On May 12, UISEE TECH, an autonomous driving solution provider focusing on unmanned L4-level technology, officially launched its global offering in Hong Kong, with an expected listing date of May 20. The offering is priced at HKD 60.30 per share. The base offering size is 14.46 million shares, which could increase to 16.63 million shares if the over-allotment option is fully exercised, corresponding to a total offering scale of HKD 870 million to HKD 1.0 billion.

As the leading autonomous driving solution provider in enclosed scenarios such as airports and industrial parks, the company is leveraging its dominant market position to enter the Hong Kong market. However, its path to listing presents a mixed picture, characterized by a relatively modest cornerstone investor lineup, persistently high losses and R&D expenditures, and a niche segment with a clear growth ceiling and distinct competitive barriers.

According to Frost & Sullivan, based on 2025 revenue, UISEE TECH ranks first among commercial vehicle L4 autonomous driving solution providers in both airport and industrial park scenarios in Greater China, with market shares as high as 90.5% and 31.7%, respectively. The company is the sole provider of large-scale commercial L4 autonomous driving solutions for global airports. It has successfully achieved commercial operation of unmanned electric tractors, shuttle buses, and patrol vehicles at Hong Kong International Airport and has collaborations with 17 Chinese airports and 3 overseas airports.

However, this leading position is underpinned by high dependence on two high-growth, yet very small, niche segments. In 2025, the market size for commercial vehicle L4 autonomous driving in Greater China's airport scenarios was only about RMB 100 million, projected to grow to RMB 1.76 billion by 2030. The industrial park scenario market size was RMB 144 million in 2025, expected to reach RMB 1.72 billion by 2030. Combined, the total market ceiling for these two core scenarios is approximately RMB 3.5 billion by 2030. Despite rapid segment growth and the company's absolute market leadership, the overall market volume remains limited. For an IPO with a valuation nearing HKD 10 billion, the existing market space struggles to support long-term high-growth expectations. The "high-growth, small-pond" nature defines a clear medium-to-long-term revenue ceiling, limiting the scope for growth imagination.

More importantly, there are strong barriers between different commercial vehicle scenarios (e.g., mines, ports, logistics). The company's leading advantages in airports and industrial parks may not be easily replicated in other fields. For instance, in the mining scenario, competitors like XIDI have already established first-mover advantages. The mining scenario market size reached RMB 1.4 billion in 2025, far exceeding that of airports and industrial parks.

Financial data reveals the company's typical profile of "high growth, high investment, high losses." From 2023 to 2025, operating revenue grew from RMB 161 million to RMB 328 million, but the year-on-year growth rate slowed from 64.5% in 2024 to 23.6% in 2025. In terms of gross margin, the company declined from 48.8% in 2023 to 43.7% in 2024, before recovering to 51.1% in 2025, which is above the industry average (e.g., XIDI's 2025 gross margin was 21.4%).

Profitability performance is severe. From 2023 to 2025, net losses were RMB 212 million, RMB 208 million, and RMB 227 million, respectively, with net loss rates as high as 132.1%, 79.7%, and 70.1%. Although the loss rate has narrowed, the absolute value remains at a very high level. The core issue is that high R&D and sales expenditures almost entirely consume the gross profit margin, making it difficult for the company to achieve profitability. During the same period, R&D expenses were RMB 184 million, RMB 196 million, and RMB 234 million, accounting for 114.3%, 74.0%, and 71.2% of revenue, respectively. The sales expense ratio also remained high, reaching 25.4% in 2025. Even with an industry-leading gross margin, it is insufficient to cover the high R&D and sales costs, making continuous losses an inevitable outcome.

Regarding cash flow, the company's net cash flow from operating activities has been consistently negative, at -RMB 120 million, -RMB 209 million, and -RMB 174 million from 2023 to 2025. As of the end of 2025, cash and cash equivalents stood at only RMB 113 million, a significant decrease from RMB 413 million at the end of 2023.

The autonomous driving industry as a whole remains in the early stages of commercialization, commonly facing high-loss challenges. Taking XIDI, which also focuses on closed scenarios, as an example, its 2025 net loss rate was as high as 115.2%, with operating cash flow also showing substantial continuous outflows. This industry characteristic means that investor valuations for autonomous driving companies are based more on future expectations than current profitability.

In terms of valuation, UISEE TECH's IPO implies a market capitalization of approximately HKD 9.8 billion, corresponding to a 2025 price-to-sales (PS) ratio of 29.8x. In comparison, peer company XIDI currently has a market cap of about HKD 10.5 billion, corresponding to a 2025 PS ratio of only 10.5x. Even considering UISEE TECH's leading position in airport and industrial park scenarios and its higher gross margin level, its valuation premium appears relatively pronounced. From an investment value perspective, the current pricing does not leave sufficient safety margin for the secondary market.

The cornerstone investor lineup for this IPO further reflects cautious market sentiment. The company introduced three cornerstone investors with a total investment of HKD 261 million, accounting for 30.0% of the base offering size. This proportion is on the lower side among recent Hong Kong IPO projects.

Regarding the lineup composition, Xiong'an Autonomous Driving (Hebei government funds) led the investment with HKD 224 million, accounting for 25.7% of the base offering, showing clear characteristics of local government support; 58.com invested HKD 7.82 million, accounting for only 0.9%; Starwin International invested HKD 29.70 million, accounting for 3.4%. Overall, the cornerstone lineup lacks influential foreign long-term funds or top-tier financial investors capable of providing strong market endorsement. This phenomenon is closely related to the autonomous driving industry's early commercialization stage and persistent losses, which limit institutional investors' willingness to participate in such projects.

More concerning are the risk signals at the offering mechanism level. Although this IPO includes an over-allotment option, providing flexibility to adjust the offering size, it does not include a greenshoe option. This means that if selling pressure emerges post-listing, there will be no stabilizing funds to buffer the market. While the over-allotment option allows adjustment of the float size based on market demand during the offering stage, it is essentially a one-way right for the issuer, fundamentally different from the greenshoe mechanism's active market support function post-listing. The absence of a greenshoe mechanism means the stock price will be directly exposed to market volatility in the initial listing period, highly susceptible to fund flows and sentiment-driven trading. Investors need to closely monitor the final allocation results announcement to see if there are any arrangements for related-party allocations aimed at stabilizing the market value.