CSC Large Manufacturing Qiu Shiliang | Gu Chunhui [Horizon Robotics] Early settlement of Volkswagen convertible loan, Volkswagen stake rises to 9.9%

English summary

Event: Company released 26H1 earnings forecast. The company expects 26H1 continuing operations revenue of 1.93-2.08 billion yuan, gross profit of 1.16-1.37 billion yuan, period profit driven by fair value gains from CARIAD convertible loan of 3.5-4.0 billion yuan, and adjusted net loss expected at 1.4-1.7 billion yuan. Restructured CARIAD convertible loan: short-term capital cost for medium-to-long-term dilution convergence. On July 22, the company redeemed the CARIAD convertible loan agreement, issued $660 million in new shares to lock Volkswagen's stake at 9.9% ahead of schedule, paid $399 million in cash to eliminate the additional dilution risk of approximately 716 million shares at low conversion price, and issued $450 million zero-coupon convertible bonds to refinance the cash payment. Product: Released HSD V2.0, the largest OTA upgrade since HSD launch. On June 29, the company officially released HSD V2.0.