New Stock Outlook | Domestic Substitution + Intelligent Driving Wind, Can Double Red Dividend Drive the Value Leap of NAS Technology?

Recently, Nason Intelligent Technology (Zhejiang) Co., Ltd. (referred to as "Nason Technology") submitted its listing application to the Hong Kong Stock Exchange, with HAITONG INT'L Capital Limited and BOC International Asia Limited as joint sponsors. Nason Intelligent Technology (Zhejiang) Co., Ltd. (referred to as "Nason Technology") officially submitted its listing application to the Hong Kong Stock Exchange, aiming to become the "number one stock in intelligent driving line control chassis." Since its establishment, Nason Technology has completed 10 rounds of financing, with a total financing amount of approximately 1.294 billion yuan. Investors include BOC Capital, Advanced Manufacturing Fund, Contemporary Amperex Technology, Hillhouse Capital Group, Qiming Venture Partners, and Matrix Partners China. After completing the D+ round of financing in September 2025, the company's valuation reached 4.05 billion yuan. As an electronic alternative solution for vehicle braking, steering, and driving, line control technology bears the responsibility of landing the "last mile" of intelligent driving. Its technical barriers and safety requirements are much higher than those of general automotive components. Nason Technology is one of the few domestic players in this field with the full-stack self-developed capability of line control chassis, and has entered the top three domestic suppliers in China, with customers covering mainstream brands such as Changan, Ideal, and Chery. However, there are concerns beneath the halo. While revenue is growing rapidly, the company is still facing continuous losses; operating cash flow has turned negative, and short-term debt repayment pressure is quite prominent. In addition, beyond its core automotive business, the company has begun to explore the fields of humanoid robots with Siasun Robot & Automation and low-altitude aircraft motion control, attempting to open up a second growth curve. Whether this strategy can be implemented and realized, and when it will happen, remains to be tested by the market. An increase in the proportion of high-margin products is nearing a turning point in profit and loss. According to the prospectus, Nason Technology focuses on the automotive intelligent driving field, focusing on the highest vehicle safety requirements and strongest technical barriers in the line control solution. The company's products include NBooster electric control brake assist system, ESC vehicle stability control system, NBC integrated intelligent braking system, DP-EPS dual pinion linear steering system, and L3/L4 level automatic driving line control chassis solution, which can provide complete line control chassis services to automakers. In terms of financial data, in recent years, Nason Technology's financial situation has shown a stark contrast between revenue growth and continuous losses: from 2023 to 2025, the company's revenue soared from 272 million yuan to 615 million yuan, with a three-year compound annual growth rate of 50.2%, with a significant year-on-year increase of 57.3% in 2025; net losses were 201 million yuan, 170 million yuan, and 190 million yuan respectively, totaling 561 million yuan in the past three years. Nason Technology admits that the losses are mainly due to significant research and development investments as a technology-driven company; production capacity is in the process of ramping up, and economies of scale benefits have yet to be fully realized; and limited bargaining power leads to high raw material procurement costs. However, it is worth mentioning that after excluding non-cash or non-operating factors such as stock-based compensation expenses and financing costs related to debt redemption, the company's adjusted net loss has significantly narrowed from 105 million yuan to 29.286 million yuan, indicating that the company's "blood-making" ability is improving, edging closer to breakeven. It is reported that the company's gross profit margins for 2023, 2024, and 2025 were 1.1%, 10.7%, and 13.6% respectively. The core driver of the continuous growth in gross profit margin mainly comes from the upgrading of product structure. Nason Technology has three core product lines, NBS, ESC, and NBC solutions, among which the NBS solution NBooster was put into large-scale production in 2018, becoming China's first mass-produced electric control brake assist system. By the end of 2023, 2024, and 2025, the solution had obtained 25, 26, and 26 designated points from 10 domestic OEMs, with the number of mass-produced models during the same period being 19, 21, and 21 respectively. The NBS solution was once the absolute main source of company revenue, contributing 68.6% of revenue in 2023. However, the business income has decreased year by year since then, although remaining at the billion level, the contribution rate dropped to 19.4% in 2025, with a significant decrease in sales volume and average unit