Hong Kong stock research news, recently, following the star charging, smart charging technology, Zhida Technology, a leading household charging pile company, intends to go to Hong Kong for IPO, planning to raise about HK $1 billion. On February 29, Zhida Technology officially submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Shenwan Hongyuan Hong Kong as its sole sponsor.
As the world's largest provider of home charging solutions for electric vehicles, Zhida Technology has shipped a total of 900,000 home charging piles around the world, with a market share of 205%, accounting for 122%。
However, despite years of development, Zhida Technology has not yet achieved profitability, and the financial report data shows that its net loss continued to expand during the reporting period, and the gross profit margin also showed a downward trend. This is mainly due to the dilemma of heavy construction and light operation in the charging pile industry, and profitability is still a common problem faced by most enterprises. Zhida Technology's business is highly dependent on auto brand customers, with more than 70% of its revenue coming from a few car companies such as BYD. Tianyancha shows that in 2022, BYD will spend 50 million yuan to participate in the C3 round of financing of Zhida Technology, becoming the eighth largest shareholder. At present, BYD has surpassed other car companies and become the largest customer of Zhida Technology.
According to the prospectus, founder Huang Zhiming and his holding group together control nearly 49% of the company's voting rights. Shenyin Wanguo, a subsidiary of Shenwan Hongyuan Hong Kong, the sole sponsor, also participated in the D round of financing of Zhida Technology in 2022. Despite the continuous expansion of the business scale, the financial situation of Zhida Technology is still relatively tight. As of January 31, 2024, the company's total liabilities are as high as 64.1 billion yuan, cash reserves are only 2$2.8 billion. It is expected that continuous financing will be required to support development after listing.
Taking the IPO as a new starting point for financing, and recovering the dilemma of continuous losses through huge shipments and market share, the charging pile industry has a long way to go to make a profit.