Desay SV Automotive Launches Hong Kong IPO to Accelerate Global Expansion via "A+H" Listing Strategy

Desay SV Automotive has officially submitted an application for a main board listing on the Hong Kong Stock Exchange, formally launching its Hong Kong IPO process. Morgan Stanley and Huatai International are acting as joint sponsors. The company was listed on the Shenzhen Stock Exchange in 2017 and is now pursuing a dual "A+H" listing to expand its global market presence. From 2023 to 2025, the company’s revenue grew from RMB 21.9 billion to RMB 32.6 billion, while net profit increased from RMB 1.54 billion to RMB 2.47 billion, with consistently positive operating cash flow. Its business focuses on three core segments: intelligent cockpits, autonomous driving, and connected services. In the domain controller markets for both intelligent cockpits and autonomous driving, Desay SV holds the top position in both China and globally, serving over 80 OEMs. Currently, approximately 92.6% of the company’s revenue comes from mainland China. It faces mounting pressures from declining gross margins, intensifying industry competition, and rising R&D expenditures. Against this backdrop, the Hong Kong listing is viewed as a critical step to break through current growth constraints. Desay SV is advancing its overseas expansion through a “localized globalization” strategy and has begun establishing a global R&D and manufacturing network. However, it must navigate challenges such as geopolitical risks and export controls. Additionally, in 2025, the company launched an autonomous delivery vehicle brand and a smart robotics platform to create a second growth curve, though these new businesses have yet to generate revenue, and their commercial viability remains uncertain. With four decades of technological expertise, Desay SV has solidified its leadership in the industry. Whether it can successfully transition into a “world-class player” will depend on future financial performance and the validation of overseas orders.