Black Sesame International Holding Ltd Plans Hong Kong IPO Amidst Financial Losses

Chinese autonomous driving chip developer Black Sesame International Holding Ltd has submitted its listing application to the Hong Kong Stock Exchange, with China International Capital Corporation serving as the sole sponsor.

Established in 2016, Black Sesame specializes in high-performance computing chips and SoCs for autonomous vehicles. Its primary offerings include the A1000 and A2000 series chips, along with the Huashan No. 2 and No. 3 platforms. The A1000 series has entered mass production, and the A2000 is currently being sampled by customers. These products are aimed at automotive clients, particularly those developing advanced driver-assistance systems (ADAS) and autonomous driving capabilities.

According to the company’s prospectus, research and development (R&D) remains a significant focus. Between 2021 and 2023, Black Sesame’s R&D spending totaled RMB 637 million, RMB 671 million, and RMB 644 million respectively. This investment has supported a team that, as of March 31, 2024, comprises 414 R&D staff, accounting for 79.2% of total employees.

Despite its technological advancements, Black Sesame has not yet achieved profitability. The firm reported net losses of RMB 620 million in 2021, RMB 780 million in 2022, and RMB 830 million in 2023. As of the end of 2023, the company’s cumulative losses stood at RMB 3.1 billion.

The company also disclosed details on its chip production scale. From 2021 to 2023, it produced 20,000, 160,000, and 260,000 chips respectively, while sales volumes reached 20,000, 130,000, and 210,000 units. Major clients include Minieye and Horizon Robotics, as well as Tier 1 suppliers and leading automotive manufacturers.