Core Viewpoint - Horizon Robotics (09660.HK) reported significant revenue growth but also an increase in losses for the second quarter and first half of 2025, driven by ongoing R&D investments and product optimization in a competitive smart driving market [1][10]. Financial Performance - Revenue for the first half of 2025 reached 1.567 billion yuan, a year-on-year increase of 67.6% [2] - Automotive solutions contributed 1.516 billion yuan, growing by 66% [2] - Product solutions surged to 777 million yuan, marking a 250% increase [2] - Gross profit was 1.024 billion yuan, up 38.6%, with a gross margin of 65.4% [2] - Operating loss expanded to 1.592 billion yuan, a 44% increase [2] - Net loss for the period was 5.233 billion yuan, up 2.6% [2] - R&D expenditure reached 2.3 billion yuan, increasing by 62% [2] - Cash reserves stood at 16.1 billion yuan [2] Highlights and Progress - Revenue growth was driven by both volume and price increases, with product solutions revenue reaching 778 million yuan, a 3.5-fold increase [4] - Shipment volume of automotive-grade processing hardware doubled to 1.98 million units [4] - Average selling price of product solutions increased to 1.7 times that of the previous year due to a higher proportion of high-value chips [4] - The share of mid-to-high-end assisted driving products rose to 49.5% of total shipments, contributing over 80% of revenue [5] - Software licensing and service revenue grew to 738 million yuan, a 6.9% increase [6] - Market share in China's autonomous brand automotive market reached 32.4% for assisted driving solutions and 45.8% for ADAS front-view integrated machines, both leading the market [6] - Successful international collaborations with major automotive groups, including partnerships with Volkswagen and Japan's largest automotive group, have been established [6] Future Outlook - The focus is on the mass production of high-level driving solutions (HSD), with several models already designated for production [8] - Improvement in profitability is anticipated as high-end products continue to scale and the HSD solution is launched [8] - Global expansion efforts with international automotive companies and Tier 1 suppliers are expected to create new growth opportunities [8]