Core Viewpoint - Horizon Robotics is struggling in the capital market, facing a vicious cycle of financing to cover losses, leading to doubts about its future development [1][3]. Financing Activities - Since its market debut, Horizon has raised a total of approximately 164.21 billion HKD (about 150.29 billion RMB) through multiple financing rounds, including 54.07 billion HKD from its IPO and 46.74 billion HKD from a rights issue [3]. - Despite these efforts, the market has reacted negatively, with stock prices plummeting after each financing announcement, including an 8.49% drop following the latest share placement [3]. Financial Performance - In the first half of the year, Horizon reported revenues of approximately 15.67 billion RMB, a year-on-year increase of 67.6%, but its losses expanded from 50.98 billion RMB to 52.33 billion RMB [4]. - Cumulative losses over the past three years have exceeded 175 billion RMB, raising concerns about the company's financial stability [4]. Research and Development Challenges - Horizon's R&D expenses reached 23 billion RMB in the first half of the year, a 62% increase from the previous year, yet it still lags behind international chip giants in technology [4][5]. - The company is currently using a 7nm process, while competitors like Qualcomm and NVIDIA are moving to 4nm/5nm, limiting Horizon's competitiveness in the high-end market [5]. Market Competition - The rise of self-developed chips by major clients, such as BYD and Li Auto, is further squeezing Horizon's market share, as these companies are reducing their reliance on Horizon's software solutions [6]. - If Horizon fails to achieve technological breakthroughs and secure new customer growth, it risks being trapped in a cycle of financing and losses, jeopardizing its market position [6].

Core Insights - The evolution of autonomous driving technology to L4/L5 levels will enable vehicles to possess autonomous decision-making capabilities akin to "robot drivers" [1] - The potential for a significant business model emerges as users may rely on autonomous driving systems for daily commutes, leading to hourly service fee payments [1] - The market for chips in autonomous vehicles is projected to reach hundreds of billions to a trillion dollars, based on global annual sales of 100 million vehicles, even if computing costs remain stable [1] Business Models - There are two main revenue models in the autonomous driving sector: 1. Supplier Model: This involves providing components (such as chips and sensors), software, or solutions to new vehicles for one-time revenue [3] 2. Subscription Model: This is characterized by ongoing payments from users for services, such as monthly subscription fees [3]

Core Viewpoint - Horizon Robotics has engaged in high-frequency financing since its market debut, raising over 15 billion yuan within a year, but continues to face significant losses and challenges in technology competitiveness [1][2][3]. Financing Activities - On September 26, Horizon announced a share placement at HKD 9.99 per share, raising approximately HKD 63.4 billion (about RMB 58.12 billion) [2]. - The share placement was at a discount of about 5.75% compared to the closing price on September 25, with the new shares representing about 4.6% of the existing share capital [2]. - Since its IPO in October last year, Horizon has raised a total of approximately RMB 150.29 billion through various financing rounds, including HKD 54.07 billion at IPO and HKD 46.74 billion in June [2]. Financial Performance - In the first half of the year, Horizon reported revenues of approximately RMB 15.67 billion, a year-on-year increase of 67.6%, but losses expanded from RMB 50.98 billion to RMB 52.33 billion [3]. - Cumulatively, Horizon has incurred losses exceeding RMB 175 billion from 2021 to 2023, with adjusted operating losses increasing by 34.9% year-on-year to RMB 11.11 billion [3][4]. Research and Development - Horizon's R&D expenses reached RMB 23 billion in the first half of the year, a 62% increase from RMB 14.2 billion in the same period last year [5]. - Despite significant R&D investments, Horizon's technology remains behind international chip giants, which are advancing to 4nm/5nm processes, while Horizon is still at the 7nm stage [6]. Market Competition - The trend of automakers developing their own technologies has further compressed Horizon's market space, as clients like BYD and Li Auto are reducing their reliance on Horizon's software solutions [7][8]. - Horizon is caught in a cycle of financing, R&D, and losses, and without breakthroughs in technology or new customer growth, the company faces increasing uncertainty in a competitive landscape [8].