(Yicai) March 26 -- Horizon Robotics, a Chinese provider of advanced driver assistance systems (ADAS) and autonomous driving (AD) solutions for passenger vehicles, today applied to go public on the Hong Kong Stock Exchange.

The developer of advanced driver assistance systems would use the proceeds from the initial public offering mostly on ADAS and AD solutions, as well as research and development, joint ventures, marketing, and operations, the Beijing-based company announced in its prospectus without disclosing the target sum.

Founded in 2015, Horizon was the second-largest provider of ADAS solutions in China last year with a market share of 21.3 percent, according to consultancy China Insights. Some 230 models by 24 carmakers such as Li Auto, Geely, and Hyundai feature its products. Yu Kai, founder and chief executive, holds more than three-quarters of the startup's equity.

The outlook is promising as China Insights predicts that by 2030, China’s smart car sales will rise to 29.8 million units, much higher than its outlook of 20.4 million for 2026, to reach a penetration rate of 99.7 percent, indicating market coverage.

Horizon earned CNY1.6 billion (USD215 million) in revenue last year, up by 71 percent from the previous year. Net loss tallied CNY6.7 billion due to heavy investments and for the past three years, the firm accumulated CNY17.5 billion (USD2.4 billion) in net deficit. However, its gross profit margin was impressive, hovering around 70 percent.

The startup was valued at USD8 billion after the latest round of investment which came from Chery Automobile, according to public information disclosed in September 2022. In 2022, Horizons and Cariad, a software firm owned by Volkswagen Group, formed a joint venture named Carizon.

In Horizon's IPO endeavor, the joint sponsors are Goldman Sachs, Morgan Stanley, and China Securities International.

Editor: Emmi Laine