Core Viewpoint - Yushi Technology (Beijing) Co., Ltd. is pursuing an IPO on the Hong Kong Stock Exchange, with significant growth expected in its autonomous driving software solutions, despite contradictory information regarding customer numbers and revenue contributions from new clients [1][2]. Financial Performance - Yushi Technology's revenue from 2022 to 2024 is projected to be approximately 65.5 million, 161 million, and 266 million yuan, respectively, with net losses of about 250 million, 213 million, and 212 million yuan during the same period, indicating that the company has not yet achieved profitability [2]. - The gross profit from autonomous driving software solutions is expected to increase from approximately 29 million yuan in 2023 to about 52 million yuan in 2024, making it the largest contributor to gross profit in 2024 [2][4]. Customer Dynamics - The average retention rate of key customers from 2022 to 2024 is approximately 70.1%, but a significant portion of revenue is derived from new customers, with contributions of 45.4%, 53.2%, and 16.3% from new clients in 2022, 2023, and 2024, respectively [4][5]. - The number of customers for autonomous driving software solutions decreased from 15 in 2023 to 12 in 2024, despite claims of increased revenue due to a growing customer base [1][2]. Employee and Cost Management - Employee welfare expenses from 2022 to 2024 are approximately 9.1 million, 22.9 million, and 20.7 million yuan, with a reduction in 2024 compared to 2023 attributed to improved operational efficiency [7]. - The total number of employees, including part-time staff, decreased from 492 in 2023 to 437 in 2024, reflecting a decline of 11.18% [7]. Supplier Relationships - There is a notable overlap between customers and suppliers, with the number of overlapping entities being 6, 7, and 4 from 2022 to 2024, respectively, and their revenue contributions increasing over the years [6]. - The presence of a human resources provider among the top suppliers indicates a strategic approach to resource management, with procurement amounts constituting 6.6% and 4.1% of total procurement in 2022 and 2023, respectively [6].

Core Viewpoint - Yushi Technology, founded in 2016, submitted its prospectus to the Hong Kong Stock Exchange on May 28, focusing on providing autonomous driving solutions in closed environments such as airports and logistics, with projected revenues increasing from 65.48 million yuan in 2022 to 265 million yuan in 2024, but with adjusted net losses decreasing from 230 million yuan to 160 million yuan over the same period [1][7] Revenue Breakdown - The main revenue source for Yushi Technology is the autonomous vehicle solutions, contributing 51.1%, 59.7%, and 55.2% of total revenue from 2022 to 2024, with revenues of 33.41 million yuan, 96.30 million yuan, and 147 million yuan respectively [2][3] - The gross margin for the autonomous vehicle solutions is significantly lower than other segments, with overall gross margins of 45.7%, 48.8%, and 43.7% from 2022 to 2024, while the gross margin for the vehicle solutions specifically is 22.9%, 34.7%, and 21.7% [2][3] Cost and Profitability - The decline in gross margin is attributed to additional costs related to competitive pricing demands from key clients and high raw material costs for projects in two Chinese ports [3][6] - The sales cost as a percentage of total revenue increased from 51.6% in 2023 to 56.2% in 2024, indicating rising operational costs [7] Rental Services - Yushi Technology offers a rental service for autonomous vehicles, allowing clients to test the vehicles before purchase, with revenues from this segment being 1.2 million yuan, 3.3 million yuan, and 2.7 million yuan from 2022 to 2024 [5][6] - The average revenue per rented vehicle varied due to model differences and rental periods, with gross margins for this service being low, at 9.7% in 2024 [5] Market Position and Competition - Yushi Technology is positioned as the largest supplier of commercial L4-level autonomous driving solutions in airport and factory scenarios in mainland China and Hong Kong [2][6] - Compared to competitors like Xiaoma Zhixing and Wenyuan Zhixing, which reported revenues of 548 million yuan and 361 million yuan respectively in 2024, Yushi Technology's revenue is smaller, indicating a need for growth in service offerings [6][7] Future Outlook - The company has secured a significant order for 65 autonomous electric towing vehicles for a major international airport in Northwest China, which is expected to validate its technology's commercial capabilities [3][4] - Yushi Technology's focus remains on L4-level autonomous driving technology, with plans to expand applications in various scenarios, although there are no current plans for consumer-facing services [6][7]