3 6 Ke·2025-11-29 01:59Core Viewpoint - Avita, a unique player in China's new energy vehicle sector, has submitted its IPO application to the Hong Kong Stock Exchange after selling 210,000 vehicles and completing its restructuring two months ago. The company is backed by major industry players, including Changan Automobile, CATL, and Huawei, which provide manufacturing, battery supply, and technological support respectively [1][4][24]. Group 1: Financial Performance - Avita's revenue surged from 28.34 million RMB in 2022 to nearly 15.2 billion RMB in 2024, with a significant increase in vehicle sales from a few hundred to over 100,000 units in 2025 [4][8]. - The company has incurred cumulative losses exceeding 11.3 billion RMB from 2022 to mid-2025, with a projected loss of 4 billion RMB in 2024 alone. However, its gross margin improved from -3% in 2023 to 10.1% in the first half of 2025, indicating a shift towards profitability in vehicle sales [4][5][19]. - Avita's financing has exceeded 19 billion RMB, with a current market valuation of approximately 26 billion RMB [4][24]. Group 2: Cost Management - The improvement in gross margin is attributed to increased sales volume, which has diluted costs, and a shift towards higher-priced models, enhancing profit margins [5][10]. - The company benefits from a "light asset" model by utilizing Changan's production lines, which reduces fixed costs associated with manufacturing [10][18]. - Avita's procurement of batteries from CATL, coupled with a decline in battery prices, has further optimized costs [10][11]. Group 3: Strategic Partnerships - Avita's strategic partnerships with Changan, CATL, and Huawei have been pivotal in its growth, providing essential resources and technological support [1][4][12]. - The company has invested 11.5 billion RMB to acquire a 10% stake in Huawei's affiliate, enhancing its collaboration with Huawei beyond mere procurement [18][19]. Group 4: Future Challenges - Despite improvements in gross margin, Avita faces challenges in overall profitability due to high operational costs, particularly in sales and R&D, which have significantly increased [13][16]. - The company needs to achieve a critical scale to ensure profitability, as current expenses exceed gross profits [19][20]. - Avita's software and service revenue is growing rapidly, projected to increase from 103 million RMB in 2023 to 778 million RMB in 2024, but the company must navigate user willingness to pay for advanced features [22][23]. Group 5: Cash Flow and Sustainability - As of mid-2025, Avita has approximately 13.48 billion RMB in cash, sufficient to sustain operations for 3-4 years at the current burn rate [23][24]. - The upcoming IPO aims to secure additional funding to support ongoing investments in channels, marketing, and R&D, crucial for achieving its sales targets [23][24].