Core Viewpoint - Yushi Technology, founded in 2016, submitted its prospectus to the Hong Kong Stock Exchange on May 28, focusing on providing autonomous driving solutions in closed environments such as airports and logistics, with projected revenues increasing from 65.48 million yuan in 2022 to 265 million yuan in 2024, but with adjusted net losses decreasing from 230 million yuan to 160 million yuan over the same period [1][7] Revenue Breakdown - The main revenue source for Yushi Technology is the autonomous vehicle solutions, contributing 51.1%, 59.7%, and 55.2% of total revenue from 2022 to 2024, with revenues of 33.41 million yuan, 96.30 million yuan, and 147 million yuan respectively [2][3] - The gross margin for the autonomous vehicle solutions is significantly lower than other segments, with overall gross margins of 45.7%, 48.8%, and 43.7% from 2022 to 2024, while the gross margin for the vehicle solutions specifically is 22.9%, 34.7%, and 21.7% [2][3] Cost and Profitability - The decline in gross margin is attributed to additional costs related to competitive pricing demands from key clients and high raw material costs for projects in two Chinese ports [3][6] - The sales cost as a percentage of total revenue increased from 51.6% in 2023 to 56.2% in 2024, indicating rising operational costs [7] Rental Services - Yushi Technology offers a rental service for autonomous vehicles, allowing clients to test the vehicles before purchase, with revenues from this segment being 1.2 million yuan, 3.3 million yuan, and 2.7 million yuan from 2022 to 2024 [5][6] - The average revenue per rented vehicle varied due to model differences and rental periods, with gross margins for this service being low, at 9.7% in 2024 [5] Market Position and Competition - Yushi Technology is positioned as the largest supplier of commercial L4-level autonomous driving solutions in airport and factory scenarios in mainland China and Hong Kong [2][6] - Compared to competitors like Xiaoma Zhixing and Wenyuan Zhixing, which reported revenues of 548 million yuan and 361 million yuan respectively in 2024, Yushi Technology's revenue is smaller, indicating a need for growth in service offerings [6][7] Future Outlook - The company has secured a significant order for 65 autonomous electric towing vehicles for a major international airport in Northwest China, which is expected to validate its technology's commercial capabilities [3][4] - Yushi Technology's focus remains on L4-level autonomous driving technology, with plans to expand applications in various scenarios, although there are no current plans for consumer-facing services [6][7]