Core Viewpoint - Shenxiang Technology Co., Ltd. has submitted its IPO application to the Hong Kong Stock Exchange, aiming to raise funds primarily for R&D, sales and service network expansion, infrastructure development, and general corporate purposes [1] Group 1: Company Overview - Shenxiang Technology was established in July 2020 and began generating revenue in 2023 [1] - The company specializes in new energy heavy trucks and intelligent road freight solutions, focusing on the trunk road freight sector, which accounts for over 50% of transportation capacity [2] - The company has delivered a total of 509, 3,002, and 2,873 new energy heavy trucks in 2023, 2024, and the first half of 2025, respectively [2] Group 2: Financial Performance - Revenue for Shenxiang Technology during the reporting period was 0, 426 million, 1.969 billion, and 1.506 billion yuan, with corresponding losses of 267 million, 389 million, 675 million, and 371 million yuan [4] - Cumulatively, the company has incurred losses exceeding 1.702 billion yuan over three and a half years [4] - Despite a significant revenue increase of 362.5% in 2024, the net loss expanded from 389 million yuan to 675 million yuan, indicating a situation of "increased revenue without increased profit" [4] Group 3: Revenue Sources and Dependency - Almost all revenue during the reporting period came from new energy heavy truck sales, with revenue contributions of 0%, 99.9%, 99.6%, and 99.4% respectively [3] - The company heavily relies on two mass-produced models, Shenxiang Xingchen and Shenxiang Xingtong, with the majority of sales coming from Shenxiang Xingchen [3] - As of the first half of 2025, Shenxiang Technology had delivered products to 311 customers and held approximately 1,400 vehicles in hand orders [3] Group 4: Supplier and Customer Relationships - The company has a high dependency on a limited number of suppliers and customers, with the top five suppliers accounting for 48.1%, 88.1%, 92.3%, and 83.1% of total procurement during the reporting period [5] - The first major customer, "Customer A," is also a subsidiary of the main supplier, "Supplier A," indicating overlapping relationships [6] - Revenue from the top five customers represented 0%, 82.5%, 50.7%, and 51.4% of total revenue during the reporting period [5] Group 5: Financial Health - Shenxiang Technology's asset-liability ratio exceeded 100% throughout the reporting period, with total assets of 508 million, 1.348 billion, 2.556 billion, and 3.92 billion yuan, and total liabilities of 691 million, 1.92 billion, 3.804 billion, and 5.539 billion yuan [7] - Trade and other receivables increased from 39.4 million yuan at the end of 2022 to 1.415 billion yuan by mid-2025, primarily due to rapid sales growth of new energy heavy trucks [8]