Core Viewpoint - Zhibo Network Technology Co., Ltd. (Zhibo Zhixing) has submitted an IPO application to the Hong Kong Stock Exchange, positioning itself as a leading provider of intelligent cockpit solutions in China, with a focus on software-driven automotive and transportation solutions [1][2]. Group 1: Company Overview - Zhibo Zhixing was established in 2015 with backing from SAIC Group and Alibaba, combining strong industry and internet expertise [2]. - The company is recognized as one of the two third-party suppliers in China with a fully self-developed automotive operating system and is the only one to integrate key intelligent automotive experience pillars into a unified solution [1][2]. Group 2: Financial Performance - Zhibo Zhixing has not yet achieved profitability, reporting losses of approximately 2.6 billion RMB over three years, with revenues of 805 million RMB in 2022, 872 million RMB in 2023, and a projected 824 million RMB in 2024, reflecting a 5.4% decline year-on-year [3][5]. - The company's gross margin has decreased from 53.9% in 2022 to 38.9% in 2024, indicating a downward trend [3][5]. Group 3: Accounts Receivable and Customer Concentration - The company faces high accounts receivable, with turnover days increasing from 155.9 days in 2022 to 265.6 days by March 31, 2025, primarily due to seasonal revenue fluctuations [4]. - SAIC is the largest customer, providing significant revenue, while Alibaba serves as a major supplier, indicating a high customer concentration risk [6]. Group 4: Use of IPO Proceeds - The funds raised from the IPO are intended for research and development, market expansion, and operational support, with a focus on maintaining technological leadership in the intelligent cockpit solutions market [8]. - The global smart automotive market is expected to grow at a CAGR of 6.9%, with the Chinese intelligent cockpit market projected to reach 327.4 billion RMB by 2030, highlighting the growth potential in this sector [8].