Financial Data and Key Metrics Changes - Total revenue for the first half of 2025 reached RMB 1.57 billion, a year-on-year increase of 67.6% [18] - Revenue from automotive solutions surged by 67%, with product solutions revenue increasing by 250% to RMB 777.8 million [18][19] - Gross profit margin stood at 65.4%, maintaining a strong position compared to other automotive solution providers [20] Business Line Data and Key Metrics Changes - Shipment volume doubled year-on-year, with approximately 2 million units of automotive-grade processing hardware shipped [8] - Mid to high-level intelligent driving solutions accounted for over 80% of revenue, reflecting a significant shift towards higher-end products [13] - Average selling price (ASP) of solutions increased by 70% compared to the previous year [14] Market Data and Key Metrics Changes - Domestic brands' market share in the Chinese passenger car market exceeded 63%, with the penetration rate of intelligent driver assistance rising from 51% to 59% [5][6] - The market share for Horizon in the ADAS basic assisted driving market was 45.8%, and 32.4% in the overall intelligent assisted driving computing solutions market among Chinese domestic brands [8] Company Strategy and Development Direction - The company aims to advance its position in the high-end intelligent driving market, focusing on the development of the Horizon SuperDrive (HSD) solution [12][16] - Strategic investments in R&D are being made to enhance cloud services and support the development of advanced intelligent driving solutions [20][60] - Horizon is expanding its international footprint, having secured model nominations from two Japanese car manufacturers and partnerships with global automotive groups [10][11][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustained growth potential in the intelligent driving market, driven by rising volumes and prices [6][10] - The company anticipates significant growth opportunities from the increasing demand for high-level intelligent driving solutions and the upcoming launch of HSD [12][39] - Management highlighted the importance of adhering to strict industry standards and regulations to foster growth in the intelligent driving ecosystem [54][55] Other Important Information - The company recorded an adjusted operating loss of RMB 1.1 billion, reflecting increased R&D investments [22][23] - Cumulative shipments of the Journey series processing hardware exceeded 10 million units, marking a significant milestone for the company [14] Q&A Session Summary Question: Major customers for mid to high-end products - The largest customers in the first half of 2025 were BYD and Auto Li, with both companies significantly increasing their shipments of Horizon's solutions [27][28] Question: Outlook for Journey 6E and HSD revenue contributions - The ASP for J6P and HSD is expected to be significantly higher than previous models, indicating strong future revenue potential [32][34] Question: Volume and ASP guidance for the second half of 2025 - The company anticipates achieving total shipments of around 4 million units, with a balanced mix of low, mid, and high-end solutions [29][42] Question: Details on global customers and solutions - While specific names could not be disclosed, the company is collaborating with leading global automotive groups and joint ventures in China [45][48] Question: Anticipated deployments of robotaxi and L2 standards - The company plans to launch robotaxi technologies within the next three to five years, leveraging partnerships to enhance data collection and validation [56][57] Question: Insights on R&D spending plans - R&D expenditures are expected to continue increasing, particularly for cloud computing resources, which are crucial for developing advanced intelligent driving solutions [60]

Financial Data and Key Metrics Changes - The total revenue for the first half of 2025 amounted to RMB 1.57 billion, representing an increase of 67.6% compared to the same period last year [21] - Revenue from automotive solutions surged by 67%, with product solutions revenue increasing by 250% to RMB 777.8 million [21][22] - The overall gross margin was 65.4%, maintaining a strong position compared to other automotive solution providers [22] Business Line Data and Key Metrics Changes - The company shipped approximately 2 million units of automotive-grade processing hardware, more than doubling year on year [10] - Shipments of mid to high-level intelligent driving solutions accounted for half of total shipments, with a sixfold increase compared to the same period last year [10][12] - The average selling price (ASP) of solutions increased by 70% compared to last year, driven by a higher mix of mid to high-end solutions [15] Market Data and Key Metrics Changes - The penetration rate of intelligent driver assistance in domestic brands rose from 51% in 2024 to 59% in 2025 [6] - The market share of the company in the ADAS basic assisted driving market was 45.8%, and 32.4% in the overall intelligent assisted driving computing solutions market among Chinese domestic brands [9] Company Strategy and Development Direction - The company aims to advance