Horizon Robotics (SEHK:09660) H2 2025 Earnings call March 19, 2026 07:00 AM ET Company ParticipantsKai Yu - Founder, CEO, and Chairman of the BoardLei Wang - CFO and Head of Capital MarketXuan Jiang - VP, Board Secretary, and Head of Investor RelationsNone - TranslatorConference Call ParticipantsJeff Chung - AnalystTim Hsiao - AnalystNone - AnalystOperatorLadies and gentlemen, welcome to Horizon Robotics 2025 annual results conference call. At this time, all participants are in a listen-only mode. A questio ...

Financial Data and Key Metrics Changes - In 2025, the company reported a revenue growth of 9.6% to HKD 97.6 billion, with net profit increasing by 28.7% to HKD 1.35 billion, and earnings per share at 97.68 Hong Kong cents [18][19] - The return on equity was 13.8%, significantly higher than the Hang Seng stock average ROE of 10.53% [18] - The company achieved a record high in both revenue and net profit, with an average annual growth rate of 23% for revenue and 28% for net profit [18] Business Line Data and Key Metrics Changes - The domestic computing power business grew by 27% in 2025, while the Southeast Asia computing power business increased by 30% [20][21] - VMware-related business saw a remarkable growth of 120% year-on-year, and AWS business surged by 120% as well [23] - The cloud business grew by 29%, with significant contributions from partnerships with major cloud providers [23] Market Data and Key Metrics Changes - The company maintained strong relationships with major domestic computing power manufacturers, leading to rapid growth rates [21] - The overseas computing power business also grew by 30%, with Starlink business increasing by 69% [24] - The company won multiple awards from partners like NVIDIA and Alibaba, indicating strong market positioning [23][24] Company Strategy and Development Direction - The company plans to continue investing in R&D, particularly in agent foundation models and computing power orchestration, with an expected investment growth of over 100% in three core sectors [15] - The strategic focus for 2026 includes maintaining a 50% year-on-year growth target, followed by a 120% growth target for 2027 [16] - The company aims to build a dual computing power ecosystem, expand self-developed technology, and actively explore overseas markets and M&A opportunities [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing a comprehensive understanding of their technological advantages and market positioning [15] - The company anticipates maintaining a 20% growth in net profit over the next three years, despite challenges in predicting exact figures due to market dynamics [45][49] - Management acknowledged the competitive landscape and emphasized the importance of operational excellence and management capabilities [27] Other Important Information - The company has established over 200 deployment cases in various industries, including manufacturing, finance, and government [3] - The company has developed a full stack of AI products and solutions, integrating in-house technologies with partner offerings [4][5] - The company has received multiple awards for its performance and contributions to the AI ecosystem, enhancing its reputation in the market [22][23] Q&A Session Summary Question: What is the strategy for expanding overseas and M&A in 2026? - Management indicated a focus on Asia for short-term expansion and mentioned ongoing negotiations for potential M&A opportunities in Vietnam [28][29] Question: What are the advantages and disadvantages compared to competitors? - Management highlighted stable profitability and operational excellence as key advantages, while acknowledging challenges in talent recruitment compared to larger competitors [27][28] Question: What new measures for cost saving and efficiency gains are planned for 2026? - Management stated that no substantial new measures are planned, as cost-saving is part of the company's operational DNA [26] Question: Will Starlink be a new driver for 2026? - Management confirmed the potential for maintaining growth in Starlink's business, emphasizing supply issues rather than sales challenges [30][31] Question: What is the outlook for Q1 and future revenue and profit guidance? - Management expressed confidence in maintaining profitability and growth rates similar to the previous year, with a conservative approach to guidance [52]

