HK Stock Connect Insight | MINIEYE (02431.HK) Falls 32% Since Stock Connect Removal; Discounted Placement of 20.13 Million Shares on July 22 Raised Net HKD 122 Million

On October 30, 2026, the intelligent driving theme traded divergently, and MINIEYE (02431.HK) weakened. As of 13:48, the stock was quoted at HKD 1.610, down 3.01%, with a turnover of about HKD 413,200 and a market capitalisation of about HKD 700 million based on the latest price.

According to the data, MINIEYE's share price over the past week (October 23 to October 30) remained weak. It touched an intraday low of HKD 1.535 on October 15, a 52-week low.

Over a longer horizon, MINIEYE fell about 9.8% in the past month, about 62.8% in the past three months and about 93.7% over the past 52 weeks. The share price has continued to decline from its post-listing high of HKD 39.500, and the current market capitalisation of HKD 700 million is less than 20% of the HKD 4 billion removal threshold for small-cap Stock Connect eligible securities.

On September 7, the adjustment of the Hang Seng Composite Index took effect, and MINIEYE (02431.HK) was removed from the index, and was accordingly removed from Stock Connect. From the effective date, mainland Stock Connect investors can only sell, and cannot newly open buy positions.

It is understood that MINIEYE listed on the Main Board of HKEX on December 27, 2024 at an offer price of HKD 17.00, as a direct listing on the HKEX Main Board and an H-share structure. On February 21, 2025, Hang Seng Indexes Company announced the results of its quarterly review as at December 31, 2024, and the company was included in the Hang Seng Composite Index, and was added to Stock Connect from March 10, 2025. The company has about 435 million issued shares (as at October 30, 2026).

In terms of the share price's historical trajectory, the company was added to Stock Connect on March 10, 2025, closing at HKD 26.200 that day, equivalent to a market capitalisation of about HKD 10.5 billion based on about 400 million issued shares at the time. The share price has since continued to fall; during its time as a Stock Connect eligible security, the market capitalisation dropped from about HKD 10.5 billion to the current HKD 700 million, a cumulative decline of about 93.3%, while the share price is down 93.9% from its close on the day of inclusion.

Public information shows that MINIEYE's main business is intelligent driving and intelligent cockpit solutions, divided into two segments, intelligent components and solutions and unmanned vehicles and operation services: the former comprises intelligent driving solutions (iSafety and iPilot) and intelligent cockpit solutions (DMS and OMS), while the latter provides unmanned vehicle products and operation services. In the first half of 2026, intelligent driving solutions revenue was RMB 257 million, accounting for 57.03% of revenue; intelligent cockpit solutions revenue was RMB 125 million, up 105.9% year on year and accounting for 27.82%; unmanned vehicles and operation services revenue was RMB 52.642 million, accounting for 11.7%.

In the first half of 2026, the company's revenue was RMB 450 million, up 30.15% year on year; gross profit was RMB 80.529 million, up 55.61%, with the gross margin rising from 15.0% to 17.90%. Profitability has yet to turn positive: the loss for the period was RMB 160 million, slightly narrower than RMB 162 million a year earlier; loss attributable to owners of the company was RMB 156 million, against RMB 152 million a year earlier; basic loss per share was RMB 0.38. On costs, research and development expenses were RMB 127 million, up 33.0% year on year, mainly due to growth in R&D headcount and higher project requirements; selling expenses were RMB 33.726 million and administrative expenses RMB 59.401 million, with period expenses totalling RMB 225 million. Net cash used in operating activities was RMB 249 million, against RMB 159 million a year earlier.

On new business, unmanned vehicles and operation services revenue in the first half of 2026 was RMB 52.642 million, up 423.4% year on year; the company launched the Xiaozhu T5 Pro, China's first "truly mapless" L4 unmanned logistics vehicle, in April, and has expanded into overseas markets including Australia and Southeast Asia. On overseas business, the company has entered into a strategic cooperation with India's component supplier Sterling Group, with multiple export vehicle models covering markets in Southeast Asia, the Middle East and Latin America. On cash reserves, as at June 30, 2026, the company's cash and cash equivalents, restricted cash and time deposits totalled RMB 342 million, down from RMB 691 million at the end of 2025; total borrowings were RMB 471.7 million and the current ratio was 1.92 times. On July 22, the company placed 20.1324 million new H shares at HKD 6.23 per share, raising net proceeds of about HKD 122 million, with about 70% to be used for the development of unmanned vehicle and physical AI businesses and about 30% for upgrading its fundamental R&D platform.

In terms of products and business developments, MINIEYE launched the Xiaozhu T5 Pro truly mapless L4 unmanned logistics vehicle in April this year, which has been deployed at scale in Jiyuan, Henan and will enter a period of intensive delivery in the second half; in the first half it secured multiple iPilot design wins from leading domestic independent brands and other customers, with total lifecycle order value exceeding RMB 1 billion, and mass production will start in the second half; its unmanned minibus secured orders exceeding RMB 130 million covering more than 100 units; and it entered into a strategic cooperation with India's Sterling Group to expand into the South Asian market.

EB SECURITIES noted in a research report that the iSafety business is expected to benefit from the continued roll-out of AEBS regulations, with AEBS projects obtained from several mainstream domestic commercial vehicle manufacturers having entered mass production and delivery; the iPilot business secured multiple design wins from leading domestic independent brands and well-known automakers in the first half, with total lifecycle order value exceeding RMB 1 billion and mass production to start in the second half, and is expected to continue driving revenue growth as L2+ assisted driving penetration rises; intelligent cockpits are expected to benefit from the refinement of DMS policy, as the national mandatory standard issued in June requires assisted driving systems to have driver monitoring capability; on unmanned vehicles, both product lines, unmanned logistics and unmanned minibuses, achieved commercial breakthroughs, with the Xiaozhu T5 Pro first deployed at scale in Jiyuan, Henan and set to enter intensive delivery in the second half.