To recap the strongest themes in global capital markets this year, tech assets are undoubtedly the frontrunners. For growth stocks, financial reports are the most objective yardstick for assessing quality. As earnings season arrives, we note that CIDI-NEW (03881) recently disclosed its 2026 interim results. The report shows that in the first half of this year, CIDI-NEW's revenue nearly doubled, while profitability continued to improve, with the company's losses narrowing significantly. These comprehensive financial improvements are just one part of the positive changes revealed in CIDI-NEW's latest earnings report.

From a business perspective, the company's traditional strength, its autonomous driving business, accelerated its rollout in the first half of the year. During the period, it secured the largest single formal purchase order in the global unmanned mining truck sector. Furthermore, its operational robotics business has moved from the conceptual stage to a phase of practical deployment, marking a significant milestone in CIDI-NEW's evolution towards "heavy-duty embodied intelligence." Additionally, the company's intelligent hardware and services business is also gaining momentum, with product lines like V2X, TAPS, and Security Intelligence achieving comprehensive growth.

CIDI-NEW's multi-point business breakthroughs are no accident. With nine years of deep cultivation, the company has gained a profound understanding of various scenarios and systematically accumulated core technologies. Building on this foundation, CIDI-NEW has accurately identified the deep-seated pain points in the mining production chain, proactively extending its business scope from the transportation link to the entire production process, including drilling, blasting, excavation, and loading. It uses hardcore technology to unlock broader production scenarios in the world of physical AI. In our view, this latest financial report from CIDI-NEW not only reveals a feasible path for "heavy-duty embodied intelligence" from concept to reality but also provides a rare sample for observing the large-scale commercial application of physical AI.

High-Scoring Financial Report Validates Growth Potential

CIDI-NEW's first interim report since its listing has sent a strong value signal to the market. On the revenue side, the company achieved operating revenue of 804 million yuan in the first half of the year, a 97% increase year-on-year, nearly doubling. The main engine of growth was its core autonomous driving business, which contributed 784 million yuan in revenue during the period, up 107.3% year-on-year, accounting for 97.6% of total revenue. As of the end of the reporting period, CIDI-NEW's cumulative shipments of unmanned mining trucks exceeded 1,900 units, covering nearly 40 mines globally. Among these, 7 mines have over 100 unmanned mining trucks operating regularly, with a single mine operating more than 220 units, confirming the company's full-stack capability in building, delivering, and operating large-scale unmanned transportation systems.

Notably, in February, CIDI-NEW secured the largest single formal purchase order in the global unmanned mining truck field to date, signing an agreement with Guangna Group for the purchase of 500 unmanned mining trucks. The unmanned heavy truck business is also accelerating. In the first half of the year, CIDI-NEW secured a total of over 400 units in bulk short-haul business orders domestically and internationally. Currently, the company's unmanned full-process customs clearance solution at the China-Vietnam Smart Port is operating with unmanned container trucks. Additionally, the unmanned driving project at the Chengdu International Railway Port, in which CIDI-NEW is deeply involved, has entered the regular trial operation testing phase.

With the significant implementation of the "heavy-duty embodied intelligence" strategy, CIDI-NEW's operational robotics business has also achieved its first revenue, generating 3.082 million yuan during the period. Currently, CIDI-NEW adopts an open ecosystem strategy, acting as the embodied intelligence brain, and collaborates with ontology companies in quadrupeds, humanoids, and other forms to rapidly build a diverse product matrix of operational robots. In the future, this business is expected to become another "locomotive" for the company's sustained rapid growth.

While scale continues to expand, it is equally rare that CIDI-NEW's profit performance has reached a significant inflection point. In the first half of the year, the company's gross margin improved from 17.1% in the same period last year to 26.4%. The adjusted net loss narrowed to 19.68 million yuan, a year-on-year reduction of 82%, and the adjusted net profit margin optimized to -2.4%. All these signs indicate that the company's timeline to profitability is becoming increasingly clear. The improvement in gross margin is particularly noteworthy. The significant enhancement in profitability stems from an optimized product mix: a higher proportion of standalone sales of high-margin autonomous driving solutions effectively boosted the overall gross margin. Additionally, improved delivery capabilities and customer recognition have also had a positive impact.

