Core Insights - On September 30, 2025, Alibaba-W (09988), SMIC (00981), and Tencent Holdings (00700) were the top three companies by trading volume in the southbound trading of the Stock Connect, with trading amounts of 8.849 billion, 4.310 billion, and 3.283 billion respectively [1] - In the Shenzhen-Hong Kong Stock Connect, Alibaba-W (09988), SMIC (00981), and Xiaomi Group-W (01810) also led the trading volume, with amounts of 5.056 billion, 3.306 billion, and 2.030 billion respectively [1] Southbound Trading Highlights - **Top Active Companies in Southbound Trading (Hong Kong Stock Connect)** - Alibaba-W (09988): Trading amount of 8.849 billion, net inflow of 1.509 billion - SMIC (00981): Trading amount of 4.310 billion, net inflow of 0.656 billion - Tencent Holdings (00700): Trading amount of 3.283 billion, net inflow of 0.811 billion - Xiaomi Group-W (01810): Trading amount of 3.092 billion, net inflow of 0.716 billion - Huahong Semiconductor (01347): Trading amount of 2.642 billion, net inflow of 0.231 billion [2] - **Top Active Companies in Southbound Trading (Shenzhen-Hong Kong Stock Connect)** - Alibaba-W (09988): Trading amount of 5.056 billion, net inflow of 2.120 billion - SMIC (00981): Trading amount of 3.306 billion, net outflow of 0.423 billion - Xiaomi Group-W (01810): Trading amount of 2.030 billion, net inflow of 0.339 billion - Huahong Semiconductor (01347): Trading amount of 1.961 billion, net inflow of 0.704 billion - Tencent Holdings (00700): Trading amount of 1.400 billion, net inflow of 0.323 billion [2]

Core Viewpoint - Horizon Robotics (09660.HK) announced a placement of existing shares and a subscription for new shares, aiming to raise approximately HKD 6,339.4 million to optimize its capital structure and support sustainable development [1][2]. Group 1: Share Placement and Financial Details - The share placement price is set at HKD 9.99 per share, with a total expected amount of HKD 6,383.898 million from the placement [2]. - The company plans to use the net proceeds primarily for expanding overseas market operations, investing in R&D, and strategic investments in upstream and downstream partners [2]. - The total amount raised from two fundraising rounds amounts to HKD 10,126.33 million, bringing the cumulative total to HKD 16,510.23 million [5]. Group 2: Financial Performance - For the first half of 2025, the company reported revenue from customer contracts of RMB 1,566.756 million, a year-on-year increase of 67.6% [7]. - Gross profit for the same period was RMB 1,023.972 million, reflecting a 38.6% increase compared to the previous year [7]. - The company reported a net loss of RMB 5,232.979 million for the first half of 2025, slightly higher than the loss of RMB 5,098.105 million in the same period last year [7][6].

Horizon Robotics （於開曼群島註冊成立以不同投票權控制的有限公司） 股份代號 : 9660 中期報告 2025 中期報告 2025 目錄 公司資料 2 財務業績摘要 4 業務回顧及前景 5 管理層討論與分析 8 企業管治 14 中期財務資料審閱報告 32 中期簡明合併損益表 33 中期簡明合併全面收益表 34 中期簡明合併財務狀況表 35 中期簡明合併權益變動表 37 中期簡明合併現金流量表 39 中期簡明合併財務資料附註 40 釋義 89 公司資料 董事會 執行董事 余凱博士 （創始人、主席兼首席執行官） 黃暢博士 陶斐雯女士 （於2025年8月27日辭任） 徐健博士 （於2025年8月27日獲委任） 陳黎明博士 非執行董事 李良先生 劉芹先生 André Stoffels博士 張覺慧博士 （於2025年8月27日辭任） 張堅俊先生 （於2025年8月27日獲委任） 獨立非執行董事 浦軍博士 吳迎秋先生 Katherine Rong XIN博士 張亞勤博士 審計委員會 浦軍博士 （主席） Katherine Rong XIN博士 張亞勤博士 薪酬委員會 張亞勤博士 （主席） Katherin ...

