New stock news: Avita submitted an application to the Hong Kong Stock Exchange. Flagship models Avita 11 and 12 awarded the Red Dot Design Award.

According to the disclosure by the Hong Kong Stock Exchange on November 27th, Avita Technology (Chongqing) Co., Ltd. (referred to as Avita) has submitted its listing application to the main board of the Hong Kong Stock Exchange, with CITIC SEC and CICC as its joint sponsors. Avita's comprehensive product portfolio has received wide acclaim from top professional institutions and consumers at home and abroad, with its flagship models Avita 11 and Avita 12 winning the German Red Dot Award for Best Product Design in 2024, showcasing the company's outstanding performance in design and innovation. The prospectus shows that Avita was established in 2018 and is an internationally advanced emotional intelligent new energy passenger car brand with independent and controllable technology. It is committed to creating a new luxury travel experience that is "highly attractive, highly intelligent, and of high value. Since 2021, Avita has strategically partnered with Chongqing Changan Automobile, Contemporary Amperex Technology, Huawei, and other ecological partners, independently creating a new luxury new energy passenger car brand through market-oriented management. The company's operations mechanism relies not only on resources from Chongqing Changan Automobile but also adopts a market-oriented mechanism to maintain a more flexible and efficient operation and decision-making process, enabling rapid adjustment of business strategies to adapt to changing consumer preferences and market demands. In less than five years since the launch of the Avita (AVATR) brand, the company has built core capabilities in the full value chain of product design, definition, research and development, brands, vehicle models, marketing, and user systems. The company rapidly introduced multiple models covering the high-end luxury new energy passenger car market, becoming a leader in the new era of the automotive industry. Based on its strong independent technological capabilities and original aesthetic design concepts, Avita continuously invests a large amount of resources in self-developing luxury intelligent new energy passenger car core areas. The company has built industry-leading differentiated technological capabilities in core fields such as forward-looking design, automotive intelligence, and safety and health. At the same time, Avita has strategically integrated Chongqing Changan Automobile's intelligent manufacturing, Contemporary Amperex Technology's new energy technology, and intelligent automotive component technology resources. This type of collaboration enables the company to accumulate deep technological reserves in its product ecosystem and accelerate innovation. With strong innovation capabilities, cutting-edge design aesthetics, and a unique concept of "emotional intelligence," Avita relies on industry-leading technology from core strategic partners and self-developed technology to jointly develop next-generation smart travel solutions, build a rich model series, provide advanced emotional interaction capabilities, and set new benchmarks for smart travel experiences. As of the last practicable date, the company has launched four main mass-produced models, namely Avita 06, 07, 11, and 12. Regarding Avita 11 and 12, the company has also launched the Royal Theatre series and the limited edition "0" series, namely Avita 011 and Avita 012. In August 2022, the company launched its first mass-produced flagship model, the future intelligent luxury SUV Avita 11. With the company's advanced vehicle design capabilities and intelligent technology, the company quickly expanded its product portfolio to meet the changing needs of high-end customers. In November 2023, the company launched the future intelligent luxury sedan Avita 12. In September 2024, the company launched the intelligent and beautiful urban luxury SUV Avita 07. Most recently, in April 2025, the company launched the intelligent and beautiful luxury sports sedan Avita 06. Avita's balanced product portfolio effectively covers the high-end luxury new energy passenger car market. Over the next three years, multiple models priced above 300,000 RMB will gradually be released, gradually achieving comprehensive coverage of the high-end and luxury markets. With its industry-leading capabilities in exterior design aesthetics, product definition, and technological innovation, Avita's comprehensive product portfolio has received wide acclaim from top professional institutions and consumers at home and abroad. In 2025, Avita 11 further won the Gold Award for Appearance Design at the 25th China Patent Award, once again affirming the company's industry-leading position in aesthetics and functional design. In addition, as of June 30, 2025, several models ranked among the top in sales in their respective target market segments, reflecting widespread market recognition and the company's excellent business performance. As the company's automotive product portfolio continues to expand, Avita's automotive sales have shown a sustained growth momentum. Since the delivery of vehicles began in December 2022, total deliveries have increased from 114 vehicles in 2022 to 61,588 vehicles in 2024. As of June 30, 2025, delivery volume reached 56,729 vehicles, an increase of approximately 151.1% compared to the same period in 2024. Financial Information Revenue For the years 2022, 2023, 2024, and the six months ended June 30, 2025, the company recorded revenues of 283.37 million RMB, 5.645 billion RMB, 15.195 billion RMB, and 12.208 billion RMB, respectively. During the historical periods, the company's revenue mainly came from the sale of new energy passenger cars. Additionally, the company's revenue also came from the sale of automotive parts and value-added products, as well as ancillary services related to new energy passenger cars. Gross Profit/Loss and Gross Margin For the years 2022 and 2023, the company incurred gross losses of 104 million RMB and 170 million RMB, with corresponding gross loss ratios of 365.5% and 3.0%, respectively. For the year 2024 and the six months ended June 30, 2025, the company recorded gross profits of 961 million RMB and 1.238 billion RMB, with gross profit margins of 6.3% and 10.1%, respectively. Net Loss for the