Group 1 - The core viewpoint of the report is that Horizon Robotics (地平线机器人-W) 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, corresponding to PS ratios of 36X, 21X, and 14X [1] - The smart driving chip SoC market is projected to grow at a CAGR of 29% from 2025 to 2030, with a significant increase in penetration rates driven by technological parity [2] - By 2030, the penetration rate of smart driving is expected to approach 100%, with AD penetration reaching 96%, indicating a strong demand for high-performance chips [2] Group 2 - 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 in the smart driving chip market is expected to converge around a few key players, particularly in contrast to Nvidia, with a focus on ASIC technology for cost efficiency [3] - The company is positioned as a primary beneficiary of the domestic smart driving chip market, particularly in the context of supply chain security [3]

Core Viewpoint - The Hong Kong stock market is experiencing a downward trend, with the Hang Seng Index and Hang Seng Tech Index both opening lower, indicating a bearish sentiment in the market [1][6]. Company Summary - The company plans to issue shares at HKD 9.99 each, representing a discount of approximately 5.75%, aiming to raise a net amount of about HKD 6.339 billion. The new shares will account for approximately 4.6% of the existing issued share capital and about 1.9% of the voting rights at the shareholders' meeting. The proceeds 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]. - Horizon Robotics is showing rapid revenue growth year-on-year for the first half of 2025, despite strategic losses. The company's automotive product solutions are experiencing both volume and price increases, with high-level intelligent driving (HSD) production imminent and initial success in overseas expansion. The average selling price (ASP) of automotive product solutions is expected to rise, and new products are anticipated to drive an increase in the number of licensing and service contracts. Significant growth in overseas licensing and service contracts is expected by 2026 [4]. - Horizon Robotics opened over 5% lower following the announcement of its plan to raise over HKD 6.3 billion through share placement [6]. Industry Summary - CITIC Securities has released a report indicating that the advantages of the Hong Kong stock market are becoming more apparent, with increasing attention from both domestic and foreign capital. The overall market is entering a bullish phase. Although there may be short-term fluctuations due to technical adjustments, the market is expected to experience a slow bull trend in the medium to long term, supported by improved liquidity, valuation recovery potential, and corporate profit rebounds [5].

Core Viewpoint - Horizon Robotics-W (09660) announced a placement and subscription agreement, with existing shareholders agreeing to sell shares at a price of HKD 9.99 per share, representing a discount of approximately 5.75% from the last closing price of HKD 10.60 [1] Group 1 - The company plans to raise an estimated net amount of approximately HKD 6.339 billion to optimize its capital structure and support healthy and sustainable development [1]

Core Viewpoint - Horizon Robotics-W (09660) has announced a placement and subscription agreement aimed at optimizing its capital structure and supporting sustainable development, with a net estimated proceeds of approximately HKD 6.339 billion [1] Group 1: Placement and Subscription Agreement - The company and existing shareholders have entered into an agreement where existing shareholders agree to sell shares at a placement price of HKD 9.99 per share [1] - The placement price represents a discount of approximately 5.75% compared to the last closing price of HKD 10.60 per share on the Stock Exchange [1] - Existing shareholders conditionally agree to subscribe for shares at the same placement price of HKD 9.99 per share [1] Group 2: Use of Proceeds - The estimated net proceeds of approximately HKD 6.339 billion will be used to optimize the company's capital structure [1] - The funds are intended to support the company's health and sustainable development initiatives [1]

不得在美國分發 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致之任何損失承擔任何責任。 本公告僅供參考，並非在美國或任何其他司法權區出售或收購證券的邀請或要約或招攬購買證 券的要約，未根據任何該等司法權區的證券法登記或獲批准而於上述司法權區進行的相關邀 請、要約、收購、招攬或出售均屬違法。 本公告及其內容並非任何合約或承諾的根據。本公告及其任何副本不得帶入美國或在美國傳 閱。本公告所述證券並無亦不會根據1933年美國證券法（經修訂）或向美國任何州或其他司法權 區的任何證券監管機構登記，且不會在美國提呈發售或出售，惟獲得1933年美國證券法（經修 訂）及相關州或地方證券法登記規定的適用豁免，或屬不受1933年美國證券法（經修訂）及相關 州或地方證券法登記規定約束的交易則除外。於美國公開發售的任何證券將以招股章程形式進 行，有關招股章程可向本公司索取，並將載有關於本公司及管理層的詳細資料以及財務報表。 本公司不會在美國公開發售證券。 Horizon Robotics 地平線* （ ...

