Core Viewpoint - Horizon (9660.HK) has been included in the Hong Kong Stock Connect list, effective from the next trading day, marking recognition of its strength and long-term value in the capital market [2]. Group 1: Company Performance - Horizon delivered approximately 2.9 million sets of intelligent driving product solutions in 2024, representing a year-on-year growth of 38%, and has cumulatively delivered around 7.7 million sets, leading the domestic market [2]. - The revenue of Horizon increased by 53.6% year-on-year to 2.384 billion yuan in 2024, indicating strong growth in both production scale and commercial revenue [4]. Group 2: Market Position - By 2025, Horizon's cumulative shipment volume is expected to exceed 10 million sets, making it the first intelligent driving technology company in China to reach this milestone [3]. - Horizon's market share in the Chinese OEM Advanced Driver Assistance Systems (ADAS) market increased to over 40% in 2024, maintaining its leading position [3]. - In the domestic market for intelligent driving computing solutions for self-owned passenger vehicles, Horizon holds a market share of 33.97%, with one in three intelligent driving cars in China equipped with Horizon's solutions [4]. Group 3: Product Development and Partnerships - Horizon officially launched the L2 urban assisted driving system on April 18, featuring the domestically strongest intelligent driving computing solution, the Journey 6P, which employs an end-to-end technology architecture [4]. - The company has announced or deepened strategic partnerships with global automotive Tier 1 giants such as Continental, Bosch, and Denso [4].

Core Viewpoint - The recent regulatory changes by the Ministry of Industry and Information Technology (MIIT) have significantly impacted the marketing strategies of automotive companies regarding intelligent driving features, leading to a shift from promoting "high-level autonomous driving" to "combined auxiliary driving" [3][6][16] Group 1: Regulatory Impact - The MIIT's notification prohibits the use of vague terms like "automatic driving" and "high-level autonomous driving," mandating a unified terminology of "combined auxiliary driving" (L2 level) [6] - Following the new regulations, companies like Huawei and Xiaomi have altered their promotional materials to reflect the new terminology, emphasizing "intelligent auxiliary driving" instead of previous terms [6][9] - The notification has also led to a reduction in the frequency of over-the-air (OTA) updates, with companies now required to manage risks and validate updates more thoroughly before deployment [8][14] Group 2: Marketing Adjustments - Automotive sales personnel have begun to avoid mentioning "intelligent driving" during customer interactions, focusing instead on safety and regulatory compliance [5][9] - The Shanghai Auto Show showcased a noticeable absence of terms related to "intelligent driving," with companies like XPeng emphasizing safety through initiatives like the "AI Auxiliary Driving Safety Training Camp" [9][11] - Despite the regulatory changes, some companies continue to engage in semantic debates regarding the terminology used for their driving assistance features [8][16] Group 3: Technological Shift - The new regulations have shifted the focus from software-defined vehicles to core technologies such as battery management and chassis tuning, with companies like BYD and Geely highlighting these aspects at recent exhibitions [13][14] - Laser radar technology has regained attention as a safety feature, with its mention in technical discussions increasing significantly compared to previous years [13] - The introduction of national standards for laser radar performance marks a critical transition towards prioritizing safety over mere technical specifications in the industry [14][16] Group 4: Industry Dynamics - The regulatory environment has led to a division within the industry, with leading companies leveraging their technological and financial advantages to expand their market presence, while second-tier brands struggle to survive [16] - The rise of supply chain companies focusing on "laser radar + domestic chips" indicates a shift in competitive dynamics within the automotive sector [15][16] - The industry's evolution reflects a broader understanding that true intelligence in driving technology lies in adhering to safety regulations rather than an uncritical embrace of advanced technologies [16]