its position in the high-end intelligent driving market, focusing on the development of the Horizon SuperDrive (HSD) as a foundation for future robotaxi solutions [14][19] - Strategic investments in cloud services and R&D are expected to drive growth opportunities and enhance the company's competitive edge in the intelligent driving sector [15][63] - The company plans to expand its global footprint and deepen partnerships with leading international automakers [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustained growth potential in the intelligent driving market, driven by rising volumes and prices [6][12] - The company anticipates achieving shipments of around 4 million units in 2025, with a significant portion coming from mid to high-end solutions [32][42] - The management highlighted the importance of adhering to strict standards for L2 intelligent driving, which will benefit the entire ecosystem [56] Other Important Information - The company recorded an adjusted operating loss of RMB 1.1 billion, reflecting increased R&D investments [24][25] - Cumulative shipments of the Journey series processing hardware exceeded 10 million units, setting a new benchmark for the industry [17] Q&A Session Summary Question: Can management elaborate on major customers for mid to high-end products in the first half of this year? - Major customers included BYD and Auto Li, with both being early adopters of the company's solutions [30][31] Question: What is the outlook for revenue contribution from Journey 6E and Horizon SuperDrive? - The ASP for Journey 6P and HSD is expected to be significantly higher, contributing to future revenue growth [35] Question: Can management provide guidance for volume and ASP for the second half of this year? - The company expects continued growth in shipments and ASP, driven by new product launches and market penetration [40][45] Question: What are the details about global customers and their chosen solutions? - The company is working with global automotive groups and joint ventures, providing ADAS and new generation solutions [48][50] Question: Does the company anticipate actual deployments of robotaxi within this year? - The company plans to launch robotaxi technologies within the next three to five years, collaborating with operators to validate data [59] Question: What are the plans regarding R&D expenditure? - The company will continue to invest heavily in R&D, particularly for HSD, to capture structural transformations in the intelligent driving industry [63]

（原标题：地平线机器人-W(09660)：徐健获委任为执行董事） 智通财经APP讯，地平线机器人-W(09660)发布公告，陶斐雯女士因个人健康原因已辞任执行董事。 张觉慧博士因达退休年龄，已辞任非执行董事职务。 徐健博士已获委任为执行董事。 张坚俊先生已获委任为非执行董事。 陶女士不再担任上市规则第3.05条规定的公司授权代表，以及徐博士已获委任为授权代表，以上变动自2025年8月27日起生效。 | 云计算50ETF | | --- | | (产品代码:516630) | ...

Core Insights - The company reported a revenue of 1.567 billion RMB for the six months ending June 30, 2025, representing a year-on-year increase of 67.64% [1] - Gross profit reached 1.024 billion RMB, showing a year-on-year growth of 38.61% [1] - The company maintained the leading market share in basic and overall assisted driving solutions among Chinese automotive enterprises, with shares of 45.8% and 32.4% respectively [1] Revenue and Profitability - Revenue from customer contracts was 1.567 billion RMB, up 67.64% year-on-year [1] - Gross profit was 1.024 billion RMB, reflecting a 38.61% increase compared to the previous year [1] Market Position - The company continues to hold the top market share in basic assisted driving solutions and overall assisted driving solutions in China [1] - The market shares for basic and overall assisted driving solutions are 45.8% and 32.4% respectively, reinforcing the company's leading position in the Chinese market [1] Product Performance - The company achieved a shipment of 1.98 million units of its vehicle-grade processing hardware, doubling the volume year-on-year [1] - The shipment of processing hardware supporting highway assisted driving reached 980,000 units, accounting for 49.5% of total shipments, which is six times the amount from the same period last year [1] - The growth was primarily driven by the new generation of the Journey 6 series products [1] Model Development - As of the end of 2024, the company has secured over 310 model designations [1] - By the end of the reporting period, nearly 400 new model designations were achieved, with over 100 models equipped with highway assisted driving or higher functionalities [1] - In the first half of 2025, more than 15 models featuring the company's mid-to-high level assisted driving solutions were successfully mass-produced and launched [1]

李良先生 劉芹先生 André Stoffels博士 張堅俊先生 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 董事會下設四個委員會。下表詳列該等委員會的成員。 Horizon Robotics 地平線* （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） 董事名單與其角色及職能 Horizon Robotics（「本公司」）董事會（「董事會」）成員載列如下。 執行董事 余凱博士 黃暢博士 徐健博士 陳黎明博士 非執行董事 | 董事會委員會 | | | | | | --- | --- | --- | --- | --- | | | 審計 | 薪酬 | 提名 | 企業管治 | | 董事 | 委員會 | 委員會 | 委員會 | 委員會 | | 浦軍博士 | C | | | M | | Katherine Rong XIN博士 | M | M | M | | | 張亞勤博士 | M | C | | C | | 余凱博士 | | M | M | | | 吳迎秋先生 | | | C | M | 附註： C－相關董事會委員會的主席 M－相關董事會委員會的 ...

