New Stock News | Chongqing Afari Technology (601777.SH) Files Again with the Hong Kong Stock Exchange, Ranked Eighth in Sales Volume in the B-end new energy vehicle market in 2024.

According to the disclosure of the Hong Kong Stock Exchange on April 23rd, Chongqing Afari Technology Co., Ltd. (referred to as Chongqing Afari Technology (601777.SH)) has submitted an application to list on the main board of the Hong Kong Stock Exchange, with CICC as the sole sponsor. The company previously submitted an application to the Hong Kong Stock Exchange on October 16, 2025. Company profile The prospectus shows that Chongqing Afari Technology is a well-known Chinese automobile manufacturer with deep expertise in automobile development, design, and manufacturing. With advanced battery swapping technology, the company mainly focuses on serving B-side clients, usually enterprise or institutional clients rather than individual consumers. According to data from Zhushi Consulting, based on sales volume in 2024, the company ranks eighth in the B-side new energy vehicle market. In addition to automobiles, the company provides motorcycles, including mid-to-large displacement models. According to data from Zhushi Consulting, based on motorcycle export volume in 2024, the company ranks ninth among Chinese motorcycle manufacturers. The company's product portfolio also includes diversified general machinery such as generators, water pumps, and high-pressure washers, enabling the company to meet a wide range of market demands. During the historical period, the company primarily generated revenue from the manufacturing and sale of automobiles and motorcycles, accounting for over 85% of total annual revenue during the historical period. The company believes that smart driving, smart cabins, and Robotaxi are the core areas of "AI+Mobility" because these solutions accurately focus on key scenarios where AI can provide maximum functional value, business value, and strategic value in the modern transportation field. Therefore, the company has taken the first step in its future growth strategy by developing and commercializing smart driving solutions. In the future, the company plans to gradually expand the range of solutions to include smart cabins and Robotaxi areas. In the fourth quarter of 2025, the company generated revenue of approximately RMB 350 million from providing unconventional engineering services through technical solutions, with a gross profit margin of 30.4% in 2025. Financial information Revenue: In the fiscal years 2023, 2024, and 2025, the company achieved revenues of approximately RMB 6.698 billion, RMB 6.964 billion, and RMB 9.876 billion, respectively. Loss: In the fiscal years 2023, 2024, and 2025, the company recorded annual losses of approximately RMB 262 million, RMB 329 million, and RMB 321 million, respectively. Gross profit margin: In the fiscal years 2023, 2024, and 2025, the gross profit margins were 4.1%, 6.9%, and 8.0%, respectively. Industry overview Since 2009, China has become the world's largest passenger car market. In 2025, China's passenger car sales are expected to reach 29.9 million, accounting for 37.5% of the global passenger car market. In 2025, the sales of electric vehicles in China are expected to reach 15.8 million, exceeding the sales of internal combustion cars for the first time. In addition, the penetration rate of electric vehicles is rapidly increasing from 5.8% in 2020 to 53.0% in 2025, and is expected to further increase to 87.4% by 2030. In China, the market competition for internal combustion engine vehicles is relatively concentrated. In 2024, the top five internal combustion engine car OEMs by sales accounted for 34.0% of the market share, while the top ten internal combustion engine car OEMs accounted for 54.5% of the market share. In 2024, the company sold 19,000 internal combustion engine vehicles in China, representing a market share of about 0.1%. The total sales volume of motorcycles in China has increased from 17.1 million in 2020 to 21.2 million in 2025, with an expected increase to 29 million by 2030, and a compound annual growth rate of 6.5% from 2025 to 2030. In terms of sales volume, the competition landscape of the Chinese motorcycle market is relatively fragmented, and leading enterprises maintain a relatively stable position in the domestic and export markets. In the domestic market, the top ten companies maintain a relatively stable position, with no significant changes in the overall landscape. In 2024, the company sold about 59,553 motorcycles in the domestic market, ranking around ninth in the domestic motorcycle market. In the export market, the concentration is relatively high, with the top ten companies accounting for about 60% of the market share. In 2024, the company ranked ninth in exports. Benefiting from the large-scale application of AI models in the automotive industry, the global market size of intelligent driving and advanced driving assistance systems solutions is expected to reach RMB 313.2 billion in 2025, further expanding to RMB 844.8 billion by 2030, with a compound annual growth rate of 22.0% during the period. China is expected to become the largest market for intelligent driving solutions. The market size of intelligent driving solutions in China is forecasted to reach RMB 104.1 billion in 2025, accounting for approximately 33.2% of the global market. Smart cabins serve as the central hub, seamlessly connecting users, vehicles, and external ecosystems. Smart cabin solutions supported by multimodal interaction models and AI-native AgentOS help create a dynamic "in-car living space," enabling users to communicate with vehicles through natural modalities such as voice, vision, and touch. In 2025, the total revenue of global smart cabin solutions is expected to reach RMB 429.6 billion, increasing to RMB 861.9 billion by 2030, with a compound annual growth rate of 14.9% during the period. As the largest market globally, China is expected to have a market size of RMB 156.4 billion for smart cabin solutions in 2025, accounting for 36.4% of the global smart cabin solutions market. Robotaxis are designed