On December 20, Zhixing Automotive Technology (Suzhou) Co., Ltd. *** hereinafter referred to as "Zhixing Automotive Technology", 01274HK) was officially listed on the Hong Kong Stock Exchange.
As the "first share" of autonomous driving in Hong Kong stocks, the issue price of Zhixing Automotive Technology is 29HK$65 shares, the opening price fell below the issue price on the first day of listing, and as of the same day, Zhixing Automotive Technology reported 25HK$85 shares.
Zhixing Automotive Technology said that about 45% of the net proceeds from the IPO will be mainly used to strengthen the research and development of autonomous driving solutions and productsApproximately 35% will be used for capital expenditures related to the R&D headquarters, manufacturing plant and new production linesAbout 10% will be used to expand the sales and service network;and approximately 10% will be used for working capital and general corporate purposes.
Source: Screenshot of the official website.
The "first share" of autonomous driving in Hong Kong stocks
Prior to its listing, Zhixing Automotive Technology received investment from shareholders such as Mingshi Capital, Li Auto, National Mixed Ownership Reform**, and HL Klemove.
In this IPO, Zhixing Automotive Technology issued a total of 221160,000 shares. Among them, the Hong Kong public offering part won 646 times oversubscribed, and the international offering part received 107 times oversubscribed.
Zhejiang Qixin, Suzhou Industrial Park Industrial Investment**, Runmiao Asset Management and Harvest International Investment participated in the offering as cornerstone investors, with a cumulative subscription scale of US$67 million.
Source: Screenshot of the prospectus.
According to the prospectus, in 2022, the top five market players accounted for 871%, the market is more concentrated. In terms of revenue generated from the sale of autonomous driving domain controllers in 2022, Zhixing Technology's market share is 262%, ranking second, and Desay SV ranked first.
Based on the sales revenue of autonomous driving domain controller solutions in 2022, after taking into account the domain controllers developed by OEMs, Zhixing Technology's market share is 86%, ranking fourth, excluding OEM-developed Tesla and NIO, Desay SV ranked second. ”
In terms of performance, Zhixing Automotive Technology's revenue in the past three years has increased from about 47 million to 132.6 billion yuan, mainly from autonomous driving solutions and products ordered by OEMs, accounting for more than 94% in 2022. In the first half of 2023, Zhixing Technology's revenue increased from 35.9 billion yuan increased to 54.3 billion yuan, an increase of 51%.
Too much reliance on a single customer
According to the prospectus, Zhixing Automotive Technology's business includes two parts, one is the autonomous driving domain controller product line, and the other is the intelligent front-view camera product. The majority of revenue comes from the sale of autonomous driving solutions and products to OEMs.
As of the first half of 2023, the company has been designated by 16 car companies, including Geely Automobile, Great Wall Motor, Chery Automobile and Dongfeng Motor, to deliver a total of about 130,000 autonomous driving domain controllers.
Among them, Geely Group is the largest customer of Zhixing Automotive Technology in 2021 and 2022.
It is understood that most of the products are provided to Geely Group's Zeekr Automobile. In 2020, 2021, 2022 and the first half of 2023, the revenue of the autonomous driving domain controller solution provided by Zhixing Automotive Technology for ZEEKR accounted for the total revenue, respectively. 6% and 935%。
Source: Screenshot of the prospectus.
According to the prospectus, Zhixing Automotive Technology cooperates with Mobileye to provide autonomous driving domain controller supervision for Geely Group's ZEEKR Automobile, which is installed on five production models: ZEEKR 001, ZEEKR 009, ZEEKR 001 (European version), ZEEKR 001 FR and Polestar 4.
The tripartite relationship is that Mobileye is the chip manufacturer, Zhixing Automotive Technology is the system integrator, and Zhixing Automotive Technology provides technologies in the fields of system, mechanical and optical engineering with the basic version of Mobileye's autonomous driving domain controller, and finally customizes and enhances the supervision system architecture for different models according to the requirements of car companies.
Zhixing Automotive Technology
Zhixing Automotive Technology Co., Ltd. is an autonomous driving solution provider, focusing on autonomous driving domain controllers, and its revenue mainly comes from the sales of autonomous driving solutions and products to OEMs (OEMs).
According to public information, the autonomous driving domain controller, as the brain of the autonomous driving solution, fuses and processes data from the car's sensors to make autonomous driving decisions and trigger actuators in the vehicle.
According to official information, the company was founded in December 2016 and is headquartered in Suzhou, focusing on mass production solutions in the field of autonomous driving, providing a variety of autonomous driving domain controller solutions to meet the different cost and technical requirements of customers, and also providing IFC intelligent front-view cameras to achieve cost-effective L2 functions.
Source: Screenshot of the official website.
Song Yang, the founder of Zhixing Automotive Technology, graduated from the University of Science and Technology of China with a major in electronic and information engineering, and has nearly 20 years of experience in senior leadership positions in auto parts manufacturers in domestic and international markets.
He has worked at Bosch for more than 10 years, successively serving as a senior engineer, project manager, department manager and R&D director in the engineering department, and was the founder of the intelligent driving R&D department of Bosch China. Since then, Song Yang has served as the general manager of Joyson Electronics in September 2014, where he led the establishment of the company's business base and active safety department in China, and was responsible for the overall strategic planning and development of the China business.
In 2016, Song Yang and several of his former colleagues at Bosch co-founded Zhixing Automotive Technology. When the founding team was at Bosch, they were mainly responsible for the research and development of intelligent driving.
Song Yang said in the company's listing speech on December 20:"Zhixing Automotive Technology will take the listing as a new starting point, embrace the broad global market opportunities under the general trend of automotive intelligence, and continue to deepen the research and development of advanced autonomous driving solutions and the large-scale commercialization of products. "
The content is synthesized from the 21st Century Business Herald, the financial community, China Economic Net, prospectus, official website, etc.