Group 1: Apple’s Performance in China - Apple reported a 23% increase in smartphone sales in China during the first nine weeks of 2026, contrasting with a general market decline [1][2] - The growth in sales was attributed to e-commerce discounts and eligibility for state subsidies on the base iPhone 17 model [2] Group 2: Market Trends and Competitor Responses - The overall smartphone market in China experienced a 4% year-on-year decline in the January-to-early-March period, with government subsidies failing to stimulate consumer demand [2] - Chinese Android manufacturers, such as OPPO and vivo, have announced price increases on some models due to rising memory chip costs, aiming to assess consumer reactions ahead of new product launches [4] - Huawei is expected to benefit from its reliance on domestic suppliers, which provide a cost advantage against rising memory prices, potentially allowing it to capture more market share in the low-to-mid-end segment [5] Group 3: Supply Chain and Pricing Strategy - Apple's strong control over its supply chain positions it better than competitors to manage the impact of increasing memory chip costs, allowing it to maintain pricing while rivals raise theirs [3] - Counterpoint anticipates that Apple will absorb some margin pressure rather than increase prices, potentially expanding its market share in the process [3] Group 4: Future Market Outlook - The Chinese smartphone market is expected to remain under pressure from March through May, with potential relief anticipated during the mid-year "618" shopping festival in June [6] - The ongoing memory cost challenges are projected to persist throughout 2026, forcing manufacturers to navigate difficult trade-offs between cost management, margin protection, and shipment targets [6]

the telephoto camera really outside of the US just feels like the place where everything is happening on smartphones. I haven't actually tried this phone, but uh Huawei had a phone last year called the Pura 80 Ultra. And the fun thing that that did was it wanted to have two telephotos, but to save space on having two telephotos, it just has moving lenses that share one sensor. So, it has two different telephoto lenses that move in and out from above the one larger sensor, which allows them to fit in a bigge ...

AMBITIONS ENTERPRISE MANAGEMENT Subsidiary Served as Official Business Travel Service Provider for Mobile World Congress 2026 Accessibility StatementSkip NavigationDUBAI, UAE, March 18, 2026 /PRNewswire/ -- AMBITIONS ENTERPRISE MANAGEMENT CO. L.L.C ("Ambitions" or the "Company") (NASDAQ: AHMA), a UAE-based provider of MICE (meetings, incentives, conferences, and exhibitions) and tourism services, today announced that its wholly owned subsidiary, Hunter International Travel & Tourism L.L.C. ("Hunter"), serve ...

Apple fee cut to boost Tencent, NetEase margins in China, analysts say Apple fee cut to boost Tencent, NetEase margins in China, analysts say Tech Author Vatsala Gaur Mar 18, 2026, 08:53 AM Apple's decision to lower App Store commission fees in mainland China is expected to provide a modest but meaningful boost to the profitability of leading gaming firms Tencent and NetEase, according to Morningstar. The iPhone maker said it would reduce fees on in-app purchases and paid transactions to 25% from 30%, effec ...

17 March 2026 | 6:21PM EDT Equity Research Americas Technology: Hardware: Data center & campus equipment 4Q25 market share and outlook update BOTTOM LINE: We update our industry networking and server models to reflect the latest available 4Q25 data from 650 Group. 650 Group upgraded its outlooks for the AI data center switching & AI server market, with (a) the AI data center switching market now expected to reach ~$87 bn by 2030 at a 51% 2025-2030 CAGR (v. $84 bn on prior 3Q25 forecast) on raised 2026-2030 ...

Alphabet Bets on Cooling as AI Infrastructure Heats Up - Moby THE GIST Alphabet Inc, Google’s parent company, is locking down the essentials for data centers that fuel AI scaling: cooling systems. The company might be snapping up Chinese firm Envicool and is in discussions with others too, per media reports. WHAT HAPPENED The next frontier in AI growth is not writing the perfect prompt or sentience. We’re far from it today. The immediate need for AI growth is thermal infrastructure. AI workloads aren ...

