Horizon Robotics (9660) H2 2024 earnings summary

Executive summary

• Achieved record revenue of RMB 2.4 billion in 2024, up 53.6% year-over-year, with gross profit rising 68.3% to RMB 1,841.4 million, driven by strong Automotive Solution growth and increased market share among Chinese OEMs.

• Delivered approximately 2.9 million product units in 2024, with total deliveries reaching 7.7 million units and over 310 vehicle model design wins by year-end.

• Maintained a leading position in ADAS and smart driving solutions, capturing over 40% ADAS market share among Chinese domestic OEMs and ranking 2nd among independent AD solution providers.

• Launched next-generation Horizon SuperDrive (HSD) and Journey 6 series hardware, expanding partnerships with over 20 OEM brands and international Tier 1 suppliers.

• Expanded global presence through strategic partnerships and joint ventures, targeting overseas markets.

Financial highlights

• Total revenue reached RMB 2.4 billion, a 53.6% increase year-over-year, with Automotive Solution revenue up 57.2% and License and Services revenue up 70.9%.

• Gross profit increased 68.3% to RMB 1,841.4 million; gross margin improved to 77.3% from 70.5% last year.

• Adjusted operating loss narrowed by 11.4% to RMB 1.5 billion; net profit recorded at RMB 2.3 billion, reversing a prior year loss mainly due to fair value changes of preferred shares.

• R&D expenses increased 33.4% to RMB 3.2 billion, focused on advanced tools and infrastructure.

• Cash and cash equivalents increased 35.3% to RMB 15.4 billion.

Outlook and guidance

• Expects 2025 to be a turning point for smart driving adoption, with cumulative Journey series hardware shipments projected to exceed 10 million units.

• Anticipates continued ASP growth as product mix shifts from basic ADAS to advanced Highway NOA and Urban NOA solutions.

• HSD and Journey 6P hardware to drive further market penetration and revenue growth, with mass production scheduled for Q3 2025 and scaling in complex urban scenarios.