Core Viewpoint - Cheng Tai Technology Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, with Guotai Junan International as the sole sponsor. The company is a leading supplier of millimeter-wave radar, a core component for intelligent driving, and is projected to be the largest supplier of forward millimeter-wave radar in China by shipment volume in 2024, holding market shares of 9.3% and 4.5% respectively in the domestic and overall markets [1][4]. Revenue Growth and Client Dependency - Cheng Tai Technology has experienced rapid revenue growth from 2022 to 2024, with revenues of RMB 0.58 billion, RMB 1.57 billion, and RMB 3.48 billion respectively. However, the company is heavily reliant on a single client, with revenue from its largest customer accounting for 93.6% of total revenue in 2024 [5][6][3]. Product Segmentation - The company has launched seven main radar models, categorized into forward radar and rear/side radar (also known as corner radar). In 2024, revenue from forward millimeter-wave radar and corner millimeter-wave radar accounted for 63.9% and 35.3% of total revenue respectively [2][3]. Market Growth - The global market for automotive millimeter-wave radar is expected to grow from RMB 15.6 billion in 2020 to RMB 24.8 billion in 2024, with a compound annual growth rate (CAGR) of 12.3%. The Chinese market is projected to grow from RMB 4.4 billion to RMB 8.2 billion during the same period, with a CAGR of 16.6% [4]. Financial Performance - The company has not yet achieved profitability, but its losses have been narrowing significantly, with net losses of RMB -0.79 billion, RMB -0.97 billion, and RMB -0.22 billion from 2022 to 2024. The gross profit margin has slightly increased from 28.7% in 2022 to 34.0% in 2024 [6][7][8]. Funding and Valuation - Cheng Tai Technology has raised over RMB 350 million in total funding, with a post-investment valuation of approximately RMB 1.32 billion following its C-round financing completed in 2024 [9][10]. The funds are intended for new technology research, product development, testing equipment, production line upgrades, marketing, and strategic investments [10].

Core Viewpoint - The upcoming implementation of the new national standard for Automatic Emergency Braking (AEB) will transition from a recommended to a mandatory requirement, significantly enhancing the safety features in both passenger and commercial vehicles in China [2][3][5]. Industry Impact - The upgrade of AEB from a recommended to a mandatory standard reflects the industry's progress and a response to consumer safety demands, marking a shift from passive compliance to proactive safety measures [3][4]. - The new standard is expected to drive the market size for AEB-related products from 38 billion yuan in 2024 to 120 billion yuan by 2026, with a compound annual growth rate of 9.36% [3]. - The inclusion of commercial vehicles under the new standard aims to address the high accident rates associated with these vehicles, as AEB's market penetration in commercial vehicles is currently below 5% [4][5]. Technological Advancements - The new standard introduces innovative testing scenarios, including collision warnings and emergency braking for vulnerable road users such as pedestrians and cyclists, which are tailored to China's unique traffic conditions [6][10]. - AEB is positioned as a foundational safety feature in advanced driver-assistance systems (ADAS), facilitating the development of higher-level autonomous driving technologies [7][10]. - The standard emphasizes the need for high reliability and low false trigger rates in AEB systems, pushing manufacturers to enhance their technology and testing methodologies [5][8]. Market Dynamics - The implementation of the new standard is expected to reshape the supply chain dynamics within the automotive industry, as companies will need to reassess their AEB system designs and sensor configurations to meet the new requirements [9][11]. - Companies are likely to adopt multi-sensor fusion strategies to ensure compliance and improve performance, balancing cost and functionality in their AEB systems [9][10]. - The new standard is anticipated to create opportunities for local suppliers to innovate and meet the specific needs of the Chinese market, enhancing their competitive edge [12].