Core Viewpoint - Ningbo Feishi Technology Co., Ltd. has submitted an application for a mainboard listing on the Hong Kong Stock Exchange, marking its second attempt to enter the capital market after its IPO was rejected by the Sci-Tech Innovation Board in 2021. The company, a leading supplier of electric drive solutions in China, has revealed several risk factors in its prospectus that warrant investor attention [1]. Financial Performance - Feishi Technology has reported losses for three and a half consecutive years, with a cumulative deficit exceeding 430 million yuan. The company's revenues for 2022, 2023, and 2024 were 1.376 billion yuan, 1.243 billion yuan, and 1.500 billion yuan, respectively, with net losses of 130 million yuan, 112 million yuan, and 177 million yuan during the same periods. For the first half of 2025, the company generated revenue of 909 million yuan and a net loss of 21.26 million yuan, indicating a total loss of 430 million yuan over the past three and a half years. A positive sign is that the loss in the first half of 2025 narrowed compared to the same period in 2024, attributed to increased revenue from the new energy vehicle solutions business [2]. Business Segmentation - The revenue from the new energy vehicle solutions business has significantly increased, rising from 36.3% of total revenue in 2024 to 60.4% in the first half of 2025 [3]. Customer Concentration - The customer concentration of Feishi Technology has been on the rise, with the revenue from the top five customers accounting for 53.0%, 46.2%, 55.3%, and 64.7% of total revenue from 2022 to the first half of 2025. The largest customer contributed 26.8% of revenue in the first half of 2025. This dependency is particularly pronounced in the new energy vehicle sector, where the top five customers account for over 40% of revenue. The new energy vehicle business has also experienced volatility, with a 61.55% year-on-year decline in revenue in 2020 and a capacity utilization rate of only 23.51% [4]. Historical Issues - Feishi Technology's previous attempt to list on the Sci-Tech Innovation Board in 2021 was thwarted due to multiple information disclosure issues, including inconsistencies in financial data and undisclosed legal matters. These historical issues may attract special attention from the Hong Kong Stock Exchange, particularly regarding corporate governance and information disclosure compliance [5][6]. Competitive Landscape - The high-end market for servo motors in China is dominated by foreign brands, which account for over 80% of the market share. Domestic companies face intense competition from peers such as Inovance Technology and Estun Automation. Feishi Technology has acknowledged the fierce competition and the need to adapt to technological changes and customer demands to avoid significant adverse impacts on its business [7][8]. Governance and Cash Flow - The controlling shareholders of Feishi Technology, Ren Wenjie and Hu Jin, hold approximately 49.48% of the shares, raising concerns about corporate governance and the protection of minority shareholder rights. As of June 30, 2025, the company had 366 R&D personnel, representing 26.1% of the total workforce, necessitating substantial ongoing investment in R&D to maintain market competitiveness. Despite completing a C-round financing in 2024 with a post-investment valuation of around 4 billion yuan, the company still faces cash flow pressures. Historical data indicates that the company's profitability heavily relies on government subsidies, which accounted for as much as 238.87% of net profit during the reporting period. The company plans to use the proceeds from the IPO for R&D innovation, global expansion, and capacity expansion [9].