Core Viewpoint - DeepXiang Technology Co., Ltd. has submitted its prospectus for an IPO on the Hong Kong Stock Exchange, aiming to raise funds primarily for core technology development, sales and after-sales service network expansion, and infrastructure enhancement to solidify its market position in the new energy heavy truck sector [1][3]. Group 1: Company Overview - Established in July 2020, DeepXiang Technology is a leading global technology company specializing in new energy heavy trucks and intelligent road freight solutions [1]. - The company claims to be the first globally to achieve mass delivery of intelligent new energy heavy trucks using a forward definition approach [1]. - As of June 30, 2025, the company has delivered approximately 6,400 new energy heavy trucks [1]. Group 2: Financial Performance - For the years 2023, 2024, and the first half of 2025, DeepXiang Technology reported revenues of 426 million yuan, 1.969 billion yuan, and 1.506 billion yuan, respectively, indicating rapid growth [3]. - Despite revenue growth, the company has not yet achieved profitability, with losses increasing from 267 million yuan in 2022 to 675 million yuan in 2024, and a loss of 371 million yuan in the first half of 2025, totaling over 1.7 billion yuan in cumulative net losses by June 30, 2025 [3]. - The gross margin has improved from 0.43% in 2023 to 2.93% in the first half of 2025, but remains below the traditional heavy truck industry average of 10% to 15% [3]. Group 3: Business Structure - The majority of DeepXiang Technology's revenue comes from new energy heavy truck sales, accounting for over 99% of total revenue in the first half of 2025, while parts sales contribute less than 1% [5]. - The company has a high supplier concentration, with the top five suppliers accounting for 92.3% of purchases in 2024, and the largest supplier alone representing 61% [5]. - Customer concentration is also significant, with the top five customers contributing 50.7% of revenue in 2024, and there are instances of overlap between suppliers and customers [5].