Core Viewpoint - Furuitek (Zhejiang) Intelligent Technology Co., Ltd. is experiencing rapid revenue growth but is also facing significant losses, with a net loss exceeding 1.9 billion RMB over the past three and a half years, raising concerns about its financial health and operational independence due to its deep ties with Geely [1][21]. Financial Performance - Furuitek's revenue for 2022, 2023, and 2024 was 328 million RMB, 908 million RMB, and 1.283 billion RMB, respectively, reflecting a compound annual growth rate of 97.9%. In the first half of 2025, the company achieved revenue of 928 million RMB, a year-on-year increase of 197.5% [3][22]. - The adjusted net profits for the company were -692 million RMB, -627 million RMB, -445 million RMB, and -152 million RMB for the years 2022 to 2025, totaling a net loss of 1.916 billion RMB [9][27]. Cost Structure - The cost of raw materials and consumables accounted for 76.2%, 88.1%, 93.9%, and 96.1% of the sales costs from 2022 to 2025, indicating a rising trend that significantly impacts profitability [9][27]. - Research and development expenses were 515 million RMB, 561 million RMB, 447 million RMB, and 202 million RMB for the same period, showing a declining trend in R&D investment relative to revenue [28]. Product and Revenue Breakdown - Furuitek's main revenue sources are its products FT Max, FT Pro, and FT Ultra, with FT Max accounting for 42.1%, 32%, 43.5%, and 35.9% of total revenue from 2022 to 2025 [4][23]. - FT Ultra, which accounted for nearly 60% of revenue in the first half of 2025, has a lower gross margin of 9.7% compared to FT Max's 18.3% [5][24]. Dependency on Geely - Furuitek is heavily reliant on Geely, which is both its largest customer and supplier. Revenue from Geely represented 19.7%, 43.3%, 59.4%, and 76% of total revenue from 2022 to 2025 [11][29]. - The company’s relationship with Geely raises concerns about its operational independence, as Geely's control extends to significant ownership stakes in Furuitek [21][32]. Market Position and Challenges - Furuitek's L4-level autonomous driving technology is lagging behind competitors, with many industry leaders already achieving large-scale commercialization of L4 solutions [36]. - The capital market's valuation logic for autonomous driving has shifted, with average price-to-sales ratios dropping from 8-10 times in 2023 to 3-5 times in 2025, indicating a challenging environment for new entrants like Furuitek [37].

Core Insights - Furuitek has refiled for an IPO on the Hong Kong Stock Exchange after a year, with sponsors including CITIC Securities, CICC, Huatai International, and HSBC [2] - The company is a leading provider of advanced driver assistance systems (ADAS), having established partnerships with 51 OEMs and over 380 designated projects, with a market share of 7.2% in the L0 to L2 level ADAS solutions in China [2] - Furuitek offers comprehensive soft and hard integrated driving assistance solutions, including FT Pro, FT Max, and FT Ultra, aimed at enhancing user safety and comfort in smart vehicles [2] Financial Performance - In 2022, Furuitek's revenue from FT Pro was RMB 139.33 million, FT Max was RMB 138.04 million, and FT Ultra was RMB 50.35 million [4] - In 2023, revenues increased significantly, with FT Pro at RMB 173.53 million, FT Max at RMB 290.40 million, and FT Ultra at RMB 443.70 million [4] - For 2024, projected revenues show FT Pro at RMB 110.74 million, FT Max at RMB 558.12 million, and FT Ultra at RMB 614.41 million [4] R&D Services - Furuitek also provides R&D services to OEMs, focusing on customized smart solutions and project development services [4] - Revenue from driver assistance R&D services for 2022 was RMB 45.0 million, accounting for 13.7% of total revenue, while in 2023 it was RMB 119.3 million, representing 13.1% [5] - The revenue from R&D services decreased in 2024 to RMB 54.2 million, making up 4.2% of total revenue, and further decreased to RMB 31.0 million for the six months ending June 30, 2025, accounting for 3.3% [5]