The substantial narrowing of the loss during the period is fundamentally due to a qualitative improvement in CIDI-NEW's business quality. The core driver is the significant increase in gross profit from high revenue growth, indicating that the operating leverage effect is continuously being released. The company has entered a positive cycle where scale growth drives profitability improvement. Furthermore, there were no listing-related expenses during the period, whereas in the same period of 2025, CIDI-NEW was still in the listing preparation phase with high related expenses. Additionally, non-cash expenses related to share incentives decreased from 267 million yuan to 93 million yuan, which also released some profit potential.

Leading the Deep Development of Heavy-Duty Embodied Intelligence

The comprehensive optimization of financial data is a result of CIDI-NEW's strategic execution. However, financial reports explain the past; what truly determines how far a company can go is its ability to secure a position in future tracks. Looking ahead, CIDI-NEW has laid out a clear strategic depth layout around the physical AI track—vertical deep cultivation, horizontal expansion, and global layout, three dimensions that together build a repeatable and scalable growth flywheel.

First, from an industry perspective, the high boom in unmanned mining trucks can be seen as a facet of the physical AI industrial opportunity. The penetration rate of this niche track is at a critical window period, transitioning from 10% to 50%, and the market size is expected to approach 40 billion yuan by 2030. But what is truly noteworthy is that unmanned mining trucks validate not just the feasibility of one track; it proves that the business logic of "machines replacing humans" in heavy-duty scenarios has been successfully run. When the unmanned operation of the mining transportation link is proven feasible, higher-value operational links like drilling, blasting, excavation, and loading, as well as more heavy-duty scenarios like logistics, infrastructure, and transportation engineering, will all usher in a window for intelligent transformation. This is an industry chain opportunity moving from point to line to surface.

Vertically deepening the mining application scenario will remain a key task for CIDI-NEW. The mining production chain consists of five major processes: "drilling, blasting, excavation, loading, and transportation." Unmanned mining trucks only solve the transportation link. CIDI-NEW's position in "heavy-duty embodied intelligence" essentially extends the heavy-duty control, extreme-condition perception, and cluster scheduling capabilities accumulated over nine years of deep scenario cultivation from the transportation link to the entire chain of drilling, blasting, excavation, and loading operations. Currently, CIDI-NEW's operational robotics business has already generated its first revenue. Excavation robots, open-pit mine charging robots, and smelting ladle carrying robots have been deployed, while underground mining and tunneling robots have completed design, research, and manufacturing. This is not a cross-border move but an exploration deeper into the physical world along the same technological vein.

Of course, mining is just the starting point. In the next step, CIDI-NEW will horizontally expand into multiple scenarios. CIDI-NEW is replicating its proven capabilities to more heavy-duty scenarios such as bulk logistics, large-scale infrastructure, and transportation engineering. Unmanned heavy trucks have completed regular validation in benchmark projects like the China-Vietnam Smart Port and the Chengdu International Railway Port, and the path from closed scenarios to trunk logistics is becoming increasingly clear. A glimpse of the whole shows that CIDI-NEW has established a capability base for cross-scenario replication: the same technical architecture, multiple form adaptations, and cross-scenario reuse.

The global layout brings more possibilities. CIDI-NEW is initiating business in resource-rich countries like Australia, Brazil, and Indonesia under the "Product, Scenario, Going Global" framework, and plans to gradually expand into Africa, Central Asia, and the Middle East. It is foreseeable that as the domestic penetration rate curve continues to rise, the large-scale replication of overseas markets will also open a second growth frontier for CIDI-NEW.

In summary, the significance of CIDI-NEW's latest financial report is that it provides concrete evidence for the following: as the only physical AI company in the industry to have secured large-scale orders in multiple heavy-duty scenarios like resource mining and transportation, logistics, large-scale infrastructure, and transportation engineering, CIDI-NEW is building a unique competitive moat. While the capital market is still pricing it using the "autonomous driving mining truck company" framework, the company's revenue has already doubled consecutively, and its profitability timeline is approaching. From a business landscape extending from transportation to operations, to the accumulation of orders spanning multiple heavy-duty scenarios, CIDI-NEW has proven itself to be a physical AI platform company. This scarcity will gradually be recognized and priced by the market as subsequent performance continues to materialize.