New Stock News | Transtron Technology submitted application to Hong Kong Stock Exchange to become the largest provider of space-time intelligent solutions for the global automotive industry.

According to the disclosure of the Hong Kong Stock Exchange on January 1st, Guangdong Daoyuan Technology Co., Ltd. (referred to as Daoyuan Technology) has submitted its listing application to the main board of the Hong Kong Stock Exchange, with CICC and China Securities Co., Ltd. International as its joint sponsors. According to the information from Zhuci Consulting, the company is the first in the world to mass-produce car-grade MEMS integrated space-time intelligent solutions for use in the field of smart driving. Based on the calculation of the number of vehicles equipped with space-time intelligent solutions by 2024, the company is the world's largest provider of space-time intelligent solutions for the automotive industry, with a market share of 27.6%. Company Introduction The prospectus indicates that as a global leader and technology pioneer in the space-time intelligence field, Daoyuan Technology empowers intelligent machines to accurately and sensitively perceive, locate, and interact with the physical world. Daoyuan Technology's core competitive advantage lies in its self-developed full-stack technology ecosystem, which independently controls the entire chain of technology processes from the underlying chip capabilities, algorithms, and software of space-time intelligence to product design and precision engineering. The company's full-stack solution covers inertial chips, advanced modules, and integrated systems, injecting reliable space-time intelligence foundation into physical AI applications in areas such as automotive, Siasun Robot&Automation, engineering machinery, and renewable energy systems. According to the information from Zhuci Consulting, Daoyuan Technology is one of the few companies in the world that combines advanced space-time intelligent technology with deep engineering capabilities, achieving a balance between leading performance and cost-effectiveness. Through vertical integration and digitalized manufacturing, the company controls every production process from chip design and packaging, module calibration and calibration to system assembly and final testing, ensuring consistency, traceability, and high yield of mass production. As of September 30, 2025, the company has obtained over 30 mass production projects from top international and domestic OEMs and has validated the car-grade reliability of its products in millions of intelligent driving units. This capability to maintain sustained high-precision output in complex real-world environments is the key differentiating advantage and barrier for the company. Building on its success in the automotive field, Daoyuan Technology is rapidly expanding its technology to emerging fields such as Siasun Robot&Automation, engineering machinery, and renewable energy systems. The company's solutions empower intelligent bodies with space-time intelligence "vestibular" systems, enabling humanoid Siasun Robot&Automation to balance walking, industrial machinery to operate autonomously, and renewable energy systems to precisely align components. The company is committed to providing scalable, secure, and cost-effective space-time intelligent solutions globally to drive the physical AI transformation. Financial Data Revenue During the reporting period, Daoyuan Technology achieved rapid business expansion driven by technological leadership and successful commercialization. The significant growth in shipments led to strong revenue growth for the company. In the financial years 2023, 2024, the nine months ended September 30, 2024, and the nine months ended September 30, 2025, the company recorded revenues of approximately 366 million yuan, 410 million yuan, 240 million yuan, 474 million yuan, respectively. Gross Profit and Gross Margin In the financial years 2023, 2024, the nine months ended September 30, 2024, and the nine months ended September 30, 2025, the company recorded gross profits of approximately 49.49 million yuan, 61.198 million yuan, 60.236 million yuan, 104 million yuan, respectively, corresponding to gross margins of 13.5%, 14.9%, 25.1%, 21.9%. Annual/Periodic Losses In the financial years 2023, 2024, the nine months ended September 30, 2024, and the nine months ended September 30, 2025, the company recorded annual/periodic losses of approximately 689 million yuan, 407 million yuan, 217 million yuan, 248 million yuan, respectively. The losses were due to factors such as ongoing research and development investments, the company's still in the expansion phase, and financial costs related to redemption liabilities. Industry Overview Space-time intelligent solutions are the core technology for achieving the perception and execution capabilities of physical AI. With the continuous development of artificial intelligence, key applications such as