New IPO News | Zhenqi Technology Submits Application to Hong Kong Stock Exchange, Motor Controller installation volume ranks eighth in China.

According to the disclosure by the Hong Kong Stock Exchange on January 2, Zhenqu Technology (Shanghai) Co., Ltd. (referred to as Zhenqu Technology) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CITIC SEC and Guotai Haitong as joint sponsors. Company Profile According to the prospectus, the company is a technology-driven provider of electronic control solutions, mainly focusing on the new energy vehicle sector. As the core subsystem of electric drive or power systems, electronic control converts electric energy into controllable power output, achieving precise control of motors or power sources to ensure efficient and reliable vehicle performance. The company has built a layered solution portfolio, covering power modules, motor controllers, and power bricks. Unlike independent power modules or motor controllers provided by traditional suppliers, the company's combination allows customers to choose solutions with corresponding system integration according to vehicle design, cost goals, and engineering requirements. Based on foresight and accurate grasp of industry trends, the company was the first to introduce the concept of power bricks and achieved mass production of the main drive power brick in 2021, establishing the industry's future direction. The power brick architecture significantly simplifies the assembly process of electronic control systems, enhances platform reusability, and shortens development cycles. The company has also expanded the power brick architecture to low-power vehicle controllers in the powertrain and chassis domains, including subsystems such as clutch controllers, power units (such as OBC and DC-DC converters), and air conditioning compressor controllers. It further provides domain controller solutions that integrate control functions of multiple electronic control units, optimize system coordination, and achieve higher efficiency in vehicle control. As of September 30, 2025, the company has won points at 13 major OEMs directly or through first-tier suppliers. Winning points at major OEMs typically mean that the company's solutions will be integrated into several vehicle models developed by the OEM and span the lifecycle of each model. As of September 30, 2025, the company's solutions have been applied in 82 vehicle models, with 54 models entering mass production. According to Frost & Sullivan data, in terms of installed capacity, the company's main solutions are leading in the Chinese market: Motor controllers: For motor controllers, the company ranked 11th in 2024 and 8th in the nine months ended September 30, 2025. For dual-motor controllers, the company ranked third as of September 30, 2025; Main drive power bricks: For main drive power bricks, the company ranked first in 2024 and second in the nine months ended September 30, 2025. For power bricks installed in dual-motor controllers, the company ranked first as of September 30, 2025; Power modules: The company ranked eighth in 2024 and seventh in the nine months ended September 30, 2025. In addition to automotive applications, leveraging the same core technological foundation, the company has expanded its technology to emerging fields such as electric vertical take-off and landing aircraft (eVTOL) and intelligent bodies. This enables the company's solution portfolio to support the next generation of aircraft and Siasun Robot & Automation systems, expanding the company's target markets. Financial Information Revenue For the fiscal years 2023, 2024, and the nine months ended September 30, 2025, the company's revenues were approximately RMB 160 million, RMB 1.159 billion, and RMB 1.217 billion, respectively. Loss For the fiscal years 2023, 2024, and the nine months ended September 30, 2025, the company's annual losses were approximately RMB 237 million, RMB 335 million, and RMB 257 million, respectively. Gross Margin For the fiscal year 2024 and the nine months ended September 30, 2025, the company's gross margins were 1.3% and 3.4%, respectively. Industry Overview The electronic control market is in a rapid expansion phase. From 2020 to 2024, the global electronic control market size increased from RMB 383.1 billion to RMB 446.3 billion, with a compound annual growth rate of approximately 3.9%. It is expected that from 2025 to 2030, the market will maintain a steady growth rate of approximately 5.3% annually, reaching a market size of approximately RMB 608.4 billion by 2030. In terms of segmented markets, the motor controller market size increased from RMB 114.7 billion in 2020 to RMB 195.4 billion in 2024, with a compound annual growth rate of 14.2%, mainly driven by the rapid growth in sales of new energy vehicles and the continuous increase in the penetration rate of electrified powertrains. Looking ahead, supported by the continued expansion of the eVTOL, the intelligent body Siasun Robot & Automation, and the new energy vehicle markets, the motor controller market is expected to maintain steady growth, reaching RMB 316.5 billion by 2030. In contrast, the power converter market size decreased slightly from RMB 268.4 billion in 2020 to RMB 250.9 billion in 2024, with a compound annual growth rate of -1.7%, mainly due to the maturity and slowing growth of traditional applications and other regular power conversion markets. Starting from 2025, the power converter market is expected to regain growth momentum, expanding to RMB 291.8 billion by 2030, with a compound annual growth rate of 3.6%, mainly driven by emerging applications such as AIDC. The global power module market is growing driven by demand from new energy vehicles. From 2020 to 2024, the market size increased from RMB 29.4 billion to RMB 68.3 billion, with a compound annual growth rate of approximately 23.5%. It is expected that from 2025 to 2030, the market will continue to expand at a compound annual growth rate of approximately 8.9%, with the size expected to increase from RMB 77.7 billion in 2025 to RMB 119.2 billion in 2030. Board of Directors Information The board of directors of the company consists of eight directors, including four executive directors, one non-executive director, and three independent non-executive directors. The board is responsible for and has general powers over the management and operations of the group, including formulating the company's business strategy and investment plans, implementing resolutions passed by shareholders' meetings, and exercising other powers, functions, and duties conferred by the company's articles. The board is also responsible for formulating and reviewing policies and procedures in corporate governance, risk management, and internal control, as well as complying with laws and regulations. Ownership Structure Shanghai Jiequ, Shanghai Zhiqu, Shanghai Zhuoqu, Shanghai Jielu, Shanghai Lindun, and Shanghai Xingqu are controlled by Dr. Shen as their respective sole general partners. Junlian Xiandao, Junlian Shenghao, and Junlian Shengyuan are controlled by Junlian Capital through its wholly-owned subsidiary Lhasa Junqi Enterprise Management Co., Ltd. (as their respective sole general partners). Intermediary Team Joint Sponsors: CITIC SEC (Hong Kong) Limited, HAITONG INT'L Capital Limited; Reporting Accountants and Independent Auditors: Ernst & Young; Legal Advisors: King & Wood Mallesons, Zhong Lun Law Firm; Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch.