Horizon Siasun Robot & Automation (09660) 2026 Semi-Annual Report: Gross margin remains at a high level of 66%, with the value of automotive intelligence infrastructure being released at an accelerated pace.

On August 31, HORIZONROBOT-W (09660, abbreviated as "Horizon") released its financial report for the first half of 2026. During the reporting period, the company achieved operating revenue of 2.055 billion yuan, a year-on-year increase of 32.9%; the comprehensive gross margin remained high at 66%, with a gross profit of 1.356 billion yuan, also up 32.9%, demonstrating strong growth resilience against the market trend amid increasing revenues and profits. Among these, the revenue from products and solutions reached 926 million yuan, up 14.8%, while revenue from licensing and services reached 1.129 billion yuan, up 52.7%. Relying on the continuously expanding mass production scale, software and hardware technical capabilities, and open ecosystem cooperation model, Horizon further consolidated its underlying platform capabilities, accelerating the release of the value of intelligent automotive foundations. Despite the market conditions, the growth momentum is strong with Horizon ranking first in the overall segment, second in the high-end segment, and Advanced Driver Assistance Systems (ADAS) accounting for more than half of the market. In the first half of 2026, the Chinese automotive market rapidly achieved structural upgrades in smart technology against a backdrop of overall market pressureintelligent driving transitioned from differentiated configurations to essential configurations; the focus of intelligent upgrades shifted from highway NOA to urban NOA. Data from the Passenger Car Association indicates that in the first half of the year, the retail sales of domestic passenger cars fell by 20.2% year-on-year, but the penetration rate of intelligent assisted driving rose to 76.1%, up 8.5 percentage points from the entire year of 2025. Among these, the penetration rate for domestic brands reached 73.4%, significantly increasing by 11.9 percentage points in six months, while the penetration rate for joint venture brands also surpassed 80% for the first time. At the same time, the proportion of new intelligent vehicle sales equipped with mid-to-high-end intelligent assisted driving functions (i.e., highway and urban NOA functions, hereinafter referred to as "AD") continued to rise to 46.8%, with urban NOA accounting for 64.1% of AD, taking the lead from highway NOA as the core DRIVER of intelligent upgrades, significantly unlocking the single-vehicle value of intelligentization. In light of this structural opportunity, various market share metrics for Horizon have reached new highs, especially showing strong upward momentum in the high-end segment. Third-party industry data shows that in the first half of the year, Horizon's share in the domestic brand ADAS market exceeded 50% for the first time, approximately double that of the second competitor, establishing an absolute leading position. In the rapidly growing urban NOA chip market, Horizon's share increased from 17.9% in 2025 to 22.8%, rising from third to second place, forming a "dual stronghold" pattern with NVIDIA; in the overall domestic brand intelligent driving chip market, it maintained the industry lead with 31.9%, further consolidating its position as a leader in China's intelligent driving technology. Moreover, the financial report indicates that in the first half of 2026, Horizon's Journey series chips saw shipments grow by 12.1% year-on-year to 2.218 million sets, driving product and solution revenue growth by 14.8% to 926 million yuan. It is also noteworthy that Horizon has accumulated nearly 500 model designations; in the mid-to-high-end intelligent driving field, it has obtained nearly 130 model designations with a strong growth trend. As designated projects gradually enter mass production cycles, the ample model reserves will further convert into shipment volumes, supporting continued revenue growth. From the absolute leadership in the foundational intelligent driving chip segment to rapid breakthroughs in the urban NOA high-end intelligent driving track, Horizon is positioning itself aggressively in the high-value market. Simultaneously, beyond leading in the domestic brand market, Horizon is accelerating its expansion into joint ventures and overseas markets, further opening up growth space. In the joint venture market, Horizon is partnering with global Tier 1 giants such as Bosch, Denso, Carizon, neueHCT, and Astemo, broadly penetrating the core supply chain of joint venture automakers. As Chinese intelligent driving technology accelerates its entry into the global automotive ecosystem, Horizon is becoming an important partner for joint venture automakers' intelligent upgrades. Among these, relying on its joint venture with Volkswagen Group, Carizon, Horizon's collaboration with Volkswagen has entered the mass production harvest period. The full-scenario high-end intelligent driving solution, developed based on Horizon's Journey 6 series and HSD core capabilities, has entered mass production and will be equipped on seven new electrified models from Volkswagen's three joint ventures in China, with plans to expand to a wider CEA series starting in 2027. The Toyota project has validated Horizon's adaptability and quality stability within the high standards of the Japanese system, with the Journey 6B achieving global first production on GAC Toyota