Core Viewpoint - Li Auto has reported a significant net loss in Q3 2025, marking a shift from its previous profitability and indicating challenges in its transition to battery electric vehicles (BEVs) amid increasing competition in the new energy vehicle market [1][4][6]. Financial Performance - In Q3 2025, Li Auto recorded a net loss of RMB 625 million (approximately USD 89.286 million), ending a streak of 11 profitable quarters [1][4]. - Vehicle sales revenue fell to RMB 25.9 billion (approximately USD 3.7 billion), a decrease of 37.4% from RMB 41.3 billion (approximately USD 5.9 billion) in Q3 2024 [3]. - Total revenue for Q3 2025 was RMB 27.4 billion (approximately USD 3.914 billion), down 36.2% from RMB 42.9 billion (approximately USD 6.129 billion) in Q3 2024, and down 9.5% quarter-over-quarter from RMB 30.2 billion (approximately USD 4.314 billion) in Q2 2025 [4]. - Total deliveries were 93,211 units, reflecting a 39.0% year-over-year decline [3]. Market Challenges - Li Auto is facing intensified competition in the new energy vehicle market, particularly from brands like AITO and Deepal in the extended-range electric vehicle (EREV) segment, and Tesla and NIO in the BEV segment [7][8]. - The company is experiencing a late transition to BEVs and insufficient production capacity, which are critical issues that need to be addressed to enhance competitiveness [7][10]. Production Capacity and Supply Chain - Despite positive market response to newly launched BEV models i6 and i8, supply chain challenges have limited their deliveries to only 18% of total deliveries in Q3 [11]. - Li Auto is attempting to increase production capacity through a dual-supplier system but faces urgent supply chain stability issues [11]. Strategic Expansion and New Ventures - Li Auto has begun expanding into new business lines, including "Space Robotics" and "Wearable Robotics," and launched AI smart glasses, but the market response has been lukewarm [12][13]. - The AI smart glasses market is highly competitive, with established brands dominating, making it difficult for Li Auto to gain traction [13]. Consumer Engagement - Despite declining deliveries, Li Auto maintains a relatively stable consumer base with high app user engagement, indicating strong customer loyalty [14]. Q4 Outlook - For Q4 2025, Li Auto is projected to continue facing challenges, with revenue expected to decline to RMB 26.5 billion (approximately USD 3.786 billion), a 40% year-over-year decrease [18].

Summary of Horizon Robotics Conference Call Company Overview - **Company**: Horizon Robotics - **Ticker**: 9660.HK - **Rating**: Outperform - **Price Target**: HKD 15.00 - **Current Price**: HKD 8.44 - **Market Cap**: HKD 123.662 billion Key Industry Insights - **Industry**: Automotive and Smart Driving Technology - **Product Launches**: - Chery Exeed ET5, equipped with Horizon's Urban NOA solution, opened for pre-orders on November 13, 2025, marking a significant milestone for Horizon's high-end smart driving solutions [1][10] - Deepal L06 model, also featuring the Urban NOA solution, is set to launch next week [3][11] Sales Performance and Projections - **Chery Exeed Sales**: - The brand has 9 models with an average monthly sales volume of 5.3k units year-to-date (YTD) [2] - The Exeed ET5 is expected to be a strong performer, with a price range of RMB 160k–175k, and is positioned competitively against similar models [10][13] - **Deepal Sales**: - The Deepal brand has 6 models with a combined average monthly sales volume of 18.4k units YTD, with the two sedan models averaging 2k units monthly [3] - The Deepal L06 will be priced between RMB 140k–162k, enhancing the competitive landscape for Horizon's offerings [3][22] Competitive Landscape - **Market Positioning**: - Horizon's HSD solution is viewed as competitive against Nvidia's chips and other third-party algorithms, with potential for new OEM design wins in 2026 [4] - The pricing strategy of Horizon's L2++ solutions is highlighted as more cost-effective compared to competitors like Huawei, which charges a higher premium for similar features [10][12] Financial Metrics - **Earnings Projections**: - Reported EPS for F24A is RMB 0.51, with projections of (0.53) for F25E and (0.22) for F26E [8] - EV/Sales ratio is projected to decrease from 40.9x in F24A to 15.4x in F26E, indicating improving valuation metrics [8] Investment Implications - **Recommendation**: Horizon Robotics is rated as Outperform, with a price target of HKD 15, suggesting a potential upside of 78% from the current price [5][28] - **Catalysts to Watch**: - Sales performance of the Chery Exeed ET5 and Deepal L06 will be critical indicators for Horizon's market traction and future design wins [11][12] Risks - **Downside Risks**: - Slower-than-expected smart driving penetration and increased in-house development by OEMs could impact revenue growth [36] Conclusion - Horizon Robotics is positioned to capitalize on the growing demand for smart driving solutions, with competitive pricing and strong product launches expected to drive sales and market share in the coming years. The company's strategic partnerships and product offerings are critical to its growth trajectory and investment appeal.