HORIZONROBOT-W (09660) is expected to have a mid-term profit of 3.5 billion to 4 billion yuan.

HORIZONROBOT-W (09660) announced that the estimated financial performance of the group for the six months ending June 30, 2026 is as follows: the customer contract revenue from continuing operations is expected to be between 19.3 billion and 20.8 billion yuan; and the profit for the period is expected to be between 35 billion and 40 billion yuan. It is expected that the group's revenue from continuing operations for the six months ending June 30, 2026 will increase, mainly driven by two major revenue segments. The increase in revenue from product solutions is primarily due to the company's continued strengthening of its market position and steady increase in market share, as well as the full-scale deployment of the HSD solution in the city area. Revenue from licensing and service business also showed strong growth, mainly benefiting from the company's licensing of underlying technologies to a wide range of customers, including BPU, AI basic models, and various toolchains. The above-mentioned growth is supported by the company's unique business model, which is similar to the combination of ARM and Android, that licenses core chip and software platform technologies to numerous customers in the ecosystem. The expected gross profit from the group's continuing operations is expected to increase correspondingly, while the gross profit margin is maintained at a healthy and stable high level. The expected net profit of the group for the six months ending June 30, 2026 is mainly attributable to the fair value changes of the convertible loan issued to CARIAD due to fluctuations in the group's stock price. The board of directors hereby emphasizes that "adjusted net losses" (a non-IFRS performance measure) is not prescribed by IFRS and is not presented accordingly. The company defines adjusted net losses as the adjustment of period profit/(loss) by adding back (i) share-based payments (non-cash nature), (ii) non-recurring capital raising expenses related to the Hong Kong initial public offering and global placement, (iii) fair value changes in preference shares and other financial liabilities (non-cash items), and (iv) termination of merger income from D-Robotics (this is a non-recurring event and not part of the group's normal operations). The company believes that non-IFRS financial measures help identify potential trends in the company's business and enhance overall understanding of the company's past performance and prospects. The company also believes that these non-IFRS financial measures can improve visibility into key metrics used by management in financial and operational decision-making. Non-IFRS financial measures are not presented in accordance with IFRS and may differ from the accounting and reporting methods used by other companies using non-IFRS financial measures. Non-IFRS financial measures have limitations as analytical tools, and investors should not isolate them when evaluating the company's operational performance, or use them as a substitute for profit/(loss) net income or other consolidated comprehensive income/(loss) data prepared in accordance with IFRS. The company encourages investors and others to review the company's financial information comprehensively, rather than relying solely on a single financial indicator.