Xin Lang Cai Jing·2026-01-05 10:49Core Viewpoint - Shenzhen Huada Beidou Technology Co., Ltd. is making a second attempt to list on the Hong Kong Stock Exchange, having submitted an updated prospectus that includes financial data for the first half of 2025, showing revenue of 403 million yuan, a 20% year-on-year increase, but a net loss of 64 million yuan, which is a 16% increase in losses compared to the previous year [1][12]. Group 1: Company Background and Financials - Huada Beidou originated from the navigation chip design business of China Electronics Corporation (CEC) and has attracted significant investment from major industry players such as BYD and Bosch [1][12]. - The company reported net losses of 93 million yuan in 2022, 289 million yuan in 2023, 141 million yuan in 2024, and 64 million yuan in the first half of 2025, totaling a cumulative net loss of 588 million yuan over the past three and a half years [6][17]. - Research and development costs have exceeded 330 million yuan over the past three years, accounting for more than 14% of revenue, contributing to the company's financial losses [6][17]. Group 2: Market Position and Product Applications - Huada Beidou's GNSS chips hold over 60% of the Chinese shared bicycle market, covering major platforms like Meituan and Qingju [2][5][17]. - The company is the sixth largest GNSS space positioning service provider globally, with a market share of 4.8%, and ranks second among domestic companies [5][16]. - The company has begun applying GNSS chips to electric bicycles, which are expected to become a major revenue source in the coming years due to supportive government policies [6][14]. Group 3: Future Strategies and Market Trends - Huada Beidou is focusing on two key areas for future growth: smart driving and low-altitude economy, with the latter projected to have a compound annual growth rate of 34.5% from 2024 to 2029 [4][20]. - The company is in early discussions with leading drone manufacturers to explore potential applications of GNSS chips in consumer-grade drone products [20][21]. - Collaborations with major automotive companies like BYD and SAIC have been established to support smart driving functionalities through high-precision navigation solutions [21][22]. Group 4: Competitive Landscape and Challenges - The company faces significant competition in the smart driving and low-altitude economy sectors, with established players like Beidou Star and Huace Navigation already holding substantial market shares [10][22]. - To maintain product competitiveness, Huada Beidou has reduced the average selling price of its standard precision chips from 7.4 yuan to 4.8 yuan between 2022 and 2024, while increasing sales and marketing expenses by 27.7% [11][22]. - As of June 2025, the company's cash and cash equivalents were only 244 million yuan, below its projected R&D expenditures for 2024, indicating potential financial strain [23].