Group 1 - The market size of intelligent driving chips SoC is projected to have a CAGR of 29% from 2025 to 2030, driven by the increasing penetration of smart driving technology [1] - In 2024, the estimated sales of passenger cars in China will be approximately 23 million, with a smart driving penetration rate of 55%, translating to about 12.5 million vehicles, primarily driven by ADAS [1] - By 2030, the smart driving penetration rate is expected to approach 100%, with the AD penetration rate reaching 96%, equating to around 23 million vehicles [1] Group 2 - The pricing of smart driving chips is significantly correlated with computing power, with the current mainstream high-end solution, dual Orin-X (508 TOPS), struggling to support end-to-end + VLA model deployment [1] - The industry is in urgent need of high-computing power chips, as local deployment of VLA + VLM models requires effective computing power greater than 2000 TOPS [1] - The market is expected to see a gradual increase in the proportion of high-computing power solutions, which will support the overall ASP to continue rising [1] Group 3 - The chip industry is characterized by an oligopolistic structure, with only 2-3 companies likely to survive and develop positively in the long term [1] - The competition in the automotive chip sector is narrowing down to a confrontation with Nvidia, with other manufacturers having certain shortcomings [2] - The company is positioned as a primary beneficiary of the domestic production of intelligent driving chip computing power, focusing on ASIC technology which offers high computing efficiency and low costs [2] Group 4 - Revenue projections for the company indicate a year-on-year increase of 53%, 70%, and 54% from 2025 to 2027, reaching 3.6 billion, 6.2 billion, and 9.6 billion respectively [2] - The current stock price corresponds to PS ratios of 36X, 21X, and 14X for the years 2025 to 2027 [2] - The company maintains a leading position in the domestic intelligent driving chip sector, which is considered rare, leading to a recommendation to "increase holdings" [2]

Core Points - The Hang Seng Index fell by 1.35% on September 26, closing at 26,128.20 points, while southbound funds through the Stock Connect recorded a net inflow of HKD 10.541 billion [1] - The total trading volume for the Stock Connect on September 26 was HKD 160.921 billion, with a net buy of HKD 10.541 billion [1] - In the Shanghai Stock Connect, the trading volume was HKD 101.109 billion with a net buy of HKD 7.366 billion, while in the Shenzhen Stock Connect, the trading volume was HKD 59.812 billion with a net buy of HKD 3.174 billion [1] Trading Activity - The most actively traded stock in the Shanghai Stock Connect was Alibaba-W, with a trading volume of HKD 11.062 billion, followed by Xiaomi Group-W and SMIC, with trading volumes of HKD 7.476 billion and HKD 5.598 billion respectively [1] - In terms of net buy amounts, Xiaomi Group-W led with a net buy of HKD 2.274 billion, despite its closing price dropping by 8.07% [1] - The stock with the highest net sell amount was Xpeng Motors-W, with a net sell of HKD 224 million, while its closing price increased by 5.03% [1] Shenzhen Stock Connect Activity - In the Shenzhen Stock Connect, Xiaomi Group-W had the highest trading volume at HKD 6.471 billion, followed closely by Alibaba-W and SMIC, with trading volumes of HKD 6.439 billion and HKD 3.316 billion respectively [2] - Alibaba-W recorded the highest net buy amount in the Shenzhen Stock Connect at HKD 2.035 billion, despite a closing drop of 3.20% [2] - Xiaomi Group-W also had the highest net sell amount in the Shenzhen Stock Connect, with a net sell of HKD 1.669 billion, closing down by 8.07% [2]

