Horizon Robotics (09660.HK) has released its first full-year financial results since going public. According to the report, the company achieved revenue of 3.76 billion yuan in 2025, representing a 57.7% year-on-year increase. Gross profit reached 2.43 billion yuan, up 31.7% from the previous year, while the gross margin remained strong at 64.5%. However, adjusted operating losses widened from 1.5 billion yuan last year to 2.37 billion yuan, a 58.7% increase. This performance of growing revenue without corresponding profit growth reflects Horizon's strategic investments aimed at future growth. The primary reason for the expanded losses is a sharp rise in research and development expenses. In 2025, R&D spending reached 5.15 billion yuan, a 63.3% year-on-year increase, with an absolute increase of approximately 2 billion yuan, accounting for 137% of total revenue. During the earnings conference held on the evening of March 19, Horizon’s founder and CEO Yu Kai explained that this was a deliberate strategic decision by the company. He noted that the 5.15 billion yuan in R&D investments were heavily allocated to cloud-based AI training, the next-generation BPU "Riemann Architecture," and foundational physical AI models for future applications. Yu Kai emphasized, "We are not afraid of high R&D spending—we believe it will secure a technological advantage for us in the future."