Financial Data and Key Metrics Changes - The company achieved a revenue of CNY 3.76 billion in 2025, representing a year-on-year increase of 57.7% with a gross margin of 64.5% [27][48] - The adjusted operating loss was CNY 2.37 billion, primarily due to increased R&D investments [28][51] - The automotive solutions revenue surged by 53.9%, with product solutions revenue increasing by 144% to CNY 1.62 billion [48][49] Business Line Data and Key Metrics Changes - The automotive grade SoC solution annual shipments exceeded 4 million units, with a year-on-year growth of about 39% [16] - The market share for advanced intelligent assisted driving models reached 14.4%, nearly tying with Huawei [14] - The proportion of SoC shipments supporting NOA functions reached 45%, nearly five times the shipments during the same period in 2024 [16][18] Market Data and Key Metrics Changes - The penetration rate of intelligent assisted driving in China's passenger car market reached 68%, with advanced models accounting for 43% of all intelligent vehicles [4][5] - In the price range under CNY 200,000, domestic brands captured a significant market share, with NOA level models rising from 5% to over 50% [6][15] Company Strategy and Development Direction - The company aims to help Chinese domestic brands go global, assist joint venture brands in the domestic market, and support overseas brands in their transition to intelligent driving [23][25] - The focus is on democratizing intelligent assisted driving and expanding into higher price ranges with advanced solutions [6][19] - The company plans to launch the Agentic Car SoC and OS, aiming to provide a comprehensive intelligent driving experience [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a high gross margin above 60% due to the high-margin nature of the SoC and software licensing business model [71][76] - The company anticipates a strong growth momentum with a projected revenue growth rate of around 60% for the coming years [36][59] - The management highlighted the importance of R&D investment in maintaining technological leadership and preparing for future autonomous driving capabilities [29][50] Other Important Information - The company has secured nominations from 11 automakers for over 40 overseas models, indicating strong global expansion efforts [23] - The HSD solution has become a significant factor in consumer car-buying decisions, with 83% of top-tier models featuring HSD [20][21] Q&A Session Summary Question: What drives the strong revenue growth and how can it sustain a 60% CAGR? - Management indicated that the growth is driven by increased shipping volumes and higher average selling prices (ASP), with expectations for continued strong performance in 2026 [55][59] Question: What is the shipment target for HSD in 2026? - The company estimates HSD shipments will reach about 400,000 units in 2026, with significant progress in negotiations with top-tier automakers [66] Question: What is the outlook on gross margin performance? - Management is confident in maintaining gross margins above 60% due to the high-margin nature of their business model and locked-in memory supply prices [69][76] Question: How is the company addressing memory price hikes? - The company has locked in memory supply prices and believes that fluctuations will not significantly impact gross margins, focusing on innovation and cost efficiency [72][76] Question: What differentiates Horizon from competitors like Qualcomm and NVIDIA? - Horizon's integrated hardware and software solutions provide a competitive edge, allowing for a seamless transition from intelligent driving to cockpit integration, unlike competitors who struggle with comprehensive solutions [84][86]