Group 1 - The Hong Kong stock market has experienced a strong upward trend since the beginning of 2025, with the Hang Seng Index rising over 30% and trading volume significantly increasing [2] - A wave of equity placements has emerged alongside the market rally, with many listed companies announcing fundraising plans, including large-scale offerings exceeding 10 billion HKD [2] - In the first eight months of this year, the total refinancing amount in the Hong Kong stock market surpassed 230 billion HKD, representing a year-on-year increase of over 2.5 times, exceeding the IPO fundraising amount by nearly 100 billion HKD [2] Group 2 - Horizon Robotics announced a placement and subscription agreement to raise approximately 63.39 billion HKD by selling 639 million existing shares at a price of 9.99 HKD per share, a discount of about 5.75% from the previous closing price [3][5] - Following the announcement, Horizon Robotics' stock price fell by 8.49% on September 26, with a trading volume of 11.9 billion HKD, marking the largest single-day trading volume since its listing [5] Group 3 - This is not the first fundraising for Horizon Robotics this year; in June, the company raised approximately 46.74 billion HKD through a similar placement, selling 681 million shares at a price of 6.93 HKD per share, a discount of about 6.85% [7] - Overall, Horizon Robotics has raised over 110 billion HKD through two placements this year [9] Group 4 - The technology sector has seen significant placement fundraising, with over 284 billion HKD raised by Hong Kong-listed companies through placements by September 26, far exceeding the total for the entire year of 2024 [11] - The pharmaceutical and biotechnology sectors have seen over 50 placement cases this year, while real estate and software services have also seen significant activity [12] Group 5 - Many technology companies are in a rapid growth phase, requiring substantial investment for research and market capture, which has led to increased reliance on external financing [13] - Despite the strong stock performance, many of these companies, including Horizon Robotics, are facing significant losses, with adjusted net losses expanding in 2024 and the first half of 2025 [15] Group 6 - The long-term potential of the intelligent driving and robotics sectors is promising, supported by policy backing, technological breakthroughs, and ongoing capital investment [17] - The Hong Kong Stock Exchange is adapting to reflect new market dynamics, with the upcoming 12th Hong Kong Stock 100 ranking set to highlight emerging forces in the technology sector [17][18]

Summary of Key Points Core Viewpoint - The Hong Kong stock market experienced significant net inflows from northbound trading, with a total net buy of 10.541 billion HKD on September 26, 2023, indicating strong investor interest in specific stocks, particularly Alibaba, Horizon Robotics, and Tencent [1][5]. Group 1: Northbound Trading Activity - Northbound trading saw a net buy of 10.541 billion HKD, with 7.366 billion HKD from the Shanghai Stock Connect and 3.174 billion HKD from the Shenzhen Stock Connect [1]. - The most net bought stocks included Alibaba-W (09988), Horizon Robotics-W (09660), and Tencent (00700) [1][5]. Group 2: Individual Stock Performance - Alibaba-W (09988) had a net buy of 57.20 billion HKD, with a total trading volume of 110.62 billion HKD, resulting in a net inflow of 3.77 billion HKD [2]. - Horizon Robotics-W (09660) received a net buy of 8.63 billion HKD, with plans to use the proceeds from a share placement to expand its overseas market and support advanced driver-assistance solutions [5]. - Tencent (00700) attracted a net buy of 7.92 billion HKD, supported by its global digital ecosystem conference focusing on AI and internationalization [6]. - Xiaomi Group-W (01810) saw a net buy of 6.05 billion HKD, despite a stock price drop following a product launch event [6]. Group 3: Market Trends and Insights - The cumulative net buy for Alibaba in the month exceeded 68.5 billion HKD, reflecting strong confidence in its future capital expenditure plans and AI-related growth [5]. - Semiconductor stocks like SMIC (00981) and Hua Hong Semiconductor (01347) faced net sells of 1.45 billion HKD and 2.12 billion HKD, respectively, due to regulatory pressures from the U.S. government [7]. - The third-party AI-driven drug development service provider, Crystal Tech Holdings (02228), received a net buy of 1.9 billion HKD, indicating a growing interest in independent platforms in the biotech sector [7].