Core Insights - On September 25, China Everbright Holdings made its debut on the Hong Kong Stock Connect active trading list for the first time in a month [1] - The total trading volume of active stocks on the Hong Kong Stock Connect reached HKD 563.55 billion, accounting for 36.05% of the day's total trading amount, with a net buying amount of HKD 72.15 billion [1] - Alibaba-W led the trading volume with HKD 182.84 billion, followed by Xiaomi Group-W and SMIC with HKD 114.02 billion and HKD 77.63 billion respectively [1] Trading Activity Summary - The most frequently listed stocks in the past month include Alibaba-W and Tencent Holdings, each appearing 23 times, indicating strong interest from Hong Kong Stock Connect funds [1] - China Everbright Holdings had a trading volume of HKD 14.37 billion on the day, with a net selling amount of HKD 0.71 billion, and its stock price increased by 25.89% [1] Active Stocks List - The active stocks on September 25 included: - Tencent Holdings: Trading amount HKD 48.30 billion, net buying HKD 11.11 billion, closing price HKD 650.000, daily change +0.23% [1] - SMIC: Trading amount HKD 77.63 billion, net buying HKD 9.59 billion, closing price HKD 76.800, daily change +0.07% [1] - Xiaomi Group-W: Trading amount HKD 114.02 billion, net selling HKD 8.02 billion, closing price HKD 59.450, daily change +4.48% [1] - Alibaba-W: Trading amount HKD 182.84 billion, net buying HKD 46.32 billion, closing price HKD 172.000, daily change -1.15% [1] - China Everbright Holdings: Trading amount HKD 14.37 billion, net selling HKD 0.71 billion, closing price HKD 12.790, daily change +25.89% [1]

Summary of Key Points Core Viewpoint - The Hang Seng Index experienced a slight decline of 0.13% on September 25, with southbound capital transactions totaling HKD 156.31 billion, indicating a net inflow of HKD 11.046 billion [1][2]. Southbound Capital Transactions - Total southbound capital transactions amounted to HKD 1,563.10 million, with buy transactions at HKD 836.78 million and sell transactions at HKD 726.32 million, resulting in a net buy of HKD 110.46 million [1]. - The breakdown of transactions shows that the Shenzhen Stock Connect had a total transaction amount of HKD 577.51 million, with net buying of HKD 62.16 million, while the Shanghai Stock Connect had a total transaction amount of HKD 985.59 million, with net buying of HKD 48.30 million [1]. Active Stocks - Alibaba-W led the southbound capital transactions with a total transaction amount of HKD 182.84 million and a net buy of HKD 46.32 million, despite a closing price drop of 1.15% [1][2]. - Other notable stocks included Xiaomi Group-W with a total transaction amount of HKD 114.02 million and a net sell of HKD 8.02 million, and SMIC with a total transaction amount of HKD 77.63 million and a net buy of HKD 9.59 million [1][2]. Continuous Net Buying - Alibaba-W and SMIC were highlighted for their continuous net buying, with Alibaba-W experiencing 25 consecutive days of net buying totaling HKD 720.86 million, while SMIC had 5 consecutive days with a total net buy of HKD 25.60 million [2].

Core Insights - On September 25, 2025, Alibaba-W (09988), Xiaomi Group-W (01810), and SMIC (00981) were the top three companies by trading volume in the southbound trading of the Stock Connect, with trading amounts of 11.969 billion, 7.178 billion, and 4.734 billion respectively [1] - The same companies also led in the Shenzhen-Hong Kong Stock Connect southbound trading, with trading amounts of 6.315 billion, 4.224 billion, and 3.029 billion respectively [1] Southbound Trading Highlights - **Top Active Companies in Southbound Trading (Shanghai-Hong Kong Connect)**: - Alibaba-W (09988): Trading amount of 11.969 billion, net buying of 2.469 billion [2] - Xiaomi Group-W (01810): Trading amount of 7.178 billion, net selling of 0.287 billion [2] - SMIC (00981): Trading amount of 4.734 billion, net buying of 0.666 billion [2] - **Top Active Companies in Southbound Trading (Shenzhen-Hong Kong Connect)**: - Alibaba-W (09988): Trading amount of 6.315 billion, net buying of 2.163 billion [2] - Xiaomi Group-W (01810): Trading amount of 4.224 billion, net selling of 0.515 billion [2] - SMIC (00981): Trading amount of 3.029 billion, net buying of 0.293 billion [2]

