Core Viewpoint - Shanghai Zhida Technology Development Co., Ltd. (Zhida Technology), a leading company in the home charging pile sector, has submitted its IPO application to the Hong Kong Stock Exchange for the third time after previous submissions failed. The company aims to issue approximately 20.627 million shares and has updated its financial data for 2024 and Q1 2025 in the latest application. Despite being a market leader, Zhida Technology has reported cumulative losses of 336 million yuan over the reporting period from 2022 to Q1 2025 [1][3]. Group 1 - Zhida Technology was established in November 2010 and is headquartered in Shanghai, focusing on various home electric vehicle charging piles and related accessories, with about 90% of its revenue coming from electric vehicle charging products [2]. - According to data from Frost & Sullivan, Zhida Technology ranks first globally in terms of sales volume of home electric vehicle charging piles from 2022 to 2024, and fourth in sales revenue during the same period. In China, it holds the top position in both sales volume and revenue [2]. - As of March 31, 2025, Zhida Technology has established the largest electric vehicle charging pile service network in China, covering over 360 cities nationwide [2]. Group 2 - In Q1 2025, approximately two-thirds of Zhida Technology's revenue came from product sales, while one-third was from services. The company's domestic revenue share decreased from 98.1% in 2022 to 87.9% in 2024, with overseas revenue increasing from 1.9% to 12.1% during the same period [3]. - The reported revenues for Zhida Technology during the reporting period were 697 million yuan, 671 million yuan, 593 million yuan, and 217 million yuan, with net losses of 25.147 million yuan, 58.116 million yuan, 236 million yuan, and 17.078 million yuan, totaling cumulative losses of 336 million yuan [3]. - The top five customers contributed significantly to Zhida Technology's revenue, accounting for 65.8%, 69.6%, 56.1%, and 53.5% of total revenue during the respective years of the reporting period. The largest single customer’s contribution to revenue also decreased from 38.3% to 17.0% [3]. Group 3 - Zhida Technology's gross profit margins have shown a downward trend, with rates of 20.4%, 20.5%, and 14.9% from 2022 to 2024, attributed to pricing pressures in the market as the company accepted lower prices to maintain competitive positioning [3][7]. - The company has faced challenges with long payment terms from automotive manufacturers, leading to increased average trade receivables turnover days, which were 194 days, 248 days, 231 days, and 163 days at the end of 2022, 2023, 2024, and Q1 2025, respectively [7]. - Zhida Technology's net cash flow from operating activities was negative during the reporting period, with figures of -133 million yuan, -27 million yuan, -116 million yuan, and -68 million yuan [7]. Group 4 - The company plans to use the funds raised from the IPO for overseas expansion, research and development, mergers and acquisitions, and general corporate purposes, including working capital needs [8]. - Zhida Technology's increasing overseas revenue share raises questions about the competitiveness of the domestic market and the company's ability to cover its borrowing gaps, as indicated by its financial situation [8].