New Stock Outlook | Income soars and gross profit turns positive, Taging Intelligence customers with high market share concentration in the first echelon of pain points to be resolved.

In the field of autonomous driving, two major events have recently occurred. One is the introduction of Tesla's supervised version of FSD into China, which has boosted the A-share autonomous driving sector, leading to stocks like Huizhou Desay SV Automotive (002920.SZ), Zhejiang Shibao (002703.SZ), and LianChuang Electronic Technology (002036.SZ) all hitting the daily limit increase. The second event is the pioneering and leading role in the field of autonomous transport in mines, Tago Intelligent Technology Co., Ltd. (referred to as "Tago Intelligent Technology"), formally initiating its journey towards listing in Hong Kong. It is understood that on May 20th, Tago Intelligent Technology submitted its listing application to the HKEx Main Board, with Huatai International as the sole sponsor. According to data from Zhaoshi Consulting, based on 2025 revenue calculations, Tago Intelligent Technology ranks third among Chinese suppliers of autonomous driving solutions in the mining sector, with a market share of 13.3%. This indicates that Tago Intelligent Technology has joined the industry's leading players. However, in terms of performance, Tago Intelligent Technology is still experiencing continuous losses. From 2023 to 2025, the company's revenues are approximately RMB 190 million, RMB 152 million, and RMB 527 million respectively, showing an explosive trend. However, the adjusted net losses during the same period are around RMB 256 million, RMB 268 million, and RMB 104 million, resulting in a cumulative total loss of RMB 628 million over the three years. Despite Tago Intelligent Technology's position in a high-growth sector and the acceleration of commercialization driving it into the top tier of the market, the continued large losses remain a reality that the company cannot ignore. Whether the capital market will foot the bill for this "high growth, high loss" scenario remains to be seen through its prospectus. "Three-step jump" into the top tier, continuous funding from state-backed investors and industry capital Established in 2016, Tago Intelligent Technology's eight-year journey can be seen as a microcosm of industrial evolution. In 2017, when most players were still exploring direction in the crowded Robotaxi arena, Tago Intelligent Technology quietly entered the open pit mines of Inner Mongolia, becoming the first domestic enterprise to deploy autonomous driving technology in this environment. Just one year later in 2018, with the roar of China's first autonomous mining hauler and rigid mine truck, Tago Intelligent Technology not only proved the feasibility of technology deployment but also overcame the hardcore engineering challenge of large mining truck chassis conversion, completing the technological breakthrough from "0 to 1". With the foundation of its technology solidified, Tago Intelligent Technology quickly transitioned from "technology validation" to "commercial realization". In 2019, the company secured China's first commercial order for a mining autonomous transport solution, marking the technology's ability to generate revenue. The following year, leveraging the "Special Vehicle Autonomous Transportation Technology Key Laboratory" accredited by the Ministry of Industry and Information Technology, Tago Intelligent Technology transformed its first-mover advantage into national-level research backing, establishing its leadership position in the industry. By 2022, the focus of industry competition shifted to scale coordination. Tago Intelligent Technology deployed a fleet of China's first multiple L4 level rigid mine trucks for collaborative operations, transitioning from "solo operations" to "cloud-based scheduling". At the same time, taking advantage of the "dual carbon" opportunity, Tago Intelligent Technology launched a hundred-ton class autonomous hybrid new energy mining hauler in 2023, officially establishing the "autonomous driving + new energy" dual-drive strategy, perfectly aligning with the era's theme of high-quality mining development. At the starting point in 2025, Tago Intelligent Technology set its sights on a broader market. With the largest overseas commercial order income in China, Tago Intelligent Technology has proven to the world that its technology solutions are not only suitable for domestic conditions but also globally applicable. From breaking through technological barriers to explosive growth in scale, and now to global expansion, every step of Tago Intelligent Technology's "three-step jump" has been exactly aligned with the pulse of industry transformation, enabling it to successfully enter China's top tier of suppliers of autonomous mining transportation solutions in 2025. Behind this success lies the continuous funding and endorsements from numerous capital sources in the primary market. From 2017 to 