According to HKEX disclosure on February 24, Shanghai W-Ibeda High Tech Group Co., Ltd. submitted a listing application on the Main Board of the Stock Exchange of Hong Kong, with ABC International as the exclusive sponsor. The company has been listed on the STAR Market of the Shanghai Stock Exchange (688071.SH) since 2021. The filing aims to expand international financing channels and further advance its globalization strategy.

As a leading Chinese new energy vehicle powertrain testing platform with global competitiveness, W-Ibeda operates three core businesses: new energy vehicle powertrain testing services, intelligent driving business, and powertrain intelligent testing equipment. According to Frost & Sullivan, by revenue in 2024, the company ranked first among domestic Chinese firms providing intelligent testing solutions for new energy vehicle powertrains.

Business Model: Synergistic Development of Three Segments, Testing Capability Extended to Intelligent Driving

W-Ibeda’s business layout consists of three segments: new energy vehicle powertrain testing services, powertrain intelligent testing equipment, and intelligent driving, which form synergies to build the company’s technical barriers and market position.

Powertrain testing service is one of the company’s core businesses. Based on self-developed testing equipment, W-Ibeda provides one-stop testing, engineering consulting and technology development services to customers in the automotive industry chain. This segment serves as both a stable revenue source and a foundation for technical accumulation. In 2023, 2024 and the first nine months of 2025, the segment recorded revenue of RMB 163 million, RMB 232 million and RMB 198 million, accounting for 46.2%, 54.8% and 51.1% of total revenue respectively, consistently representing nearly half of the total. After more than 20 years of development, the company has established strong technical barriers. It is a main drafter of the national industry standard Engine Cold Test Technology and has achieved import substitution against leading international competitors in China.

Powertrain intelligent testing equipment is another major revenue contributor. The segment provides intelligent testing equipment for automated inspection and quality assessment of key powertrain components to domestic and overseas customers. In 2023, 2024 and the first nine months of 2025, the segment generated revenue of RMB 177 million, RMB 151 million and RMB 112 million, representing 50.3%, 35.6% and 29.0% of total revenue respectively. Despite a declining proportion, it remains an important channel for the company to monetize its technologies.

Based on high-precision measurement technology, virtual sensor array algorithms and massive data accumulated from testing services, the company has successfully expanded into the intelligent driving sector. The intelligent driving business covers two areas: first, ADAS performance testing services for complete vehicles, with diversified professional testing scenarios developed; second, high-precision positioning products, including inertial navigation, satellite navigation and integrated positioning solutions, providing core support for the perception layer of intelligent driving systems. The business has grown rapidly, with revenue surging from RMB 12 million in 2023 to RMB 39 million in 2024, and reaching RMB 74 million in the first nine months of 2025, with its revenue proportion climbing sharply from 3.3% to 19.1%. Within only five years, the company achieved mass production of automotive-grade inertial navigation modules and obtained orders from mainstream automakers and humanoid robot manufacturers.

Significant technical synergy exists among the three business segments. The company’s self-built testing laboratories and the closed-loop“equipment-data-algorithm”ecosystem provide end-to-end verification capabilities for high-precision positioning products, ensuring automotive-grade reliability without full reliance on external testing resources. Meanwhile, the extensive customer network of automakers and component manufacturers accumulated through testing services offers ready access for cross-selling of intelligent driving products.

In terms of technical strength, the company has obtained multiple authoritative certifications, including MIIT Type Approval, CMMI 5 for software, CNAS system testing certification and CMA certification. As of September 30, 2025, it held 130 issued patents (including 25 invention patents), with 115 R&D personnel, accounting for approximately 19.8% of total employees. The company has also carried out industry-university-research cooperation with universities such as Shanghai Jiao Tong University, achieving breakthroughs in cutting-edge fields including rapid activation of fuel cell stacks and realizing domestic substitution of key equipment.

In globalization, W-Ibeda’s overseas business has expanded to Germany, France, Japan, South Korea, Brazil and other countries, with customers covering renowned automakers and automotive component manufacturers. The company has set up a subsidiary in Munich to provide new energy vehicle powertrain R&D services for European customers, which will also support Chinese automakers in their global expansion with localized services.

