New Stock Preview | Targeting a 400 billion market space perception race track, Huanchuang Technology rushes into Hong Kong stocks

The Hong Kong stock market is currently experiencing a wave of enthusiasm for the listing of companies in the Siasun Robot & Automation industry, with the entire industry chain, from core components to complete solutions, under the spotlight of capital. Recently, another leading company in the Siasun Robot & Automation industry chain has embarked on the journey to list in Hong Kong. It was learned that Shenzhen Huanchuang Technology Co., Ltd. (referred to as "Huanchuang Technology"), a leading company in the Siasun Robot & Automation laser radar solution, officially submitted its application to the Hong Kong Stock Exchange on September 29th, with CICC and Guosen (Hong Kong) as the joint sponsors. According to Zhishi Consulting, based on revenue projections for 2024, Huanchuang Technology is a leader in the global sweeping robot space perception solutions sector, with a market share of over 50% in the laser radar product field, shipping approximately 8 million units. However, the advantage in scale has not yet translated into stable profit performance. Financial data shows that from 2022 to the first half of 2025, the company's revenue steadily increased from 146 million yuan to 433 million yuan, with 292 million yuan achieved in the first half of 2025; while the losses during the same period were 28.695 million yuan, 0.883 million yuan, 31.375 million yuan, and 4.157 million yuan, respectively, with the losses widening. With the coexistence of being the "top shipper" and continuous losses, how should the listing story of Huanchuang Technology be told? Fluctuating Profitability The prospectus shows that Huanchuang Technology is a company specializing in high-precision spatial awareness solutions, using AI technology to build intelligent spatial awareness systems, and providing high-precision algorithms and related hardware for intelligent robots and automation. Since its establishment, the company has cumulatively shipped over 25 million units. In the first half of 2025, the total shipments of laser radar and line laser sensors exceeded 5 million and 2 million units, respectively. It can be observed that the company has established a relatively complete product line in the field of intelligent robots and automation, covering various technologies such as traditional triangulation laser radar, dTOF laser radar, 3DTOF laser radar, and line laser sensors, which are applied in various scenarios such as intelligent robots and automation, XR, and industrial inspection. In terms of technological research and development, the company has the capabilities to design its own AI spatial algorithms and sub-millimeter AI spatial data processing chips. Its "consumer-level CIS+self-developed ASIC chip" technology solution has formed a certain balance between cost control and performance. The company's technical system is based on its self-developed spatial perception AI algorithm, aiming to improve the environmental perception and understanding capabilities of intelligent robots and automation. In practical applications, its technology solution needs to address changes in environmental factors such as lighting, materials, and textures. Through automatic image signal processing and AI-enhanced ranging technology, the company has maintained performance stability in different environmental conditions. At the same time, the company continues to optimize and iterate its technology through simulation environment testing and wireless upgrade functions. Based on its existing product matrix and technological capabilities, the company has established long-term cooperative relationships with major customers in the field of intelligent robots and automation. Data shows that the company has become a supplier to multiple mainstream sweeping robot companies and continues to receive relevant orders. While consolidating its existing business, the company is expanding its technological capabilities to new emerging applications such as lawn mowing robots and pool cleaning robots. In terms of revenue structure, the company mainly generates revenue from selling various types of laser radar products and line laser sensor products. During the reporting period, over 90% of the company's revenue came from triangulation laser radar. However, with the commercial launch of dTOF laser radar products in the second half of 2024 and the mass production of line laser sensor products in the first half of 2025, the proportion of revenue from triangulation laser radar has declined. In the first half of 2025, the revenue shares from triangulation laser radar, dTOF laser radar, and line laser sensor were 72.7%, 8.7%, and 18.1% respectively. It is noteworthy that the company's profitability has shown some fluctuations in recent years. The gross profit margins during the reporting period were 17.8%, 21.5%, 16.3%, and 13.2%, with a range of fluctuations approaching 5 percentage points. The reasons for the fluctuations include, on the one hand, the introduction of new products such as dTOF laser radar and line laser sensors to expand the product portfolio, which initially experienced high unit costs due to ramping up production capacity and insufficient economies of scale, resulting in a temporary drag on overall gross margins; on the other hand, in order to actively compete for market share, the company has adopted more competitive pricing strategies in sales and marketing, such as adjusting prices for triangulation laser radar products, which has also to some extent squeezed the profit margins of such products. The company's expansion of its business scope is inseparable from its active investment in R&D innovation. During the reporting period, the company's R&D costs were 36.5 million yuan, 54.6 million yuan, 76.7 million yuan, and 30.2 million yuan, respectively. The company stated that in order to expand its product portfolio, ensure product innovation, and maintain market competitiveness, it needs to invest a large amount of resources in R&D to drive technological progress. With the increasing investment in R&D, the company's losses have also shown a trend of widening fluctuations. The losses during the reporting period were 28.695 million yuan, 0.883 million yuan, 31.375 million yuan, and 4.157 million yuan, which may be one of the reasons why the company actively pursued listing. Industry Expansion Accelerates At the industry level, thanks to the rapid development and continuous maturation of spatial awareness technology, the market is showing continuous growth momentum. This technology is extending beyond the field of intelligent robots and automation, driving the emergence of new product categories such as MR/AR/VR devices and intelligent pet robots, and promoting the intelligent upgrade of existing devices, thereby driving overall industry demand. According to Zhishi Consulting data, the global market for intelligent device spatial awareness solutions is expected to increase from 101 billion yuan in 2020 to 161 billion yuan in 2024 in terms of sales revenue, with a compound annual growth rate of 12.3%. It is projected that from 2024 to 2030, the market will grow rapidly at a compound annual growth rate of 17.7% and reach 427 billion yuan by 2030. The market size of the Chinese market for intelligent robot spatial awareness solutions is expected to increase from 47 billion yuan in 2020 to 108 billion yuan in 2024, with a compound annual growth rate of 22.8%. From 2024 to 2030, the market size is expected to grow rapidly at a compound annual growth rate of 22.0% and reach 357 billion yuan by 2030. It is worth noting that sweeping robots are one of the most widely used categories of intelligent robots, and laser radar solutions have become the mainstream choice for spatial perception due to their outstanding precision and adaptability. The global market for sweeping robot laser radar solutions is expected to increase from 8 billion yuan in 2020 to 13 billion yuan in 2024, with a compound annual growth rate of 11.1%. It is projected that from 2024 to 2030, the market size will grow rapidly at a compound annual growth rate of 25.5% and reach 50 billion yuan by 2030. In terms of competitive landscape, the global market for spatial awareness solutions suppliers is highly competitive and market highly fragmented. Based on revenue from intelligent robot spatial awareness solutions, the company ranks first with a market share of only 1.7%. Additionally, it is worth mentioning that in 2024, the company ranked first in the market for sweeping robot spatial awareness solutions based on revenue. Currently, about 70% of sweeping robots use laser radar technology as their primary spatial awareness solution. Overall, with its market position in the field of sweeping robot laser radar and expanding product portfolio, as well as the rapid growth of market space, Huanchuang Technology has demonstrated a growth path for a technology-driven company to the capital market. However, under the dual pressures of scale expansion and technological investment, the company still needs to prove to investors the sustainability of its profit model. In the future, how to achieve a balance between maintaining technological leadership and market share, and achieving scale and efficiency will be the key questions that the company needs to answer after its listing. With the continuous expansion of the global spatial awareness solution market, whether Huanchuang Technology can break through the profit bottleneck in the fiercely competitive industry with the help of the capital market is worth continuous attention.