The Hong Kong Stock Exchange recently disclosed that Zhixing Automotive Technology has passed the listing hearing of the Hong Kong Stock Exchange and is expected to become "the first autonomous driving stock in Hong Kong stocks". Citigroup, Huatai International, and CCB International serve as joint sponsors. Zhixing Automobile is China's leading autonomous driving solution provider, focusing on autonomous driving domain controllers. The autonomous driving domain controller is a mission-critical component of L2 to L5 autonomous driving. As the brain of the autonomous driving solution, it fuses and processes data from vehicle sensors to make autonomous driving decisions and trigger actuators in the vehicle.
Zhixing Automobile has advanced full-stack self-research capabilities, including self-developed algorithms and software and hardware co-design capabilities. The company provides two autonomous driving domain controller product lines, namely the SuperVision developed in cooperation with Mobileye and the independently designed iDC series, including iDCMid and iDCHigh. Zhixing Auto also provides intelligent front camera (iFC) products. The company's solutions and products cover a wide range of vehicle price segments and all driving scenarios, including highways, ring roads, complex roads, rural roads and parking lots.
Zhixing Auto provides a variety of autonomous driving solutions and products. From the SuperVision developed in cooperation with Mobileye to the iDC series designed by the company, the company provides OEMs with a variety of autonomous driving domain controllers suitable for their different cost and technical requirements. The company also provides iFC solutions based on the company's core algorithms to OEMs at affordable prices.
During the Track Record Period, the majority of Zhixing Auto's revenue came from selling the company's autonomous driving solutions and products to OEMs, with a total of more than 100,000 autonomous driving domain controllers delivered. As of the Latest Practicable Date, the company has received designation letters from 14 well-known OEMs, including Geely Automobile, SAIC-GM-Wuling, Great Wall Motors, Chery Automobile, Dongfeng Motor and Polestar. They are expected to purchase autonomous driving domain controllers and iFC products from the company.
Since 2018, Zhixing Automobile has established a strategic partnership with Mobileye. The company cooperates with Mobileye to launch SuperVisio, a high-end autonomous driving solution. JiKr001’s SuperVisio is one of the first applications of Mobileye’s EyeQ®5H System-on-Chip (SoC) in the industry. The company also cooperates with well-known upstream business partners such as Renesas Electronics, Texas Instruments and Sunny Optical to deliver customized solutions to OEM customers.
In terms of financial data, the prospectus disclosed that the company's revenue increased from RMB 359 million in the six months ended June 30, 2022 to RMB 543 million in the six months ended June 30, 2023. Zhixing Technology's revenue increased significantly from 47.7 million yuan in 2020 to 178 million yuan in 2021, and further increased to 1.3259 billion yuan in 2022, with an annualized growth rate of 427.2%. From 2020 to 2022, Zhixing Technology's adjusted net losses were 36 million yuan, 34 million yuan, and 17 million yuan respectively. The adjusted net losses in 2022 narrowed significantly.
It is worth noting that since 2017, Zhixing Automobile has completed multiple rounds of financing. Investors include professional financial investment institutions such as Yangfan Zhiyuan, state-owned shareholders such as mixed-ownership reform funds, and many well-known strategic partners in the industry such as HLKlemove and Li Auto.
In terms of market size, China's autonomous passenger car sales are expected to grow rapidly from 7.4 million units in 2022 to 18.6 million units in 2026. The penetration rate of autonomous passenger cars in China is expected to increase from 31.5% in 2022 to 73.5% in 2026. Therefore, the market for autonomous driving domain controllers is expected to grow rapidly in the near future.
According to Frost & Sullivan, China's autonomous driving domain controller market size is expected to be RMB 9.8 billion in 2022, of which RMB 3.3 billion will come from third-party autonomous driving domain controller suppliers. It is expected that China's autonomous driving domain controller market will reach RMB 64.5 billion by 2026, with a compound annual growth rate of 60.1% from 2022 to 2026. It is expected that third-party autonomous driving domain controller suppliers will occupy a larger market share in the future by providing OEMs with more diverse and cost-effective solutions.
In terms of competitive landscape, currently, China’s third-party autonomous driving domain controller suppliers are companies that design, develop and produce autonomous driving domain controllers for OEMs. In 2022, the total revenue generated by third-party autonomous driving domain controller suppliers will be RMB 3.3 billion, accounting for 33.1% of China's overall passenger car autonomous driving domain controller market. In addition, some OEMs develop autonomous driving domain controllers themselves and apply them to their own models without selling them to third parties.
In 2022, the top five market players accounted for 87.1% of the revenue of all third-party autonomous driving domain controller providers. In terms of revenue generated from the sales of autonomous driving domain controllers in 2022, Zhixing Automobile is China's second-largest third-party autonomous driving domain controller supplier, with a market share of 26.2%, and based on revenue from autonomous driving domain controller sales in 2022 (taking into account OEM's self-developed domain controllers), the company is China's fourth largest overall autonomous driving domain controller provider, with a market share of 8.6%.
Comprehensive | Prospectus Wind News Agency Editor | Arti