Sou Hu Cai Jing·2025-12-08 10:12Core Viewpoint - Avita Technology, backed by major stakeholders including Changan Automobile, CATL, and Huawei, is facing a paradox of rapid revenue growth alongside significant cash flow challenges as it prepares for its IPO [1][4][10]. Group 1: Company Overview - Avita Technology submitted its IPO application to the Hong Kong Stock Exchange in November 2025, leveraging its partnerships with Changan Automobile and CATL, while also integrating Huawei's advanced technology [1][2]. - The company has experienced explosive revenue growth, with a 98.5% year-on-year increase in revenue for the first half of 2025, and a gross margin improvement to 10.1% [1][4]. Group 2: Financial Performance - Despite the revenue surge, Avita has accumulated losses exceeding 11.3 billion yuan over the past three and a half years, indicating a struggle to achieve profitability [5][10]. - The company reported a cash and cash equivalents balance of 13.48 billion yuan as of June 30, 2025, but its current liabilities exceeded current assets by 5.24 billion yuan, highlighting liquidity pressures [10][11]. Group 3: Strategic Adjustments - In response to market pressures, Avita shifted its product strategy from pure electric vehicles to range-extended electric vehicles (EREV), aiming to capture a broader market segment [7]. - The company made a significant investment of 11.5 billion yuan to acquire a 10% stake in Huawei's subsidiary, "Yinwang," enhancing its access to cutting-edge technology and distribution channels [8][9]. Group 4: Market Challenges - Avita faces intense competition in the 200,000 yuan market segment, where it competes against established players like Tesla and Li Auto, raising concerns about maintaining its gross margin amid price wars [11][12]. - The company must continue to invest in new vehicle development and market expansion, which may prolong its path to profitability [11][12].