Zhejiang Taotao Vehicles (SZ:301345) Nan Fang Du Shi Bao·2025-11-29 06:38Core Viewpoint - Zhejiang Taotao Vehicle Co., Ltd. has submitted an H-share listing application to the Hong Kong Stock Exchange, aiming to expand its financing channels and global presence, despite facing controversies regarding insufficient R&D investment and the use of funds raised in the A-share market [2][4]. Group 1: R&D Investment and Strategic Planning - The company plans to increase R&D investment over the next 3-5 years, focusing on integrating cutting-edge technologies into existing products and enhancing collaboration with universities and research institutions [5]. - Taotao Vehicle aims to create a synergistic ecosystem that combines core business with advanced technology, with ongoing partnerships in humanoid robotics and other innovative fields [5][17]. Group 2: Fundraising and Financial Strategy - As of September 30, 2025, the company reported a cash balance of 1.718 billion, with net cash available after short-term borrowings amounting to 896 million, indicating a growing need for operational funds [6]. - The company has outlined specific uses for the funds raised in the Hong Kong IPO: 30% for capacity expansion, 25% for product R&D, 20% for global sales network expansion, 15% for debt repayment, and 10% for working capital [7]. Group 3: Market Position and Revenue Sources - Taotao Vehicle's core business focuses on smart electric low-speed vehicles, with 99% of its revenue coming from overseas markets, particularly the North American market, which generated 2.29 billion in revenue in 2024 [8]. - The company has established a production network across China, Southeast Asia, and North America to mitigate trade barriers and optimize supply chain risks [9]. Group 4: Financial Performance and Growth - From 2022 to 2024, the company's revenue grew from 1.766 billion to 2.977 billion, with a compound annual growth rate of 29.8%, and net profit increased from 206 million to 431 million, reflecting a compound annual growth rate of 44.7% [15]. - The company ranks second in the global electric low-speed vehicle industry, with a market share of approximately 8.4% as of 2024 [15]. Group 5: Family Involvement and Governance Issues - The founder, Cao Matao, leveraged family resources to establish the company, receiving significant financial and operational support from the family business, Taotao Group [11]. - However, there have been concerns regarding the independence of the company due to past financial entanglements with Taotao Group, raising questions about governance and transparency [11][17].