Core Viewpoint - The company, Furuitek, has submitted its listing application to the Hong Kong Stock Exchange, focusing on R&D investment, capacity expansion, and sales network development as key areas for the next three years to enhance its capabilities in advanced intelligent driving [2] Group 1: Business Structure and Client Dependency - Furuitek's revenue is heavily reliant on Geely, with 76% of its income in the first half of 2025 coming from various Geely brands, and nearly half of its components sourced from Geely [6] - The company has limited penetration in high-end projects, as Geely is restructuring its advanced driving system through Qianli Technology, which may further restrict Furuitek's opportunities in high-end projects [6][7] Group 2: Competitive Landscape and Risks - The industry is witnessing a shift towards high-level NOA (Navigation on Autopilot), with major automakers increasingly focusing resources on internal teams for algorithm development and data integration, which may marginalize suppliers like Furuitek [7][8] - The case of Haomo Zhixing, a supplier that faced significant challenges due to its inability to adapt to strategic shifts by its main client, highlights the risks for suppliers overly dependent on a single automaker [7] Group 3: Management and Future Outlook - Furuitek's management team has a strong background in major automakers, which has facilitated its initial integration into Geely's supply chain, but the transition to high-level NOA raises questions about whether this experience will suffice for further advancement [8] - Successful listing could provide necessary funding for R&D and manufacturing capabilities, but the ability to secure high-end projects and diversify its client base will be critical for future growth [9]

Core Viewpoint - Freetech (Zhejiang) Intelligent Technology Co., Ltd. has submitted a new application for an IPO on the Hong Kong Stock Exchange after two previous attempts failed, indicating the company's ongoing commitment to public listing and growth in the intelligent driving solutions market [4]. Business Overview - Established in 2016, Freetech is a leading supplier of intelligent driving solutions, focusing on Advanced Driver Assistance Systems (ADAS) and Autonomous Driving Systems (ADS) technology, aiming to provide safe, comfortable, and intelligent driving experiences through deep collaboration with OEM customers [7]. - The company ranks second among third-party suppliers in China for L0 to L2 level driving assistance solutions, with a market share of 7.2% as of 2024 [7]. - As of June 30, 2025, Freetech has established partnerships with 51 OEMs and has over 380 designated projects and more than 290 mass production projects across a diverse range of vehicles [7]. Key Clients - Since 2019, Freetech has been a non-exclusive supplier for Geely Holding Group, developing driving assistance products and deployment solutions across multiple Geely brands. The revenue from Geely accounted for 19.7%, 43.3%, 59.4%, and 76.0% of Freetech's income in 2022, 2023, 2024, and the first half of 2025, respectively [8]. Product Development - Freetech has developed an integrated intelligent driving platform called ODIN, which combines advanced controllers, precise sensors, robust software, and a solid data feedback platform, enabling the integration of cutting-edge intelligent driving technologies [9]. - The company offers a full-stack intelligent driving solution based on the ODIN platform, employing a vertically integrated approach that includes hardware design, software and algorithm development, system integration, and manufacturing [9]. Financial Performance - Freetech's revenue for the years 2022, 2023, 2024, and the first half of 2025 was RMB 327.72 million, RMB 908.32 million, RMB 1.283 billion, and RMB 928.24 million, respectively. The corresponding net losses were RMB 855 million, RMB 738 million, RMB 528 million, and RMB 164 million [18][20]. - The adjusted net losses for the same periods were RMB 692 million, RMB 627 million, RMB 445 million, and RMB 152 million [20]. Shareholding Structure - Prior to the IPO, Freetech's major shareholders include Ningbo Junma, which holds 11.73%, and several equity incentive platforms with smaller stakes. The largest shareholder group controls approximately 21.99% of the shares and can exercise 42.60% of the voting rights [11][12]. Management Team - The board of directors consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors, indicating a diverse and experienced leadership team [17].

WARNING The publication of this Application Proof is required by The Stock Exchange of Hong Kong Limited (the "Stock Exchange") and the Securities and Futures Commission (the "Commission") solely for the purpose of providing information to the public in Hong Kong. This Application Proof is in draft form. The information contained in it is incomplete and is subject to change which can be material. By viewing this document, you acknowledge, accept and agree with the Company, its sponsors, overall coordinators ...