automotive, Siasun Robot&Automation systems, engineering machinery, and renewable energy systems have become the core fields for the implementation of physical AI, driving the increasing demand for space-time intelligent solutions. Automotive: Global passenger car sales are expected to increase from 62.9 million vehicles in 2024 to 97.0 million vehicles in 2035, with an estimated 85% of vehicles equipped with L2+ or higher levels of intelligent driving functions by then. Among these vehicles, space-time intelligent solutions are becoming a standard configuration, providing critical real-time data for intelligent driving and safety. In addition to core driving functions, these solutions are expanding to active suspension, brake control, and airbag deployment systems, ensuring timely activation of safety features. The potential demand in the global automotive sector is expected to reach 68.8 billion yuan by 2035. Siasun Robot&Automation Systems: Space-time intelligent solutions play a key role in various Siasun Robot&Automation systems, including humanoid Siasun Robot&Automation, such as humanoid, quadrupedal, and wheeled Siasun Robot&Automation, mobile Siasun Robot&Automation, such as automatic guided vehicles (AGV)/autonomous mobile robots (AMR), lawn mowing Siasun Robot&Automation, meal and delivery Siasun Robot&Automation, etc.; autonomous vehicles, including Siasun Robot&Automation taxis, Siasun Robot&Automation buses, etc. For lawn mowing Siasun Robot&Automation, this technology enables efficient navigation in complex garden environments, avoiding flowers, grass, and shrubs while optimizing coverage paths. For humanoid Siasun Robot&Automation, it provides real-time full-body posture tracking, dynamic balance control, humanoid gait planning, fall prevention, and precise task control. Humanoid Siasun Robot&Automation typically requires 2-6 sets of space-time intelligent solutions to track head, trunk, and limb movements and maintain balance. By 2035, the global potential market demand for space-time intelligent solutions for Siasun Robot&Automation systems will reach 97.1 billion yuan. Engineering Machinery: High-reliability space-time intelligent solutions are the foundation for stable, accurate, and autonomous operation of engineering machinery such as ships, intelligent agricultural equipment, intelligent mining vehicles, and cranes in complex environments. In agricultural applications, these solutions can detect body tilt and vibrations, counteract the impact of terrain on spraying/harvesting quality, reduce rollover risks, and improve operational efficiency. They can also achieve linear autonomous navigation, precise trenching and seeding, avoiding replays or missed plantings. In marine applications, they can compensate for vessel movements caused by waves and wind, ensuring the stability of offshore lifting and exploration operations. For cranes and other machinery, these solutions can measure rotation angles accurately, significantly reduce swing of booms and hooks, thereby reducing operational difficulty, improving positioning accuracy, and preventing collisions. By 2035, the global potential demand in this field will reach 50.9 billion yuan. Renewable Energy Systems: Space-time intelligent solutions are increasingly being applied in renewable energy systems, such as wind turbines, utility-scale solar power plants, and hydropower facilities, to achieve high-precision attitude and motion monitoring, increase energy output, and support predictive maintenance. In wind power applications, these solutions provide real-time measurement parameters for tower tilt, vibration characteristics, and structural dynamics, helping to maintain optimal operating conditions, enhance stability, and maximize generation efficiency. In photovoltaic applications, these solutions can monitor the angle accuracy of brackets, structural settling, and wind-induced vibration data to achieve optimal solar tracking effects and identify bracket misalignments or mechanical performance degradation early. In the field of hydraulic and hydroelectric infrastructure, these solutions help track deformations in dams and levees, enhance safety monitoring, and identify faults early before performance degradation or unplanned shutdowns. By 2035, the global energy sector's demand for such solutions will reach 53.3 billion yuan. Other Applications: With the advancement of physical AI, multi-sensor fusion, and edge computing integration, space-time intelligent solutions are rapidly expanding into the low-altitude economy and consumer electronics fields. In low-altitude applications such as drones and electric vertical take-off and landing aircraft, these solutions offer precise positioning, attitude sensing, and global time synchronization measurement services to achieve stable flight control, accurate route tracking, and high-precision data collection, especially in environments with limited signals, making this technology essential for ensuring