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的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Horizon Robotics 地平線* （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） 陶女士已確認與董事會並無歧見，且亦無有關其辭任之任何事宜須提請聯交所或 本公司股東注意。 董事會謹藉此機會對陶女士於任期內對本公司作出之貢獻致以衷心謝意。 變更董事及授權代表 本公告由Horizon Robotics（「本公司」，連同其附屬公司統稱「本集團」）根據香港 聯合交易所有限公司（「聯交所」）證券上市規則（「上市規則」）第13.51(2)條之規定 作出。 執行董事辭任 本公司董事（「董事」）會（「董事會」）謹此宣佈，陶斐雯女士（「陶女士」）因個人健 康原因已辭任執行董事，自2025年8月27日起生效。 董事會謹此宣佈，張覺慧博士因達退休年齡，已辭任非執行董事職務，自2025年 8月27日起生效。 張覺慧博士已確認與董事會並無歧見，且亦無有關其辭任之任何事宜須提請聯交 所或本公司股 ...

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的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Horizon Robotics 地平線* （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） 茲提述本公司日期為2024年10月16日的招股章程所載「關連交易」一章，內容有 關（其中包括）產品解決方案銷售框架協議。根據產品解決方案銷售框架協議， D-Robotics集團同意向本集團（D-Robotics集團除外）購買產品解決方案，以開 發其非車業務，期限自上市日期起至2026年12月31日止。 於2025年8月27日，本公司與D-Robotics訂立補充協議，以修訂產品解決方案銷 售框架協議項下持續關連交易截至2025年12月31日及2026年12月31日止年度的 現有年度上限。 上市規則的涵義 D-Robotics 為本公司的非全資附屬公司，而本公司執行董事余凱博士於 D-Robotics的股東大會上可行使或控制行使10%或以上的投票權。因此， D-Robotics及其附屬公司 ...

Core Viewpoint - Horizon Robotics-W (09660) reported a significant increase in revenue and gross profit for the six months ending June 30, 2025, driven by strong demand for advanced driving assistance solutions in the Chinese automotive market [1] Financial Performance - Revenue from customer contracts reached 1.567 billion RMB, representing a year-on-year increase of 67.64% [1] - Gross profit amounted to 1.024 billion RMB, reflecting a year-on-year growth of 38.61% [1] Market Position - The company maintained the leading market share in basic and overall driving assistance solutions among Chinese automakers, with shares of 45.8% and 32.4% respectively [1] - As of the end of 2024, the company had secured over 310 model designations, with nearly 400 new model designations achieved by the end of the reporting period [1] Product Performance - The shipment volume of the vehicle-grade Journey series processing hardware reached 1.98 million units, doubling year-on-year [1] - The shipment of processing hardware supporting highway driving assistance reached 980,000 units, accounting for 49.5% of total shipments, which is six times the volume from the same period last year [1] - More than 15 models equipped with the company's advanced driving assistance solutions successfully entered mass production during the first half of 2025 [1]

Group 1 - The company reported a revenue of RMB 1.567 billion in the first half of 2025, representing a year-on-year growth of 67.6%, with a gross margin of 65.4% [1] - The transition to mid-to-high level assisted driving solutions is identified as the next dominant trend in the industry, with increasing demand for advanced algorithms and software related to cloud services [1] - The company is developing the Horizon Super Drive (HSD) full-scene urban assisted driving solution, which is expected to become the technological foundation for future robotaxi services [1] Group 2 - The company has become the first intelligent driving technology company in China to achieve cumulative shipments of over 10 million units of its Chengcheng series processing hardware, setting a new industry benchmark [2] - The Chengcheng 6B processing hardware has been successfully launched, featuring a highly integrated design that doubles the performance of the front-view integrated ADAS system while significantly reducing system costs, power consumption, and size [2] - The Chengcheng 6 series processing hardware has established a complete product portfolio covering high, medium, and low processing capabilities, which will support revenue growth in both mainstream and high-end markets [2]

[Company Information and Financial Summary](index=1&type=section&id=Company%20Information%20and%20Financial%20Summary) [Company Overview](index=1&type=section&id=Company%20Overview) Horizon Robotics, an investment holding company registered in the Cayman Islands, primarily offers automotive and non-automotive solutions, and was listed on the HKEX in October 2024 - Horizon Robotics was incorporated on July 21, 2015, in the Cayman Islands as an investment holding company, primarily providing automotive solutions for passenger vehicles and non-automotive solutions[51](index=51&type=chunk) - The company completed its initial public offering on October 24, 2024, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited[51](index=51&type=chunk) [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) For the six months ended June 30, 2025, revenue grew by 67.6% to RMB 1.567 billion, and gross profit increased by 38.6% to RMB 1.024 billion, despite expanded operating and net losses Financial Performance Summary for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,566,756 | 934,599 | 67.6% | | Gross Profit | 1,023,972 | 738,738 | 38.6% | | Operating Loss | (1,592,102) | (1,105,418) | 44.0% | | Loss for the Period | (5,232,979) | (5,098,105) | 2.6% | | Adjusted Operating Loss | (1,111,261) | (823,980) | 34.9% | | Adjusted Net Loss | (1,332,500) | (803,941) | 65.7% | [Business Review and Outlook](index=2&type=section&id=Business%20Review%20and%20Outlook) [Business Review During the Reporting Period](index=2&type=section&id=Business%20Review%20During%20the%20Reporting%20Period) In H1 2025, the company achieved double-digit shipment growth, maintained a leading position in advanced driver-assistance systems, and expanded into overseas markets, driven by strong domestic auto sales and increased ADAS penetration - In H1 2025, the market share of Chinese domestic auto brands exceeded **63%**, with ADAS penetration increasing from **51%** at the end of 2024 to **59%**[4](index=4&type=chunk) - The sales proportion of vehicles equipped with mid-to-high-level ADAS functions increased from **20%** at the end of 2024 to **32%** in H1 2025[4](index=4&type=chunk) [Market Position and Shipments](index=2&type=section&id=Market%20Position%20and%20Shipments) The company maintained its leading market share in basic and overall ADAS solutions in China, with a doubling of Journey series processing hardware shipments in H1 2025 - In H1 2025, the company maintained its leading market share among Chinese automakers for basic ADAS solutions and overall ADAS solutions, at **45.8%** and **32.4%** respectively[4](index=4&type=chunk) - During the reporting period, the company's automotive-grade Journey series processing hardware shipments reached **1.98 million units**, a **doubling year-on-year**, with hardware supporting highway ADAS functions accounting for **980,000 units**, six times that of the prior year, representing **49.5%** of total shipments[4](index=4&type=chunk) [Model Design Wins and Overseas Expansion](index=2&type=section&id=Model%20Design%20Wins%20and%20Overseas%20Expansion) The company secured nearly 400 new model design wins, including over 100 for highway ADAS, and expanded into overseas markets with two Japanese automakers, projecting over 7.5 million units in lifetime shipments - As of the end of the reporting period, the company had accumulated nearly **400 new model design wins**, with over **100 models** featuring highway ADAS or higher functions[4](index=4&type=chunk) - The company has secured model design wins with two Japanese automakers for markets outside China, projected to bring over **7.5 million units** in lifetime shipments[4](index=4&type=chunk) - Including Volkswagen, **9 domestic joint venture automakers** have designated the company's solutions for **30 models**, with some scheduled for mass production by the end of this year[4](index=4&type=chunk) [Revenue and Gross Margin Performance](index=3&type=section&id=Revenue%20and%20Gross%20Margin%20Performance) In H1 2025, the company's revenue reached RMB 1.567 billion, a 67.6% year-on-year increase, with a gross margin of 65.4%, demonstrating steady operational efficiency improvement after excluding cloud computing costs - In H1 2025, the company's revenue reached **RMB 1,566.8 million**, a **67.6% year-on-year increase**, with a gross margin of **65.4%**[5](index=5&type=chunk) - Operating efficiency steadily improved after excluding cloud computing costs for model training[5](index=5&type=chunk) [R&D Investment and Strategic Transformation](index=3&type=section&id=R%26D%20Investment%20and%20Strategic%20Transformation) The company strategically increased cloud service R&D expenditure, resulting in an adjusted operating loss of RMB 1.111 billion, to advance its Horizon SuperDrive (HSD) solution and capitalize on structural changes in the ADAS market - The company strategically increased cloud service-related R&D expenditure, recording an adjusted operating loss of **RMB 1,111.3 million**, to advance the development of its full-scenario urban ADAS solution, Horizon SuperDrive (HSD)[5](index=5&type=chunk) - The company believes this investment will help seize structural changes in the ADAS market and accelerate its transformation into a full-industry infrastructure for the intelligent driving era[5](index=5&type=chunk) [Products and Solutions](index=3&type=section&id=Products%20and%20Solutions) The company achieved revenue growth through its licensing and services business and strong automotive product solutions, driven by increased shipments and higher per-vehicle value - The company generates revenue through its licensing and services business and automotive product solutions[7](index=7&type=chunk)[9](index=9&type=chunk) [Licensing and Services Business](index=3&type=section&id=Licensing%20and%20Services%20Business) The