nine years of intensive use from the transportation process to the drilling, explosion, excavation, and assembly operation chain. At present, Sidi's smart driving robot business revenue has broken to zero. Mining robots, open pit mining loading robots, and smelting tank holding robots have been put into use, and underground mining tunneling robots have been designed, developed, and manufactured. This is not a border crossing, but a deeper exploration of the physical world within the same technical context.

Of course, the mine is only the starting point; in the next step, Sidi Smart Driving will expand a variety of scenarios horizontally. Sidi Smart Driving is replicating proven capabilities to more heavy-duty scenarios such as mass logistics, large-scale infrastructure, and transportation engineering. Unmanned heavy trucks have completed normalized verification in benchmark projects such as the China-Vietnam Smart Port and the Chengdu International Railway Port, and the path extending from the closed scenario to main line logistics is becoming increasingly clear. Seeing the panther, Sidi Smart Driving already has the ability to replicate across scenarios: the same technical architecture, multi-modal adaptation, and cross-scene reuse.

The global layout has brought more possibilities. Sidi Smart Driving is starting operations in resource-rich countries such as Australia, Brazil, and Indonesia using the “Product, Scenario, and Overseas” framework, and plans to gradually expand further into Africa, Central Asia, and the Middle East. As you can imagine, at a time when the domestic penetration curve continues to rise, large-scale replication in overseas markets will also open up a second growth space for Sidi Smart Driving.

All in all, the significance of Sidi Smart Driving's latest financial report is that it provides a clear footnote on the following: As the only physical AI company in the industry that has received large-scale orders for various types of heavy duty scenarios such as resource mining and transportation, logistics, major infrastructure, and traffic engineering, it is building a unique competitive barrier. While the capital market is still using the “autonomous driving mining card company” framework to price it, the company's revenue has continuously doubled, and the profit schedule is getting closer. From the extension of transportation to the business layout of operations, to the accumulation of orders across multiple heavy load scenarios, Sidi Smart Driving has proven itself as a physical AI platform enterprise. This scarcity will gradually be recognized and priced by the market as subsequent performance continues to be realized.