3 6 Ke·2025-06-24 04:29Core Viewpoint - Chengtai Technology, a millimeter-wave radar supplier, is seeking to list on the Hong Kong Stock Exchange, with its fate closely tied to BYD, its major client [1][3][4]. Company Overview - Chengtai Technology was established in 2016 and specializes in core perception sensors for automotive intelligent driving systems [3][5]. - It is the largest supplier of forward millimeter-wave radar in China by shipment volume and the third largest overall, with market shares of 9.3% and 4.5% respectively [3]. Financial Performance - Chengtai Technology's revenue has shown rapid growth, with figures of 57.65 million RMB, 156.52 million RMB, and 348.09 million RMB for the years 2022, 2023, and 2024 respectively [16][17]. - The company has faced significant customer concentration risk, with 81.9%, 91.3%, and 93.6% of its revenue coming from BYD from 2022 to 2024 [21][24]. - Despite revenue growth, the company has reported net losses of 79.17 million RMB, 96.60 million RMB, and 21.77 million RMB for the same years, primarily due to high R&D and operational costs [18][19]. Product and Market Position - Chengtai Technology's primary products include forward and corner millimeter-wave radars, with a focus on meeting diverse customer needs in the automotive sector [9][10]. - The global millimeter-wave radar market is projected to grow from 17.8 billion RMB in 2020 to 29.1 billion RMB in 2024, with a compound annual growth rate (CAGR) of 13.1% [13][15]. - In China, the market is expected to grow from 5.4 billion RMB in 2020 to 9.8 billion RMB in 2024, with a CAGR of 16.1% [15]. R&D and Innovation - Chengtai Technology has invested heavily in R&D, with expenditures exceeding 50% of total revenue each year, resulting in over 86 patents [18][26]. - The company is developing next-generation radar products to meet the increasing demands for advanced driving applications, expected to launch in Q4 2025 [12]. Cash Flow and Financing - As of the end of 2024, Chengtai Technology had cash and cash equivalents of only 15.87 million RMB, against current liabilities of 620 million RMB, indicating a tight cash flow situation [19][26]. - The upcoming IPO is seen as a critical opportunity for the company to raise funds for debt repayment, R&D, and market expansion [26][27].