price that year. In contrast, the new product, NBC (integrated intelligent braking system), saw a rapid increase in sales. In 2023, when it had not yet been mass-produced, NBC only generated revenue of 108,000 yuan; by 2025, this number had soared to 301 million yuan, accounting for 49.1% of total revenue, making it the top engine driving performance growth. In terms of commercialization schedule, the NBC solution was introduced for the first time in 2023, entered mass production in 2024, and has gradually become a standard configuration for OEMs. By the end of 2023, 2024, and 2025, it had obtained 4, 14, and 40 designated points from 3, 5, and 7 domestic OEMs respectively, with the corresponding number of mass-produced models being 1, 8, and 19. Additionally, the ESC solution's gross profit performance was also impressive. In 2025, ESC and NBS contributed revenues of 178 million yuan (28.9%) and 119 million yuan (19.4%) respectively. The ESC solution, which began mass production in 2020, mainly focuses on ensuring driving stability, dynamic response, and active safety in various road conditions, preventing skidding, and enhancing vehicle stability. By the end of 2023, 2024, and 2025, it had obtained 22, 33, and 51 designated points from 8, 8, and 9 domestic OEMs respectively, and the number of mass-produced models during the same period were 14, 17, and 25. Overall, the structural growth of high-margin product NBC offsets the pressure brought by declining revenues in traditional businesses (such as NBS) and signals Nason Technology's transition from dependence on a single product to a diversified high-value product matrix. Regarding research and development, Nason Technology maintains a high level of investment, with accumulated research and development expenses exceeding 260 million yuan in three years. Research and development expenses in 2023, 2024, and 2025 were 965 million yuan, 876 million yuan, and 830 million yuan respectively. Although the proportion of research and development expenses to revenue decreased from 35.5% to 13.5%, the absolute amount remains at a high level. However, beyond the growth data, the company's cash flow situation is cause for concern. From 2023 to 2025, operating net cash flows were -88.75 million yuan, 25.338 million yuan, and -165 million yuan respectively. In 2025, factors such as losses, financing costs related to debt redemption, increased accounts receivable and inventory, etc., led to a shift from positive to negative operating cash flow, resulting in a net outflow of 165 million yuan, with only 149 million yuan in cash and cash equivalents at the end of the year. At the same time, the current ratio and quick ratio both decreased to 0.4 times, the asset-liability ratio reached 187.27%, and short-term debt repayment pressure is quite prominent. If the company is unable to complete the IPO financing in the short term, the sustainability of its existing funding chain will face severe tests. With the acceleration of the domestic substitution trend, the Siasun Robot & Automation business may become the second growth curve Public information shows that line control solutions replace traditional mechanical or hydraulic controls with advanced automotive systems through electronic systems, covering core solutions such as linear control, linear steering, and linear driving. In the "perception-decision-execution" chain of automotive intelligence, line control technology plays a role similar to the "cerebellum" - responsible for accurately converting motion control commands into actual actions such as braking, steering, and acceleration. This logic is highly similar to the function of the cerebellum in coordinating autonomous movement, maintaining postural balance, and achieving motor learning in the human body. Unlike chips and algorithms responsible for the "brain" function, line control technology directly addresses the execution level and is one of the highest vehicle safety requirement areas with the strongest technical barriers. Due to the high technical threshold in this area, for a long period of time, the domestic linear control market has been dominated by foreign giants such as Bosch, Continental, and Aisin. Data from the prospectus shows that the localization rate of China's linear control braking market was only 26.4% in 2024, much lower than the levels of power batteries (about 100%) and LiDAR (over 85%). In other words, for every four sets of linear control braking systems in China, three come from foreign manufacturers, indicating an urgent need for domestic substitution. Changes from both the industry side and the demand side are driving the acceleration of domestic substitution. On one hand, the market share of Chinese domestic brands in the automobile industry is steadily increasing, and OEMs are increasingly focusing on building safe and controllable local supply chain systems to ensure delivery stability and cost competitiveness; on the other hand, domestic suppliers of linear control braking systems are continuously breaking through in