Genasys Inc., a leading domestic supplier of GNSS chips and modules, has submitted its second application for a Hong Kong IPO amid consecutive annual losses and persistent negative operating cash flow. The company recently filed its listing application with the Hong Kong Stock Exchange, with CMBI and Ping An Securities (Hong Kong) acting as joint sponsors.

According to CIC data, Genasys ranked sixth globally in GNSS chip and module shipments in 2024, capturing a 4.8% market share, while ranking eighth by revenue. Despite fluctuating performance, the company has maintained high growth in recent years, with H1 2025 revenue reaching RMB 403 million, up 20.2% YoY. However, it remains unprofitable, reporting net losses of RMB 93 million, RMB 289 million, RMB 137 million, and RMB 69 million from 2022 to H1 2025, totaling RMB 588 million. Cash reserves dwindled from RMB 830 million to RMB 244 million during this period.

Between 2019 and 2022, Genasys raised funds across nine financing rounds (Series A to C2), with institutional entry costs per share rising from RMB 1.64 to RMB 5.09—a 2.1x increase. The IPO aims to address financial losses, fuel growth, and provide exit opportunities for early investors while attracting cornerstone investors to strengthen its shareholder base.

**Low Margins and Persistent Losses** Genasys operates two synergistic business lines: GNSS chips/modules/solutions and integrated chips/modules. The GNSS segment, distributed via direct and indirect sales, grew faster than the overall business, contributing 32.2% of H1 2025 revenue (up from 27.7% in 2022), with direct sales surging 197.8% YoY. The integrated chips/modules segment, its core business (67.8% of H1 2025 revenue), saw steady 5% growth.

While new customer acquisition slowed, average revenue per customer rose significantly for GNSS chips/modules (up 107.7% to RMB 2.297 million) and integrated chips/modules (up 21.8% to RMB 4.877 million). Customer concentration remains moderate, with top-five clients contributing 38.6%–48.6% of revenue.

Persistent losses stem from low gross margins (10.5% in H1 2025, down 1.5pp since 2022), despite improving expense ratios. Adjusted EBITDA losses totaled RMB 58 million, RMB 249 million, RMB 91 million, and RMB 27 million from 2022 to H1 2025.

**Weak Cash Generation** Genasys specializes in high-integration SoC designs for GNSS positioning, serving transportation, consumer electronics, and environmental monitoring. GNSS chip/module sales volume grew at mid-to-high double-digit rates, but average selling prices fell over 35% since 2022 (to RMB 4.8 and RMB 16.3 for standard- and high-precision products in H1 2025).

Its GNSS solutions, deployed in 570+ contracts across industries like hydropower and mining, combine terminals, data collection systems, and cloud platforms. The integrated chips/modules business relies heavily (85%+) on third-party brands, limiting profitability.

Operating cash flow stayed negative (RMB 80 million to RMB 141 million outflows annually since 2022), exacerbated by high receivables (93.12% of H1 2025 revenue).

**Industry Outlook and Challenges** The global GNSS market (RMB 2.286 trillion in 2024) is projected to grow at a 7.9% CAGR to RMB 3.345 trillion by 2029, driven by AI adoption in consumer electronics and mobility. Genasys leads among Chinese peers in shipments (global #6) but trails in revenue (global #8).

Early investors, including Gree Venture Capital and Bosch Ventures, may seek exits post-listing. While Genasys shows growth potential, its reliance on low-margin third-party products and weak cash flow underscore the urgency for IPO funding.