2026, Tago Intelligent Technology completed several rounds of financing from Pre-A to D rounds, creating a shareholder structure deeply bound to "state-backed investors + industry capital". Prior to listing, state-owned entities like China Energy Green Low-carbon Fund and New Energy Technology Innovation under the National Energy Group collectively held approximately 16.92% of shares, forming the largest external shareholder group. The Hefei State-owned Assets Supervision and Administration Commission held 4.81% of shares, and the A-share listed company Wuxi Boton Technology, as industrial capital, held 8.29% of shares. Insurance-backed Shengshi Yuheng held 5.52% of shares, and the Qianhai Equity Investment Fund group collectively held about 4.18% of shares. Other shareholders included Hengqin Zijiang with 4.74% and Jinsha River Joint Third Phase Fund with 4.36%. It is worth noting that Beihang University Education Foundation held approximately 1.46% of shares and signed a concerted action agreement with the founding team, and Beihang University Assets held 0.4%. This reflects Tago Intelligent Technology's academic origins and its foundation in research achievements from Beihang University. First positive gross profit, scaling commercialization sees acceleration From a technological perspective, Tago Intelligent Technology's entry into the top tier of the industry is closely related to its autonomous transport system "Kuanggu," designed specifically for open-pit mines. The core of this system, DRIVE, originates from three proprietary AI models: end-to-end autonomous driving model, multi-agent scheduling and control model, and equipment full lifecycle health management model. As shown in the prospectus, this system adopts a "vehicle-ground-cloud" integrated architecture, seamlessly connecting vehicle-mounted intelligent systems, ground coordination facilities, and cloud control platforms, enabling large-scale automation throughout the "loading-transport-unloading" process. Addressing industry pain points such as sensor performance degradation under extreme conditions, insufficient control accuracy in complex road conditions, multiple vehicle conflicts, and low efficiency in large-scale scheduling, "Kuanggu" provides effective systemic solutions. Leveraging the technological foundation of "Kuanggu," Tago Intelligent Technology has developed three main business segments: autonomous mining transport solutions equipped with Tago-specific vehicles, mining transport solutions for third-party vehicles, and intelligent operations and other services. In 2025, the revenue distribution for these three business segments was 71.4%, 9.7%, and 18.9% respectively. In terms of revenue, Tago Intelligent Technology's total revenue decreased by 20% in 2024, mainly due to the company's strategic adjustment during that year. The reduction in the number of smaller projects and the focus on providing larger benchmark projects and technology iterations for major clients led to a decrease in the number of projects delivered, affecting the revenue release of the solution for third-party vehicles business segment. In 2025, Tago Intelligent Technology saw an explosive growth in revenue, with total annual revenue increasing by 246.2% to approximately RMB 527 million. The solution equipped with Tago's special vehicles for autonomous mining transport became the core growth enginebenefiting from the increasing maturity of the system, significant cost reductions in deployment, ongoing optimization of operational stability and transport efficiency driving customer satisfaction, the company not only expanded existing projects but also attracted new customers, leading to a significant revenue increase of 492.42% to RMB 376 million. At the same time, the other two business segments also contributed to revenue growth. Revenue from the solution for third-party vehicles significantly increased as large projects were delivered on schedule and income recognized. Revenue growth in intelligent operations and other services was mainly due to the formal launch and operation of the Hami Baishihu open-pit coal mine project in Xinjiang in 2025. Looking at gross profit margins, Tago Intelligent Technology recorded a gross profit margin of -45.5% in 2024, a significant decrease compared to the previous year. This was mainly due to the company's focus on penetration at scale in delivering benchmark effects rather than short-term profitability for the solution equipped with Tago's vehicles, resulting in high on-site debugging, customization, and hardware costs that dragged down the gross profit margin for this business. Additionally, the reduction in the number of projects for the solution for third-party vehicles segment also led to a significant deterioration in gross profit margin for that business in the same period. By 2025, Tago Intelligent Technology achieved a positive overall gross profit of RMB 25.29 million, corresponding to a gross profit margin of 4.8%, an increase of nearly 