Horizon (09660) announced: Revenue growth exceeds market expectations, HSD mass production drives business acceleration

The Zhitong Finance App learned that on July 21, Horizon (09660) issued an announcement. According to the announcement, the company expects continuous operating revenue of 1.93 billion yuan to 2.08 billion yuan in the first half of 2026, an increase of 24.8% to 34.5% over the previous year. Among them, the revenue growth ceiling guide was higher than the previous general market expectations of about 25% to 30%, and the overall performance exceeded market expectations.

According to the announcement, revenue growth is mainly driven by two major business segments: on the one hand, the product solutions business continues to grow, thanks to the continuous strengthening of the company's market position and steady increase in market share, and the Horizon full-scene urban NOA solution HSD has begun large-scale mass production deployment; on the other hand, the licensing and service business has maintained strong growth, licensing the underlying technology licenses to a wider range of customers — covering BPU, AI basic models and various tool chains. The announcement stated that this growth was supported by the company's unique business model. This model is similar to the combination of ARM and Android, that is, licensing underlying platform-based technologies such as chips and software to many customers throughout the ecosystem.

At the same time, the company's profit quality remained steady. The gross profit from continuing operations is estimated to reach 1.16 billion yuan to 1.37 billion yuan in the first half of the year, corresponding to a gross margin of about 60% to 66%. In a context where the market generally expects gross margin to remain around 60%, the company gave a gross margin guideline of up to 66%, reflecting the high threshold and strong competitiveness brought about by the company's ARM+Android platform-based business model.

At the same time, the announcement stated that the estimated net profit for the period is 3.5 billion yuan to 4 billion yuan, which is mainly affected by changes in the fair value of convertible loans issued to CARIAD. This income is a non-cash accounting treatment, mainly due to fluctuations in the company's stock price, and has no impact on the operating performance and cash flow of the main business.

From an operating perspective, the company expects the adjusted net loss to remain stable and manageable, with no significant expansion, reflecting further improvements in operating efficiency, continued release of scale effects, and continuous improvement in profitability.