Investment Rating - The report maintains an "Overweight" investment rating for the company [2]. Core Insights - The company is positioned as a leader in the domestic intelligent driving chip sector, with significant revenue growth expected in the coming years. The projected revenues for 2025, 2026, and 2027 are 36 billion, 62 billion, and 96 billion RMB respectively, with year-on-year growth rates of 53%, 70%, and 54% [7]. - The report highlights the increasing market penetration of intelligent driving technologies, predicting that by 2030, the penetration rate for intelligent driving will approach 100%, with advanced driving (AD) penetration reaching 96% [7]. - The competitive landscape is characterized by oligopolistic tendencies, with only 2-3 companies expected to thrive long-term. The company is seen as a primary beneficiary of domestic chip production due to supply chain security concerns [7]. Financial Projections - Revenue forecasts indicate a significant increase from 1,552 million RMB in 2023 to 9,561 million RMB by 2027, with a compound annual growth rate (CAGR) of 29% for the intelligent driving chip market from 2025 to 2030 [6][21]. - The company is expected to achieve a turnaround in profitability by 2027, with a projected non-IFRS net profit recovery [11]. Market Dynamics - The intelligent driving chip market is expected to grow substantially, driven by technological advancements and cost reductions. The report notes that the pricing of intelligent driving chips is positively correlated with computing power, but this trend may not be linear as market dynamics evolve [7][17]. - The report emphasizes the importance of high-performance chips, as the demand for advanced driving capabilities increases, particularly in the context of local deployment of VLA and VLM models [7]. Competitive Positioning - The company has rapidly increased its market share in the low-computing power domain controller chip market, with projections showing an increase from 6% in 2023 to 17% in 2024 [27]. - In the mid-computing power domain controller chip market, the company is expected to capture a market share of 36% by 2024, positioning itself as the largest third-party supplier in this segment [32]. Industry Outlook - The report outlines a favorable outlook for the intelligent driving chip sector, with the market size projected to reach 659 billion RMB by 2030, reflecting a CAGR of 29% [21]. - The penetration of advanced driver assistance systems (ADAS) is expected to increase significantly, with the report forecasting that by 2024, the penetration rate for L2+ systems will reach 19% [21].

Core Insights - The penetration rate of passenger cars equipped with combined driving assistance systems in China reached 62.6% from January to July 2025, an increase of 5.7 million units and 40 percentage points compared to the same period in 2021 [1] - The current market primarily features L2 level systems, which assist with basic driving tasks but do not provide full autonomous driving capabilities, leaving the driver responsible [1] - The development of intelligent driving in China is accelerating due to policy support, with significant regulations and standards being established to enhance safety and performance in the industry [1][2] Industry Developments - The introduction of national standards for L2 level driving assistance is expected to provide regulatory support and drive innovation within the intelligent driving industry, benefiting the entire supply chain [2] - Major automotive manufacturers are shifting from fully self-developed solutions to strategic collaborations with technology providers, enhancing the integration of AI capabilities and increasing the penetration of intelligent driving technologies [2] - Domestic suppliers of components such as lidar, cameras, and radar are strengthening their influence in the industry and moving towards integrated hardware and software solutions [2] Relevant Companies - Black Sesame Intelligence (02533) is positioned to benefit from the commercialization of L2+ technology and advancements in L3 and L4 scenarios, having launched high-performance intelligent driving chips [3] - Horizon Robotics (09660) has achieved significant production milestones with its HSD chip series and is establishing international partnerships, aiming to expand its intelligent driving solutions globally [3] - Suoteng Juchuang (02498) has successfully mass-produced high-line count lidar products, which are now featured in new intelligent SUV models [3] - Youjia Innovation (02431) has entered the unmanned logistics sector with its "Xiaozhu" brand, showcasing its commitment to advancing high-level autonomous driving commercialization [4]