Group 1 - Chery Automobile officially listed on the Hong Kong Stock Exchange on September 25, 2025, under the stock code "9973" [2] - The IPO involved the issuance of 297,397,000 H-shares, with a total fundraising amount of HKD 9.145 billion, making it the largest IPO for a car company in Hong Kong this year [2] - The public offering was oversubscribed by 308.18 times, while the international offering was oversubscribed by 11.61 times [2] Group 2 - Horizon Robotics, a long-term strategic partner of Chery, invested approximately USD 58.7 million (HKD 457.25 million) in the IPO, highlighting the trust and collaboration between the two companies [2][3] - The launch of the Xpeng ET5, the world's first vehicle equipped with Horizon's HSD system and flagship chip, is a significant milestone in their partnership [3][6] - Chery plans to allocate 35% of the IPO proceeds for new model development and 25% for next-generation technology and advanced R&D systems, aligning with Horizon's focus on intelligent driving capabilities [8] Group 3 - Horizon Robotics has established a comprehensive strategic partnership with Chery since 2021, focusing on the development of next-generation assisted driving products [4] - Horizon's products have been adopted by 27 OEMs, with a market share of 32.4% in the Chinese autonomous driving computing solutions market [9] - The company has achieved a production milestone of over 10 million units for its Journey family of products, becoming the first domestic intelligent driving technology company to reach this level [9][12] Group 4 - Horizon Robotics is transitioning from a "hardware and software solution provider" to a "technology infrastructure platform builder," which may lead to a structural change in its valuation logic [13] - The company's stock price has increased by 185% since the beginning of 2025, driven by the rapid growth of the intelligent driving industry and adjustments in its valuation anchors [14]

Group 1 - Horizon is set to release a new integrated cockpit and driving chip in 2026, which is expected to be the most complex chip designed by the company to date [3] - The new chip development is led by Horizon's VP and Chief Architect Su Qing, focusing on defining computing power based on software algorithm requirements, which is becoming a mainstream development model in the autonomous driving chip sector [3][4] - The integrated cockpit and driving chip aims to reduce data transmission latency and simplify vehicle hardware design, offering a cost advantage over separate chips for mid-to-low-end autonomous driving and cockpit systems [5] Group 2 - Qualcomm is a major player in the integrated chip market, with its Snapdragon 8775 chip offering AI computing power of 72 Tops, and an upgraded version, the SA8797, providing 320 Tops, which is set to be used by companies like Li Auto and Leap Motor [4][5] - Horizon's lower-tier chips (J2/J3) still account for a significant portion of its shipments, with an expected shipment volume of around 4 million units in 2025, split evenly between low-tier and mid-to-high-tier solutions [5][6] - BYD is actively integrating its cockpit and driving teams to develop its own integrated chip products, with plans to launch a One-Board solution that combines cockpit and driving functions on a single PCB [6][7] Group 3 - BYD's "Heavenly Eye" driving assistance system is categorized into three platforms based on computing power and configuration, with plans to mass-produce the B platform by 2025, potentially offering advanced driving features at lower price points [7][8] - BYD aims to maintain its scale through smart technology, planning to introduce high-level driving assistance features at competitive prices as it faces increasing competition in the electric vehicle market [8]

Core Insights - The article discusses the strategic positioning of Horizon Robotics in the global smart driving industry, emphasizing its role as a "non-car manufacturer Tesla" that focuses on providing comprehensive solutions in the smart driving ecosystem [3][4] - Horizon's approach is characterized by a collaborative philosophy, aiming to empower automotive manufacturers by filling the gaps in the smart driving value chain, thus achieving a significant market share in China [4][5] - The company is poised for a technological leap, likening the current moment in smart driving to the "4G moment" in mobile communications, with its HSD system set to revolutionize the market by making advanced driving assistance accessible to mainstream vehicles [5][6][8] Company Strategy - Horizon Robotics is recognized for its "four quadrants" strategy, encompassing chips, software, cockpit, and intelligent driving, positioning itself as a comprehensive enabler for automotive companies [3][4] - The company has achieved a 45.8% market share in China's ADAS front-view integrated machine market in the first half of 2025, collaborating with over 40 manufacturers and enabling more than 400 models [4][5] - Horizon aims to transition from "millions of chips" to "millions of HSD systems," focusing on delivering a fully integrated autonomous driving solution that combines perception, decision-making, and execution [11][12] Technological Advancements - The HSD system, which debuted at the Munich Auto Show, integrates advanced algorithms and low-latency processing, marking a significant step in the evolution of smart driving technology [5][6][7] - Horizon's chips, such as the Journey 6P, boast a processing power of 560 TOPS, placing them in the same league as competitors like Mobileye and NVIDIA [7] - The company emphasizes making high-level driving assistance a standard feature in affordable vehicles, aiming to democratize access to advanced driving technologies [6][8] Global Expansion - Horizon has established a European headquarters in Munich and formed deep partnerships with major Tier-1 suppliers, completing extensive overseas testing [15][16] - The company has secured collaborations with nine joint venture automakers for 30 models, projecting over 7.5 million overseas orders in the future [15][16] - Horizon's strategy for international expansion focuses on building trust and ecological partnerships rather than merely increasing shipment volumes, reflecting a long-term vision for global market integration [15][16]

