A：The key highlights of Horizon Robotics' 2025 annual results presentation include the company's strategy and business developments, financial review, and the progress in the intelligent assisted driving industry in China. Specifically, the presentation covered the high market penetration of intelligent vehicles in China, the role of自主品牌 and Geely in this growth, and the company's plans for future market expansion.

A：In 2025, China's passenger vehicle market saw a new high in intelligent assistant driving penetration, reaching 68%. Furthermore, sales of mid-to-high-end models equipped with these features, such as those with highway and urban NOA (Navigation on Autopilot) systems, accounted for 43% of all intelligent vehicles sold, highlighting a significant increase in technology adoption within the industry.In the mainstream Chinese vehicle market in 2025, NOA level vehicles experienced a dramatic rise in market share, increasing from nearly 5% at the beginning of the year to over 50% by the end of the year. This substantial growth underscored the rapid adoption of advanced intelligent driving functions in the most popular price bracket for vehicles in China.

A：Chinese自主品牌 in the intelligent vehicle market in 2025 played a pivotal role, with sales of intelligent vehicles featuring mid-to-high-end ADAS (Advanced Driver Assistance Systems) models accounting for 62% of the market. This was in contrast to only 13% for合资 brands, emphasizing the significant leadership demonstrated by Chinese brands in the intelligent vehicle space.

A：The significance of the HSE in the context of the intelligent driving industry was that it represented a major breakthrough, as it allowed multiple models in the 15,000 price bracket to be equipped with advanced NOA functionality, thus ushering in a new era of 'quality vs price' consideration. The HSE also indicated a shift towards the mass market adoption of high-end intelligent driving features, which was a critical milestone for broadening the intelligent driving technology's accessibility and appeal.

A：During the reporting period, Horizon Robotics reported reaching a major milestone by securing a significant market share in both the A solution and the high-end autonomous driving market. Specifically, the company had a 47.7% share in the A solution market, leading the industry, and shared the first梯队市场份额的15.2% with Huawei and Nvidia, indicating a strong market position. Additionally, Horizon Robotics reported that its chip solutions had突破400万套， with the Noa function chips accounting for 45% of the total, nearly five times the出货量 of the same period in 2024, and that its HSD (Horizon Drive) full场景城区辅助驾驶解决方案 had successfully entered the market and was adopted by mainstream models.

A：On the models that HSD will be launched in 2025, the sales volume of top-equipped models with HSD as the core configuration accounts for up to 83%, breaking the traditional sales structure of the automotive industry, which has low and medium-to-low distribution volume and low sales volume of top-equipped models.

A：During the Spring Festival, the self-driving mileage of this model reached 41% of the total mileage, which means that HSD's self-driving mileage is close to the level of human drivers, which is a strategic number, and the high product stickiness provides conditions for the future launch of SARS subscription charging model.

A：Horizon's sea strategy can be summarized in three sentences: help independent brands go out, help joint venture brands stay, and help overseas brands enter the era of intelligence. At present, a total of 11 car companies have won the mass production of more than 40 sea-going models, with 2 million sets of export fixed-point numbers, and have established in-depth cooperation with international mainstream car companies. Their technical strength has been recognized by demanding customers, helping overseas traditional car companies to intelligently transform.

A：The adjusted operating loss for the reporting period was 2.37 billion yuan, mainly due to further increased investment in research and development in 2025. Nevertheless, Horizon firmly believes that HSD is the core strategic product to win urban self-driving and is the technical base for future L4L5 level self-driving, so it continues to increase related research and development investment, especially for training costs related to cloud services.

A：Driven by the rise in volume and price, the revenue of automotive products and solutions reached 1.62 billion yuan, 2.4 times that of the same period in 2024, accounting for 43% of the company's total revenue, a significant increase from 28% in 2024. Solutions that support NV functional chips account for 45% of shipments, contributing more than 80% of revenue, and future orders are pipeline abundant, with more than 10 billion new designated models, of which HSD solutions have designated more than 20 models.

A：With world-class software algorithm capabilities and excellent ecological influence in the field of automotive-grade chips, we have adopted a flexible ARM + Android business model and excellent HSD production performance, and have established a trusted base technology and model. Revenue from the licensing business was 1.94 billion yuan, up 17.4 percent year-on-year, and it has launched algorithmic and software licensing cooperation with Volkswagen's joint venture Core City and Japan's largest auto parts group.