Year/Period For the years 2022, 2023, 2024, and the six months ended June 30, 2025, the company reported net losses of 2.015 billion RMB, 3.693 billion RMB, 4.018 billion RMB, and 1.585 billion RMB, respectively, primarily due to intense competition in the industry leading to more expenses incurred for promotions and sales incentives; and the company being in a growth-oriented stage, investing heavily in research and development, brand building, and channel expansion. Industry Overview In recent years, the global passenger car market has been transitioning towards electric vehicles due to the necessity of reducing carbon emissions and consumers' increasing awareness of sustainable development. At the same time, the continuous improvement of automotive intelligence levels is enhancing user convenience and better meeting consumers' evolving needs. Furthermore, significant advancements in battery technology are increasing the range and reducing the charging time, further boosting consumer confidence and accelerating the widespread adoption of electric vehicles. In 2024, global passenger car sales reached 74.3 million units, with a compound annual growth rate of 5.3% from 2021 to 2024. It is expected to reach 90.1 million units by 2030, with a compound annual growth rate of 3.3% from 2024 to 2030. During this period, global new energy passenger car sales increased from 6.2 million units in 2021 to 17.1 million units in 2024, with a compound annual growth rate of 40.2%. Looking ahead, as fossil fuel car production declines, new energy passenger cars are expected to maintain high growth. The global new energy passenger car market is projected to reach 42.3 million units by 2030, with a compound annual growth rate of 16.3% from 2024 to 2030. The penetration rate of new energy passenger cars in the global passenger car market increased from 9.7% in 2021 to 23.0% in 2024. Looking ahead, with the continuous improvement of the competitiveness of new energy passenger cars, global sales are expected to reach 42.3 million units by 2030, with a penetration rate expected to rise to 47.0%. The penetration rate of new energy passenger cars varies significantly in different regions, reflecting differences in energy prices, infrastructure maturity, and policy support. In 2024, the penetration rate of new energy passenger cars in the Chinese passenger car market reached 48.9%, far surpassing the global average of 23.0%. In terms of sales volume of new energy passenger cars in different regions, China has been the global leader in new energy passenger car sales for ten consecutive years. In 2024, China's sales of new energy passenger cars reached 11.1 million units, accounting for 64.7% of the global new energy passenger car market. By 2030, China's sales of new energy passenger cars are expected to reach 19.1 million units, with a compound annual growth rate of 9.5% from 2024 to 2030, accounting for 45.1% of the global market. In 2024, Europe, North America, and Asia (excluding China) recorded new energy passenger car sales of 2.9 million units, 1.6 million units, and 0.3 million units, respectively, accounting for 16.8%, 9.4%, and 1.8% of the global new energy passenger car market. By 2030, the sales of these regions are expected to reach 9.8 million units, 7.1 million units, and 3.7 million units, accounting for 23.1%, 16.7%, and 8.6% of the global new energy passenger car market. The Chinese new energy passenger car market has shown a significant "spindle-shaped" image. In 2024, new energy passenger cars priced between 100,000 RMB and 200,000 RMB now account for nearly half of the total sales. Entry-level models priced below 100,000 RMB stabilized at around 16% after an initial surge in demand for micro new energy passenger cars. In the future, as consumer purchasing power increases, demand for intelligent passenger cars will gradually increase, and prices will gradually rise. The market share of new energy passenger cars in this price range will continue to decline, and is expected to reach 13.5% by 2030. In 2024, sales of new energy passenger cars in the 300,000 RMB to 400,000 RMB price range saw a significant increase, with a market share of 11.8%, indicating an increase in consumers' willingness to purchase high-end new energy passenger cars with advanced driver assistance and intelligent cabins. By 2030, its market share is expected to reach 25.2%. Board of Directors Information The board of directors consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors. All directors are elected by the shareholder meeting for a term of three years and may be re-elected after re-appointment. The board of directors is responsible for the management and operation of the company and has general powers over this. Equity Structure China Chongqing Changan Automobile Group holds 40.99% of the shares through Chongqing Changan Automobile, the employee share platform Zhiyue New Journey No. 1 holds 1.88%, Changan Innovation holds 0.57%, and pre-IPO investors collectively hold 56.56%. As of the last practicable date, China Chongqing Changan Automobile Group and Chenzhi Auto are both holding companies of Chongqing Changan Automobile. Therefore, under the Securities and Futures Ordinance, China Chongqing Changan Automobile Group and Chenzhi Auto are considered to have equity interests in Chongqing Changan Automobile's shares. Changan Innovation is one of the company's controlling shareholders. As of the last practicable date, Changan Innovation is owned by Anhe (Chongqing) Private Equity Investment Fund Management Co., Ltd. as its general partner with a stake of approximately 0.15%, with Chongqing Changan Automobile owning 44.44% equity, making it closely related to Chongqing Changan Automobile; Chongqing Changan Automobile owns approximately 46.08% as its limited partner; Chenzhi Auto owns approximately 30.72% as its limited partner; and two independent third parties own approximately 23.04% collectively as its limited partners, with each holding less than 30% of the partnership interests in Changan Innovation. Advisory Team Legal Advisor to the Company: Ashurst LLP for Hong Kong and US law; Zhong Lun Law Firm for China law. Joint Sponsor Legal Advisor: Ashurst LLP for Hong Kong and US law; JunHe LLP for China law. Independent Auditor: Ernst & Young. Industry Consultant: Frost & Sullivan Consulting Co., Ltd. (Shanghai Branch).