Horizon Robotics (9660) investor relations material

Executive summary

• Revenue for H1 2026 reached RMB 2.055 billion, up 32.9% year-over-year, with gross margin at 66%.

• Gross profit was RMB 1.4 billion, up 32.9% YoY, and net profit reached RMB 3.78 billion, reversing a prior loss due to fair value gains and a one-off gain from D-Robotics deconsolidation.

• Adjusted operating loss (non-IFRS) was RMB 1.3 billion; adjusted net loss, excluding one-time items, was RMB 1.67 billion, reflecting high R&D investment.

• Market share in ADAS among Chinese domestic brands surpassed 50%, and urban NOA computing platform share rose to 22.8%.

• Significant progress in overseas expansion, with over 60 export model nominations and deepened partnerships with Volkswagen, Toyota, Honda, and other global automakers.

Financial highlights

• Product solution revenue reached RMB 925.6 million (+14.8% YoY); license and service revenue was RMB 1.13 billion (+52.7% YoY).

• License and service segment delivered a gross margin of 90.4%; product solutions segment at 36.2%, or 48.1% excluding one-time bundling impact.

• R&D expenses were RMB 2.76 billion (+21.9% YoY); selling and marketing expenses were RMB 354.5 million (+41.4% YoY).

• Cash and cash equivalents stood at RMB 14.9 billion, down from RMB 20.2 billion at year-end 2025.

• Gearing ratio was 39.8% (down from 58.7% at year-end 2025); capital commitment RMB 534.9 million.

Outlook and guidance

• Confident in achieving full-year revenue of over RMB 5 billion for 2026.

• Targeting 70%-80% share on core customers' entry-level AD vehicle models in H2 2026.

• Expecting chip shipments to reach 5 million units in 2026 and over 7 million in 2027.

• Cockpit-driving integrated intelligence solution to enter mass production in Q4 2026.

• Breakeven targeted for 2028, with continued high R&D investment to maintain technology leadership.