Zhengjie Electronics' Hong Kong IPO: Three-Year Revenue CAGR Reaches 46% But Still Mired in Losses

Why does Jinjie Electronics, which is currently in a loss-making period, insist on listing in Hong Kong?

    "Dianman Finance" Dianman Account / Article

    In the wave of automotive intelligence, wireless sensor SoC chips are like a lighthouse in the dark, illuminating the technological path for future mobility. Jinjie Electronics, with its自主研发 (independent research and development) ambitions, is heading to the Hong Kong stock market, trying to establish its presence in this high-growth blue ocean.

    On March 6, Jinjie Electronics, a domestic company in the wireless sensor SoC field for automobiles, once again submitted an application for listing on the Main Board of the Hong Kong Stock Exchange, with China International Capital Corporation and Guotai Junan International serving as joint sponsors.

    The prospectus shows that Jinjie Electronics is a leading global supplier in the wireless sensor SoC field, dedicated to providing innovative sensor chips. According to a report by Frost & Sullivan, by 2025, the company will be the third-largest automotive wireless sensor SoC provider worldwide and the largest in China. The same source indicates that the automotive wireless sensor SoC market is a segment of the overall wireless sensor SoC market, with the top two players holding over 50% of the global automotive wireless sensor SoC market share.

    From 2023 to 2025, Jinjie Electronics's total revenue is projected to be 220 million yuan, 350 million yuan, and 480 million yuan respectively, with a compound annual growth rate of 46.2%. However, the year-over-year growth rate has sharply declined from 115% in 2023 to 37.5% in 2025. During the same period, the company's net loss attributable to shareholders was 360 million yuan, 350 million yuan, and 330 million yuan.

    From 2023 to 2025, the company's net cash outflow from operating activities was 61.17 million yuan, 140 million yuan, and 170 million yuan respectively.

    From 2023 to 2025, the company's cash conversion cycle (calculated as days of inventory turnover + days of accounts receivable turnover - days of accounts payable turnover) was 314 days, 217 days, and 260 days.

    During the same period, the company's inventory turnover days were 293 days, 188 days, and 208 days, with inventory scale increasing from 130 million yuan to 230 million yuan.

    The field of automotive wireless sensor chips is expanding rapidly. Jinjie Electronics is leveraging domestic substitution to penetrate more key scenarios. Technological positioning is like building a nest at the wind’s crest, but heavy investments in R&D and market development also pose challenges.

    Industry insiders point out that Jinjie Electronics’ story may be a profound reflection of the transformation of Chinese硬科技 (hard technology) companies from “survival” to “victory”—only by crossing the dark峡谷 (gorge) of losses can they touch the dawn of chip自主之光 (independent chip light).

    "Dianman Finance" will continue to follow the development.