Zhendi Technology Submits Hong Kong IPO Prospectus; Revenue Surges 12-Fold Since 2023 Amid Continued Losses

Recently, Zhendi Technology submitted its revised IPO prospectus to the Hong Kong Stock Exchange, revealing explosive revenue growth alongside persistent losses. According to its filing, the company's revenue increased from 160 million yuan in 2023 to 2 billion yuan in 2025, with the first five months of 2026 generating 956 million yuan, up 73% year-over-year. However, the company reported cumulative net losses exceeding 900 million yuan over 2023-2025, with net losses of 237 million yuan, 335 million yuan, and 331 million yuan respectively. In the first five months of 2026, net losses reached 128 million yuan.

The company's gross margin improved significantly from negative 8.3% in 2023 to 9% in the first five months of 2026. However, Zhendi faces a classic volume-price tradeoff: while motor controller sales volumes rose from 319,000 units in 2023 to 614,000 units in 2025, average selling prices declined from 4,328 yuan to 2,473 yuan over the same period. The company attributed the price pressure to intensified competition in the new energy vehicle market and consolidation among supply chain rivals, with the top ten domestic EV motor controller suppliers commanding 70.4% market share as of 2025.