Saimo Technology swings to the red amid business pivot

Intelligent connected vehicle (ICV) simulation testing company Beijing Saimo Technology Co. Ltd. (2571.HK) said last Friday it expects to report its revenue ranged between 72 million yuan ($10.67 million) and 75 million yuan in the first half of this year, down 17.5% to 20.8% from a year earlier. It added it expects to post a loss of 47 million yuan to 51 million yuan for the period, reversing a profit of 39 million yuan in the year-ago period.

The company said it is undergoing a strategic shift from simulation testing and certification services toward the physical AI sector. It will step up R&D in robot simulation training, physical AI world models, and other cutting-edge technologies. The need for investment during the transition caused experimental costs and depreciation expenses for related equipment to jump during the period.

Saimo added that intensifying competition during the period, compounded by shifts in technical solutions being used by its clients, pressured revenue and gross margins for some of its existing products.

Shares of Saimo opened flat at HK$16.90 on Monday. The stock is down 6% from its 52-week high.

By Lau Chi Hang

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