licensing and services business achieved steady growth, with revenue reaching RMB 738.5 million, as the company licensed algorithms and software to over 30 automotive manufacturers and ecosystem partners - Revenue from the licensing and services business reached **RMB 738.5 million**, a **6.9% year-on-year increase**, maintaining steady growth[7](index=7&type=chunk) - The company licenses algorithms and software and provides design and technical services to over **30 automakers** and ecosystem partners[7](index=7&type=chunk) [Automotive Product Solutions](index=3&type=section&id=Automotive%20Product%20Solutions) Automotive product solutions revenue surged by 250.0% to RMB 777.8 million, with 80% contributed by highway ADAS solutions, demonstrating sustainable growth from both volume and value increases - Revenue from automotive products and solutions reached **RMB 777.8 million**, a **250.0% year-on-year increase**[9](index=9&type=chunk) - **80%** of this revenue was contributed by solutions supporting highway ADAS functions, demonstrating sustainable growth driven by both volume and average selling price increases[9](index=9&type=chunk) [Recent Developments After the Reporting Period](index=3&type=section&id=Recent%20Developments%20After%20the%20Reporting%20Period) Post-reporting period, the company achieved significant milestones, including over 10 million cumulative shipments of Journey series hardware and the successful power-up of Journey 6B, while actively developing its HSD solution - As of August 2025, cumulative shipments of Journey series processing hardware exceeded **10 million units**, making the company the first intelligent driving technology company in China to achieve this milestone[10](index=10&type=chunk) - The Journey 6B processing hardware has been successfully powered up, featuring a highly integrated design that doubles the performance of front-view integrated ADAS systems while reducing system cost, power consumption, and size[10](index=10&type=chunk) - The company is actively developing its Horizon SuperDrive (HSD) full-scenario urban ADAS solution, having secured design wins with multiple OEMs covering over **ten models**, with mass production planned for H2 2025[9](index=9&type=chunk) [Industry Trends and Future Outlook](index=4&type=section&id=Industry%20Trends%20and%20Future%20Outlook) The company anticipates accelerated adoption of urban ADAS solutions due to decreasing prices, creating opportunities for HSD, and plans to collaborate with robotaxi operators while deepening innovation and global expansion - The price range for models equipped with urban ADAS solutions is expected to decrease to **RMB 150,000**, accelerating the popularization of urban ADAS[11](index=11&type=chunk) - The evolution of intelligent driving technology from L2 to L4 is evident, and the company expects to collaborate with robotaxi operating companies in H2 to provide technical infrastructure[11](index=11&type=chunk) - The company will continue to deepen innovation and open collaboration, adhere to a software-hardware integrated development path, increase investment in intelligent driving software, and expand its global business footprint[11](index=11&type=chunk) [Detailed Financial Performance Analysis](index=5&type=section&id=Detailed%20Financial%20Performance%20Analysis) [Analysis of Key Income Statement Items](index=5&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) During the reporting period, revenue significantly increased, but substantial rises in cost of sales, R&D, administrative, and sales and marketing expenses led to expanded operating and net losses, with fair value changes of preferred shares being a major factor Comparison of Key Income Statement Items for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,566,756 | 934,599 | 67.6% | | Cost of Sales | (542,784) | (195,861) | 177.1% | | Gross Profit | 1,023,972 | 738,738 | 38.6% | | R&D Expenses | (2,300,002) | (1,419,656) | 62.0% | | Administrative Expenses | (307,157) | (243,144) | 26.3% | | Sales and Marketing Expenses | (272,106) | (198,421) | 37.1% | | Operating Loss | (1,592,102) | (1,105,418) | 44.0% | | Loss for the Period | (5,232,979) | (5,098,105) | 2.6% | [Revenue Composition and Growth](index=6&type=section&id=Revenue%20Composition%20and%20Growth) Total revenue increased by 67.6% to RMB 1.567 billion for the six months ended June 30, 2025, driven primarily by a 250.0% surge in automotive product solutions revenue and stable growth in licensing and services - For the six months ended June 30, 2025, total revenue increased by **67.6%** year-on-year to **RMB 1,566.8 million**[13](index=13&type=chunk) Revenue Composition for the Six Months Ended June 30, 2025 | Revenue