Chongqing Qianli Technology(SH:601777) Guo Ji Jin Rong Bao·2025-10-21 15:53Core Viewpoint - Chongqing Qianli Technology Co., Ltd. has officially submitted its listing application to the Hong Kong Stock Exchange, marking its transformation into an "AI + Mobility" player after overcoming significant debt issues [1][2] Financial Performance - The company reported a revenue of 4.15 billion RMB for the first half of 2025, with a projected revenue of 41.49 billion RMB for the first half of 2025, indicating a significant increase [3][4] - Despite the revenue growth, the company's profitability remains a concern, with net profits of 155 million RMB in 2022, dropping to 24 million RMB in 2023, and projected losses of 680 million RMB in 2024 [4][5] - The company’s reliance on non-recurring income is notable, with government subsidies contributing 1.62 billion RMB to the net profit of 310 million RMB in the first half of 2025, indicating an operational loss exceeding 1.3 billion RMB [5][6] Transformation and Strategy - The company has positioned itself as a technology-driven entity, launching the "Qianli Smart Driving 1.0" system and plans for Robotaxi trials, although these initiatives have yet to generate revenue [6][10] - The transition from traditional manufacturing to smart driving technology is heavily supported by Geely Group, which has provided significant resources and funding for R&D [10][11] Dependency on Geely - The company exhibits a dual dependency on Geely, with revenue from Geely accounting for 39.7% in 2022, decreasing to 33.2% in the first half of 2025, while procurement from Geely remains high at 29.7% [8][9] Market Context - The listing of Qianli Technology reflects a broader trend of smart driving companies seeking funding in Hong Kong, where the market is more accommodating to unprofitable tech firms compared to A-shares [12][13] - The competitive landscape is shifting towards a concentration of market share among a few leading players, creating challenges for new entrants [13]