mission continuity. Additionally, consumer electronics devices such as smartphones, XR headsets, wearable devices, and 3D scanners are transitioning from low-precision, low-cost motion sensors to high-precision, real-time space-time intelligence platforms. In the past, basic sensors only met functional requirements such as screen rotation, step counting, and basic stabilization. As applications evolve toward physically AI-driven experiences, such as immersive XR interactions, real-time spatial mapping, 3D reconstruction, and round-the-clock health monitoring, the demand for continuous perception and adaptive response capabilities of various devices is increasing, leading to advanced functions such as image stabilization, precise spatial mapping, immersive XR interactions, and health monitoring. Driven by the rapid dissemination of downstream applications, the global space-time intelligent solution market is expected to grow significantly from 16 billion yuan in 2024 to 353 billion yuan in 2030, further reaching 1,665 billion yuan in 2035. This implies a compound annual growth rate of 66.6% from 2024 to 2030 and 36.4% from 2030 to 2035. In this context, the Chinese market is projected to grow from 10 billion yuan in 2024 to 129 billion yuan in 2030, with a compound annual growth rate of 53.7%, and further accelerate to 557 billion yuan in 2035, indicating a compound annual growth rate of 33.9% from 2030 to 2035. This rapid market expansion is attributed to the relatively high and continuously increasing penetration rates of space-time intelligent solutions in major downstream areas; by 2035, the penetration rates of space-time intelligent solutions in various global sectors will be approximately 85% in the automotive sector, 45% in the Siasun Robot&Automation systems sector, 80% in the engineering machinery sector, and 45% in the renewable energy system sector. The numbers behind these statistics highlight the widespread deployment of mature fields and the significant growth potential in emerging fields. According to the SAE classification standards, intelligent driving is divided into six levels from L0 to L5. L0 only provides warning functions, L1 and L2 provide limited driving assistance functions such as adaptive cruise control and lane keeping. L3 represents conditional automation, where driving responsibility begins to transfer to the system. Level L4 and higher belong to the fully automated category. Based on this framework, the industry has further introduced the concept of L2+, which is positioned between L2 and L3 in terms of functions, providing an experience close to human driving and enabling point-to-point navigation assistance. As intelligent driving vehicles advance to higher levels, space-time intelligent solutions have become a prerequisite for achieving L2+, L3, and above functions. Board Information After listing, the board of directors will consist of nine directors, including four executive directors, two non-executive directors, and three independent non-executive directors. The directors serve a three-year term and may be re-elected after their term expires. The board is responsible for and has full authority over the business management and operation of the company, including formulating business strategies and investment plans, implementing shareholder resolutions, and exercising other powers, functions, and duties granted by the company's articles of association. The board is also responsible for establishing and reviewing the company's corporate governance, risk management, internal control, and compliance policies and practices. Ownership Structure Mr. Li Rongxi, Daoyuan Enterprise and Daoyuan No. 2 together form a single largest shareholder group, holding a combined 30.25% stake; other pre-listing investors such as Advanced Manufacturing Fund, National Open Fund, and Shenzhen Hanchen collectively hold a 69.75% stake. Daoyuan Enterprise and Daoyuan No. 2 are employee incentive platforms of the group, with Mr. Li Rongxi as the general partner of both platforms. As of the last practicable date, Mr. Li is the general partner of Daoyuan Enterprise and Daoyuan No. 2. Therefore, under the Securities and Futures Ordinance, Mr. Li is deemed to have an interest in the total of 140,663,007 shares held by Daoyuan Enterprise and Daoyuan No. 2. Intermediary Team Joint Sponsors, Sponsors and Overall Coordinators, Overall Coordinators: China International Finance Hong Kong Securities Limited, China Securities Co., Ltd. (International) Finance Limited. Company Legal Advisors: Regarding Hong Kong and U.S. law: Kow Loon Hong Kong law firm; Regarding Chinese law: Fangda Law Firm. Joint Sponsor Legal Advisors: Regarding Hong Kong and U.S. law: O'Melveny law firm; Regarding Chinese law: Beijing Deheng (Shenzhen) law firm. Reporting Accountants and Independent Auditors: PricewaterhouseCoopers. Industry Consultant: Zhuci Industry Consulting Co., Ltd. Compliance Consultants: Maishi Capital Co., Ltd.