Source | 2025 (RMB '000) | Share (%) | 2024 (RMB '000) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Automotive Product Solutions | 777,848 | 49.7% | 222,264 | 23.8% | | Licensing and Services Business | 738,484 | 47.1% | 690,830 | 73.9% | | Non-Automotive Solutions | 50,424 | 3.2% | 21,505 | 2.3% | | **Total Revenue** | **1,566,756** | **100%** | **934,599** | **100%** | - Revenue from automotive product solutions increased by **250.0%** year-on-year to **RMB 777.8 million**, primarily due to a doubling of delivery volume and an increase in average selling price[15](index=15&type=chunk) - Revenue from the licensing and services business increased by **6.9%** year-on-year to **RMB 738.5 million**, maintaining stable growth[15](index=15&type=chunk) [Cost of Sales, Gross Profit, and Gross Margin](index=6&type=section&id=Cost%20of%20Sales%2C%20Gross%20Profit%2C%20and%20Gross%20Margin) Cost of sales increased by 177.1% to RMB 542.8 million, leading to a 38.6% rise in gross profit to RMB 1.024 billion, but the overall gross margin declined to 65.4% due to a higher proportion of automotive product solutions revenue - Cost of sales increased by **177.1%** year-on-year to **RMB 542.8 million**, primarily driven by increased costs for automotive product solutions and employee benefits[14](index=14&type=chunk) - Gross profit increased by **38.6%** year-on-year to **RMB 1,024.0 million**[16](index=16&type=chunk) - Overall gross margin decreased from **79.0%** in the same period of 2024 to **65.4%** in 2025, mainly due to a significant increase in the proportion of automotive product solutions revenue, despite an improvement in its own gross margin[16](index=16&type=chunk) Automotive Solutions Gross Profit and Gross Margin for the Six Months Ended June 30, 2025 | Business Line | 2025 Gross Profit (RMB '000) | 2025 Gross Margin (%) | 2024 Gross Profit (RMB '000) | 2024 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Automotive Product Solutions | 354,745 | 45.6% | 92,745 | 41.7% | | Licensing and Services Business | 662,607 | 89.7% | 642,188 | 93.0% | | **Total** | **1,017,352** | **67.1%** | **734,933** | **80.5%** | [Operating Expenses](index=8&type=section&id=R%26D%20Expenses%2C%20Administrative%20Expenses%2C%20Sales%20and%20Marketing%20Expenses) R&D expenses increased by 62.0% to RMB 2.3 billion, administrative expenses by 26.3% to RMB 307.2 million, and sales and marketing expenses by 37.1% to RMB 272.1 million, primarily due to higher employee benefits, cloud service fees, and promotional activities - R&D expenses increased by **62.0%** year-on-year to **RMB 2,300.0 million**, primarily due to increased cloud service fees, technical service procurement, and share-based payments for R&D personnel[19](index=19&type=chunk) - Administrative expenses increased by **26.3%** year-on-year to **RMB 307.2 million**, primarily due to increased employee benefits (including share-based payments) for administrative personnel[19](index=19&type=chunk) - Sales and marketing expenses increased by **37.1%** year-on-year to **RMB 272.1 million**, primarily due to increased employee benefits (including share-based payments) for sales and marketing personnel and promotional expenses[19](index=19&type=chunk) [Other Income and Gains](index=8&type=section&id=Other%20Income%2C%20Net%20Other%20Gains) Other income significantly increased to RMB 216.7 million, driven by R&D milestones and government subsidies, while net other gains rose to RMB 61.2 million from wealth management product returns and fair value gains on financial assets - Other income significantly increased to **RMB 216.7 million**, primarily driven by the achievement of key R&D milestones and government subsidy programs[20](index=20&type=chunk) - Net other gains increased to **RMB 61.2 million**, primarily driven by returns from wealth management products and fair value gains on financial assets at fair value through profit or loss[20](index=20&type=chunk) [Net Finance Income and Share of Results of Investments](index=8&type=section&id=Net%20Finance%20Income%2C%20Share%20of%20Results%20of%20Investments%20Accounted%20for%20Using%20the%20Equity%20Method) Net finance income decreased to RMB 170.1 million due to lower bank deposit interest, while the share of losses from investments accounted for using the equity method increased to RMB 400.1 million, mainly from increased losses in Coolride - Net finance income decreased to **RMB 170.1 million**, primarily due to lower interest income from bank deposits[20](index=20&type=chunk) - Share of losses from investments accounted for using the equity method increased to **RMB 400.1 million**, primarily attributable to increased losses from Coolride[20](index=20&type=chunk) [Fair Value Changes of Preferred