BYD "Gives Away Money and Orders", Creating the "No. 1 Smart Charging Stock" in the Hong Kong Stock Market with a Market Value Exceeding 10 Billion

After three attempts, it finally became the "first stock in intelligent charging" in the Hong Kong stock market.

On October 10, Shanghai Zhida Technology Development Co., Ltd. (hereinafter referred to as "Zhida Technology"), a provider of home charging solutions for electric vehicles, was listed on the main board of the Hong Kong Stock Exchange. It is reported that its public offering recorded an over - subscription of more than 5,000 times, with an amount exceeding HK$250 billion, making it the king of over - subscription in the new energy sector of Hong Kong's new stocks this year. Global well - known long - term funds such as VanCapital and Symmetry actively participated.

At today's opening, Zhida Technology soared 183.92% from the issue price of HK$66.92 to HK$190.0 per share, with a market value of HK$11.36 billion. As of the lunch break, Zhida Technology rose 183.02% to HK$189.4 per share, with a total market value of HK$11.324 billion.

Source: Xueqiu

The IPO process shows that as a specialized and innovative small giant enterprise, Zhida Technology planned to be listed on the New Third Board in 2022, but decided to turn to the Hong Kong stock market six months later. Thereafter, the company submitted its prospectus to the Hong Kong Stock Exchange in February and November 2024 and in July this year, and obtained the overseas listing record - filing notice from the China Securities Regulatory Commission in May this year.

The founder graduated from the School of Automotive Engineering of Tongji University and was invited to return to school to "teach" halfway through his entrepreneurship

The School of Automotive Engineering of Tongji University has always been known as the "Whampoa Military Academy" of the Chinese automotive industry.

In 1988, Tongji University established the major of Mechanical Design and Manufacturing (Automotive Direction) in the Department of Mechanical Engineering, pioneering the first Sino - foreign cooperative automotive professional education in China. It was the first five - year automotive major in China with dual languages of German and English. The School of Automotive Engineering of Tongji University, officially established in 2002, had its first dean as Professor Wan Gang, who is known as the "Father of the Chinese New Energy Automotive Industry".

The talents from the School of Automotive Engineering of Tongji University have also been shining in various automobile enterprises: Chen Hong, the chairman of SAIC Group; Wang Yongqing, the deputy chief economist; Lu Fang, the CEO of VOYAH; Zhang Hailiang, the chairman and CEO of NETA... Huang Zhiming, the founder of Zhida Technology, graduated from the School of Automotive Engineering of Tongji University.

Data shows that Huang Zhiming obtained a bachelor's degree in Mechanical Engineering and Automation from Tongji University, China in July 1998; a Master of Business Administration (International) (IMBA) degree from the University of Hong Kong in December 2005; and a doctor's degree in Management Science and Engineering from Tongji University, China in May 2013.

Huang Zhiming, now 51 years old, has more than 25 years of experience in the automotive industry. After graduating from undergraduate school, he joined Volkswagen and worked there for about 12 years in total, holding positions such as production supervisor, process designer, and technical director.

During this period, Huang Zhiming did not give up his entrepreneurial dream. Finally, in 2010, he combined his entrepreneurial idea of "intelligent travel" with the scientific research results of artificial algorithms and successfully embarked on the entrepreneurial path.

It is worth mentioning that halfway through his entrepreneurial journey, Huang Zhiming was appointed as a guest professor of innovation and entrepreneurship at Tongji University from May 2017 to May 2020.

Since 2015, Zhida Technology has completed eight rounds of financing in the capital market, with a cumulative financing amount of nearly 600 million yuan. The investors include financial capital, BYD, Shanghai Zhongdian Investment, Huaying Venture Capital, Zhenghai Capital, LeEco Auto, Zhongding Group, etc.

After the IPO, Huang Zhiming, the founder of Zhida Technology, directly holds 25.19% of the shares and controls 13.86%, 3.63%, and 0.25% of the shares through Tongdu Commerce, Tongdu Intelligence, and Tongdu Technology (employee incentive platform) respectively. In summary, the controlling shareholder group including Huang Zhiming controls approximately 42.93% of the voting rights of the company.

Source: Zhida Technology's prospectus

The prospectus shows that in the Series C3 financing in 2022, BYD invested 50 million yuan, and Chuangqi Kaiying, the co - investment platform of BYD employees, invested 500,000 yuan. After the IPO, the shareholding ratios of BYD and Chuangqi Kaiying are 3.17% and 0.03% respectively.

