Car stuff (public account: chedongxi)
Author | Words
Editor | Zhihao
Rooted in 15 years, the cockpit company invested by Lei Jun has IPO!
Chexi reported on June 29 that a few days ago, PATEO Internet of Vehicles Technology (Shanghai) Co., Ltd. (hereinafter referred to as "PATEO") officially submitted a prospectus to the Hong Kong Stock Exchange to be listed on the main board.
According to the prospectus, in terms of revenue, PATEO achieved a revenue increase of 41.0% from RMB864 million in 2021 to RMB1.218 billion in 2022, and a further increase of 22.8% to RMB1.496 billion in 2023.
PATEO's financial status for the past three years
In 2021, 2022 and 2023, PATEO's net loss will be 372 million yuan, 452 million yuan and 284 million yuan, and the adjusted net loss will be 323 million yuan, 391 million yuan and 218 million yuan respectively.
Although the cumulative net loss in the three years exceeded 1.1 billion yuan, the three-year loss was narrowing year by year.
PATEO's R&D costs have also shrunk, with annual R&D costs of RMB279 million, RMB277 million, and RMB235 million respectively in the past three years.
In terms of shipments, PATEO sold approximately 2.6 million units of smart cockpit products during the Track Record Period, with a CAGR of 55.2% from 2021 to 2023.
In terms of customers, PATEO's core customers include major Chinese OEMs and their fast-growing NEV brands (such as AVATR and VOYAH), as well as well-known international OEMs.
In the first five months of this year, PATEO secured 17 smart cockpit product designations from seven OEMs, and as of the first quarter of this year, PATEO has served more than 200 models from more than 40 automotive brands.
PATEO, formerly known as Shanghai PATEO Yuezhen Electronic Equipment Manufacturing Co., Ltd., was established in Shanghai in 2009 and restructured into a joint stock limited company in 2021.
PATEO's office
According to public reports on the Internet, Ying Yilun, the founder and chairman of PATEO, was born in 1973, and when he was young, he saved millions of dollars by working as a photographer. In 2001, he founded Anresosi (China) Co., Ltd. at the invitation of Tsinghua University and other institutions since 2005, and has been a visiting professor at many universities.
Ying Yilun (Ying Zhenkai), Founder and Chairman of PATEO Internet of Vehicles Technology (Shanghai) Co., Ltd.
In 2009, as an "advertising person" who has undergone more than 10 years of baptism, Ying Yilun single-handedly founded PATEO Group, specializing in the development and service of intelligent vehicle information service systems.
At present, PATEO is also favored by capital, Dongfeng Group and China FAW Group Co., Ltd. are its shareholders, and Xiaomi's Tianjin Jinmi also holds 5.75% of the shares.
1. Won 17 fixed-point services for 200 models from 7 major OEMs
According to the prospectus, PATEO is one of the few suppliers in China that provides both intelligent cockpit and intelligent network solutions. In 2010, PATEO launched China's first 3G Internet of Vehicles (IoV) system, becoming one of the first companies to enter China's intelligent connected car market.
PATEO was also one of the first few companies to develop intelligent cockpit solutions, and today, PATEO provides core products and services including intelligent cockpit solutions and intelligent connected solutions.
PATEO's intelligent cockpit and connected solutions have been adopted by three of the top five OEMs in China and four of the top five high-end emerging NEV brands in China (in terms of sales volume in 2023).
PATEO's main business is divided into two major segments: intelligent cockpit solutions and intelligent connected solutions, and its cooperative customers include Chinese OEMs (such as AVATR and VOYANT), joint venture OEMs and internationally renowned OEMs.
According to CIC, PATEO is the second largest independent local supplier of smart cockpit solutions for Chinese OEMs in terms of revenue from hardware and software integrated cockpit solutions in 2023.
In the smart cockpit business, in the past three years, PATEO has achieved significant growth in the number of smart cockpit units (including embedded operating system domain controllers, screens, T-Boxes and other components related to smart cockpit solutions), and the number of smart cockpit units sold to OEM customers has increased from approximately 500,000 units in 2021 to approximately 1.2 million units in 2023.
As a result, PATEO's annual revenue from intelligent cockpit solutions also showed a growth trend, with annual revenues of 740 million, 1.079 billion, and 1.352 billion respectively, accounting for 85.7%, 88.6%, and 90.4% of all revenues respectively.
PATEO's business status in the past three years
In the first five months of this year, PATEO has delivered approximately 610,000 smart cockpit units (representing the sum of integrated cockpit controllers with embedded operating systems, screens, T-Boxes and other components related to PATEO's smart cockpit solutions), an increase of 140% compared to 250,000 smart cockpit units in the same period in 2023.
In terms of customers, PATEO, as a supplier of intelligent cockpits, has also entered the cooperation ecosystem of many automotive OEMs.
As of December 31, 2023, PATEO has passed the qualification review of 22 automotive OEMs for smart cockpit suppliers, including 15 Chinese OEMs, 5 joint venture OEMs and 2 international OEMs. In the first five months of this year, PATEO's smart cockpit solutions received 17 fixed points from seven OEMs.
As of March 31, 2024, PATEO has served more than 200 models from more than 40 automotive brands.
Second, Xiaomi Dongfeng is a shareholder and has just received financing of more than 1 billion yuan
Although PATEO is still experiencing continuous losses, PATEO has also stated that the reasons are mainly due to the significant upfront investment made to achieve economies of scale.
However, PATEO also said that PATEO's strong customer base, robust technology and product capabilities, and reliable large-scale production capacity provide a solid foundation for sustainable long-term growth.
As of April 30, 2024, PATEO had cash and cash equivalents of RMB848 million, and PATEO believes that PATEO has sufficient funds to support PATEO's ongoing operations and strategic growth plans.
According to the prospectus, PATEO has gone through 8 rounds of financing, the most recent of which was in the first half of 2024, when PATEO completed Series D financing, raising a total net proceeds of approximately RMB1.047 billion.
Shanghai PATEO's post-Series D valuation is 8.572 billion yuan, and the cost per share is 63.58 yuan.
PATEO's financing history
In terms of shareholders, PATEO's shareholders include Chinese OEMs such as Dongfeng Group and China FAW Group Co., Ltd., as well as local state-owned asset investment enterprises such as Shanghai Guosheng.
It is worth noting that PATEO is also invested by Xiaomi, and Xiaomi's Tianjin Jinmi holds 5.75% of the shares, and the names of Xiaomi Group and Xiaomi Technology Co., Ltd. are also displayed on the list of shareholders.
Some shareholders of PATEO
Ying Yilun, founder and executive director of Shanghai PATEO, also holds 23.95% of the shares.
Some shareholders of PATEO
In terms of team building, PATEO has a relatively stable number of employees in the past three years, with the total number of full-time employees in 2021, 2022 and 2023 being 1,597, 1,753 and 1,695 respectively, most of which are located in Chinese mainland.
In terms of R&D, PATEO has established six R&D centers in Nanjing, Dalian, Shenyang, Shenzhen, Wuhan and Changchun. As of December 31, 2023, PATEO's R&D team consisted of 682 experts, accounting for 40.2% of the total number of employees, of which 86.0% had a bachelor's degree or above.
Conclusion: Intelligent cockpit Tier1 sprints to IPO
It can be said that PATEO has made good achievements in technological innovation and domestic and foreign market expansion, and strives to occupy a place in the global intelligent cockpit market.
In the future, if PATEO can continue to give full play to its technological advantages, open up more markets, and further consolidate and enhance its market position, the capital market may be more optimistic about its prospects, which will also pave the way for its listing.