According to the Hong Kong Stock Exchange, PATEO Internet of Vehicles Technology (Shanghai) Co., Ltd. submitted a listing application to the main board of the Hong Kong Stock Exchange, with CICC, Guotai Junan International, CMB International, Huatai International and CITIC Securities as joint sponsors.
Synthesis | Prospectus Edit | Echo
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According to the prospectus, PATEO is a pioneer in China's automotive intelligent industry and one of the few suppliers in China that provides both intelligent cockpit and intelligent network solutions. According to CIC, the company is a leading independent local supplier of intelligent cockpit solutions to Chinese OEMs.
In 2010, the company launched China's first 3G Internet of Vehicles system, becoming one of the first companies to enter China's intelligent network market. PATEO is one of the first few companies to develop intelligent cockpit solutions, ahead of most similar companies.
Compared to other smart cockpit solution providers, which focus primarily on hardware, the company differentiates itself by providing a full-stack smart cockpit solution that combines software, hardware, and cloud services, which allows the company to provide a tailored total solution to meet the diverse needs of customers.
The intelligent cockpit is a necessary part of the intelligent transformation of the automotive industry, providing users with the most intuitive and perceptible experience brought by automotive intelligent technology. Consumers of premium and emerging automotive brands are increasingly looking for a better in-car experience. This growing demand is driving the intelligent transformation of the automotive industry, thereby increasing the value of intelligent cockpits.
According to CIC, the size of China's passenger car intelligent cockpit solutions industry is expected to increase from RMB105.5 billion in 2023 to RMB259.3 billion in 2028, at a CAGR of 19.7%.
According to the same source, Chinese OEMs are taking a higher and higher market share in the Chinese automotive industry and are shifting towards developing high-end vehicles with advanced intelligent features. This shift is expected to lead to a higher demand for smart cockpit solutions. With the company's significant position among OEMs in China, the company is able to capitalize on this transformational trend.
According to CIC, PATEO is the second largest independent local supplier of intelligent cockpit solutions for Chinese OEMs in terms of revenue from integrated hardware and software cockpit solutions in 2023. In 2023, the company became one of the first companies to offer a smart cockpit solution powered by Qualcomm's fourth-generation Snapdragon 8295 chip in China. According to CIC, this chip is one of the latest generation of automotive-grade chips with the highest computing power for intelligent cockpit solutions.
According to CIC, as of March 31, 2024, the company ranked second among smart cockpit solution providers in China in terms of the number of fixed-point high-end intelligent cockpit solutions equipped with Qualcomm 8295 chips.
PATEO also provides intelligent and connected solutions to enhance the driving experience and improve efficiency and cost-effectiveness. The company's intelligent cockpit and intelligent connected solutions have been adopted by three of the top five OEMs in China and four of the top five high-end emerging new energy vehicle brands in China (in terms of sales volume in 2023).
The company strategically targets leading automotive OEMs in China as its core customers, including major Chinese OEMs and their fast-growing NEV brands (such as AVATR and VOYANT), as well as internationally renowned OEMs.
As of December 31, 2023, PATEO has passed the qualification review of 22 automotive OEMs (original equipment manufacturers) 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 intelligent cockpit solutions were awarded 17 points from seven OEMs. As of March 31, the company has served more than 200 models of more than 40 car brands.
During the Track Record Period, PATEO sold approximately 2.6 million units of smart cockpit products, representing approximately 1.2 million units in 2023, with a CAGR of 55.2% from 2021 to 2023. In the first five months of this year, the company has delivered about 610,000 sets of intelligent cockpit units, a year-on-year increase of 140%.
In terms of finance, the Company's revenue increased by 41.0% from RMB864 million in 2021 to RMB1,218 million in 2022 and further increased by 22.8% to RMB1,496 million in 2023, and the Company's net loss increased from RMB372 million in 2021 to RMB452 million in 2022 and decreased to RMB284 million in 2023.
According to the prospectus, the company has experienced multiple rounds of financing, the most recent of which is in the first half of 2024, completing about 1.047 billion yuan of Series D financing, with a post-investment valuation of about 8.572 billion yuan.
Before the IPO, Ying Yilun, the founder of PATEO Internet of Vehicles, held 23.95% of the shares, the employee incentive platform held 11.38% of the shares, in addition, Xiaomi's Tianjin Jinmi held 5.75% of the shares, Dongfeng Group held 2.69% of the shares, and FAW held 2.42% of the shares.
The proceeds from PATEO's Hong Kong IPO are intended to be used to expand the product portfolio and solutions, as well as enhance technology and further strengthen full-stack in-house capabilities across software, hardware and cloud services. improve the company's manufacturing, testing and validation capabilities; Expand the company's sales and service network to increase the company's brand awareness; strategic acquisitions aimed at further integrating industry resources; For working capital and general corporate purposes.