New stock news | Magi shares re-submit the Hong Kong Stock Exchange's 2025 loss rate as high as 91.7%

According to the disclosure of the Hong Kong Stock Exchange on May 29th, Meijia Group Limited (referred to as Meijia Group) has submitted its listing application to the main board of the Hong Kong Stock Exchange. CICC, Citigroup, and Deutsche Bank are its joint sponsors. This is the company's second time submitting an application to the Hong Kong Stock Exchange, having submitted a listing application on June 30, 2025. During the previous reporting period, Meijia Group continued to generate a net loss. In the year 2025, the company recorded an annual loss of approximately 1.368 billion yuan, with a loss rate as high as 91.7%. Company Profile The prospectus shows that Meijia Group is an automotive technology company dedicated to reshaping the future of travel. The company focuses on delivering AI integrated domain control solutions, empowering OEMs to create the next generation of software-defined vehicles. In terms of passenger car new installations, the company was the second-largest integrated domain control solution supplier in China in 2024, with a market share of 9.3%. Meijia Group provides AI integrated domain control solutions to OEMs, which include cockpit environment regulation and AI companionship, ADAS functions, and other software-driven intelligent vehicle functions integrated into a unified physical domain controller built on a single vehicle-grade core chip. The company is focused on the transformation of the automotive industry, leading the way towards the next generation of software-defined vehicles (SDV). As OEMs transition from hardware-centric platforms to intelligent, flexible mobility systems, the company provides crucial AI-driven integrated domain control solutions necessary to realize this technological transformation. Through the company's solutions, Meijia Group helps vehicles evolve from basic transportation tools into continuously evolving, intricately complex interactive digital spaces. The company's business is built on three core principles: First, a comprehensive AI strategy. The company deeply integrates AI into all aspects of its operations. AI is not only reflected in product functionalities but also drives the company's internal R&D, optimizes supply chain management, and empowers automated testing processes. This comprehensive integration enables the company to deliver intelligent, contextually aware solutions that can swiftly respond to industry development cycles and technological advancements. Second, the company's "Foundational and Cutting-edge" product roadmap. Through a dual-track strategy, the company is redefining human-machine interactions. Meijia Group's intelligent cockpit + X ecosystem serves as the "foundational experience." Leveraging high computational power SoCs, the company consolidates scattered vehicle functionalities into a unified core, reducing hardware complexity. Building on this foundation, the company is expanding into cutting-edge intelligent driving, covering APA, high-speed NOA (Automatic Navigation Assistance), and urban NOA. These functionalities are realized through software on the company's unified control unit, enabling OEMs to offer feature-rich products without added costs. Autonomous driving represents the company's transition from optimizing cockpit functions to full-stack intelligent autonomous driving, driving the creation of long-term value. Third, a modular, reusable software architecture enables agile development processes. Meijia Group's architecture is built around modular, reusable "basic components" software - these software components undergo rigorous testing and are optimized for actual performance. This proprietary software architecture decouples software from underlying hardware, enabling it to work on different hardware platforms, facilitating prototyping design and continuous integration. The company does not need to redevelop software for each specific point but instead calls from a pre-developed modular library covering operating systems, AI applications, and connectivity functions, allowing the company to independently develop and optimize various components and apply the same software code to multiple vehicle models. This shortens the time to market for new features, ensuring the company can adapt to changing market demands rapidly and reliably support OTA online upgrades. Since the first mass-produced model incorporating the company's solution in 2022, Meijia Group's business has expanded. As of the latest feasible date, the company's solutions have been widely used in multiple models from major OEMs such as Chery, Chang'an, Dongfeng, Changan Mazda, Nissan, and Ford. In 2024, approximately one in every ten new vehicles equipped with an integrated domain control system in China used the company's solution. With the company's technology and product capabilities, Meijia Group is expanding its footprint in both domestic and global markets. As of December 31, 2025, the company's products have been deployed in over 40 countries and regions. Financial Information Revenue In the fiscal years 2023, 2024, and 2025, the company generated revenues of approximately 1.513 billion yuan, 1.420 billion yuan, and 1.492 billion yuan, respectively. Gross Profit and Gross Profit Margin In the fiscal years 2023, 2024, and 2025, the company recorded gross profits of approximately 183 million yuan, 309 million yuan, and 366 million yuan, with corresponding gross profit margins of 12.1%, 21.8%, and 24.5%, respectively. Net Loss In the fiscal years 2023, 2024, and 2025, the company recorded net losses of approximately 357 million yuan, 291 million yuan, and 1.368 billion yuan, respectively. Industry Overview From 2020 to 2024, global sales of smart cars rose from 41.2 million to 65.7 million units. It is estimated that global smart car sales will reach 95.8 million units by 2029. China has become a core driver of this growth momentum, consolidating