Core Viewpoint - The financial data disclosed by the company indicates significant revenue growth, but underlying risks related to customer concentration and supply chain pressures are evident [1][5]. Group 1: Financial Performance - In 2024, the company achieved a revenue of 1.283 billion yuan, representing a year-on-year growth of 41.4% [1]. - The gross profit margin improved to 11.2% in 2024, yet the company still reported a net loss of 528 million yuan, with cumulative losses exceeding 2.1 billion yuan over three years [3]. - Research and development expenses reached 447 million yuan in 2024, accounting for 34.8% of total revenue [3]. Group 2: Customer Dependency - The company's largest customer accounted for 59.4% of its revenue in 2024, while the top five customers collectively contributed 91.2% [1]. - The concentration of revenue from a few key clients is unusual in the Chinese smart automotive supply chain [1][4]. Group 3: Supply Chain Challenges - In response to supply chain uncertainties, major automotive manufacturers required suppliers, including the company, to stockpile materials, leading to increased inventory levels from 419 million yuan at the end of 2023 to 574 million yuan at the end of 2024 [2]. - Accounts receivable and notes payable rose to 736 million yuan, indicating significant cash flow pressure despite revenue growth [2]. Group 4: Market Position and Competition - The company holds the second-largest market share among third-party suppliers in the ADAS sector, with a market share of 7.2% and a vehicle installation share of 17.7% in 2024 [3]. - However, the average selling prices of key products have been declining, and high-end product lines have not yet provided effective profit support [3]. Group 5: International Exposure and Supply Chain Dependency - The company's revenue remains highly concentrated in the Chinese market, with over 96% of income derived from this region in 2024 [4]. - The dependency on major suppliers has also increased, with the top five suppliers accounting for 61.1% of procurement, and the largest supplier representing 39.5% [4].

Core Viewpoint - The company Furuitek (Zhejiang) Intelligent Technology Co., Ltd. is pursuing an IPO on the Hong Kong Stock Exchange after previously failing to list in November 2024, continuing the trend of smart driving companies aiming for public offerings in 2025 [1][2]. Financial Performance - Furuitek has achieved a compound annual growth rate (CAGR) of 97.6% in revenue over the past three years, with total revenue figures of 328 million, 908 million, and 1.283 billion yuan for the years 2022, 2023, and 2024 respectively [7][8]. - The company has incurred cumulative losses of 2.121 billion yuan over the same period, with net losses of 855 million, 738 million, and 528 million yuan for the respective years [7][8]. - Operating cash flow has consistently been negative, with net outflows of 703 million, 498 million, and 153 million yuan during the reporting period [8]. Market Position - Furuitek ranks second among third-party suppliers in China for L0 to L2 level driving assistance solutions, holding a market share of 7.2% based on revenue and 17.7% based on the number of units installed for L2 and L2+ level solutions [5][6]. - The company has established partnerships with 49 OEMs and has over 330 designated projects and more than 260 mass production projects [7]. Investment and Valuation - Furuitek has raised a total of 1.904 billion yuan through ten rounds of financing, with a post-investment valuation increasing from 3.5 billion yuan in July 2021 to 6.36 billion yuan by December 2024, representing an increase of 2.86 billion yuan or 81.71% [17]. - The company has a high customer concentration, with revenue from the top five customers accounting for 73.6%, 76.4%, and 91.2% of total revenue in the respective years [9]. Leadership and Compensation - The founder and CEO, Zhang Lin, has a background in the automotive industry and has received a total compensation of approximately 104 million yuan over the reporting period [10][15]. - The company’s non-executive director and other key personnel have also received significant compensation, with total remuneration for the top five highest-paid individuals reaching 113 million, 13.4 million, and 18.8 million yuan in the respective years [16][17].

Core Viewpoint - The article discusses the IPO ambitions of Furuitek (Zhejiang) Intelligent Technology Co., Ltd., highlighting its rapid revenue growth but significant losses, as well as its close ties with Geely Holding Group and other investors [1][3][10]. Company Overview - Furuitek was established in 2016 and specializes in intelligent driving solutions, covering Advanced Driver Assistance Systems (ADAS) and Autonomous Driving Systems (ADS) [5]. - The company has become a preferred supplier for several top OEMs, ranking second among third-party suppliers in China for both revenue and installation volume of L0 to L2 level driving assistance solutions [5][6]. Financial Performance - Furuitek's revenue for the years 2022, 2023, and 2024 was 328 million, 908 million, and 1.283 billion respectively, with a compound annual growth rate of 97.6% [7]. - The company reported cumulative losses of 2.121 billion, with net losses of 855 million, 738 million, and 528 million for the respective years [7][8]. - Operating cash flow has been negative, with outflows of 703 million, 498 million, and 153 million over the same period, indicating ongoing financial pressure [8]. Investor Relations and Valuation - Furuitek has undergone ten rounds of financing, raising a total of 1.904 billion, with a post-investment valuation increasing from 3.5 billion in July 2021 to 6.36 billion by December 2024, reflecting an 81.71% growth [17]. - The company has a high customer concentration, with revenue from the top five customers accounting for 73.6%, 76.4%, and 91.2% of total revenue during the reporting periods, with Geely's contribution rising significantly [10][11]. Leadership and Compensation - The founder and CEO, Zhang Lin, has a background in the automotive industry and has received a total compensation of approximately 1.04 billion over the reporting period [9][15]. - Other executives have also received substantial compensation, with the total remuneration for the top five highest-paid individuals reaching 113 million, 13.4 million, and 18.8 million [16].

