HORIZONROBOT-W (SEHK: 09660) has announced its estimated financial results for the six-month period ending June 30, 2026. The company expects revenue from continuing operations to be between 19.3 and 20.8 billion yuan, with an estimated period profit ranging from 35 to 40 billion yuan.

The anticipated increase in revenue for the first half of 2026 is attributed to growth across two primary business segments. Revenue from product solutions is expected to rise, driven by a strengthening market position, an expanding market share, and the commencement of mass production and deployment for the company's full-scenario urban NOA solution (HSD).

Concurrently, revenue from licensing and services is projected to show robust growth. This is primarily due to the company licensing its foundational technologies—encompassing the BPU, AI foundational models, and various toolchains—to a broad customer base.

This growth is supported by the company's distinctive business model. This model is analogous to a combination of ARM and Android, as it involves licensing foundational platform technologies, such as underlying chips and software, to numerous customers across the ecosystem.

The expected gross profit from continuing operations has increased correspondingly, with the gross profit margin remaining at a healthy, stable, and relatively high level.

The projected net profit for the period is primarily attributable to fair value changes in convertible loans issued to CARIAD, resulting from fluctuations in the group's share price.

Clarification on Adjusted Financial Metrics

The board wishes to emphasize that "Adjusted Net Loss" is a non-IFRS financial measure, which is not defined or presented under International Financial Reporting Standards. The company defines Adjusted Net Loss as period profit/(loss) adjusted by adding back (i) share-based payments (non-cash in nature), (ii) non-recurring fund-raising expenses related to the Hong Kong IPO, global offering, and top-up placements, (iii) fair value changes of preferred shares and other financial liabilities (non-cash items), and (iv) gains from the deconsolidation of D-Robotics (a non-recurring event not part of ordinary operations).

The company believes these non-IFRS financial measures help identify underlying trends in the business and enhance the overall understanding of its past performance and future prospects. Management also finds that these measures improve the visibility of key metrics used in financial and operational decision-making.

Important Considerations for Investors

These non-IFRS financial measures are not presented in accordance with IFRS and may differ from the non-IFRS accounting and reporting methods used by other companies. They have limitations as analytical tools. Investors should not consider them in isolation or as a substitute for net profit/(loss) or other data from the consolidated statement of comprehensive income/(loss) prepared under IFRS. The company encourages investors and others to review its financial information comprehensively rather than relying on any single financial metric.