for L4-level autonomous driving and can operate without human intervention, expected to play a strategic role in future shared mobility. With the continuous development of intelligent driving and smart cabin solutions markets, Robotaxis are expected to become the most commercially viable application scenario, driving the transformation of future urban transportation. As of 2025, the Chinese Robotaxi market is still in its early stages. With the continuous development of intelligent driving technology, related regulations, and policies, it is expected that the total revenue of the Chinese Robotaxi solutions market will reach approximately RMB 44.1 billion by 2030, with a compound annual growth rate of 246.7% from 2025 to 2030. Board of Directors information The board of directors consists of 11 directors, including 2 executive directors, 5 non-executive directors, and 4 independent non-executive directors. Director terms are for 3 years and can be re-elected. According to relevant Chinese laws and regulations, independent non-executive directors cannot serve more than 6 consecutive years. Equity structure Manjianghong Fund is a limited partnership established in China on December 14, 2020. As of the last practicable date, Manjianghong Fund has 5 partners, including (i) Manjianghong Ventures (as the sole general partner) holding 0.03% of the partnership interest; (ii) Geely Holdings (as a limited partner) holding 50.94% of the partnership interest and ultimately controlled by Mr. Li Shufu; (iii) Two Rivers Industrial Development, wholly owned by the Chongqing Liangjiang New Area Administration Committee; and (iv) 2 other limited partners (both independent third parties) holding 12.85% of the partnership interest. Manjianghong Ventures (the sole general partner of Manjianghong Fund) is 51% owned by Liangjiang Fund Management and 49% owned by Geely Technology. Liangjiang Fund Management is indirectly wholly owned by the Chongqing Liangjiang New Area Administration Committee. Geely Technology is 55% owned by Ningbo Ruima Enterprise Management Partnership (Limited Partnership) and 45% owned by Zhejiang Jidi Technology Co., Ltd., with Li Shufu owning 79.28% and 91.00% of their respective interests. As of the last practicable date, Chongqing Jianghehui is indirectly wholly owned by Jianghe Anlan. As of the last practicable date, the partners of Jianghe Anlan include: (a) General partner Hainan Qianli Zhiqi Investment Co., Ltd., holding approximately 0.41% of the partnership interest, with Chairman and Executive Director Yinqi and Non-Executive Director Baoyi holding approximately 67.03% and 32.97% respectively; (b) Yinqi (as a limited partner) holding approximately 53.00% of the partnership interest; (c) Baoyi (as a limited partner) holding approximately 26.10% of the partnership interest; and (d) one independent third party (as a limited partner) holding approximately 20.49% of the partnership interest. Lifan Holdings was established as a limited liability company on November 19, 2003, in China. As part of the plan, the entire equity held by the initial shareholders of Lifan Holdings was transferred to Chongqing Huiyang, and the entire equity of Chongqing Huiyang will be used as trust assets to establish a trust plan, with CCB Trust as the trustee to manage the trust plan. Under the trust plan, except for debts repaid in cash, the proceeds from issuing related trust products and their corresponding beneficial interests will be distributed to certain creditors of the company to repay the due debts owed by Lifan Holdings to its creditors. As of the last practicable date, Lifan Holdings is still wholly owned by Chongqing Huiyang, and its entire equity is held as trust assets managed by CCB Trust. As of the last practicable date, Mercedes-Benz Digital Technology is an indirect wholly-owned subsidiary of Mercedes-Benz Group AG (a company listed on the Frankfurt Stock Exchange with the stock code MBG.DE) and is an independent third party with respect to the equity held by the company. As of the last practicable date, Rui Lan Automobiles is 45% owned by Zhejiang Geely Intelligent Driving Automobile Technology Co., Ltd., which is an indirect wholly-owned subsidiary of Geely Holdings (controlled by Mr. Li Shufu and his associates). At the last practicable date, Qianli Zhijia is partially owned by Jianghe Qixing, Machi Zhixing, and Zhejiang Jirun, each holding 30% of the voting rights, and through an entrusted agreement between Jianghe Qixing and Machi Zhixing, the former has a controlling 60% of the voting rights of Qianli Zhijia on the matters of shareholder delegation and board delegation, thereby exercising effective control over the board of directors of Qianli Zhijia. According to the capital increase agreements and shareholder agreements related to Qianli Zhijia between Jianghe Qixing, Zhejiang Jirun, Machi Zhixing, Tulas Siasun Robot & Automation, and Zhijiang Zhongwang, the shareholders of Qianli Zhijia enjoy certain customary special rights. These special rights are limited to Qianli Zhijia and do not grant the shareholders any rights to acquire shares in Qianli Zhijia or any other affiliates of the company. Chongqing Runtian Real Estate Development Co., Ltd. is held 50% by the company, 35% by Chongqing Yuqing Commercial Management Limited Partnership (Limited Partnership), and 15% by an independent third party. Chongqing Yuqing Commercial Management Limited Partnership (Limited Partnership) is controlled by its general partner (ultimately controlled by the Chongqing State-owned Assets Supervision and Administration Commission). Intermediary Team Sole Sponsor, Sponsor and Overall Coordinator: China International Capital Hong Kong Securities Limited Overall Coordinator: Morgan Stanley Asia Limited Company Legal Counsel: Regarding Hong Kong and U.S. law: Davis Polk & Wardwell LLP; Regarding Chinese law: Fangda Partners Legal Counsel for the Sole Sponsor: Regarding Hong Kong and U.S. law: Clifford Chance; Regarding Chinese law: Zhong Lun Law Firm Reporting Accountant: Ernst & Young LLP Industry Consultant: Zhushi Enterprise Management Consulting (Shanghai) Co., Ltd.