Core Viewpoint - The company, Furuitek, has shown significant growth in revenue and market position in the autonomous driving solutions sector, with a compound annual growth rate of 97.9% from 2022 to 2024, and a strong increase in key project metrics [1][5]. Financial Performance - Revenue for Furuitek is projected to be 328 million RMB in 2022, 908 million RMB in 2023, and 1.283 billion RMB in 2024, indicating a robust growth trajectory [1][2]. - The company has achieved substantial growth in its product delivery, particularly in the FT Max and FT Ultra solutions, with delivery growth rates of 482% and 651% respectively from 2022 to 2024 [5]. Market Position - Furuitek has become the leading independent supplier of L2-level driving assistance solutions in China, capturing a market share of 21.3% in 2024 [2]. - The company ranks second among third-party suppliers for L2 and L2+ level driving assistance solutions, with a market share increase to 17.7% [2]. Partnerships and Projects - As of June 30, 2024, Furuitek has established partnerships with 49 OEMs and has over 330 designated projects and more than 260 mass production projects [4]. - The company is recognized as a reliable partner in the industry, with an average of two new projects being designated or entering mass production each week in the latter half of 2024 [4]. Technological Innovation - Furuitek's proprietary ODIN3.0 platform integrates AI models with controllers, sensors, software algorithms, and data platforms, enhancing the efficiency of technological and engineering innovations [4]. - The company has developed a three-tier product matrix (FT Pro, FT Max, FT Ultra) to cater to diverse market needs [4]. Future Outlook - The mid-level driving assistance market is expected to experience explosive growth in 2025, with Furuitek launching the "Smart Enjoy Universal Version" solution, which utilizes innovative engineering techniques to deliver advanced driving capabilities with reduced computational power [5]. - The company has submitted a listing application to the Hong Kong Stock Exchange, backed by prominent institutional sponsors and a strong shareholder base, including major automotive manufacturers and investment institutions [5].

Financial Analysis - The main revenue source for the company comes from L2 level and below intelligent driving solutions, with revenues of 333 million, 328 million, 908 million, and 312 million RMB for the years 2021 to the first half of 2024, showing significant growth rates of -1.61%, 176.95%, and 33.68% respectively [2] - The company has been experiencing continuous net losses, with net profits of -296 million, -855 million, -738 million, and -278 million RMB from 2021 to the first half of 2024, accumulating losses of 2.87 billion RMB by June 2024 [3] - The gross margin has been declining and is lower than industry peers, with gross margins of 11.2%, 6.2%, 7.3%, and 6% for the years 2021 to the first half of 2024 [4] Industry Outlook - China is the largest automotive market globally, with 30.5 million vehicles sold in 2023, accounting for 32.9% of global sales. It has also become the largest market for intelligent driving solutions [8] - The market size for mass-produced L0 to L2+/L2++ intelligent driving solutions in China has grown from 17.5 billion RMB in 2019 to 71.5 billion RMB in 2023, with a compound annual growth rate (CAGR) of 42.2%, expected to reach 210.3 billion RMB by 2028 [8] Shareholding Structure - The company has four shareholders holding more than 5% of shares, including Ningbo Junma (12.31%), Hangzhou Langma (7.31%), Jiaxing Xichuang (7.84%), and China Internet Investment (6.75%). The company has undergone nine rounds of financing, raising a total of 1.6 billion RMB, with the last round post-investment valuation reaching 6.06 billion RMB [10] Competitive Advantages - The company has developed a self-researched integrated intelligent driving platform, ODIN, which is modular and scalable. It aims to promote the technology to mid-range vehicles and is advancing towards L3 level solutions [12] - The company ranks second in market share for L2 level solutions and third for L2+/L2++ level solutions in China, with a market share of 16.2% for L2 level solutions [12][13] Customer Base and Global Expansion - The number of customers has increased from 20 in 2021 to 46 in 2024, with over 200 mass production projects, including major clients like Geely, SAIC, and GAC. The company plans to follow Chinese automakers abroad for overseas development [16]