its position as a global hub for automotive manufacturing. Chinese OEMs have shown significant growth surpassing the overall market, with smart car sales increasing from 6.2 million units in 2020 to 12.9 million units in 2024, with a CAGR of 20.3%. Looking ahead to 2029, Chinese OEMs are expected to achieve annual smart car sales of 22.0 million units, with a CAGR of 11.2% from 2024, accounting for 23.0% of global smart car sales. The market is expected to shift from rapid expansion to high-quality development. Chinese suppliers now have a crucial opportunity to expand globally alongside their partner car companies. As Chinese automotive brands accelerate their internationalization, these suppliers can not only diversify their customer base but also explore new market territories, thereby establishing themselves as global competitors in the era of smart travel. With the widespread adoption of central E/E architecture and increasing demand for integrated computational capabilities in smart vehicles, the global market for integrated domain control solutions is rapidly expanding. As the industry transitions towards software-defined vehicle architectures, cross-domain integration (especially in intelligent cockpits, ADAS, and autonomous driving) is accelerating. In terms of revenue, the global market for integrated domain control solutions has increased from 23 billion yuan in 2020 to 379 billion yuan in 2024, with a CAGR of 102.6%, and is projected to reach 2,742 billion yuan by 2029, with a CAGR of 48.5% from 2024. By revenue calculation, the Chinese market for integrated domain control solutions has grown from 13 billion yuan in 2020 to 215 billion yuan in 2024, with a CAGR of 99.9%. It is estimated to reach 1,347 billion yuan by 2029, with a CAGR of 44.3% from 2024. As smart vehicles evolve towards centralized computing and software-defined architectures, cross-domain integration (especially between integrated domain control solutions and ADAS functions, and integrated domain control solutions and vehicle remote control systems) has become the mainstream development direction. This architecture can achieve real-time coordination between user interactions, environmental perception, and vehicle control systems, significantly enhancing overall system efficiency, safety, and user experience. Driven by consumers' increasing expectations for intelligent, connected, and personalized in-vehicle experiences, integrated domain control solutions are evolving into central hubs that integrate voice assistants, gesture controls, AR displays, and AI personalization, while vehicle remote control systems enable real-time connectivity, remote diagnostics, and data-driven services. Together, they form the backbone of software-defined vehicles, allowing OEMs to differentiate themselves through user experience, data monetization, and exploration of new revenue models (such as ecosystem partnerships and subscription services). The global market for advanced domain control solutions integrating vehicle remote control functions reached 24 billion yuan in 2024 and is expected to grow to 247 billion yuan by 2029, with a CAGR of 59.2% from 2024. In China, by revenue calculation, the market for advanced domain control solutions integrating vehicle remote control functions reached 21 billion yuan in 2024 and is projected to increase to 122 billion yuan by 2029, with a CAGR of 42.4% from 2024. With the continued advancement of integrated domain control solutions and ADAS technologies, OTA updates and subscription services are expected to rapidly grow in the coming years. OTA functions allow cars to continuously improve and optimize their functionalities post-sale, while subscription services provide personalized features and services for drivers. These technologies together diversify revenue sources in the automotive industry and are expected to play a more important role in the future market landscape. By 2029, the global market for OTA and subscription services (by revenue) is expected to reach 736 billion yuan, with a CAGR of 104.9% from 2024. In the Chinese market, the size of the OTA and subscription services market is expected to reach 312 billion yuan by 2029, with a CAGR of 98.2% from 2024. Board of Directors Information The board of directors will consist of seven directors, including three executive directors, one non-executive director, and three independent non-executive directors. Equity Structure Dr. Zhuang, through his family trust and controlling entities, controls approximately 35.78% of the company's issued shares. The Employee Share Ownership Plan platform holds 17.29%, Nanshan Xingyu Holding Limited holds 13.52%, HIKE Capital entity holds 9.10%, ACE Redpoint entity holds 7.52%, TH EDU Capital entity holds 6.14%, Shanghai Meijingyiran Enterprise Management Co., Ltd. holds 2.92%, China Mobile Beijing Fund holds 2.90%, and other pre-IPO investors collectively hold 4.83%. Intermediary Team Joint Sponsors: China International Finance Hong Kong Securities Limited; Citigroup Global Markets Asia Limited; Deutsche Securities Asia Limited Sponsor and Lead Coordinator: China International Finance Hong Kong Securities Limited; Citigroup Global Markets Asia Limited; Deutsche Bank (Hong Kong Branch) Lead Coordinator: China International Finance Hong Kong Securities Limited; Citigroup Global Markets Asia Limited; Deutsche Bank (Hong Kong Branch); Citic Lyon Securities Limited; Macquarie Capital Limited Company Legal Advisors: Davis Polk & Wardwell for Hong Kong and U.S. law; Shanghai Chengming Law Firm for Chinese law; Hogan Lovells for international sanctions law; Maples and Calder (Hong Kong) LLP for Cayman Islands law Joint Sponsors Legal Advisors: Reid International Law Firm for Hong Kong and U.S. law; Jingtian Gongcheng Law Firm for Chinese law Auditors and Reporting Accountants: Deloitte Touche Tohmatsu Industry Consultants: Frost & Sullivan Consulting Co., Ltd. Shanghai Branch Compliance Consultant: Huarong Capital Co., Ltd.