Financial Performance: Sustained Revenue Growth, Short-term Profit Pressure

Financial data shows that the company’s revenue has maintained steady growth, while profitability is under short-term pressure due to upfront costs from capacity expansion.

The company’s revenue rose 20.4% from RMB 352 million in 2023 to RMB 423 million in 2024. Growth momentum continued in the first nine months of 2025, with revenue reaching RMB 386 million, up 30.3% from RMB 297 million in the same period of 2024. The revenue growth was mainly driven by expanded service scope, enhanced service capacity, and rapid development of the intelligent driving and new energy vehicle powertrain testing service segments.

However, gross margin trended downward, falling from 39.5% in 2023 to 26.7% in 2024, and further slipping from 31.0% in the first nine months of 2024 to 21.7% in the same period of 2025. The company explained that the gross margin decline was mainly due to increased depreciation and utility expenses from newly commissioned laboratories and production lines, which lifted fixed operating costs, while revenue recognition lagged as new capacity ramped up gradually. Such a“cost upfront, revenue lagged”pattern is typical for technology enterprises in a capacity expansion phase.

In terms of expenses, the company maintained relatively stable R&D investment. R&D expenses were RMB 42.36 million, RMB 49.90 million and RMB 34.91 million in 2023, 2024 and the first nine months of 2025 respectively, with the R&D expense ratio staying at around 10%. Selling and marketing expense ratio edged down from 4.6% to 3.2%, indicating effective cost control amid market expansion.

Affected by rising costs and upfront expenses, the company recorded net losses during the reporting period. Net losses amounted to RMB 15.91 million, RMB 45.75 million and RMB 29.26 million in 2023, 2024 and the first nine months of 2025 respectively. A profit alert issued by the company in January 2026 estimated a continued net loss attributable to shareholders for the full year of 2025, mainly due to increased fixed operating costs and delayed collection of certain receivables amid intensified competition in the automotive industry.

Regarding customer concentration, the top five customers accounted for 33.9%, 34.3% and 35.4% of total revenue in 2023, 2024 and the first nine months of 2025 respectively, with the largest customer contributing 12.2%, 7.8% and 8.9% respectively, representing a healthy level overall. Supplier concentration stood at 33.7%, 24.3% and 32.3% over the same period, with no significant dependency risk.

A+H Dual Listing: IPO Proceeds to Fund Cutting-edge Technologies, Accelerate Intelligent Driving Layout

W-Ibeda’s A-shares were listed on the STAR Market of the Shanghai Stock Exchange in July 2021, marking a major milestone in the company’s development. The proposed Hong Kong IPO aims to expand international financing channels and improve its global layout.

In terms of ownership structure, the company’s founder, Mr. Li Yin, established W-Ibeda in 1998 and has led the company in the automotive testing sector for more than 20 years. The company implemented an equity incentive plan from 2023 to 2024, granting incentive shares to eligible participants and issuing over 21,000 new A-shares in total, reflecting its focus on retaining core talents.

According to the prospectus, proceeds from the H-share listing will mainly be used for technology R&D and industrial layout. A substantial portion will be allocated to the R&D of high-precision positioning technology and the development of multi-sensor fusion technology and platforms, both directly supporting the deepening of the company’s intelligent driving business. The funds will also be used for business development and marketing to expand market share. Notably, the company explicitly plans to use part of the proceeds for the industrial layout of perception technology in embodied intelligence, showing forward-looking deployment in emerging application scenarios such as robots.

In terms of market prospects, the industry the company operates in enjoys sustained growth potential. China’s automotive testing market is projected to expand from RMB 39.8 billion in 2024 to RMB 50.6 billion in 2029, representing a CAGR of 4.9%. Driven by rising penetration of new energy vehicles and accelerated iteration of intelligent driving technologies, demand for advanced testing equipment and digital testing platforms will keep expanding. Especially in high-precision positioning sectors such as inertial navigation, market space will open up further with the gradual commercialization of L3 and above autonomous driving.

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