We are a leading smart cockpit solution provider in China. According to CIC, we are the third-largest provider of smart cockpit domain controller solutions for passenger vehicles in China in terms of shipment volume in 2024, with a 7.3% market share — ranking after players with market share of 21.7% and 10.4%. We stand among the few enterprises that first developed smart cockpit solutions, ahead of most of our peers. While other smart cockpit solution providers primarily focus on hardware, we differentiate ourselves by offering smart cockpit solutions that integrate software, hardware and cloud-based vehicle connectivity. This approach ensures an integrated solution tailored to meet diverse customer needs.
Smart cockpits are an essential component in the automotive industry’s intelligent transformation, providing users with the most tangible and perceivable benefits from automotive intelligence technologies. Consumers of high-end and emerging automotive brands are increasingly seeking enhanced in-vehicle experience. This growing demand is propelling the intelligent transformation of the automotive industry, consequently raising the value of smart cockpits. According to CIC, the size of China’s passenger vehicle smart cockpit solutions industry in terms of revenue is expected to grow from RMB129.0 billion in 2024 to RMB299.5 billion in 2029, at a CAGR of 18.4%. According to the same source, Chinese OEMs are increasingly capturing a higher market share in China’s automotive industry, and are moving towards developing high-end vehicles with advanced automotive intelligence features. This transition is anticipated to generate higher demand for smart cockpit solutions. Leveraging our significant presence among Chinese OEMs, we are well positioned to capitalize on the industry growth.
We provide OEM and Tier-1 customers with domain controllers — the backbone of a smart cockpit — as our core products. Our customers have the flexibility to choose an integrated solution, combining domain controllers deployed with our operating system and various hardware components like display screens and other devices assembled by us, tailored to their vehicle’s design. Alternatively, some customers opt to purchase from us domain controllers or other cockpit components, such as display screens and software, based on their specific needs. In addition to offering full-spectrum product development capabilities, we also provide assembly services for certain customers, using the raw materials and accessories they supply to produce domain controllers. Beyond supplying domain controllers and other components, we also provide stand-alone R&D services to customers and charge them R&D services fees when these customers specifically engage us for conducting R&D activities to design and develop products or solutions based on their requirements pursuant to their contracts with us. As we customize our smart cockpit solutions to customers’ demand, our collaborations with customers are generally project-based. In 2023, we became one of the first companies to offer smart cockpit solutions powered by Qualcomm’s fourth-generation Snapdragon 8295 chipset in China, which, according to CIC, is among the mainstream automotive-grade chips for smart cockpit solutions with the highest computing power. As of December 31, 2024, we ranked first among Chinese smart cockpit solution providers in terms of the number of design wins for high-end smart cockpit solutions equipped with Qualcomm’s Snapdragon 8295 chipset in China, according to CIC. We also offer vehicle connectivity support services primarily to OEMs, assisting them in elevating the vehicle owners’ driving experience. Among the top five Chinese OEMs in terms of sales volume in 2024 according to CIC, three have deployed our smart cockpit solutions, with two of them also deploying our vehicle connectivity support services. We strategically target leading automotive OEMs in China as our core customers, including major Chinese OEMs and their rapidly-growing NEV brands such as Avatr and Voyah, as well as international OEMs. We believe this strategic customer focus can position us favorably to increase our market share.
We are a key contributor to the automotive industry’s intelligent transformation, consistently advancing innovation. In 2013, we introduced the first-ever automotive-grade operating system developed by a private-owned enterprise in China, according to CIC. We are currently partnering with a globally-leading technology company and certain Chinese automotive OEMs to engage in developing the first in-vehicle operating system with entirely domestic intellectual property. In 2023, we formed a company with a leading semiconductor provider in China and other industry partners, dedicated to the R&D of domestic automotive- grade chips.
