Core Viewpoint - The Beidou Satellite Navigation System is becoming a significant force in promoting China's digital economy and international cooperation, supported by government policies and its wide application in new infrastructure, spatiotemporal big data, and smart cities [1]. Company Overview - Huada Beidou, a leading domestic space positioning service provider, is preparing for its IPO on the Hong Kong Stock Exchange, backed by strong technical barriers and state support [2]. - The company, established in 2013, focuses on navigation chip design and has become the second-largest GNSS service provider in mainland China, with a global market share of 4.8% [3][5]. Financial Performance - Huada Beidou's revenue is projected to grow from RMB 6.45 billion in 2023 to RMB 8.40 billion in 2024, with a compound annual growth rate (CAGR) of 9.7% [5]. - Despite high revenue, the company faces significant losses, with cumulative losses of RMB 5.23 billion from 2022 to 2024, attributed to high R&D expenditures [5][6]. Market Dynamics - The GNSS space positioning service industry is characterized by high growth potential, with China's market expected to reach RMB 9.54 trillion by 2028, growing at a CAGR of 14.5% from 2023 to 2028 [8]. - The Beidou system has advantages over other GNSS systems, including better anti-blocking capabilities and superior performance in low-latitude regions [7]. Competitive Landscape - Huada Beidou faces intense price competition from international giants like Qualcomm and Broadcom, which could pressure profit margins [10]. - The company has established strong technical barriers, making it a benchmark in the industry, despite the challenges posed by price wars [11][12]. R&D and Innovation - Huada Beidou's R&D investment is significant, with expenditures exceeding 40% of total expenses, focusing on high-precision positioning technology [5][12]. - The company aims to penetrate consumer markets while maintaining its technological edge, which is crucial for its long-term growth [12].

Core Viewpoint - Shenzhen Huada Beidou Technology Co., Ltd. has officially submitted its listing application to the Hong Kong Stock Exchange, aiming to leverage its leading position in the GNSS chip design and development sector, supported by the BeiDou satellite navigation system [1] Group 1: Company Overview - Huada Beidou is a leader in the space positioning service field, focusing on the design and development of navigation positioning chips that support the BeiDou system and are compatible with major global GNSS systems [1] - The company ranks sixth among global GNSS service providers and second among domestic companies in China, with a market share of 4.8% in 2024, projected to ship 16.1 million GNSS chips and modules [1] - In the dual-frequency high-precision RF baseband integrated GNSS chip and module sector, Huada Beidou holds a fourth global market share of 10.5%, leading among domestic companies [1] Group 2: Financial Performance - The company has shown stable revenue growth, with reported revenues of RMB 698 million, RMB 645 million, and RMB 840 million for the years 2022, 2023, and 2024 respectively [2][3] - Despite fluctuations in losses, the overall trend shows a narrowing of losses, with figures of RMB 92.6 million, RMB 289.1 million, and RMB 141.3 million for the same years [2][3] - Gross profit figures for the same years are RMB 83.7 million, RMB 67.9 million, and RMB 82.0 million, indicating a consistent gross margin performance [3] Group 3: Management and Governance - The company currently has no controlling shareholder or actual controller, with a board consisting of nine directors, including two executive directors, four non-executive directors, and three independent directors [2] - Sun Zhongliang, the chairman and executive director, has been with the company since December 2016 and is responsible for the overall development strategy and major financial and human resource planning decisions [2]