Core Viewpoint - Zhejing Electronics, a leading player in China's HUD (Head-Up Display) solutions, has submitted a second IPO application to the Hong Kong Stock Exchange after a previous attempt failed in May 2025. The company has shown significant growth but continues to incur losses [1][5]. Group 1: Company Overview - Zhejing Electronics was established in 2015 and focuses on the research and development of HUD solutions, being the first in China to launch self-developed HUD solutions [4]. - The company has achieved a compound annual growth rate (CAGR) of 64.3% over the past three years, with notable investors including Geely Holding, Shunwei Capital, and major automotive groups [1][5]. - As of May 31, 2025, Zhejing Electronics has served 18 automotive OEM clients and secured 94 model designations, with cumulative sales reaching 1.6 million units [5]. Group 2: Financial Performance - Zhejing Electronics reported revenues of 214 million yuan, 549 million yuan, 578 million yuan, and 262 million yuan for the years 2022 to 2024 and the first five months of 2025, respectively, with a CAGR of 64.3% during this period [5]. - The net losses for the same periods were 256 million yuan, 175 million yuan, 138 million yuan, and 240 million yuan, totaling a cumulative loss of 809 million yuan [3][5]. - Adjusted losses, excluding certain financial impacts, showed a narrowing trend, with figures of 79.1 million yuan, 13.3 million yuan, 7.1 million yuan, and 1.6 million yuan [5]. Group 3: Market Position and Growth Potential - According to market research, Zhejing Electronics holds a 16.2% market share in China's HUD solutions market, ranking second behind Huayang Group, which has a 23.3% share [4][7]. - The market for automotive HUD solutions in China is projected to grow from 1 million units in 2020 to 3.9 million units by 2024, with a CAGR of 41.2% [7]. - Globally, W-HUD remains the mainstream solution, while AR-HUD is expected to drive future growth, with sales projected to increase significantly from 200,000 units in 2024 to 760,000 units by 2029 [8]. Group 4: IPO and Future Plans - The upcoming IPO aims to raise funds for production line expansion, automation upgrades, and enhancing R&D capabilities, as well as potential strategic collaborations in related fields [8]. - The company plans to leverage its technological advantages to expand both domestically and internationally, targeting collaborations with local and overseas automotive manufacturers [8].

Core Insights - Zhejing Electronics has re-submitted its application to the Hong Kong Stock Exchange, with Haitong International and CITIC Securities as joint sponsors [2] - The company focuses on the development of HUD solutions, primarily offering W-HUD and AR-HUD solutions, and collaborates closely with automakers to enhance human-vehicle interaction and intelligent driving experiences [2] Financial Performance - Zhejing Electronics' revenue increased from RMB 214.1 million in 2022 to RMB 549.4 million in 2023, with a projected rise to RMB 577.6 million in 2024, reflecting a compound annual growth rate (CAGR) of 64.3% from 2022 to 2024 [3] - The company recorded net losses of RMB 256.1 million, RMB 174.6 million, and RMB 137.9 million for the years 2022, 2023, and 2024, respectively [3] - Adjusted losses (non-IFRS) were RMB 79.1 million in 2022, a profit of RMB 13.3 million in 2023, and an adjusted loss of RMB 7.1 million in 2024 [4] - Operating cash flow showed a net outflow of RMB 139.9 million in 2022 and RMB 124.5 million in 2023, but turned positive with net inflows of RMB 29.2 million in 2024 [4] Market Trends - The market for automotive HUD solutions in China is expected to grow from 1 million units in 2020 to 3.9 million units by 2024, with a CAGR of 41.2% [4] - Globally, W-HUD remains the dominant HUD solution, with sales projected to increase from 10.7 million units in 2024 to 20.9 million units by 2029, while AR-HUD is anticipated to grow from 2 million units to 7.6 million units in the same period [5] - Zhejing Electronics aims to leverage its technological advantages in optical design and system integration to capture overseas opportunities through collaboration with domestic and international automakers [5]