With industry-leading R&D capabilities, we have achieved numerous technological innovations since our inception and have developed comprehensive technologies across software, hardware and cloud-based vehicle connectivity. In 2023, the NDRC and other national-level governmental authorities collectively recognized us as a National Enterprise Technology Center (國家企業技術中心). Two of our proprietary technological innovations related to smart cockpit solutions and vehicle connectivity were acknowledged as internationally leading technologies by the National New Energy Vehicle Technology Innovation Center of China (國家新能源汽車技術創新中心) (“NEVC”). We ranked first in terms of the number of registered invention patents among domestic smart cockpit and vehicle connectivity support solution providers as of December 31, 2024, according to CIC.
Mr. Ying, our founder and chairman of the Board, guides our growth with his visionary leadership and rich industry experience. Mr. Ying’s application of the 3G network to vehicle connectivity, as early as its introduction in 2010, laid a solid foundation for us to lead the intelligent transformation of the automotive industry over the next decade. Mr. Ying is widely recognized in the industry, serves as a member in many industry organizations, including the National Technical Committee of Auto Standardization (全國汽車標準化技術委員會), and has received numerous prestigious awards, including the Shanghai May 1st Labor Medal (上海市五一勞動獎章) and being named an Eminent Entrepreneur of Shanghai (上海市優秀企業家), Fifth Shanghai Industrial and Commercial Leader (第五屆上海市工商業領軍人物) and 2023 World Internet of Things Awards — Outstanding Person of the Year (2023世界物聯網大獎— 年度傑出人物).
We integrate upstream and downstream resources across the automotive intelligence ecosystem, achieving synergistic cooperation with a diverse array of partners. Our market leadership and strong technology capabilities enable us to establish mutually-beneficial relationships with upstream players such as automotive-grade chip and operating system suppliers, downstream OEM customers, as well as content and other service providers. For instance, through our extensive collaboration with Qualcomm, we became one of the first companies to offer smart cockpit solutions powered by Qualcomm’s Snapdragon 8295 chipset in China, securing design wins from notable customers. Furthermore, our close partnership with BlackBerry has led to the launch of smart cockpit solutions based on the BlackBerry QNX platform — a full-featured development environment with a deterministic real-time operating system — now utilized in various models from Avatr and other OEM brands.
Leveraging our leading position in the market, we achieved substantial growth during the Track Record Period. We sold approximately 4.6 million smart cockpit products in the aggregate during the Track Record Period. Our shipment volume of domain controllers grew at a CAGR of 36.9% from 488 thousand units in 2022 to 915 thousand units in 2024, and increased by 20.4% from 221 thousand units for the five months ended May 31, 2024 to 266 thousand units for the five months ended May 31, 2025. Our revenue increased by 22.8% from RMB1,217.8 million in 2022 to RMB1,495.8 million in 2023, and further increased by 70.9% to RMB2,557.0 million in 2024. Our revenue increased by 34.4% from RMB560.9 million for the five months ended May 31, 2024 to RMB753.6 million for the five months ended May 31, 2025. Our net loss decreased from RMB452.2 million in 2022 to RMB283.8 million in 2023, and increased to RMB540.8 million in 2024. Our net loss decreased by 10.2% from RMB244.8 million for the five months ended May 31, 2024 to RMB219.9 million for the five months ended May 31, 2025. Our adjusted net loss (non-IFRS measure) was RMB390.5 million, RMB218.4 million, RMB352.4 million, RMB167.6 million and RMB164.5 million in 2022, 2023, 2024 and for the five months ended May 31, 2024 and 2025, respectively. Our adjusted EBITDA (non-IFRS measure) was RMB(317.6) million, RMB(126.6) million, RMB(215.3) million, RMB(114.9) million and RMB(100.8) million in 2022, 2023, 2024 and for the five months ended May 31, 2024 and 2025, respectively. See “Financial Information — Description of Major Comprehensive Income Line Items — Non-IFRS Measures” for a reconciliation of our net loss to the adjusted net loss (non-IFRS measure) and adjusted EBITDA (non-IFRS measure). With cash and cash equivalents of RMB900.7 million as of May 31, 2025, supplemented by the proceeds from the Global Offering, we believe we are well-equipped
financially to support our ongoing operations and strategic growth initiatives.
Source: PATEO (02889) Prospectus (IPO Date : 2025/09/22) |