Guo Ji Jin Rong Bao·2025-06-26 01:26Core Viewpoint - Chengtai Technology, a leading millimeter-wave radar supplier founded by two former Huawei employees, has submitted an IPO application to the Hong Kong Stock Exchange, despite not being profitable and having accumulated losses of approximately 198 million yuan over three years [1][7]. Company Overview - Chengtai Technology was established in 2016 by Chen Chengwen and Zhou Ke, both of whom have backgrounds at Huawei. Chen serves as the Executive Director and Chairman, while Zhou is the Executive Director and CTO [3][4]. - The company has raised over 350 million yuan in financing since its inception, with a post-money valuation reaching 1.32 billion yuan as of the latest funding round in August 2024 [4]. Financial Performance - Chengtai Technology reported revenues of 57.65 million yuan, 157 million yuan, and 348 million yuan for the years 2022 to 2024, reflecting a compound annual growth rate (CAGR) of 145.7%. However, net losses for the same period were 79.17 million yuan, 96.6 million yuan, and 21.77 million yuan, totaling approximately 198 million yuan [7]. - The company’s gross margin has shown an upward trend, with figures of 28.7%, 31%, and 34% over the same period [8]. Market Position - Chengtai Technology is the largest supplier of front millimeter-wave radars in China by shipment volume, holding a market share of 9.3%. It ranks third overall in the country with a 4.5% market share [6]. - The global market for automotive millimeter-wave radars is projected to grow from 15.6 billion yuan in 2020 to 24.8 billion yuan in 2024, with a CAGR of 12.3%. The Chinese market is expected to grow from 4.4 billion yuan to 8.2 billion yuan in the same period, with a CAGR of 16.6% [6]. Customer Dependency - Chengtai Technology's revenue is heavily reliant on a single customer, referred to as Customer A, which is identified as BYD. In 2024, over 93% of the company's revenue came from this customer, highlighting a significant concentration risk [2][9].