core technology research and development, product reliability verification, and cost control, gradually transitioning from technology catching up to market substitution stages. According to forecasts, the sales volume of domestically produced linear control braking solutions in the Chinese market is expected to reach 22.8 million sets by 2030, with a compound annual growth rate of 27.3% from 2024 to 2030; during the same period, the localization rate is expected to increase to 60.0%, indicating a broad market space for domestic substitution. In this process of domestic substitution, Nason Technology is one of the local players that entered the market early. In 2018, the company's NBS solution (NBooster) achieved large-scale production, becoming the first domestic mass-produced linear control brake assist system, breaking the technical monopoly of foreign companies; subsequently, the company achieved mass production of the ESC solution in 2020 and launched the NBC solution in 2023, gradually improving the core product matrix of the line control chassis. From market data, Nason Technology has gradually established its leading advantage. In 2024, the total sales volume of Chinese linear control braking solutions was 28.6 million sets, of which domestically produced solutions accounted for 5.4 million sets, with a localization rate of 18.8%. with a sales volume of 532,300 sets, the company ranked eighth among all domestic and overseas suppliers, with a market share of 1.9%; it ranked third among domestic solution suppliers and second among domestic independent third-party suppliers, with a market share of 9.9%. Of particular note is that the company's sales volume of linear control braking solutions in 2024 increased by 58.3% year-on-year, the fastest growth rate among the top five domestic suppliers. However, compared with the top two companies in the industry (with sales volumes of 2.11 million sets and 930,000 sets in 2024), Nason Technology's scale of 532,300 sets still has a certain gap. Outside the market landscape, the price pressure faced by Nason Technology is also worth noting. The prospectus shows that the average selling prices of the company's three core product lines decreased year by year from 2023 to 2025: the average price of NBS decreased from 866.5 yuan per item to 708.9 yuan per item; the average price of NBC decreased from 1528 yuan per item to 1168.5 yuan per item. While consolidating its automotive line control business, Nason Technology is also planning for a broader market space. Leveraging its mature research and development and mass production experience in the field of automotive line control technology, as well as core technologies such as control algorithms, software, and hardware, the company has the foundation to expand into the field of humanoid robots with the Siasun Robot & Automation and low-altitude aircraft motion control. According to the prospectus plan, the company intends to start the development of A samples related to the Siasun Robot & Automation line control solution in 2026, and progress with the development of A samples and B samples related to low-altitude aircraft solutions in 2027 and 2028 respectively. At the 2026 Beijing Auto Show, the company officially announced the strategy of humanoid Siasun Robot & Automation, and upgraded its corporate vision to be a "global leader in line control technology and an expert in intelligent multi-scenario motion control." The company stated that intelligent driving and embodied intelligence are two important scenarios for the implementation of AI, with a large amount of underlying common technology in motion control and algorithm architecture. However, it is important to note that the success of this strategic deployment will depend on the company's progress in technological research and development. Currently, the transfer of line control chassis technology to the Siasun Robot & Automation field is still in the conceptual verification stage, with a significant level of uncertainty in the commercialization schedule. Overall, the structural opportunity for domestic substitution in the linear control braking market is clear, with Nason Technology as one of the few domestic independent suppliers that have achieved large-scale production and held a leading market share, giving it a significant first-mover advantage. With the continued growth of high-margin NBC products, economies of scale are expected to further release, accelerating the company's path to achieving breakeven; however, liquidity risks should not be ignored, and if IPO financing falls short of expectations, the funding chain will face severe tests. In summary, this IPO provides investors with an opportunity to invest in the high-barrier linear control braking track. In the medium to long term, the key variable that will determine the company's long-term valuation logic is whether it can successfully open up the second growth curve in humanoid Siasun Robot & Automation and low-altitude aircraft beyond its core automotive line control business.