Jin Rong Jie·2025-06-23 12:42Core Viewpoint - Shenzhen Chengtai Technology Co., Ltd. is preparing for an IPO on the Hong Kong Stock Exchange, focusing on millimeter-wave radar for L0-L2+ assisted driving, distinguishing itself from competitors like Hesai and RoboSense, which target higher-level autonomous driving markets [1][2]. Company Overview - Chengtai Technology is the largest domestic supplier of front millimeter-wave radar in China by shipment volume, holding a market share of 9.3% in 2024, and the third-largest overall millimeter-wave radar supplier with a 4.5% market share [2]. - The company was founded by two former Huawei employees, with its product matrix including various models of millimeter-wave radar, primarily used in adaptive cruise control (ACC) and lane-keeping [2]. Customer Dependency - Chengtai Technology heavily relies on BYD as a major customer, with 93.6% of its revenue in 2024 coming from this client, up from 81.9% in 2022, indicating increasing dependency [2][3]. - This reliance on a single customer poses long-term operational risks and may limit the company's technological development autonomy [3]. Financial Performance - The company has seen significant revenue growth, with sales of millimeter-wave radar products increasing from 221,000 units in 2022 to 1.875 million units in 2024, despite a decline in average selling price to 184 RMB per unit [5]. - Revenue surged to 348 million RMB in 2024, a more than fivefold increase from 57.65 million RMB in 2022, yet the company remains unprofitable, recording net losses of 79.17 million RMB, 96.60 million RMB, and 21.77 million RMB from 2022 to 2024 [6]. Cash Flow Situation - Despite multiple rounds of financing, Chengtai Technology faces tight cash flow, holding only 15.87 million RMB in cash and cash equivalents against current liabilities of 620 million RMB, resulting in a net debt of -326 million RMB [7]. Future Outlook - The company needs to diversify its customer base, optimize cost structures, and enhance technological innovation to navigate the competitive landscape and technological advancements in the autonomous driving sector [8].