Huada Beidou makes another attempt at Hong Kong listing: Global sixth in shipment volume, with cumulative losses nearing RMB 600 million over three and a half years

ZC Asia has learnt that Shenzhen Huada Beidou Technology Co., Ltd. (hereinafter referred to as ‘Huada Beidou’) has recently resubmitted its listing application to the Main Board of the Hong Kong Stock Exchange, updating its financial data up to June 2025. This marks a renewed push following the lapse of its initial application in June 2025, with CMBI and Ping An Securities (Hong Kong) acting as joint sponsors.

Revenue Shows Volatile Growth, Reaching RMB 403 Million in First Half of 2025

According to the prospectus, Huada Beidou's revenue for the first half of 2025 amounted to approximately RMB 403 million, representing a 20.1% increase compared to RMB 335 million during the same period in 2024. Reviewing historical performance, the company's revenue from 2022 to 2024 stood at RMB 698 million, RMB 645 million, and RMB 840 million respectively, exhibiting notable fluctuations.

Specifically, 2023 revenue declined by 7.6% year-on-year, primarily due to reduced income from GNSS chips, modules, and related solutions, particularly impacted by delayed project deliveries such as forestry monitoring initiatives; 2024 witnessed a recovery with a 30.2% year-on-year increase.

（Image source: Company prospectus）

Revenue structure reliant on third-party products, gross margin under sustained pressure

Huada Beidou positions itself as a spatial positioning service provider, offering products including self-developed GNSS chips, modules, and related solutions, alongside integrated chips and modules procured from third parties. Although the company ranked sixth globally and second among mainland Chinese enterprises in the GNSS chip and module market by shipment volume in 2024, with a 4.8% market share, its primary revenue source does not stem from proprietary GNSS products.

During the reporting period, revenue from integrated chips and modules consistently accounted for a significant proportion: 72.3%, 74.0%, 71.7% and 67.8% respectively from 2022 to the first half of 2025. Over the same period, revenue from GNSS chips, modules and related solutions never exceeded 30%, rising only to 32.2% in the first half of 2025. The company also disclosed in its prospectus that sales of third-party branded products within the integrated chip and module business accounted for over 85% of revenue.

The company's overall gross profit margin showed a declining trend: 12.0%, 10.5% and 9.8% for 2022, 2023 and 2024 respectively, with a slight recovery to 10.5% in the first half of 2025. Breaking this down, the gross margin for GNSS chips and related solutions gradually decreased from 36.0% in 2022 to 26.0% in the first half of 2025, a reduction of approximately 10 percentage points. Meanwhile, the gross margin for the integrated chip and module business has long remained at a low single-digit level, ranging between 2.8% and 3.2% during the reporting period, contributing little to overall profits.

Three Consecutive Years of Losses, Persistently Negative Cash Flow

Regarding profitability, Huada Beidou has yet to achieve profitability. From 2022 to the first half of 2025, the company recorded net losses of approximately RMB 92.612 million, RMB 289 million, RMB 141 million, and RMB 63.577 million respectively, accumulating losses nearing RMB 600 million. Adjusted net losses followed a similar trajectory. The company attributes these losses to factors including low gross margins due to market penetration pricing, substantial sales and R&D expenditures, and one-off items such as goodwill impairment.

Cash flow from operating activities also recorded sustained net outflows: ¥80 million, ¥107 million, ¥141 million, and ¥88 million respectively from 2022 to the first half of 2025. By June 2025, cash and cash equivalents had declined from ¥830 million in 2022 to ¥244 million.

Shareholder roster includes BYD and Gree; early investors may seek exit opportunities

Prior to the IPO, industrial capital figures appeared among the company's shareholders: BYD held a 4.12% stake, while Zhuhai Gree Venture Capital held 3.536%. Public information indicates that Huada Beidou has completed multiple rounds of financing since 2019, with early investors' cost per share rising from RMB 1.64 to RMB 5.09, representing an appreciation of approximately 2.1 times. Market analysis suggests this listing will both replenish funds for business expansion and potentially provide an exit route for earlier investors.

A CIC (灼识咨询) report indicates the global GNSS spatial positioning services market is projected to grow from ¥2.29 trillion in 2024 to ¥3.34 trillion by 2029, representing a compound annual growth rate of approximately 7.9%. Driven by applications in artificial intelligence and low-altitude economy sectors, certain segments are projected to achieve double-digit growth. However, the industry exhibits high concentration, with the top ten global enterprises commanding over 80% market share. BGI Beidou still trails leading players in terms of revenue scale.

Overall, Huada Beidou holds a certain market position in GNSS chip and module shipments, with revenue maintaining growth in recent years. Nevertheless, the company faces multiple challenges including reliance on third-party products, declining gross margins, persistent losses, and tight cash flow. Whether this renewed Hong Kong IPO attempt will gain market recognition remains to be seen.

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.