Summary of the Conference Call on China's Automotive Semiconductors Industry Overview - The focus is on the **China Automotive Semiconductors** industry, particularly in the context of **autonomous driving (AD)** and **advanced driver-assistance systems (ADAS)**. - The market for AD/ADAS SoCs (System on Chips) is projected to reach **US$7.3 billion by 2029**, growing from **US$0.8 billion in 2024**, representing a **CAGR of over 50%** [10][17]. Key Insights Market Growth and Demand - The demand for AD/ADAS SoCs is expected to grow significantly, with a **56% revenue CAGR from 2024 to 2029** [5]. - Major Chinese OEMs are anticipated to capture more than **50% market share** in the mid/high-end AD SoC market (100+ TOPS) by 2029, up from **3-5% in 2024** [4][12]. Horizon Robotics - **Horizon Robotics** is identified as a key beneficiary in the AD semiconductor market, with expected **unit shipments growth of 37% from 2024 to 2029** and a market share of **30-35%** among Chinese OEMs [6][66]. - The company has secured design wins for over **100 new vehicle models** in 2024, bringing its cumulative design wins to over **310** [15]. - Horizon's price target is set at **HKD 10.50**, indicating a **35% upside potential** [6]. Technological Advancements - The maturity of AI technology is enhancing the capabilities of autonomous driving algorithms, with a shift towards **end-to-end architectures** that improve efficiency and reduce errors [23][24]. - The computing power required for L3 or higher autonomy is estimated to be **500-1000 TOPS**, with significant advancements in semiconductor technology supporting this demand [50][33]. Localisation and Self-Sufficiency - There is a pressing need for self-sufficiency in automotive semiconductors in China, with current localisation rates being low. The goal is to achieve **50%+ self-sufficiency by 2029** [54][58]. - The Chinese government is actively promoting the localisation of automotive chips, with initiatives aimed at increasing domestic chip adoption [62][46]. Competitive Landscape - The competition is intensifying as domestic companies narrow the technology gap with international leaders. Horizon Robotics is positioned well due to its integrated hardware-software capabilities and strong supply chain relationships [66][68]. - The average R&D expenses for domestic peers are significantly lower than Horizon's, which indicates a potential for improved efficiency in the future [15]. Additional Insights - The adoption of **L2+ autonomous driving** features is becoming a standard among major Chinese OEMs, with companies like BYD leading the charge by integrating advanced ADAS features into their mainstream models without price increases [48][49]. - The market is witnessing a shift towards more intelligent automotive solutions, with expectations of increased optical sensor usage from **4 units per vehicle in 2024 to 11-13 units by 2029** [13]. Conclusion - The Chinese automotive semiconductor market is on the brink of significant growth driven by advancements in autonomous driving technology and a strong push for local sourcing. Horizon Robotics is well-positioned to capitalize on these trends, supported by its technological leadership and strategic partnerships. The overall sentiment is optimistic regarding the future of AD/ADAS in China, with substantial opportunities for domestic suppliers.

Summary of Horizon Robotics Conference Call Company Overview - **Company**: Horizon Robotics (9660.HK) - **Industry**: Autonomous Driving Technology Key Financial Highlights - **1H25 Revenue**: Rmb1.6 billion, representing a **68% YoY increase** and **8% HoH increase**, exceeding estimates by **6%** and **9%** respectively [1][3] - **Gross Margin**: 65.1% in 1H25, consistent with expectations [3] - **Operating Loss**: Rmb1.855 billion in 1H25, higher than the estimated loss of Rmb1.412 billion due to increased cloud service fees [3][7] - **Net Loss**: Rmb5.233 billion in 1H25, significantly worse than the expected loss of Rmb1.4 billion [3][7] Product Development and Market Strategy - **Mass Production Plans**: The company plans to start mass production of the Horizon Robotics SuperDrive (HSD) on the Journey 6P platform in **2H25**, targeting urban NOA features in vehicles [1][2] - **Product Mix Upgrade**: Anticipated ramp-up of HSD and J6P platform in **2026**, with expectations for higher dollar content per vehicle due to increased ASP [2] - **Urban NOA Penetration**: The HSD solution is expected to penetrate lower-priced car models, enhancing the product mix towards higher-end integrated solutions [1][2] Market Performance and Future Outlook - **Highway NOA Shipments**: Shipments of highway NOA-capable products reached **0.98 million** in 1H25, accounting for **50%** of total shipments, contributing to improved blended ASP [1] - **Revenue Projections**: Revenue estimates for 2025E revised up to Rmb3.605 billion, reflecting a **1% increase** from previous estimates [8][16] - **Target Price**: The 12-month target price is set at **HK$14.00**, indicating a potential upside of **76.3%** from the current price of **HK$7.94** [16] Risks and Challenges - **Competitive Landscape**: Risks include increased competition and pricing pressure in the auto supply chain amid slow demand [15] - **Product Mix Transition**: Potential delays in the transition towards advanced driver-assistance systems (ADAS) could impact growth [15] - **Supply Chain Vulnerabilities**: Geopolitical tensions may pose supply chain risks [15] Conclusion - Horizon Robotics is positioned for growth with strong revenue increases driven by product innovation and market expansion. However, the company faces significant challenges, including operational losses and external market pressures. The outlook remains positive with a maintained "Buy" rating based on anticipated product advancements and market penetration strategies.

