Horizon Robotics H1 2026: Revenue Jumps 32.9 % to RMB 2.05 Billion; Returns to Profit on Fair-Value Gains Despite Larger Core Loss

Bulletin Express
Yesterday

Horizon Robotics (HORIZONROBOT-W) released its unaudited interim results for the six months ended 30 June 2026.

Financial Highlights • Revenue from continuing operations rose 32.9 % year on year (YoY) to RMB 2.05 billion, driven by growth in both product solutions (+14.8 %) and licence & services income (+52.7 %). • Gross profit increased 32.9 % to RMB 1.36 billion; overall gross margin held at 66.0 %. Licence & services margin was 90.4 %, while product-solution margin narrowed to 36.2 % (48.1 % after normalising for low-margin controller units). • Reported operating loss widened 11.1 % to RMB 1.67 billion, reflecting sustained R&D investment (up 21.9 % to RMB 2.75 billion). Adjusted operating loss (non-IFRS) expanded 21.4 % to RMB 1.28 billion. • The period swung to a net profit of RMB 3.78 billion (H1 2025: RMB 5.23 billion loss), mainly due to a RMB 5.24 billion fair-value gain on financial liabilities and a RMB 2.78 billion one-off gain from deconsolidating D-Robotics. Excluding non-cash and one-off items, adjusted net loss widened 25.4 % to RMB 1.67 billion. • Cash and cash equivalents declined 26.4 % to RMB 14.87 billion; the gearing ratio improved to 39.8 % (end-2025: 58.7 %).

Operational Metrics • Journey-series system-on-chip (SoC) shipments climbed 12.1 % to 2.22 million units despite a 20.2 % contraction in China’s passenger-car retail market. • The company’s ADAS market share among Chinese domestic brands surpassed 50 %, approximately double the nearest competitor. • Urban NOA computing-platform share increased to 22.8 %, elevating Horizon Robotics to the No. 2 position in this segment. • Overall intelligent driving computing-platform share among domestic brands remained first at 31.9 %. • Design wins reached ~500 models in total, including ~130 for advanced NOA.

Business Developments • Mass-production launches with Volkswagen joint venture Carizon and GAC-Toyota marked key joint-venture breakthroughs. • Over 60 export-model nominations secured across China’s top six auto exporters, supporting overseas expansion. • Launch of Horizon SuperDrive (HSD) V2.0 delivered >88 % active-user penetration post-launch. • Post-period, Journey 6B accumulated lifecycle orders exceeding 20 million units via Bosch, neueHCT, Denso and others; mass production slated from Q3 2026. • CARIAD converted its convertible loan into a 9.9 % equity stake; Horizon repurchased excess conversion rights, reducing potential dilution by ~4.9 % of pre-closing share capital. • A US$450 million zero-coupon convertible bond due July 2027 was issued on 29 July 2026.

Cost Structure • R&D remained the largest expense at RMB 2.75 billion (67.6 % of revenue). • Selling & marketing costs rose 41.4 % to RMB 354.50 million, while administrative expenses grew 18.1 % to RMB 327.67 million. • Headcount declined to 2,052 employees (end-2025: 2,215), with total remuneration at RMB 1.40 billion.

Strategic Outlook (as disclosed) Management targets further market-share gains in advanced urban NOA and plans mass production of a cockpit-driving integrated solution in Q4 2026. Development of the next-generation Journey 7 SoC for L3–L4 applications is on schedule for tape-out in Q2 2027.

Capital Management During April–May 2026 the company repurchased 80.16 million Class B shares for HK$485.24 million, all retained as treasury stock. No interim dividend was declared.

No material litigation, pledges or significant investments were reported for the period.

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