Core Viewpoint - Magic Smart Technology (Shanghai) Co., Ltd. is seeking to go public on the Hong Kong Stock Exchange despite facing challenges such as long-term losses and low market share, aiming to capitalize on the current industry development window and market conditions [3][4]. Company Overview - Founded in 2015, Magic Smart integrates AI algorithms and advanced chips to provide automotive intelligent products and solutions, with aspirations to become the "Huawei of the automotive industry" [5][6]. - The company has developed solutions for 92 vehicle models and delivered over 3.3 million units, ranking third among Chinese intelligent driving solution providers based on revenue for L0 to L2+ solutions in 2024 [5][6]. Financial Performance - Revenue figures for Magic Smart from 2022 to 2024 are as follows: 118 million yuan, 147 million yuan, and 357 million yuan, with a 76.4% year-on-year increase in the first half of 2024 [7][10]. - Despite revenue growth, the company has reported significant losses, totaling approximately 774 million yuan over three and a half years, with adjusted losses of 557 million yuan [10][11]. Market Position - Magic Smart holds a market share of approximately 0.4% in the intelligent driving solutions sector, significantly trailing behind the top three competitors with market shares of 8.0%, 1.4%, and 1.4% [6][10]. - The company aims to differentiate itself through technological strength, commercialization capabilities, and unique market positioning, claiming to be one of the few suppliers with full-stack self-research capabilities [6][12]. Product Solutions - The company's revenue primarily comes from three main solutions: Magic Drive, Magic Parking, and Magic Safety, with Magic Drive being the largest contributor [8][9]. - The revenue breakdown for Magic Drive from 2022 to 2025 (first half) shows it accounted for 60.3%, 47.6%, 63.6%, and 61.8% of total revenue, respectively [8][9]. Production Capacity - Magic Smart's production capacity utilization rates from 2022 to the first half of 2025 were 46.9%, 19.5%, 56.6%, and 79.7%, with fluctuations attributed to business expansion [12]. - The company plans to use funds from its IPO to enhance R&D capabilities, establish a global R&D network, and expand production capacity [11][12].

The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Application Proof, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Application Proof. Application Proof of Motovis Intelligent Technology (Shanghai) Co., Ltd.* 魔視智能科技（上海）股份有限公司 (A joint stock company incorporated in the Pe ...

Core Insights - Magic View Intelligent is a smart driving solution provider that has shown significant revenue growth but continues to face persistent net losses, indicating challenges in market competition, technology development, and operational management [1] Business and Financial Performance - The company focuses on self-developed full-stack technology to provide L0 to L4 level smart driving solutions, with major products including Magic Drive, Magic Parking, and Magic Safety. Revenue is generated through direct sales and sales via first-tier suppliers, with Magic Drive accounting for 61.8% of total revenue in the first half of 2025 [2] - Revenue has increased from 117.8 million RMB in 2022 to 146.5 million RMB in 2023, and is projected to reach 356.8 million RMB in 2024, resulting in a compound annual growth rate (CAGR) of 74.0% from 2022 to 2024. The first half of 2025 saw revenue of 188.6 million RMB, a 76.4% increase from the same period in 2024 [3] - Despite revenue growth, the company has recorded net losses of 200.4 million RMB in 2022, 228 million RMB in 2023, and 233.5 million RMB in 2024, with net loss rates of 170.1%, 155.6%, and 65.4% respectively [3][4] Gross Margin and Profitability - The gross margin has fluctuated, with rates of 25.6%, 13.7%, and 14.2% from 2022 to 2024, and a notable increase to 20.1% in the first half of 2025. The gross margin for Magic Drive is relatively high, while Magic Parking has shown significant improvement due to economies of scale [4] - The company has consistently negative net margins, with rates of -170.1%, -155.6%, and -65.4% from 2022 to 2024, indicating ongoing challenges in cost control and profitability [5] Solution Segmentation - Revenue is primarily derived from three solutions: Magic Drive, Magic Parking, and Magic Safety. Magic Drive has the highest revenue share, accounting for 60.3% in 2022, 47.6% in 2023, and 63.6% in 2024, while Magic Parking's share has increased significantly [5][6] Management and Governance - The company is led by Dr. Yu Zhenghua, who has over 20 years of experience in AI algorithms and product development. The management team possesses substantial industry experience, which supports the company's growth [17] - The company's shareholding structure is relatively concentrated, with Dr. Yu controlling 29.65% of the voting rights, which may lead to strong influence over decision-making processes [13]