Core Insights - Horizon Robotics and Hello signed a strategic cooperation agreement to develop an end-to-end L4 autonomous driving core system for Robotaxi operations, aiming to accelerate urban deployment and commercialization [1][3] Group 1: Strategic Partnership - The partnership leverages strong financial backing from investors like Ant Group and CATL, providing robust funding and a large user base to support scalable commercial applications [3] - Hello's first mass-produced Robotaxi model, "HR1," was globally unveiled, with plans for mass production by 2026, targeting over 10 cities and a fleet of 10,000 vehicles, and aiming to deploy over 50,000 vehicles by 2027 [3] Group 2: Technology and System Capabilities - Horizon Robotics will provide a complete core capability system for L4 autonomous driving, including key components like the Journey 6P chip and HSD urban auxiliary driving system, designed for high computational redundancy and integration efficiency [3][4] - The company is transitioning from a hardware and software provider to a technology infrastructure platform builder, enhancing its role in the industry and creating new growth opportunities and valuation models [5] Group 3: Development Approach - Horizon Robotics adopts a "gradual approach" starting from L2 driving assistance, utilizing real-world data to iteratively improve safety and regulatory strategies, which contrasts with the high-cost and unstable experience of a leapfrogging approach directly to L4 [4] - The gradual approach allows for the accumulation of real road data and alignment with evolving regulatory environments, facilitating market entry and expansion [4]

Core Insights - The Chinese automotive industry is undergoing a significant transformation towards intelligence, with smart driving becoming the main engine for industry upgrades, shifting focus from mere existence to performance and efficiency [2][3] - The smart driving sector is experiencing rapid advancements, particularly in application innovation, marking a turning point for mid-to-high level autonomous driving [8][9] Industry Trends - The future of the smart driving industry is promising, but challenges remain, with only 3 to 4 major technology providers expected to survive in the long run [3][19] - The concept of "smart driving equality" proposed by companies like BYD is seen as a necessary trend that will drive technological development and reduce costs in the smart driving sector [9] Company Insights - Horizon Robotics, under the leadership of President Chen Liming, plays a crucial role in the smart driving industry, focusing on providing intelligent driving solutions [2][4] - The company emphasizes a "soft and hard synergy" approach, recognizing that deep integration of software and hardware is essential for achieving high performance and cost-effectiveness in smart driving technologies [14][15] Technological Development - The industry is currently in a rapid iteration phase, with ongoing innovations in algorithms and increasing demands for computing power, as evidenced by Horizon's flagship chip, which has significantly improved performance metrics [11][12] - The need for efficient engineering capabilities to translate technology into cost-effective products is highlighted as a critical challenge for the industry [14] Future Outlook - The ultimate goal for the smart driving industry is the realization of L4 and L5 level autonomous driving, which would transform vehicles into mere transportation tools, enhancing productivity and leisure during commutes [17][18] - The competitive landscape will likely see a division of labor where most automotive companies will rely on capable suppliers, rather than pursuing full-stack self-development [18][19]

Core Insights - The 15th China Automotive Forum was successfully held in Shanghai from July 10 to 12, where Horizon Robotics' President Chen Liming delivered a keynote speech on the latest trends in the intelligent driving industry and the company's technological innovations [1]. Group 1: Industry Trends - Intelligent driving technology is at a critical development stage, with a potential for rapid growth as it has reached an inflection point [1]. - The growth is supported by three factors: the integration of intelligent driving in China's new energy vehicle strategy, the expansion of Navigate on Autopilot (NOA) features from high-end to mid-range vehicles, and consumer preference for intelligent features in electric vehicles, especially among premium brands [1]. Group 2: Challenges in Intelligent Driving - Despite the promising outlook, intelligent driving faces challenges, particularly with urban NOA, which is still in a "usable" stage due to complex traffic conditions leading to safety issues [2]. - Current systems have limited Operational Design Domain (ODD) and weak generalization capabilities, which restrict their usage areas [2]. - High-performance systems are costly, hindering widespread adoption [2]. Group 3: Technological Innovations by Horizon - Horizon has developed the Vision Mamba algorithm, which addresses computational and visual challenges, enhancing performance with linear complexity and global perception [2]. - The Senna architecture combines end-to-end models with Visual Language Models (VLM), improving generalization and decision-making capabilities while reducing planning errors and collision rates [2]. - The Journey 6 series chips cover a range of intelligent driving applications, with the Journey 6P chip set to debut in Chery vehicles this year [2]. Group 4: Future Outlook - Horizon supports domestic manufacturers in producing intelligent driving systems and collaborates with international companies, including strategic partnerships with Bosch and Denso announced at the Shanghai Auto Show [3]. - The future of the intelligent driving industry is expected to see further integration of hardware and software, leading to the development of a unified AI Agent for distributed control [3]. - Horizon aims to collaborate with partners across the industry chain to create user-friendly intelligent driving products that deliver real value to consumers [3].

