Core Insights - MSCI China Index has officially included Horizon Robotics (9660.HK) as the only autonomous driving technology company, reflecting market recognition of its growth potential [1] - Horizon's H1 2023 financial report shows significant growth, with revenue reaching 1.567 billion yuan, a 67.6% year-on-year increase, and gross profit of 1.024 billion yuan, with a gross margin of 65.4% [3][4] - The company is optimistic about its annual shipment volume, projecting around 4 million units, driven by new orders from major automakers like Geely, Chery, and Changan [2][10] Financial Performance - Horizon's revenue structure has improved, with product solutions and software services driving growth [3][4] - The product solutions business saw a total shipment of 1.98 million units in H1 2023, doubling year-on-year, with high-end products accounting for 49.5% of total shipments [3][4] - The average unit price of products is expected to continue rising, contributing to a 3.5-fold increase in revenue for the product solutions segment [3][4] Market Position and Strategy - Horizon holds a 32.4% market share in the domestic autonomous driving market and has made significant progress in supplying both domestic and joint venture brands [2][9] - The company has established partnerships with 27 OEMs, including the top ten Chinese OEMs, and is expanding its international presence [9][10] - The upcoming launch of the Horizon SuperDrive (HSD) system is anticipated to create substantial growth opportunities, with multiple models already designated for production [6][10] Technological Advancements - HSD is positioned as a foundational technology for future Robotaxi applications, with high computational power and advanced capabilities [6][7] - The company is increasing its investment in cloud services, with R&D expenses rising by over 62% to 2.3 billion yuan, indicating a focus on enhancing software and algorithm capabilities [7][8] - The penetration rate of advanced driver-assistance systems (ADAS) in China's passenger vehicles has reached 65.6%, with high-end features rapidly increasing [4][5] Future Outlook - The year 2025 is projected to be a pivotal year for the widespread adoption of intelligent driving solutions in China [2][5] - Horizon's strategic focus on high-end autonomous driving technology and its ability to adapt to market changes position it favorably for sustained growth [11] - The company is expected to benefit from the increasing demand for high-performance autonomous driving solutions as competition intensifies [10][11]