Horizon (09660) 2025 Annual Report: The trend of rising quantity and price continues, and it is expected that the income growth rate will remain at 60% in the coming years.

For the smart driving industry, 2025 is likely to be a milestone year. In this year, the narrative of smart driving equality has deeply resonated with people, and high-end smart driving technologies are penetrating the mainstream market at an unprecedented speed. As a key driver behind this transformation, HORIZONROBOT-W (09660) is getting closer to its moment of glory. On March 19th, Horizon disclosed a performance announcement for 2025 that is full of significance. The financial report shows that despite maintaining an absolute leading position in scale, Horizon's full-year revenue continued to rise, increasing by 57.7% year-on-year to 3.758 billion yuan; gross profit also saw significant growth, increasing to 2.426 billion yuan, maintaining a high level of 64.5%. The performance continued on a strong growth trajectory on a high base, largely thanks to Horizon's product solutions driving growth in both volume and price. Data shows that the company shipped 4.01 million sets of chips throughout the year, a 38.8% increase year-on-year. Among them, the shipment volume of chips supporting NOA function reached nearly five times that of the same period in 2024, accounting for 45% of the total shipments, contributing over 80% of product and solution revenues. The explosive growth in shipment volume of mid-to high-end smart driving chips directly led to a year-on-year increase of over 75% in the value of single-vehicle solutions, fully realizing the logic of growth in both volume and price. Driven by this, Horizon's product and solution revenue reached 1.622 billion yuan, a year-on-year increase of 144.2%, with the proportion of total revenue jumping to 43.2%. Furthermore, it is worth mentioning that over 95% of chip shipments were jointly delivered by Horizon and its ecological partners, highlighting Horizon's positioning as the "greatest common denominator" in the smart driving industry. At the same time, Horizon's authorization and service business achieved steady growth, with annual revenue reaching 1.935 billion yuan, an increase of 17.4% year-on-year, accounting for 51.4% of total revenue. Looking at the trend, Horizon's two main business revenues are gradually becoming balanced, forming a healthy pattern of driving growth in tandem. The continuous consolidation of its market position has been a key factor in Horizon's ability to consistently realize performance growth expectations. Public data shows that in 2025, Horizon maintained its position as the champion in the Chinese independent brand-based ADAS market with a market share of 47.7%, continuing to lead by a wide margin. In the high-end urban NOA market, Horizon, together with two other top players, forms a "big three" pattern, with the company ranking third at 14.4%, trailing the second place by only 0.85 percentage points. In the mainstream gold market below 200,000 yuan, mid-to-high-end smart driving technologies have seen explosive growth, with Horizon leading with a market share of 44%, becoming a key driving force in the industry for the popularization of smart driving. Overseas, by 2025, the company has assisted 11 car manufacturers and more than 40 models in going abroad, with the number of models doubling compared to the end of the previous year, and a cumulative export volume target of 2 million sets achieved in the entire lifecycle. Within the year, Horizon also successfully obtained designated models from three international car manufacturers, with a cumulative export target of 10 million sets, demonstrating the company's technological strength and receiving recognition from the most demanding customers globally. Horizon's founder and CEO, Yu Kai, stated during the earnings conference call that based on a plentiful pipeline of designated projects and the leadership in next-generation software and hardware technology, he is confident that the company will continue its growth momentum of growth in both volume and price this year and drive the average annual revenue growth rate in the coming years to 60%, steeper than the previously expected growth curve. In the view of GMTEight, Horizon's latest financial report once again confirms its role as a key driver in the popularization of smart driving and is the asset with the highest growth visibility and potential in the entire industry chain. Moreover, Horizon had a cash and cash equivalent balance of 20.2 billion yuan at the year-end, providing ample ammunition for continued investment in technology research and development and expanding into overseas markets. For investors, companies like Horizon that have both the ability to realize short-term performance and significant long-term strategic potential are the core assets that are most worthy of long-term holding in the era of smart driving equality.