Core Viewpoint - Horizon Robotics has gained significant market attention and investor interest following its inclusion in the Hong Kong Stock Connect, leading to a substantial increase in its stock price and market capitalization [1][2]. Group 1: Market Performance - Following the adjustment of the Hong Kong Stock Connect on May 26, eligible mainland investors can directly trade Horizon Robotics' shares, resulting in an 11.39% stock price increase on May 27, with a market capitalization exceeding HKD 104.5 billion [1]. - The company has been recognized as the third-largest IPO and the largest technology IPO of the year after its listing in October 2024, with its stock price more than doubling since the initial offering [3]. Group 2: Business Growth and Financials - In the fiscal year 2024, Horizon Robotics achieved a revenue of CNY 2.384 billion, representing a year-on-year growth of 53.6%, and a gross profit of CNY 1.841 billion, up 68.3% [2]. - The adjusted operating loss narrowed from CNY 1.687 billion in 2023 to CNY 1.495 billion in 2024, indicating improved sustainable operating capabilities [2]. Group 3: Strategic Partnerships and Market Position - The company has initiated mass production of its high-performance chip, the Journey 6P, and launched the High-Performance Urban Driving System (HSD), establishing partnerships with major automotive manufacturers like Chery and Volkswagen [2]. - Horizon Robotics has formed strategic collaborations with global Tier 1 suppliers such as Bosch, Denso, and Continental, enhancing its competitive edge in the advanced driving assistance solutions market [2]. Group 4: Future Outlook - The company anticipates a pivotal turning point for smart driving by 2025, driven by technological breakthroughs, regulatory support, and increased consumer willingness [3]. - Horizon Robotics plans to continue investing in research and development to enhance its smart driving solutions and maintain its leading position in the industry [3].

Summary of Key Points from Conference Call Records Industry Overview - **Industry**: Electronics Industry, specifically focusing on AI and AR glasses market - **Market Trends**: Significant development expected in the AI glasses market in the second half of the year, driven by new product launches from companies like Meta and domestic firms such as Rocket [1][4] Core Companies and Their Insights 1. **Crystal Optoelectronics (水晶光电)** - **Partnerships**: Strong collaboration with Meta in reflective films and display modules, leading to anticipated performance improvements [1][6] - **Financial Projections**: Expected revenue of approximately 1.26 billion yuan in 2025, with a potential increase of 20% to 30% [1][9] - **Market Position**: Positioned well in the AR field with a focus on mass production breakthroughs [5][9] 2. **Source Technology (源杰科技)** - **Competitive Advantage**: Holds a material positioning advantage in glass diffraction, with deep partnerships with major manufacturers [1][10] - **Profit Growth**: Projected net profit growth of 50% to 60% in 2025, reaching 340 million yuan, with a similar potential for stock price increase [1][10] 3. **Shunluo Electronics (顺络电子)** - **Growth Areas**: Significant growth in consumer electronics, automotive, and server sectors, with a projected growth rate of about 30% in 2025 [1][11] - **Profit Expectations**: Expected profit of 1.08 billion yuan in 2025, with a potential increase of 20% to 30% [1][12] 4. **Biyang Technology (生益科技)** - **Market Performance**: High operating rates in the copper-clad laminate industry, with expectations of price increases due to rising copper prices [3][14] - **Future Outlook**: Transitioning to high-end materials, with projected revenue of 2.7 billion yuan in 2025 [16] Market Dynamics - **AI Asset Performance**: Divergence in performance of AI assets in the US stock market, with a shift towards mid and micro-enterprise factors influencing stock opportunities [1][8] - **AR Glasses Supply Chain**: Key components include display modules and waveguide technology, with a focus on long-term solutions like reflection and diffraction [5][6] Additional Insights - **Product Launches**: Anticipated peak in new product releases from various companies, including Meta's Hypernova, expected to enhance user experience significantly [2][4] - **Investment Recommendations**: Companies like Crystal Optoelectronics and Blue Special Optics are recommended due to their strong partnerships and unique technological advantages in the AR glasses market [6][7] Conclusion - The electronics industry, particularly in AI and AR glasses, is poised for significant growth driven by technological advancements and strategic partnerships. Key players are expected to see substantial revenue increases and market share growth in the coming years.