Core Insights - The Hong Kong stock market saw a net inflow of 10.541 billion HKD from Northbound trading on September 26, with the Shanghai Stock Connect contributing 7.366 billion HKD and the Shenzhen Stock Connect contributing 3.174 billion HKD [1] Group 1: Stock Performance - Alibaba-W (09988) received the highest net inflow of 5.720 billion HKD, with total trading volume of 11.062 billion HKD, reflecting a net increase of 3.77 billion HKD [2] - Horizon Robotics-W (09660) attracted a net inflow of 8.63 billion HKD, with plans to use proceeds from a share placement to expand overseas market operations and invest in emerging fields [5] - Tencent (00700) saw a net inflow of 7.92 billion HKD, supported by its global digital ecosystem conference focusing on AI and internationalization [5] - Xiaomi Group-W (01810) recorded a net inflow of 6.05 billion HKD, despite a stock price drop following a product launch event [5] Group 2: Market Trends - Northbound trading has shown a strong interest in technology and AI-related stocks, with significant inflows into companies like Alibaba and Horizon Robotics, indicating a growing demand for digital transformation and AI solutions [4][5] - The semiconductor sector faced selling pressure, with SMIC (00981) and Hua Hong Semiconductor (01347) experiencing net outflows of 1.45 billion HKD and 2.12 billion HKD respectively, amid concerns over U.S. government regulations on semiconductor production [6]

Core Viewpoint - Horizon Robotics plans to raise approximately HKD 63.39 billion through a share placement at HKD 9.99 per share, which represents a discount of about 5.75% [1][2] Group 1: Fundraising and Use of Proceeds - The share placement will account for approximately 4.6% of the company's existing issued share capital and about 1.9% of the voting rights at the shareholders' meeting [1] - The net proceeds from the placement will be used to expand overseas market operations, support the scaling of advanced driver assistance solutions, and invest in emerging fields such as Robotaxi-related initiatives [2] Group 2: Market Performance and Financials - On the secondary market, Horizon Robotics opened down over 5% on September 26, and by the time of reporting, the stock had dropped over 6% to HKD 9.92 per share [5] - The company reported a revenue of approximately CNY 15.67 billion for the first half of the year, marking a year-on-year increase of 67.6%, while losses widened from CNY 50.98 billion to CNY 52.33 billion [8] - The increase in sales costs and R&D expenses has been identified as the primary reason for the widening losses [8] Group 3: Customer Base and Market Position - Horizon Robotics is a leading supplier of intelligent driving assistance solutions for passenger vehicles, with significant revenue contributions from its top five customers, which accounted for 52.48% of total revenue in the first half of the year [8] - The revenue from the top five customers has shown a trend of increasing diversification, with the largest customer contributing 19.7% of total revenue [8]

Group 1 - The core viewpoint of the report is that Horizon Robotics (09660) is expected to see significant revenue growth from 2025 to 2027, with projected revenues of 3.6 billion, 6.2 billion, and 9.6 billion respectively, reflecting year-on-year growth rates of 53%, 70%, and 54% [1] - The current stock price corresponds to price-to-sales (PS) ratios of 36X, 21X, and 14X for the years 2025 to 2027, indicating a favorable valuation based on future growth prospects [1] - The company is positioned as a leader in the domestic intelligent driving chip sector, which is considered a rare asset, leading to a maintained "buy" rating [1] Group 2 - The market size for intelligent driving chips (SoC) is projected to grow at a compound annual growth rate (CAGR) of 29% from 2025 to 2030, driven by increasing penetration rates of intelligent driving technologies [2] - In 2024, the estimated sales of passenger vehicles in China will be approximately 23 million, with an intelligent driving penetration rate of 55%, translating to about 12.5 million vehicles, primarily driven by Advanced Driver Assistance Systems (ADAS) [2] - By 2030, the intelligent driving penetration rate is expected to approach 100%, with ADAS penetration reaching 96%, equating to around 23 million vehicles [2] Group 3 - The chip industry is characterized by an oligopolistic structure, with only 2-3 companies likely to survive and thrive in the long term [3] - The competition landscape indicates that automakers like Li Auto, Xiaopeng, and Xiaomi may successfully develop their own chips, while third-party competition will primarily focus on competing with Nvidia [3] - The company differentiates itself from Nvidia through its use of ASIC technology, which is tailored for specific tasks, leading to higher computational efficiency and lower costs, positioning it as a primary beneficiary of domestic intelligent driving chip capabilities [3]