New stock preview | Crossing the milestone of 5 million, ForTec obtains the "ticket" to the second half of autonomous driving journey.

In 2025, the narrative of "equal rights for smart driving" has become popular in the automotive industry. After the consensus that "the first half competes in electrification, the second half competes in intelligence" has been steadily forming, the automobile industry is accelerating towards the era of comprehensive popularization of intelligent driving. Against this backdrop, smart driving solution providers, as a group directly benefiting from the industry's sustained strong growth trend, are riding on the penetration rate and starting to accelerate their growth. GMTEight noticed that on November 28th, ForTech, the leader in L2-level driver assistance solutions market share, achieved a new milestone: the 5 millionth ADAS product officially rolled off the production line at the Wuzhen Smart Manufacturing Base. At a time when the focus of competition in the intelligent driving field has shifted from technical validation to commercial efficiency, the scale of production and delivery directly reflects a company's supply chain strength, cost control, and market trust. The creation of this new record by ForTech signifies a step up in its scale production and delivery capabilities, and also signifies that the company has secured a "ticket" towards the second half of intelligent driving. ForTech's founder, Chairman, and CEO, Zhang Lin, stated at the ceremony, "The 5 millionth product rolled off today is the controller for our city NOA, which we have been promoting this year. It carries our dream of advancing to high-level autonomous driving, and we hope that the quality of the products delivered at our Wuzhen base continues to improve. At the same time, the economies of scale brought by the 5 millionth milestone have made the company more competitive, and our mature delivery has won the favor of over 50 vehicle manufacturers." Looking back at ForTech's history, the company's Wuzhen Smart Manufacturing Base was officially put into use in September 2022, and in just over 3 years, ForTech first achieved the production of one million ADAS products in 2023, and now the milestone of reaching the 5 millionth product production present a new achievement. The production cycle of ForTech's scale production has been shortened continuously. This is reflected in the financial statements, with explosive growth in core financial data. According to ForTech's recent updated IPO prospectus, from 2022 to 2024, ForTech's revenues were 328 million yuan, 908 million yuan, and 1.283 billion yuan respectively, with a compound annual growth rate of nearly 98% for the corresponding period. During the same period, the company's gross profits were 20.35 million yuan, 65.836 million yuan, and 143 million yuan respectively, with gross profit margins of 6.2%, 7.3%, and 11.2% during the respective periods, showing that with the continuous amplification of economies of scale, ForTech's profitability is experiencing rapid growth. In the first half of this year, ForTech achieved a revenue of 928 million yuan and a gross profit of 122 million yuan, with year-on-year increases of 197.5% and 546.9% respectively, further confirming that the company's performance growth speed is increasing. In terms of specific business strategies, ForTech is currently focusing on building a strong driving assistance solution matrix that covers entry-level to high-level, with more powerful features and broader application scenarios, in order to better meet the increasing demands and expectations of end-users for driving assistance. To this end, ForTech is strengthening the competitive advantages of its FT Max (enhanced driving assistance) solution and continuing to promote the diversified market application of this category of driving assistance solutions. In addition, with regard to the FT Ultra (high-level driving assistance) solution, ForTech plans to support more comprehensive and higher-level driving assistance functions and more complex application scenarios through the iteration of key modules. ForTech's well-thought-out development strategy has achieved interim results in its financial statements. Data shows that from 2022 to 2024, the revenue contribution of ForTech's FT Max solution was 42.1%, 32%, and 43.5% respectively, while the revenue contribution of the FT Ultra solution was 15.4%, 48.9%, and 47.9%, showing an increase in the contribution of both major product categories. In the first half of this year, the revenue contribution of the FT Ultra solution has further increased to 57.7%. At present, the FT Ultra solution is still in a period of strategic investment with high capital expenditure; and due to its high degree of customization and low standardization, this temporarily limits the full release of the business's profit potential. However, with the accelerated deployment of the FT Ultra solution, the stronger economies of scale are expected to effectively dilute costs and bring significant improvements to profitability. It can be expected that the advanced version of the auxiliary driving solution, with a larger revenue weight and stronger profitability, will drive ForTech's overall performance to continue to break through. With an increasingly complete product matrix, as well as continuously strengthening production and delivery capabilities, ForTech has successfully established business partnerships with 51 OEMs and has accumulated over 380 designated projects and over 290 mass production projects, covering a diverse and growing range of vehicle models. It is worth mentioning that facing the promising market of driving assistance solutions, ForTech not only pursues development speed, but also values the quality of development. "In the rigorous automotive industry, every delivery essentially delivers safety. These 5 million products carry the safe driving of millions of vehicles and the happiness of millions of families. We will use our scale manufacturing strength to protect the user's millions of journeys," said Zhang Lin.