Nanfang Black Sesame Group's smart (02533) was listed on the Hong Kong Stock Exchange on August 8th! The "first stock of autonomous driving AI chips" is about to debut.

With the red-hot popularity of Luo Bo running in Wuhan driving the boom of self-driving, Nanfang Black Sesame Group Intelligence (02533), also headquartered in Wuhan, officially listed on the Hong Kong Stock Exchange on August 8 as the "first stock of automatic driving AI chip", attracting great attention from the capital market. It is reported that Nanfang Black Sesame Group Intelligence was established in 2016 and is a leading supplier of automotive-grade intelligent automobile computing SoC and SoC-based solutions, as well as one of the early enterprises in the field of automatic driving chip layout. Currently, Nanfang Black Sesame Group Intelligence has entered the top echelon of automatic driving chip field globally and has been selected in the "2023 Hurun Global Unicorn List". According to the prospectus, based on the shipment volume of high-performance automotive-grade SoC (50+ TOPS) in 2023, Nanfang Black Sesame Group Intelligence is the third largest supplier globally and the second largest domestic supplier in China, ranking among the top tier in the global automatic driving AI chip field. It is worth noting that Nanfang Black Sesame Group Intelligence has already been favored by capital in the primary market, with well-known companies such as Xiaomi, Tencent, and Nio as its shareholders, highlighting recognition of its strength. Due to technological advancements and rapidly declining costs, by 2023, the penetration rate of passenger vehicles with automatic driving functions worldwide had reached 69.8%, with China reaching as high as 74.7%, driving rapid development in the automatic driving SoC market. According to Frost Sullivan data, from 2019 to 2023, the market size of automatic driving SoC for ADAS applications in China increased from 2.4 billion RMB to 14.1 billion RMB, with a high compound annual growth rate of 55.5%, 17 percentage points higher than the global market growth rate of 38.6%. Frost Sullivan stated that thanks to policy support, continued cost reductions, and increasing market recognition of automatic driving, the market for automatic driving SoC in ADAS applications will continue to grow rapidly. From 2023 to 2028, the market size in China is expected to increase from 14.1 billion to 49.6 billion, with a compound annual growth rate of 28.6%, slightly higher than the global growth rate of 27.5% during the same period. By 2028, the global market size will approach nearly one trillion RMB. Benefiting from the rapid volume increase of automatic driving products and solutions, Nanfang Black Sesame Group Intelligence's revenue increased significantly from 60.504 million RMB in 2021 to 312 million RMB in 2023, with a high compound annual growth rate of 127%. The revenue share of automatic driving products and solutions also quickly increased from 56.6% in 2021 to 88.5% in 2023. Additionally, Nanfang Black Sesame Group Intelligence continues to focus on the high-performance chip market and continuously develops new products and iterates solutions to accelerate the commercialization speed of the company. The cross-domain competitive Wu Dang C1200 is expected to generate revenue in 2025 and is expected to be mass-produced in 2026. The A2000 will be launched in 2024 and generate income next year. Simultaneously, the next-generation V2X edge computing solution and the next-generation commercial vehicle active safety system will begin mass production in the third quarter of this year, which is expected to tap into the needs of various customers in different application scenarios and further expand the customer base. By providing various hardware and software products, the company will expand its business coverage beyond autonomous driving to meet the demands of intelligent automobiles and other markets such as Siasun Robot & Automation. It can be foreseen that with the mass production of Wu Dang C1200 and the update of automatic driving solutions, the commercialization of Nanfang Black Sesame Group Intelligence will accelerate further, and its performance in 2024 and 2025 is expected to continue to maintain high growth with strong certainty.