Core Viewpoint - Jiangsu Zejing Automotive Electronics Co., Ltd. is pursuing an IPO in Hong Kong, facing challenges such as losses, high asset-liability ratio, and pressure from downstream clients for price reductions [1][5]. Group 1: Financial Performance - The main product, HUD solutions, has seen a continuous decline in average price from 974.31 RMB in 2022 to 865.47 RMB in 2024, while the gross margin has improved from 22.6% in 2022 to 27.3% in 2024 [2][3]. - The sales volume of HUD solutions increased significantly from approximately 17.57 thousand units in 2022 to 62.46 thousand units in 2024, representing a growth of 2.55 times [2][3]. - Despite the increase in sales volume, the company's labor costs decreased by 12.82% in 2024, amounting to 25.33 million RMB [3]. Group 2: Market Position - Zejing Electronics holds a market share of 16.2% in the Chinese HUD solutions market, ranking second among suppliers as of 2024 [3]. - The revenue growth rate slowed significantly from 156.6% in 2023 to 5.1% in 2024, indicating potential market challenges [3][5]. Group 3: Client Dependency and Revenue Sources - The top five clients contributed a substantial portion of the company's revenue, accounting for 93.0% in 2022, 93.8% in 2023, and 80.9% in 2024 [4]. - Revenue from the top five clients decreased by 9.13% in 2024, amounting to 468 million RMB compared to 515 million RMB in 2023 [5]. Group 4: Challenges Ahead - The company has not achieved profitability during the reporting period, with an asset-liability ratio of 215.6% and a current ratio of only 41.2% as of 2024 [6]. - Trade receivables reached 296 million RMB by the end of 2024, with an increase in the average collection period from 102.2 days in 2022 to 140.5 days in 2024 [6]. - The company may face ongoing pricing pressure from automotive manufacturers, which could adversely affect its business and financial performance [7].

Core Viewpoint - Jiangsu Zejing Automotive Electronics Co., Ltd. (Zejing Electronics) has submitted a listing application to the Hong Kong Stock Exchange, with Haitong International and CITIC Securities as joint sponsors [1]. Company Overview - Zejing Electronics is a pioneer and leader in innovative smart cockpit visual and interaction solutions in China, primarily offering its self-developed HUD solutions, including CyberLens (W-HUD) and CyberVision (AR-HUD) [3]. - The company was the first in the Chinese market to launch self-developed HUD solutions and mass-produced AR-HUD based on Digital Light Processing (DLP) technology, ensuring stable and reliable performance against environmental interference [3]. Market Potential - According to Zhaoshang Consulting, the market size for automotive HUD solutions in China is expected to grow from 1 million units in 2020 to 3.9 million units by 2024, with a compound annual growth rate (CAGR) of 41.2%. By 2029, it is projected to reach 12.7 million units, with a CAGR of 27.9% from 2025 to 2029 [5]. Financial Performance - In terms of revenue, Zejing Electronics reported approximately 214 million RMB, 549 million RMB, and 578 million RMB for the years 2022, 2023, and 2024, respectively. The company incurred losses of approximately 256 million RMB, 175 million RMB, and 138 million RMB during the same periods [9]. - The gross profit margin improved from 22.6% in 2022 to 27.3% in 2024, indicating a positive trend in profitability despite ongoing losses [10]. Future Challenges - The company has recorded net losses and cash outflows from operating activities during the reporting period, and its ability to achieve future profitability may be affected by various factors, including the expansion of its customer base, sales volume, and product offerings [9][11].

Core Viewpoint - Jiangsu Zejing Automotive Electronics Co., Ltd. (referred to as "Zejing") is set to go public on the Hong Kong Stock Exchange, focusing on innovative smart cockpit visual and interaction solutions, including HUD technologies [2][3]. Group 1: Company Overview - Zejing was established in 2015 and specializes in HUD solutions, including W-HUD and AR-HUD, and has introduced self-developed HUD solutions to the Chinese market [2]. - The company has become the only Chinese supplier to secure multiple international mainstream automaker HUD orders and has achieved mass production [3]. Group 2: Market Position - As of 2024, Zejing ranks second among Chinese HUD solution suppliers with a market share of 16.2%, and it is the only company in China to rank in the top three for HUD, W-HUD, and high-performance AR-HUD solution sales [4]. - Zejing has established relationships with 22 automotive OEM clients, including both leading domestic manufacturers and emerging players, and has secured over 90 model specifications with cumulative shipments exceeding 1.5 million units [4]. Group 3: Financial Performance - Zejing's revenue from 2022 to 2024 was 214 million, 549 million, and 578 million yuan, respectively, with a compound annual growth rate (CAGR) of 64.3% [5]. - The gross profit for the same period was 48 million, 140 million, and 158 million yuan, with a CAGR of 80.6%, and gross margins of 22.6%, 25.6%, and 27.3% [6]. Group 4: Funding and Valuation - Following the last round of financing before the IPO in 2024, Zejing's valuation reached 2.585 billion yuan [7]. - The net proceeds from the IPO are intended for production line expansion, automation upgrades, enhancing R&D capabilities, and potential strategic collaborations in related fields [7].