Group 1 - Horizon Robotics announced that its Journey series vehicle-mounted intelligent chips have exceeded 10 million units in cumulative production and shipment, becoming the first domestic intelligent driving computing solution company to cross this threshold [1] - The acceptance of domestic chips in the industry is continuously increasing, with the penetration rate of advanced driver assistance systems (ADAS) in the domestic passenger car market expected to rise rapidly by mid-2025 [1] - The penetration rate of mid-to-high-level ADAS functions is projected to increase from 20% at the end of 2024 to 32% by the end of June 2025, driving a shift in chip demand structure [1] Group 2 - The Journey 6 series chips, which support highway NOA and urban NOA, shipped approximately 980,000 units, representing a sixfold year-on-year increase and accounting for nearly 50% of total shipments in the first half of the year, contributing over 80% of related business revenue [1] - The increase in shipment volume has also led to a 70% year-on-year rise in average value per vehicle, driven by the upgrade of intelligent driving assistance functions from basic L2 to higher-level applications like urban NOA [1] - The company anticipates that the price range for models equipped with urban assistance driving solutions will drop to around 150,000 yuan, further promoting the popularization of intelligent driving in the mass market [1] Group 3 - Horizon Robotics is continuously advancing the research and development of the full-scene urban assistance driving system (HSD), which is based on the Journey 6P and employs an end-to-end architecture and reinforcement learning mechanism [2] - The HSD system has already been designated for over 10 vehicle models, with the first model, the Xingtu E05, expected to begin mass production by the end of the year [2] - The industry generally views achieving a million-level shipment as a significant milestone for the commercialization of domestic automotive-grade chips, although the intelligent driving chip industry faces rapid technological iteration and substantial ecological investment [2]

Core Insights - Horizon (9660.HK) has achieved a significant milestone by surpassing 10 million units of its Journey series automotive intelligent chips, becoming the first domestic company to reach this threshold in the smart driving computing solutions sector [1] - The acceptance of domestic chips in the industry is increasing, with the penetration rate of advanced driver assistance systems (ADAS) in the domestic passenger car market expected to rise rapidly in the first half of 2025 [1] - The CEO of Horizon, Yu Kai, highlighted that over 60% of passenger cars sold in China are now equipped with ADAS [1] Financial Performance - In the first half of 2025, Horizon reported a revenue of 1.567 billion yuan, marking a year-on-year increase of 67.6%, primarily driven by substantial growth in product and solution business revenue [3] - The revenue from this segment reached 778 million yuan, which is 3.5 times that of the same period last year, with a shipment volume of 1.98 million units, reflecting an approximate 100% year-on-year growth [3] - The advanced ADAS solutions are becoming the core driver of the company's performance, with the Journey 6 series chips supporting high-speed NOA and urban NOA contributing over 80% of related business revenue [3] Technological Advancements - Horizon is advancing its full-scene urban ADAS system, Horizon SuperDrive (HSD), based on the Journey 6P chip, utilizing an end-to-end architecture and reinforcement learning mechanisms [4] - The HSD system has already been designated for over 10 vehicle models, with the first model, the Xingtu E05, expected to enter mass production by the end of the year [4] Challenges and Market Outlook - Despite significant revenue growth, Horizon faces profit challenges, with an adjusted operating loss of 1.11 billion yuan in the first half of the year, a year-on-year increase of 34.8%, primarily due to high R&D investments [6] - R&D expenditures reached 2.3 billion yuan, a 62% increase year-on-year, focused on the HSD system and cloud service resources [6] - Horizon has secured nearly 400 model designations, with over 100 supporting high-speed NOA and above functionalities, and has entered the supply chains of two Japanese automakers, with an expected delivery of 7.5 million units [6] - The market for intelligent driving chips is anticipated to expand further as urban NOA functionalities penetrate vehicles priced around 150,000 yuan, although competition is expected to intensify [6]