GXSH(000716)2025-03-03 03:15Summary of Key Points from the Conference Call Industry Overview - The intelligent driving chip industry is a trillion-yuan market with significant growth potential as autonomous driving technology evolves from L0 to L5 levels. The market is divided into Advanced Driver Assistance Systems (ADAS) and higher-level autonomous driving (AD) solutions [2][3][4]. Market Trends and Projections - Global penetration of smart vehicles is accelerating, expected to reach 96.7% by 2030, with China projected to reach 99.7% [2][3]. - The global ADAS System-on-Chip (SoC) market is projected to reach 92.5 billion RMB by 2028, with a compound annual growth rate (CAGR) of 27.5%. The Chinese market is expected to reach 49.6 billion RMB with a CAGR of 28.6% [2][6]. - The high-level autonomous driving SoC market is expected to reach 45.4 billion RMB globally by 2030, with China reaching 25.7 billion RMB [2][6]. Company Insights: Horizon Robotics - Horizon Robotics reported a revenue of 938 million RMB in the first half of 2024, a 152% year-on-year increase. However, it recorded a net loss of 6.1 billion RMB in 2023 [2][17]. - The company’s automotive solutions account for 95% of its revenue, with a gross margin of 79% in the first half of 2024, up 18 percentage points year-on-year [2][18]. - Horizon's products are integrated into over 285 vehicle models, with 27 OEMs adopting its solutions [2][13]. Company Insights: Black Sesame Intelligence - Black Sesame Intelligence achieved a revenue growth of 69% year-on-year in the first half of 2024, with a net profit increase of 129.63% [2][34]. - The company focuses on automotive autonomous driving products, which account for 88.5% of its business, and has a compound annual growth rate of 127% from 2021 to 2023 [2][27][34]. - Black Sesame's SOC products, such as the Huashan series, are being adopted in various vehicle models, with significant partnerships established with major automotive manufacturers [2][26][35]. Competitive Landscape - Key players in the high-level urban intelligent driving sector include NVIDIA, Tesla, Huawei, Horizon Robotics, and Black Sesame Intelligence, all of which have developed high-performance SoC chips [2][9]. - The competition in the autonomous driving SoC market is characterized by specific SoC suppliers, general chip suppliers, and automotive OEMs developing their own solutions [2][8]. Financial Performance and Projections - Horizon Robotics' revenue is projected to reach 2.26 billion RMB in 2024, with expected losses narrowing from 6.4 billion RMB in 2024 to 300 million RMB by 2026 [2][25]. - Black Sesame Intelligence's revenue is expected to grow to 487 million RMB in 2024, with losses projected to decrease from 760 million RMB in 2024 to 720 million RMB by 2026 [2][38]. Strategic Partnerships and Ecosystem Development - Horizon Robotics is expanding its ecosystem through partnerships, including a joint venture with Volkswagen to accelerate the development of advanced driving assistance systems [2][22][23]. - Black Sesame Intelligence has established collaborations with major automotive groups and is focusing on enhancing its product offerings through strategic partnerships [2][26][31]. Conclusion - Both Horizon Robotics and Black Sesame Intelligence are positioned as leading players in the rapidly growing intelligent driving chip market, with strong revenue growth and strategic partnerships that enhance their competitive edge. The industry is expected to continue its upward trajectory, driven by technological advancements and increasing consumer acceptance of autonomous driving solutions [2][5][6].