A：This year we will experience an explosive growth, be at the heart of the next generation of competitive models, and be at the center of technical information. Looking ahead to 2026, we expect revenue growth to reach an average of 60%, a steeper growth curve than previously expected. This year, we will cooperate with many ecological partners to promote the landing of NOA function in the mainstream vehicle market and the national vehicle market in the urban area. At the same time, we will release HSD2.0, which will become the industry technology benchmark, realize the absolute leading experience and take over the mileage ten times faster growth.

A：This year, we will launch an end-to-end urban NOA solution based on a single extended range 6M chip, which has been working with partners to promote the market landing. In addition, for the extended range 6P plus HSD hardware and software combination, HSD2.0 will be released to further enhance technology and market share.

A：This year, China's first cabin driving integrated all-vehicle intelligent body chip (agented car SOC) and all-vehicle intelligent body OS will be launched in due course. It provides powerful CPU, BPU, GPU computing power and multimedia functions. It is the only integrated intelligent body chip in the industry that can efficiently run open class software and HSD city self-driving NOA complex vehicle intelligent driving software.

A：Horizon has no intention of competing directly with Qualcomm in the mature cockpit chip market, but rather provides differentiated solutions through underlying technological innovation and system-level optimization, and is committed to creating smart chips and solutions for cockpit integration, creating a blue ocean market that brings customers the ultimate intelligent experience and significant cost competitiveness.

A：Over the past few years, Horizon has continued to introduce new products, such as 5 chips, extended range 6 family chips, HSD solutions, and now the framework fusion agent solution, to continuously improve product competitiveness. In the future, based on the newly released Riemann architecture, it will continue to promote the research and development of range extender series chips, which is expected to be officially released next year.

A：The plan involves partnering with ecosystem players to pilot operate L4-level robot taxis using the HSD solution based on the Baidu Apollo model in specific cities in China, aiming to gather experience for future商业化 and technical evolution.

A：The financial results include a 57.7% increase in total revenue year-over-year to RMB 2.3 billion, an overall gross margin of 64.5%, R&D expenses of RMB 522 million with a 63.3% year-over-year increase, and an operating loss of RMB 333 million. Adjusted net loss was RMB 240 million, which includes non-cash share-based compensation expenses.

A：The强劲收入增速 was primarily driven by robust growth in motive solutions, with a 144% increase in revenue from product solutions and 38% higher delivery volumes along with a higher dollar content per vehicle. The company has also expanded its client base, including partnerships with major industry players.

A：Revenue from automotive solutions is expected to steepen, with a projection of a 50% increase in 2025 and a further expected acceleration to around a 60% growth rate by 2026. This growth is attributed to an increase in both sales volume and average selling price (ASP) of products.

A：The forecasted growth in AD chip出货量 is significant, with an increase to more than 55% of the total出货量 from 45% in the previous year. This growth, combined with a higher product单价, will result in a very high growth rate for AD-related products, contributing significantly to the company's revenue growth.

A：The specific target for HSD chip出货量 in 2026 was not disclosed in the transcript, but the focus was on the significant growth trajectory and the increased proportion of advanced driver assistance (AD) chips in the total出货量.

A：Horizon believes that by integrating automatic driving (AD) with cockpit functions, it can provide a more seamless user experience and create a AI agent beyond mobile phones in the context of the rapid development of AI technology. In this process, Horizon has successfully cut into the cockpit field and achieved higher-dimensional integration, thereby bringing higher comprehensive benefits to car companies and consumers. Compared to its competitors, Horizon has the advantage of having a hard and soft solution that can open up the full link from chip to computing software to smart body OS, a capability that other companies such as Nvidia do not have. In addition, compared with NVIDIA's attempts in the field of intelligent driving, Horizon has a stronger competitiveness in the transition from autonomous driving to the cockpit with its deep strength in software and hardware integration.

A：This year, Horizon plans to increase its self-driving takeover mileage target tenfold, from tens of kilometers last year to hundreds of kilometers, and even thousands of kilometers in the next few years. If there are tens of thousands of kilometers of takeover mileage in local areas, and the realization of remote manual relief intervention, it means that there will be local L4 level automatic driving operation capability. Referring to the performance of Tesla FSD in the United States, it has achieved 1000 kilometers of comprehensive takeover mileage and tested in some areas, close to zero safety supervision. Horizon HSD will follow a similar path, supporting eco-partners to conduct robot taxi commercial operations in local areas of China as a technology provider within 2 to 3 years.

A：During the Spring Festival, the self-driving mileage of Horizon HSD reached 41%, indicating that consumers have a high acceptance of self-driving solutions. If the proportion exceeds 50%, that is, the number of machine driving miles exceeds that of human driving, it will indicate that users are more inclined to subscribe to the self-driving function using HS wires, which will lead to the reconstruction of the business model.