Horizon Robotics (9660) H2 2024 earnings summary

Executive summary

• Achieved record revenue of RMB 2.4 billion in 2024, up 53.6% year-over-year, with gross profit rising 68.3% to RMB 1,841.4 million, driven by strong growth in Automotive Solutions and increased market share among Chinese OEMs.

• Delivered approximately 2.9 million product units in 2024, with cumulative deliveries reaching 7.7 million; secured design wins for over 100 vehicle models, totaling more than 310 models by year-end.

• Maintained leadership in ADAS and smart driving solutions, capturing over 40% ADAS market share among Chinese domestic OEMs and ranking 2nd among independent AD solution providers.

• Launched Horizon SuperDrive (HSD) and Journey 6 series hardware, expanding partnerships with over 20 OEM brands and leading international Tier 1 suppliers.

• Expanded global presence through strategic partnerships and completed a Hong Kong IPO, positioning for overseas growth.

Financial highlights

• Revenue from Automotive Solutions grew 57.2% year-over-year to RMB 2,311.7 million, with Product Solutions up 31.2% to RMB 664.2 million and License & Services up 70.9% to RMB 1,647.5 million.

• Gross margin reached 77.3%, up from 70.5% last year, and gross profit was RMB 1,841.4 million.

• R&D expenses rose 33.4% to RMB 3.2 billion, reflecting continued investment in advanced tools and infrastructure.

• Adjusted operating loss narrowed by 11.4% to RMB 1,495.2 million.

• Net profit recorded at RMB 2.3 billion, reversing a prior year loss, mainly due to fair value changes of preferred shares.

Outlook and guidance

• Expects 2025 to be a turning point for smart driving adoption, with cumulative Journey series hardware shipments projected to exceed 10 million units.

• Anticipates continued ASP growth as product mix shifts toward higher-value Highway NOA and Urban NOA solutions, with J6 series chips becoming the majority of deliveries.

• Predicts L3 autonomous vehicles may launch commercially by late 2024 or 2025, supported by proactive government policies and pilot programs.

• Expects mass production of HSD to begin in Q3 2025, with further scaling in complex urban scenarios.

• Sees 2025 as a pivotal year for intelligent driving, driven by technology, regulation, and consumer readiness.