50 percentage points compared to -45.5% in 2024. The gross profit margin for the solution equipped with Tago's vehicles increased from -27.5% to 13.6%, mainly due to scale effects and an increase in the proportion of standardized products in the product line. Similarly, the gross profit margin for the solution for third-party vehicles improved to -14.5%, a significant improvement compared to the revenue scale close to 2023, indicating an improvement in the profitability of that segment. This was mainly due to the increasing maturity and standardization of core algorithms and software platforms, enhanced research and development efficiency supported by AI technology, shortening delivery cycles, and reducing delivery costs and repetitive development expenses. With revenue growth, positive gross profit, and a focus on cost reduction and efficiency enhancement strategies Tago Intelligent Technology narrowed its adjusted net loss to approximately RMB 104 million in 2025. This represents a reduction of RMB 164 million compared to the RMB 268 million in 2024, a decrease of 61.2%, with the adjusted net loss rate dropping to -19.7%, compared to -134.4% and -176.3% in 2023 and 2024 respectively. These figures clearly demonstrate Tago Intelligent Technology's significant acceleration towards scale commercialization. The potential release of performance from the largest overseas order, and the challenge of high customer concentration On an industry development level, Tago Intelligent Technology operates in the high-growth phase of the autonomous mining sector. Mining not only has a vast production value and transportation demand but also faces traditional pain points such as high risks, labor shortages, low efficiency, and the autonomous driving technology not only frees drivers from hazardous environments, significantly reduces accident rates, but also reduces labor costs by 70%-80% and increases vehicle operation time to over 22 hours per day, breaking the constraints imposed by human labor on productivity. Additionally, leveraging multidimensional perception systems, this technology can empower full lifecycle vehicle management and intelligent mining decision-making, optimizing safety, efficiency, and cost comprehensively. Therefore, autonomous mining transport is becoming the ideal scenario for the commercialization landing of L4-level autonomous driving, becoming a consensus in the industry. According to data from Zhaoshi Consulting, the global market for autonomous mining transport solutions is expected to grow from RMB 8.6 billion in 2025 to RMB 56.5 billion in 2030, with a compound annual growth rate of 45.7%. During the same period, the Chinese market is expected to grow from RMB 4 billion to RMB 30.9 billion, with a compound annual growth rate of 50.7%, 5 percentage points higher than the global growth rate. The overseas region is also expected to see a high growth rate of 40.8% during the same period. With its accelerating commercialization, Tago Intelligent Technology has entered the top tier of China's autonomous mining transport solution market and enjoys certain first-mover and scale advantages. It is poised to continue benefiting from the industry's high-growth dividends. However, potential risks in Tago Intelligent Technology's business operations deserve investor attention. Currently, Tago Intelligent Technology holds a market share of 13.3%, while the market share of the top-ranked Easy Control Intelligent Driving is 38.1%, the second-ranked CIDI is 21%, both significantly higher than Tago Intelligent Technology, and the market share of the third-ranked competitor closely follows at 13.2%. If Tago Intelligent Technology fails to maintain a significant competitive edge, it may fall behind in intense market competition. To embellish pre-listing performance, Tago Intelligent Technology reduced research and development expenditure in 2025, which may not be conducive to the long-term development of the company's core competitiveness. Furthermore, the high level of customer concentration is another pain point that Tago Intelligent Technology urgently needs to address. According to the prospectus, the revenue from the top five customers accounted for 84.9%, 87%, and 88.2% of Tago Intelligent Technology's total revenue from 2023 to 2025, with a continuous increase. The revenue contribution from the largest customer accounted for 24.4%, 26.5%, and 40.5% respectively. The high degree of dependency on a few customers could weaken the company's bargaining power and any adjustments in supply chain strategies or expenditure budgets by major clients could directly impact the company's orders. Therefore, continuous expansion of new customers to reduce concentration and demonstrate commercial strength will be crucial for Tago Intelligent Technology, especially given the high market expectations for its growth following the revenue surge in 2025. If future growth falls short of expectations, the risk of valuation retraction will intensify.