Core Viewpoint - Panjie Electronics Technology (Jiangsu) Co., Ltd. is seeking to go public on the Hong Kong Stock Exchange, focusing on high-performance automotive-grade chips, particularly for TPMS and BMS applications. The company ranks third globally in wireless sensor SoCs and is the largest in China, but faces challenges such as ongoing losses and intense international competition [1][2]. Financial Performance - The company reported revenue figures for 2022 to the first half of 2025 as follows: 104 million, 224 million, 348 million, and 157 million yuan, with a compound annual growth rate of 83% from 2022 to 2024. Gross margins improved from 15.4% in 2022 to 27.1% in the first half of 2025 [2]. - Despite revenue growth, the company has faced significant net losses, totaling approximately 1.05 billion yuan from 2022 to the first half of 2025, with losses of 205 million, 356 million, 351 million, and 143 million yuan in respective years [2][3]. Cash Flow and Debt - The net cash used in operating activities has been negative, with figures of -152 million, -61.17 million, -137 million, and -115 million yuan from 2022 to the first half of 2025. Additionally, R&D expenditures decreased by 10.34% year-on-year in the first half of this year [3]. - As of June 2025, the company had short-term borrowings of 12.25 million yuan, all owed to founders Li Mengxiong and Li Shuguang, with a total repayment obligation of 12.25 million yuan [3]. Customer and Supplier Relationships - The company derives a significant portion of its revenue from a few major clients, with the top five clients accounting for 41.2%, 35.6%, 52.1%, and 46.8% of revenue from 2022 to the first half of 2025. Notably, one major client is affiliated with a shareholder of Panjie Electronics [4][5]. - There is an overlap between major customers and suppliers, with one client also serving as a supplier for processing services and another providing electronic components [5][6]. Inventory and Market Position - The company has a high inventory level, with an inventory amount of 230 million yuan and an inventory turnover period of 310 days, exceeding the industry average. The company is heavily reliant on the automotive sector [6]. - Panjie Electronics ranks third in the global wireless automotive sensor SoC market with a market share of only 7.3%, indicating a significant gap compared to the top two competitors, which hold 30.4% and 22.4% market shares respectively [6].