Horizon Robotics (9660) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB 2,055.0 million, up 32.9% year-over-year, with gross profit at RMB 1,356.1 million and gross margin steady at 66.0%.

• Net profit was RMB 3,783.9 million, reversing a loss of RMB 5,233.0 million in H1 2025, mainly due to fair value gains and a one-off gain from D-Robotics deconsolidation.

• Adjusted operating loss (non-IFRS) was RMB 1,275.6 million; adjusted net loss was RMB 1,671.2 million, reflecting continued 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 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 1,129.4 million (+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 2,755.0 million (+21.9% YoY); cash and cash equivalents stood at RMB 14.9 billion as of June 30, 2026.

• Gearing ratio was 39.8% (down from 58.7% at year-end 2025); net cash outflow from operating activities was RMB 2,797.9 million.

• Weighted average basic EPS was RMB 0.27 (vs. -RMB 0.42 in H1 2025).

Outlook and guidance

• Confident in achieving full-year revenue of over RMB 5 billion for 2026 and breakeven targeted for 2028.

• Expects further market share gains in advanced NOA and full-vehicle intelligence solutions over the next 12 months.

• Mass production of cockpit-driving integrated intelligence solution planned for Q4 2026; L4 Robotaxi pilot project to launch in 2026; Journey 7 SoC for L3/L4 scenarios to debut in 2027.

• 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.