On September 5, 2025, Qinjie Electronics Technology (Jiangsu) Co., Ltd., a manufacturer of automotive wireless sensor SoCs (System-on-Chip), officially submitted its prospectus to the Hong Kong Stock Exchange, with China International Capital Corporation and CMB International serving as joint sponsors. Founded by Dr. Li Mengxiong, a Fudan University alumnus, this technology enterprise has achieved breakthrough innovations in automotive-grade chip technology, becoming the second company this year to apply for listing under the Hong Kong Stock Exchange's Chapter 18C specialist technology rules.
**Market Position: Global Third, China's Leading Player**
According to Frost & Sullivan research, Qinjie Electronics ranks as the world's third-largest and China's largest automotive wireless sensor SoC company by 2024 revenue. The company's core product portfolio encompasses smart tire sensing, battery management systems (BMS), universal sensor interface (USI), and other application scenarios, with cumulative shipments exceeding 164 million units and customer coverage including China's top ten automotive manufacturers.
In terms of technological barriers, the company has achieved multiple industry "firsts": it is China's first supplier to achieve mass production of TPMS SoC and BLE TPMS SoC, and remains the only domestic enterprise providing such products to automotive OEMs. As the world's first company to launch BPS SoC, its 2024 BPS SoC product revenue ranked first globally, and it is currently China's only company with automotive-grade wireless BMS capabilities.
**Financial Profile: High Growth Amid Losses, Continuous R&D Investment**
Financial data reveals that Qinjie Electronics' operating revenue surged from 104 million yuan in 2022 to 348 million yuan in 2024, representing a compound growth rate of 83%. In the first half of 2025, revenue reached 157 million yuan, up 27% year-over-year. However, the company remains in a strategic loss period, with net losses of 206 million yuan, 356 million yuan, and 351 million yuan respectively during the same period, and 143 million yuan in the first half of 2025.
The primary cause of losses stems from intensive R&D investment: R&D expenses accounted for 74%, 43%, and 31% of revenue from 2022-2024 respectively, maintaining a high 23% ratio in the first half of 2025. The company has clearly stated in its prospectus that it plans to use funds for business expansion and new product commercialization, enhancing core technology R&D capabilities, expanding domestic and international sales networks, strategic investments or acquisitions, and supplementing working capital to further consolidate its industry position and drive sustainable growth.
**Challenges and Opportunities: Breaking Through Under Rational Hong Kong Stock Valuations**
Despite holding a leading industry position, Qinjie Electronics faces several key risks:
• Single industry dependency: Company revenue primarily derives from the automotive sector, making performance directly susceptible to industry cyclical fluctuations;
• Seasonal volatility: The company typically recognizes a higher proportion of revenue in the second half of each year, mainly attributed to automotive industry customer procurement patterns;
• Unproven profitability path: The Hong Kong stock market is increasingly taking a rational approach to technology company valuations, with investors focusing more closely on scalable profitability timelines.
Note: This article incorporates AI-generated content. The views expressed do not constitute investment advice and are for reference only. Markets carry risks, and investment requires caution.