After burning through HK$440 million over three-and-a-half years, Fisi Technology shifts focus to Hong Kong Stock Exchange, with new energy business gross margin at a mere 1.5%

ZC Asia has learnt that Fusheng Technology Co., Ltd. (hereinafter referred to as ‘Fusheng Technology’), which previously failed to gain listing on the STAR Market, has renewed its bid for capital market access. The company recently formally submitted its application for a Main Board listing to the Hong Kong Stock Exchange, with China International Capital Corporation Limited acting as its sole sponsor.

Business Structure Shifts as New Energy Segment Surpasses 60% Share

According to the prospectus, established in 2001, Feishi Technology primarily engages in the R&D, production, and sales of industrial control systems and electric drive systems for new energy vehicles. In the first half of 2025, the company achieved operating revenue of RMB 909 million, with a net loss of RMB 21.261 million – narrowing from the RMB 43.866 million loss recorded in the same period of 2024.

The company's business structure underwent significant adjustment. In the first half of 2025, revenue from new energy vehicle solutions surged from 36.3% in the same period of 2024 to 60.4%, becoming the core business for the first time. However, the gross profit margin for this segment stood at merely 1.5%, though turning positive compared to previous years, its profitability remains weak.

Historical burdens remain substantial, with losses exceeding one hundred million yuan stemming from client defaults

Financial data indicates that Fisi Technology has sustained prolonged losses. From 2022 to 2024, the company recorded revenues of RMB 1.376 billion, RMB 1.243 billion, and RMB 1.500 billion respectively, accompanied by net losses of RMB 130 million, RMB 112 million, and RMB 177 million during the same periods. Including losses from the first half of 2025, the cumulative deficit over the past three and a half years reached RMB 440 million.

In the first half of 2025, the company's top five clients contributed 64.7% of its revenue, with the largest client accounting for 26.8%. The prospectus disclosed that in 2024, due to a new energy vehicle client facing financial difficulties, the company recognised a full impairment loss of RMB 104 million on trade receivables and wrote down inventory by RMB 17.4 million.

Second attempt at capital market listing faces uncertainties

This marks Fisi Technology's second attempt to enter the capital market. In 2021, the company applied for listing on the STAR Market but was unsuccessful. In March 2022, it resumed listing preparations, only to terminate its A-share listing process in June this year and pivot towards the Hong Kong stock market.

The company holds a certain market position in the industrial control sector. Based on 2024 revenue, Fisi Technology ranks second in China's specialised electric drive solutions market for industrial control. However, the prospectus also highlights challenges from competitors such as Inovance Technology and Estun Automation. In the high-end market, foreign brands still command over 80% of the share.

Downward pressure on industry pricing remains significant. The prospectus reveals that the average winning bid price for energy storage systems fell from RMB 1.24/Wh in 2023 to RMB 0.5/Wh in 2024, representing a decline of approximately 60%, reflecting the intense price competition across the sector.

The success of Fusheng Technology's Hong Kong IPO hinges largely on investor recognition of its technological accumulation and global expansion strategy, alongside confidence in its prospects for improved profitability. Against the backdrop of intensifying competition in the new energy vehicle sector, how Fusheng Technology balances business expansion with profit enhancement will become a focal point for market attention.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.