Autonomous Driving Technology - Tesla's Robotaxi completed a 50+ mile autonomous ride from San Carlos to the Golden Gate Bridge and back [1] - The test ride demonstrates significant progress in Tesla's autonomous driving capabilities [1] - The Robotaxi's geofence in the Bay Area is extensive [1] Industry Impact - The successful Robotaxi ride highlights the potential of autonomous vehicles [1] - Tesla is pushing the boundaries of autonomous technology [1]

Group 1 - The event showcased various technological innovations aimed at enhancing the experience of the upcoming sports event, including autonomous vehicles and smart assistive devices [1][2] - The Hong Kong University of Science and Technology introduced micro-nano cooling technology that can reduce surface temperatures by at least 15 degrees Celsius, and indoor navigation technology has been implemented for audience convenience [2] - Technologies such as L4 autonomous driving for athlete and audience transport, smart inspection robots, and AI-driven sports systems were highlighted as part of the event's operational support [2][3] Group 2 - Health technology plays a crucial role in the event, with exoskeleton devices designed for athlete rehabilitation and wellness solutions like ultrasonic medicine baths and sleep aid sofas being presented [3] - The integration of innovative technologies aims to create a superior competition environment for athletes and a more convenient viewing experience for spectators [3]

ROBOTAXI RIDE:Here is the extended version of the Tesla Robotaxi ride I took over 50 miles from San Carlos to Golden Gate Bridge & back.The future is autonomous & I can't believe how far Tesla has taken us. The Geo-fence in the Bay Area is massive!Shout out to the @Tesla @Robotaxi team for pushing us forward. ...

Core Insights - Beamr Imaging Ltd. has developed a video compression solution for autonomous vehicles that improves efficiency by 23% to 50% compared to existing machine learning workflows, validated by NVIDIA [1][4][5] - The company will showcase its GPU-accelerated video compression technology at IAA Mobility 2025 in Munich, Germany, from September 9-12 [2][5] - Beamr's technology addresses the challenges faced by AV companies managing large volumes of video data, enhancing operational efficiency while maintaining model safety [3][5] Company Overview - Beamr is recognized as a leader in content-adaptive video compression, with a strong client base including major media companies like Netflix and Paramount [6] - The company's perceptual optimization technology, known as Content-Adaptive Bitrate (CABR), is protected by 53 patents and has received an Emmy® Award for Technology and Engineering [6] - Beamr's solutions are designed to reduce video file sizes by up to 50% while preserving quality, making it suitable for various high-growth markets including media, entertainment, and autonomous vehicles [7] Technology Validation - Beamr's CABR technology, when tested, showed a 23% improvement in compression over existing codecs and achieved a 40%-50% reduction in bitrate when using newer codecs like HEVC or AV1, all while maintaining model accuracy [4][5] - The collaboration with NVIDIA highlights the importance of advanced video compression in the autonomous vehicle sector, aiming to reduce operational costs and ensure fidelity for reliable AV models [5] Market Context - The autonomous vehicle industry is facing significant infrastructure challenges due to the management of 100 to 500 petabytes or more of video data, making efficient compression critical for reducing costs and speeding up development cycles [3] - Beamr's technology is positioned to enhance the "data factory" processes, which encompass data collection, training, validation, and deployment in the AV sector [3]

ROBOTAXI RIDE:Here is the extended version of the Tesla Robotaxi ride I took over 50 miles from San Carlos to Golden Gate Bridge & back.The future is autonomous & I can't believe how far Tesla has taken us. The Geo-fence in the Bay Area is massive!Shout out to the @tesla @robotaxi team for pushing us forward. ...