models. Recently, Bosch's next-generation multifunctional camera platform and neueHCT's HCT Luna high-performance front-end integration machine have won orders exceeding 10 million units based on the Journey 6B. The overseas market has opened another layer of incremental space. As Chinese automobiles accelerate their global outreach, Horizon is moving alongside automakers, showcasing significant positioning advantages. In the first half of the year, China's total automobile exports rose by 65.3% year-on-year, with the top six exporters (CR6 over 70%) fully covered by Horizon, which has obtained over 60 designated export models, many of which are equipped with mid-to-high-end intelligent driving hardware platforms, aiding domestic brands in maintaining their competitive edge in the overseas market. From mass production breakthroughs in the joint venture market to comprehensive expansion in the overseas market, Horizon is extending the technical and scale advantages accumulated in the Chinese market to a broader global automotive industry chain. This process not only opens new market spaces but also reflects how China's intelligent driving industry is progressing from domestic leadership to becoming central in the global value chain. The "ARM+Android" platform model has entered the realization phase, transitioning from an intelligent automotive foundation to a physical AI foundation. The accelerated realization of the "ARM+Android" underlying licensing model is a deeper commercial value signal from Horizon's mid-term report. In the first half of 2026, Horizon's licensing and service revenue reached 1.129 billion yuan, a year-on-year increase of 52.7%. Horizon supports the construction of an open platform with BPU, chips, baseline models, algorithms, and toolchains, licensing core underlying technologies to clients to support their independent development, characterized by high gross margins, high reusability, and strong stickiness. Horizons collaboration with Volkswagen Group serves as a benchmark case for this model. The joint venture company Carizon, utilizing Horizon's advanced AI foundational large model capabilities, is driving the Volkswagen Group's L3-level autonomous driving capabilities to commence deliveries in the second half of 2027 and will support future applications such as Robotaxi. At the same time, one of the world's largest automotive component groups continues to use Horizon's licensing, verifying the global recognition and ecosystem stickiness of the licensing model. This platform capability, validated in automotive scenarios, is now extending into the physical AI domain. During the reporting period, Horizon has output technology to various diverse edge computing platforms through partnerships, including embodied intelligence, unmanned logistics vehicles, home intelligent systems, and electric two-wheelers, further broadening the application boundaries of its underlying technology. For instance, through its important joint venture company, DiGua Siasun Robot & Automation, it has empowered more than 100 downstream Siasun Robot & Automation categories, with over 400 clients, covering more than half of China's embodied intelligence enterprises. Intelligent vehicles are the first market for large-scale commercialization of the platform model and serve as the starting point for the Siasun Robot & Automation era. At the same time, through the Journey series chips, the full-scenario assisted driving system HSD, Chinas first integrated vehicle intelligent core chip "Xingkong", and Chinas first vehicle intelligent operating system "KKClaw", Horizon has built a comprehensive intelligent vehicle product system. The four major products have all achieved key progress. HSD V2.0 has made a full-dimensional leap based on world models and end-to-end reinforcement learning, with the intelligent assisted driving function ratio in vehicles equipped with this solution exceeding 88%; the integrated vehicle intelligent core chip "Xingkong" and the vehicle intelligent operating system "KKClaw" are set to enter mass production in the fourth quarter of 2026, achieving deep synergy between the cockpit and intelligent driving on a single baseline; the R&D work for the new generation strategic chip Journey 7 is advancing smoothly, with expectations for an official launch in 2027, featuring significantly enhanced computing power compared to the previous generation and also designed for the localized deployment of the next-generation, larger parameter HSD intelligent driving models and KKClaw smart cockpit models. At the midpoint of the 2026 mid-term report, Horizon's growth space is clearly unfolding across four dimensions. Upward, high-end NOA is accelerating penetration, and platform value continues to rise along with intelligent driving upgrades; outward, global leading Tier 1s and partners are building foundations for global auto companies like Volkswagen and Toyota, rapidly unlocking approximately 35% of market share in the joint venture market; globally, Horizon is seizing the entrance for overseas intelligent driving upgrades; and towards the future, transitioning from the intelligent automotive foundation to the Siasun Robot & Automation foundation, allowing the same underlying technology to serve a myriad of industries. Horizon is openly empowering and collaborating with global automakers and industry partners to co-create the intelligent automotive foundation, accelerating towards a super platform for the physical AI era.