Shares and Other Financial Liabilities](index=8&type=section&id=Fair%20Value%20Changes%20of%20Preferred%20Shares%20and%20Other%20Financial%20Liabilities) The company recorded a loss of RMB 3.407 billion from fair value changes of preferred shares and other financial liabilities, mainly due to fluctuations in the share price of convertible loans issued to Coolride - Fair value changes of preferred shares and other financial liabilities resulted in a loss of **RMB 3,406.7 million**, primarily due to fair value changes arising from share price fluctuations of convertible loans issued to Coolride[21](index=21&type=chunk) [Loss for the Period and Loss Per Share](index=9&type=section&id=Loss%20for%20the%20Period%2C%20Loss%20Per%20Share) The loss for the period slightly expanded to RMB 5.233 billion, with basic and diluted loss per share at RMB (0.42), while share-based payments increased significantly due to additional grants and rising share prices - Loss for the period was **RMB 5,233.0 million**, a slight increase from the loss of **RMB 5,098.1 million** in the prior year period[22](index=22&type=chunk) - Basic and diluted loss per share were both **RMB (0.42)**, compared to **RMB (1.81)** in the prior year period[60](index=60&type=chunk) - Share-based payments increased by **105.0%** year-on-year to **RMB 493.3 million**, primarily due to additional grants of incentive shares and rising share prices[22](index=22&type=chunk) [Non-IFRS Measures](index=9&type=section&id=Non-IFRS%20Measures) The company uses adjusted operating loss and adjusted net loss as non-IFRS measures to better reflect core business performance by excluding non-cash or non-recurring items like share-based payments and fair value changes of preferred shares - Adjusted operating loss was **RMB 1,111.3 million**, and adjusted net loss was **RMB 1,332.5 million**[22](index=22&type=chunk)[23](index=23&type=chunk) - Non-IFRS measures adjust operating loss and loss for the period by adding back share-based payments, non-recurring fundraising expenses, and fair value changes of preferred shares and other financial liabilities[24](index=24&type=chunk) - These metrics help identify underlying business trends and enhance understanding of the company's performance and prospects, but should not replace financial data under IFRS[25](index=25&type=chunk) [Financial Position and Liquidity](index=10&type=section&id=Financial%20Position%20and%20Liquidity) [Liquidity and Funding Sources](index=10&type=section&id=Liquidity%20and%20Funding%20Sources) As of June 30, 2025, cash and cash equivalents increased by 4.5% to RMB 16.1 billion, with funding primarily sourced from financing and operating activities - As of June 30, 2025, cash and cash equivalents increased by **4.5%** to **RMB 16.1 billion** from **RMB 15.4 billion** as of December 31, 2024[26](index=26&type=chunk) - The company primarily funds its cash requirements through cash generated from financing and operating activities[26](index=26&type=chunk) [Asset and Liability Ratio](index=10&type=section&id=Asset%20and%20Liability%20Ratio) As of June 30, 2025, both total assets and total liabilities increased, resulting in a rise in the asset-liability ratio to 51.2% - As of June 30, 2025, total assets were **RMB 23,420,746 thousand**, and total liabilities were **RMB 11,996,953 thousand**[49](index=49&type=chunk)[50](index=50&type=chunk) - The asset-liability ratio increased from **41.5%** as of December 31, 2024, to **51.2%** as of June 30, 2025[31](index=31&type=chunk) - Total trade receivables increased from **RMB 771,466 thousand** as of December 31, 2024, to **RMB 1,194,611 thousand** as of June 30, 2025[60](index=60&type=chunk) - Total trade payables increased from **RMB 14,552 thousand** as of December 31, 2024, to **RMB 87,953 thousand** as of June 30, 2025[63](index=63&type=chunk) [Capital Commitments and Contingent Liabilities](index=10&type=section&id=Contingent%20Liabilities%2C%20Capital%20Commitments) As of June 30, 2025, the company's capital commitments primarily related to capital expenditures for intangible assets, property, plant, and equipment, and commitments to associates and joint ventures, with no significant contingent liabilities - As of June 30, 2025, capital commitments amounted to **RMB 191.1 million**, primarily related to capital expenditures for intangible assets, property, plant, and equipment[34](index=34&type=chunk) - Commitments to associates and joint ventures amounted to **RMB 1,501.0 million**[34](index=34&type=chunk) - As of June 30, 2025, the company had no significant contingent liabilities[33](index=33&type=chunk) [Other Significant Information](index=10&type=section&id=Other%20Significant%20Information) [Employees and