It is worth mentioning that LeEco Auto, founded by Jia Yueting, invested 15 million yuan in Zhida Technology in 2016. However, three years later, LeEco Auto transferred all its equity for 17.35 million yuan, making a profit of more than 2 million yuan.

In addition, as the sole sponsor, Shenwan Hongyuan Hong Kong participated in the Series D financing of Zhida Technology through Shenyin Wanguo in 2022, investing approximately 30 million yuan and holding 1.57% of its shares. In January this year, the latter transferred its shares for approximately 35 million yuan and is no longer a shareholder of Zhida Technology, making a profit of approximately 5 million yuan.

BYD "gives money and orders", with nearly 600 million in revenue and over 200 million in losses last year

Zhida Technology starts with providing intelligent home electric vehicle chargers to automobile manufacturers and users, and has developed a "trinity" home charging solution for electric vehicles consisting of products, services, and digital platforms.

According to Frost & Sullivan, in terms of the sales volume and sales amount of home electric vehicle chargers during the track record period (from 2022 - 2024 and the first three months of this year, hereinafter referred to as the "reporting period"), Zhida Technology ranks first in China. In terms of the sales volume of home electric vehicle chargers, its market share in the Chinese market reaches 13.6%, and the global market share reaches 9.0%. In terms of the sales amount of home electric vehicle chargers in China, Zhida Technology ranks third, with a market share of approximately 6.6%. In terms of the global sales amount of home electric vehicle chargers in 2024, its market share is approximately 3.9%.

At the product level, as of the end of March this year, Zhida Technology has cumulatively shipped 1.3 million home electric vehicle chargers globally and 1.2 million home electric vehicle chargers in China.

At the service level, Zhida Technology has established the largest electric vehicle charger service network in China, providing on - site installation and after - sales services. As of the end of March this year, it has covered more than 360 cities across the country, and has completed a total of 1.3 million installation and after - sales service jobs during the reporting period.

Meanwhile, to connect products and services as part of the overall energy management solution, Zhida Technology has built a digital platform. This platform has digitized the management of the installation and after - sales network and supports its shared charging service.

It is worth mentioning that Zhida Technology's ability to become the industry leader in the highly competitive Chinese new energy market is inseparable from the orders from automobile manufacturers. Among the top ten automobile manufacturers in China in terms of electric vehicle sales in 2024, Zhida Technology provides intelligent home electric vehicle chargers, accessories, or services to seven of them.

Taking BYD as an example, the prospectus shows that Customer B is a minority shareholder of Zhida Technology and is one of the top five customers during the reporting period. It is not difficult to deduce that this customer is BYD.

In 2021, BYD was only the second - largest customer of Zhida Technology, contributing approximately 54.744 million yuan in revenue. In the year when the investment was made, BYD "generously placed orders". Since 2022, BYD has always been the largest customer of Zhida Technology. The revenues contributed during the reporting period were approximately 267 million, 215 million, 148 million, and 36.873 million yuan respectively, accounting for 38.3%, 32.0%, 25.0%, and 17.0% of the total revenue respectively.

While automobile manufacturers are accelerating their overseas expansion, Zhida Technology has also caught a ride and entered the overseas market together with the above - mentioned major automobile manufacturers. Now, its products and services have covered 22 countries. According to Frost & Sullivan, in Thailand and Brazil, two rapidly growing electric vehicle markets outside China, Zhida Technology is one of the first and well - recognized providers of intelligent home electric vehicle chargers and services.

Based on multiple prospectuses, from 2021 - 2024 and the first three months of this year, Zhida Technology's revenues were approximately 358 million, 697 million, 671 million, 593 million, and 217 million yuan respectively; the gross profits were approximately 94.308 million, 142 million, 138 million, 88.575 million, and 35.784 million yuan respectively, with gross profit margins of 26.3%, 20.4%, 20.5%, 14.9%, and 16.5% respectively; the net losses were approximately 23.322 million, 25.147 million, 58.116 million, 236 million, and 17.078 million yuan respectively.

Source: Zhida Technology's prospectus

As of the end of March this year, Zhida Technology held approximately 146 million yuan in cash and cash equivalents.

In this IPO, Zhida Technology raised approximately HK$400 million, with a net fundraising of approximately HK$327 million. The company plans to use the funds for overseas expansion; research and development to enrich the company's product and service portfolio and enhance the company's digital platform and R & D capabilities; merger and acquisition activities to improve the company's ability to provide energy management services; and upgrading the existing production facilities and equipment at the Xuancheng factory to accommodate products designed for new models and emerging usage scenarios.

This article is from the WeChat official account "Direct Access to IPO", author: Wang Fei, published by 36Kr with authorization.