Summary of Key Points from the Investor Presentation on China's AI Path Industry Overview - The focus is on the **China Internet and Other Services** sector, particularly in the context of artificial intelligence (AI) and the development of in-house chips for AI applications [1][3][6]. Core Insights - **Full AI Stack Ownership**: Owning the complete AI stack, which includes chips, cloud services, models, and applications, significantly increases the chances of becoming a leading player in the AI market [1][7]. - **Investment Recommendation**: Alibaba (BABA.N) has been elevated to a "Top Pick," replacing Tencent, indicating a strong confidence in Alibaba's potential in the AI space [1][7]. Market Dynamics - **AI Chip Market Growth**: The total addressable market (TAM) for AI chips in China is expected to grow to **US$67 billion by 2030** [16]. - **Capital Expenditure**: Cloud service providers (CSPs) are projected to increase AI-related capital expenditures from **RMB 597 billion (US$85 billion) in 2026** to **RMB 711 billion (US$101 billion) by 2030** [18]. - **Local AI Chip Revenue**: Revenue from local AI chips in China is anticipated to rise from **US$6 billion in 2024** to **US$51 billion by 2030**, reflecting a **42% compound annual growth rate (CAGR)** [20]. Competitive Landscape - **Market Share Projections**: Huawei is expected to hold approximately **65%** of the domestic market share for AI chips from 2026 to 2030, followed by Cambricon at **11%**, and Kunlunxin and T-Head each in the high single digits [24]. - **Performance Comparison**: Some domestic AI accelerators have reportedly surpassed Nvidia's A100 in terms of total processing performance (TPP) [10]. Valuation Insights - **Kunlunxin Valuation**: Estimated valuation ranges from **US$20 billion to US$61 billion**, with projected revenues for 2026 between **RMB 7 billion and RMB 13 billion** [28][29]. - **T-Head Valuation**: Valued between **US$28 billion and US$86 billion**, with expected revenues for 2026 between **RMB 14 billion and RMB 26 billion** [34]. Risks and Opportunities - **Upside Risks**: Potential for stronger core business recovery, margin expansion, and successful execution of AI and robotaxi initiatives [42][44]. - **Downside Risks**: Challenges include intensified competition, regulatory scrutiny, and slower-than-expected adoption of AI technologies in China [42][44]. Conclusion - The presentation highlights a robust outlook for the AI sector in China, particularly for companies like Alibaba that are investing heavily in developing a comprehensive AI ecosystem. The anticipated growth in AI chip revenue and capital expenditures presents significant investment opportunities, albeit with associated risks that investors should consider [1][16][20].

Summary of Key Points from the Investor Presentation on Global and China AI GPU Industry Industry Overview - The presentation focuses on the **AI GPU industry**, particularly the competitive landscape between **China** and the **US** in AI semiconductor production and demand [1][4][98]. Core Insights - **Long-term Demand Drivers**: - The AI semiconductor market is expected to grow significantly, with **cloud AI** being a major growth driver, potentially reaching a total addressable market (TAM) of **US$235 billion by 2025** [12][18]. - **China's AI chip TAM** is projected to grow to **US$67 billion by 2030**, with self-sufficiency expected to reach **76%** [109][111]. - **Market Dynamics**: - The **cloud capital expenditure (capex)** is robust, with estimates of nearly **US$632 billion** in 2026 from the top 10 global cloud service providers (CSPs) [12]. - **Nvidia's CEO** estimates global cloud capex could reach **US$1 trillion by 2028**, including sovereign AI [14]. - **Supply Chain Challenges**: - The semiconductor supply chain is prioritizing AI semiconductors over non-AI semiconductors, leading to potential shortages in other areas [10]. - **Tech inflation** is expected to impact demand for tech products, with rising costs for wafers, OSAT, and memory creating margin pressures for chip designers in 2026 [10]. - **China's AI GPU Development**: - The presentation raises critical questions about whether China can supply competitive AI GPUs at scale and the potential size of the domestic AI GPU market [100]. - The **local AI chip market** is expected to surpass US chips in value by **2027**, with **Huawei** projected to maintain over **50%** market share in local AI chips from 2026 to 2030 [148] [150]. Important Data Points - **NVIDIA's Production Estimates**: - TSMC is expected to produce **7-8 million GPU chips in 2025**, with NVIDIA's server rack chip consumption projected to reach **60,000-70,000** units [64][66]. - **AI Semiconductor Consumption**: - AI computing wafer consumption could reach **US$26 billion in 2026**, with NVIDIA accounting for the majority of this demand [56]. - **TSMC's Capacity Expansion**: - TSMC plans to expand its CoWoS capacity to **125k wafers per month by 2026** due to strong AI demand [47][52]. Other Notable Insights - **Geopolitical Risks**: - The presentation discusses potential geopolitical risks affecting the supply chain, including restrictions on foreign foundries and export controls on critical technologies [154]. - **Inference Economics**: - Domestic chips in China are reported to have lower total cost of ownership (TCO) and comparable costs per token for AI inference compared to NVIDIA's processors [158]. - **Strategic Responses**: - Recommendations for overcoming wafer process constraints include packaging more dies into a single chip and expanding manufacturing capacity [130]. This summary encapsulates the critical insights and data points from the investor presentation, highlighting the competitive landscape and future outlook for the AI GPU industry, particularly in the context of China and its efforts to close the technological gap with the US.