Sou Hu Cai Jing·2025-05-23 09:32Core Viewpoint - Zhejing Electronics is seeking to go public on the Hong Kong Stock Exchange, focusing on smart cockpit visual and interaction solutions, despite facing continuous losses and high debt levels [2][3]. Group 1: Company Overview - Zhejing Electronics specializes in HUD (Head-Up Display) solutions, including CyberLens and CyberVision, providing comprehensive solutions to automotive manufacturers [2]. - The company has seen revenue growth from 214 million yuan in 2022 to 578 million yuan in 2024, but has incurred cumulative net losses of 577 million yuan over three years [5][11]. Group 2: Financial Performance - The company reported revenues of 214 million yuan, 549 million yuan, and 578 million yuan for the years 2022, 2023, and 2024, respectively, while losses were approximately 256 million yuan, 175 million yuan, and 138 million yuan [5][11]. - Zhejing Electronics' asset-liability ratio was high, recorded at 246%, 213.8%, and 215.6% for the respective years, with total liabilities increasing from 820 million yuan to 1.674 billion yuan [6][11]. Group 3: Market Position - Zhejing Electronics ranked second in the Chinese HUD solution market in 2024, holding a market share of 16.2%, with notable clients including Li Auto, NIO, BYD, Xiaomi, Chery, and Geely [3][5]. - The market for vehicle HUD solutions in China is projected to grow from 1 million units in 2020 to 3.9 million units in 2024, with a compound annual growth rate of 41.2% [5]. Group 4: Investment and Valuation - The company's valuation has increased significantly from 60 million yuan in 2017 to 2.585 billion yuan in 2024, marking a nearly 42-fold increase [8]. - Zhejing Electronics has attracted investments from notable entities, including Lei Jun's Shunwei Capital, and has a history of multiple funding rounds [10]. Group 5: Risks and Challenges - The company faces high customer concentration risk, with the top five clients accounting for over 90% of total revenue during the reporting period [11]. - Zhejing Electronics has experienced increasing trade receivables, with turnover days extending from 102.2 days in 2022 to 140.5 days in 2024 [11].