Autonomous Trucking Industry - Autonomous driving is seen as a multi-billion dollar opportunity to unlock efficiencies across US supply chains [4] - The US trucking market is a trillion dollar market [6] - Aurora has a product on the road, giving it a competitive advantage through customer learning and accelerated development [7] - Aurora is targeting cleaner, quicker, and more efficient transportation [6] - Aurora is one of the pilot launch customers for Nvidia's Thor SOC [15] - Aurora aims to expand from Fort Worth to Phoenix, seeing no regulatory barriers [10] Gas Prices and Petroleum Industry - Average gas prices this Labor Day are predicted to be the lowest since 2020 [21] - The summer saw the cheapest gas prices between Memorial Day and Labor Day [23] - A refinery outage in northwest Indiana is causing gas price spikes in the Great Lakes region [24][25] - Gas prices are expected to decrease by 5 to 10 cents per gallon with the transition to cheaper winter gasoline [26] - The fourth quarter of 2025 is expected to be the cheapest quarter for gas prices this year [27] - Hurricane season poses a significant risk to gas prices due to potential shutdowns of oil production and refinery damage, especially in Texas and Louisiana [28][29] - California has the highest gas prices, averaging $455 per gallon, while Gulf states like Mississippi, Oklahoma, Arkansas, and Texas have the lowest, below $270 per gallon [33][34] Market Trends and Investment Opportunities - Semiconductor sector showed broad bullish action, nearing record highs [37][38] - Rotation into semiconductors was observed [38] - Aerospace and defense stocks saw gains, driven by a large Boeing order [40] - Regional banks benefited from a widening spread between short-end and long-end yields, anticipating Fed rate cuts [41] - Gold prices increased by 073%, with technical analysis indicating a bullish flag [45] - Gold miners also experienced gains [47]

RT Tesla Owners Silicon Valley (@teslaownersSV)BREAKING: A perfect drive in the Tesla Robotaxi from San Carlos to the Golden Gate Bridge and back.It's absolutely insane that we are living in the future & the future is autonomous.Tesla is killing it with this tech: smooth as butter, no hiccups, just pure sci-fi vibes. https://t.co/4KS8nhUpKA ...

Core Insights - NIO Inc. and Li Auto are set to report their Q2 2025 results, raising questions about their current positioning in the EV market [1] Product Lineup - Li Auto focuses on a hybrid approach with extended-range electric vehicles (EREVs) and has a successful L-series lineup [1] - NIO is committed to pure EVs, offering a diverse range of sedans and SUVs, and is expanding with its ONVO mass-market division and Firefly premium brand [2] Deliveries and Growth - In Q2 2025, Li Auto delivered 111,074 vehicles, while NIO delivered 72,056 vehicles [3] - Li Auto's deliveries increased by 2.3% year-over-year, whereas NIO's deliveries surged by 25.6% [3] Profitability and Margins - NIO's vehicle margin improved to 10.2% in Q1 2025, up from 9.2% a year ago [4] - Li Auto's vehicle margin was 19.8% in Q1 2025, slightly up from 19.3% the previous year, indicating stronger profitability [5] Financial Strength - As of March 31, 2025, Li Auto had approximately $15.3 billion in cash, while NIO had $3.6 billion [6] - NIO's long-term debt-to-capitalization ratio is 75%, compared to Li Auto's 10.8%, indicating Li Auto's stronger financial position [6] Technological Bets - NIO's strategy includes a battery swap network with over 3,400 stations, enhancing EV adoption [10] - Li Auto is focused on autonomous driving technology, aiming for level-4 autonomy with its Li AD Max and Pro systems [11] Stock Performance and Valuation - NIO shares rose by 27% over the past six months, while Li Auto shares fell by 25% [12] - NIO trades at a lower forward price-to-sales ratio compared to Li Auto, making it more attractively valued [13] Future Estimates - NIO's sales are projected to grow by 50% in 2025 and 36% in 2026, with a significant narrowing of losses expected [16] - Li Auto's sales are expected to grow by only 6% in 2025, with a projected decline in earnings before rebounding in 2026 [17] Final Verdict - NIO shows stronger growth potential, accelerating deliveries, and a more attractive valuation, positioning it better than Li Auto ahead of earnings season [19]