Remuneration](index=11&type=section&id=Employees%20and%20Remuneration) As of June 30, 2025, the company's full-time employee count increased to 2,177, with total employee remuneration expenses rising year-on-year, encompassing salaries, bonuses, social insurance, and share-based payments - As of June 30, 2025, the company had **2,177 full-time employees**, an increase from **2,078** as of December 31, 2024[35](index=35&type=chunk) - Total employee remuneration expenses (including share-based payments) amounted to **RMB 1,460.4 million**, an increase year-on-year[35](index=35&type=chunk) - Remuneration primarily includes salaries, bonuses, social insurance contributions, and other benefits, and is linked to performance[35](index=35&type=chunk) [Corporate Governance](index=11&type=section&id=Corporate%20Governance) The company is committed to high corporate governance standards and generally complies with the HKEX Corporate Governance Code, with minor deviations regarding the Chairman and CEO roles and board meeting notice periods - The company is committed to achieving high corporate governance standards and complies with all applicable code provisions of the HKEX Corporate Governance Code[36](index=36&type=chunk)[37](index=37&type=chunk) - A deviation from Code Provision C.2.1 exists, where Dr. Kai Yu serves as both Chairman and Chief Executive Officer, an arrangement the Board believes ensures consistent leadership and decision-making efficiency[37](index=37&type=chunk) - A deviation from Code Provision C.5.3 occurred where notice for regular Board meetings was sometimes less than 14 days, but no director objected[38](index=38&type=chunk) - Directors and relevant employees consistently complied with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period[39](index=39&type=chunk) - The Audit Committee has reviewed the interim financial statements and concurred with the accounting treatments, deeming them compliant with applicable accounting standards and legal regulations[40](index=40&type=chunk) [Material Investments, Acquisitions, and Disposals](index=10&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) As of June 30, 2025, the company had not made or held any material investments, nor had it undertaken any significant acquisitions or disposals - As of June 30, 2025, the Group had not made or held any material investments representing **5% or more** of the Group's total assets[27](index=27&type=chunk) - For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries, consolidated affiliated entities, associates, or joint ventures[28](index=28&type=chunk) - As of June 30, 2025, the Group had no detailed future plans for material investments or capital assets[30](index=30&type=chunk) [Material Litigation and Post-Reporting Period Events](index=13&type=section&id=Material%20Litigation%2C%20Post-Reporting%20Period%20Events) The company was not involved in any material litigation during the reporting period; post-period, its non-automotive subsidiary D-Robotics completed a Series B preferred share issuance, raising $119.1 million while retaining company control - During the reporting period, the company was not involved in any litigation or arbitration that would have a material adverse effect[44](index=44&type=chunk) - Subsequent to the reporting period, D-Robotics, a non-automotive business subsidiary, entered into a share purchase agreement to issue Series B preferred shares to certain investors for a total cash consideration of **US$119.1 million**, of which **US$83.1 million** has been received[45](index=45&type=chunk) - Following the Series B financing and issuance of Class A ordinary shares, the company will continue to control D-Robotics[45](index=45&type=chunk) [Dividend Policy](index=22&type=section&id=Dividend%20Policy) For the six months ended June 30, 2025, the Board of Directors recommended not to declare an interim dividend - For the six months ended June 30, 2025, the Board of Directors recommended not to declare an interim dividend[46](index=46&type=chunk) [Board of Directors Information](index=23&type=section&id=Board%20of%20Directors%20Information) The Board comprises Executive Directors Dr. Kai Yu, Dr. Chang Huang, Dr. Jian Xu, and Dr. Liming Chen; Non-executive Directors Mr. Liang Li, Mr. Qin Liu, Dr. André Stoffels, and Mr. Jianjun Zhang; and Independent Non-executive Directors Dr. Jun Pu, Mr. Yingqiu Wu, Dr. Katherine Rong Xin, and Dr. Ya-Qin Zhang - The Board of Directors includes Executive Directors Dr. Kai Yu, Dr. Chang Huang, Dr. Jian Xu, and Dr. Liming Chen; Non-executive Directors Mr. Liang Li, Mr. Qin Liu, Dr. André Stoffels, and Mr. Jianjun Zhang; and Independent Non-executive Directors Dr. Jun Pu, Mr. Yingqiu Wu, Dr. Katherine Rong Xin, and Dr. Ya-Qin Zhang[65](index=65&type=chunk)