Core Insights - The 21st Shanghai International Automobile Industry Exhibition showcased nearly 1,000 domestic and foreign enterprises, highlighting bold explorations by Chinese new energy vehicle companies in product definition, pricing, and business models, as well as a high acceptance of digital and intelligent experiences among young consumers [1] Electric and Intelligent Technology Upgrades - Chinese smart electric vehicle companies and supply chain enterprises unveiled impressive new technologies, indicating that China's electrification and intelligentization are leading the global automotive industry's transformation [2] - CATL, a global leader in power battery shipments, introduced its sodium-ion battery, which reduces reliance on lithium resources and achieves an energy density of 175 Wh/kg, supporting a range of 500 kilometers [2] - The new dual-core battery architecture from CATL enhances energy density by 60% and weight energy density by 50%, significantly improving range [3] Advanced Driver Assistance Technologies - Major automakers presented advanced driver assistance technologies, including GAC Aion and Didi's L4 autonomous driving Robotaxi, set for delivery by the end of the year [4] - Huawei's ADS 4 system improves efficiency and reduces latency, with a flagship version designed for high-speed L3 applications [4] - Horizon Robotics showcased its high-performance chip with a processing power of 560 TOPS, marking a significant advancement in domestic L2 urban driving assistance systems [4] Global Collaboration and Innovation - Multinational companies are transitioning from "Made in China" to "Developed in China for the World," with significant R&D efforts localized in China [5][6] - Mercedes-Benz's new electric long-wheelbase CLA was developed entirely by a local team in just 18 months, reflecting the rapid innovation pace in the Chinese market [6] - GM's Buick brand introduced a new high-end electric sub-brand and plans to launch six new models based on a versatile architecture within the next 12 months [6] AI Integration in Automotive Development - AI technologies are increasingly integrated into vehicle development, with companies like Zhiji and Xpeng introducing AI-driven chassis systems that enhance safety and adaptability [8][9] - Geely has applied AI across various domains, including architecture, power, chassis, and driving assistance, achieving significant reductions in development cycles and costs [9] - The automotive industry is urged to adopt AI strategies to foster innovative organizational structures and accelerate transformation [10]

Core Viewpoint - The local supply chain is reshaping the global automotive industry landscape through technological breakthroughs, rapid response, and cost advantages, with future competition in the smart automotive industry focusing on ecosystem collaboration and supply chain integration efficiency [3][4]. Group 1: Industry Trends - The competition among automotive companies is shifting from electrification to intelligence, with in-vehicle chips becoming strategic resources for automakers [4]. - The 2025 Shanghai Auto Show featured a dedicated "China Chip Exhibition Area," showcasing over 1,200 domestic automotive chips from more than 150 member units of the China Automotive Chip Industry Innovation Strategic Alliance, marking the largest participation in history [4][5]. - Major chip companies like Horizon Robotics and Black Sesame Intelligence unveiled new products and strategic partnerships at the auto show, indicating a race among domestic chip manufacturers to seize market opportunities [4][5]. Group 2: Technological Developments - Intel participated in the Shanghai Auto Show for the first time, launching its second-generation SDV (AI-enhanced Software Defined) SoC and announcing a collaboration with Black Sesame Intelligence to develop a cockpit-driving integration platform [5]. - The new platform aims to achieve deep integration of cockpit interaction and assisted driving functions, supporting scenarios from L2+ to L4, with a reference design planned for release in Q2 2025 [5]. - Black Sesame Intelligence also announced the mass production of a domestic single-chip central computing platform based on the Wudang C1296 chip, marking a significant step in integrated cockpit solutions [6]. Group 3: Market Dynamics - The global smart driving auxiliary chip market, traditionally dominated by NVIDIA and Tesla, is experiencing shifts as domestic chip companies gain traction [7]. - According to a report, in 2024, the global installation volume of smart driving domain control chips is projected to reach 5.28 million units, with NVIDIA's Drive Orin-X series holding nearly 40% market share and Tesla's FSD at 25.1% [7]. - Domestic chip companies like Horizon Robotics and Black Sesame Intelligence are forming partnerships with multiple OEMs, emphasizing the importance of large-scale production for their survival [7]. Group 4: Competitive Landscape - Domestic chip companies possess advantages such as supply chain security, cost-effectiveness, and rapid service response, which are increasingly valued by automakers amid geopolitical tensions [7]. - However, many domestic chip products are primarily suited for entry-level smart driving assistance systems, typically found in vehicles priced below 200,000 yuan, while high-end products from brands like NIO, Xpeng, and Li Auto still rely heavily on NVIDIA [7]. - The competition with NVIDIA in high-end smart driving chips is expected to intensify in the coming years, as domestic companies work to close the performance and functionality gap [8].