HORIZONROBOT-W (09660) FY2025 Revenue Jumps 57.7% to RMB3.76 Billion, Net Loss Swells on Fair-Value Hits; D-Robotics to Be Deconsolidated

Horizon Robotics (HORIZONROBOT-W, 09660.HK) released its audited results for the year ended 31 December 2025.

Revenue and Margins • Revenue rose 57.7% year-on-year to RMB3.76 billion, driven by a 144.2% surge in Product Solutions (RMB1.62 billion) and a 17.4% increase in License & Services (RMB1.93 billion). • Automotive business contributed 94.6% of group turnover and posted a 67.2% gross margin. Overall gross margin narrowed to 64.5% (2024: 77.3%) as product mix tilted toward hardware-heavy solutions.

Profitability • Operating loss widened to RMB3.34 billion (2024: loss RMB2.14 billion) on stepped-up R&D spending. • Net loss reached RMB10.47 billion, reversing a prior-year profit, mainly due to a RMB6.66 billion negative fair-value change in preferred shares and other liabilities. • On a non-IFRS basis, adjusted net loss increased 67.3% to RMB2.81 billion.

Cost Structure • R&D expenses expanded 63.3% to RMB5.15 billion, representing 137.1% of revenue, reflecting intensive investment in the HSD urban NOA platform, Journey® 6 hardware and cloud services. • Administrative costs rose 13.9% to RMB726 million, while selling and marketing expenses climbed 54.2% to RMB632 million.

Operational Highlights • Journey® series automotive-grade processor shipments totalled 4.01 million units (+38.8% YoY); 45% of these supported NOA functions, marking a 4.8-fold volume jump. • The HSD end-to-end urban NOA solution entered mass production in November 2025, delivering 22,000+ units within five weeks and securing design wins with 10 OEMs across 20+ models. • In the sub-RMB200,000 passenger-vehicle segment, the company captured a 44.2% share of the advanced NOA market; overall ADAS share among Chinese brands was 47.7%.

Balance Sheet and Liquidity • Cash and cash equivalents rose 31.3% to RMB20.19 billion; gearing ratio increased to 58.7% (2024: 41.5%). • Capital commitments stood at RMB528.6 million; no dividend was proposed.

Post-Balance-Sheet Events • January 2026 saw mass production of the industry’s first urban NOA solution based on a single Journey 6M processor, targeting vehicles priced as low as RMB100,000. • The first model co-developed with CARIZON entered production, with six more models slated for 2026. • The company plans to pilot Robotaxi operations with ecosystem partners in 3Q 2026 and to launch the Journey 7 computing platform and Agentic CAR SoC/OS in due course.

Inside Information – D-Robotics Deconsolidation • Following dilution of its stake to about 40% and governance changes, Horizon Robotics will lose control of D-Robotics; the unit will be reclassified from subsidiary to associate. • Management expects the move to lift consolidated gross margin and reduce R&D drag while maintaining economic participation as the largest shareholder.

Dividend • The board did not recommend a dividend for FY2025.