New Stock Outlook: High revenue growth, insufficient blood supply, the future of technology remains to be seen.

Level 4 automated truck solutions provider - Mainline Technologies (Beijing) Co., Ltd. (hereinafter referred to as "Mainline Technologies") is once again making a push for a Hong Kong IPO. According to the Hong Kong Stock Exchange on June 12th, Mainline Technologies has formally submitted its application to the Hong Kong Stock Exchange Main Board, with Guotai Haitong acting as the sole sponsor. This comes half a year after the company first submitted its IPO application in December 2025, marking its return to the Hong Kong capital market. According to the prospectus, the funds raised from this IPO will be directed towards five main areas: continuous enhancement of research and development capabilities; advancing the mass production and supply chain system development of intelligent devices and core components; market expansion and brand ecosystem construction; strategic equity investment and industrial acquisition; and supplementary operating funds for general corporate use. China's fourth largest commercial vehicle automated driving solution provider The prospectus reveals that Mainline Technologies was established in 2017 and is a domestic technology company specializing in Level 4 automated truck driving solutions. According to Frost & Sullivan data, based on 2025 revenue calculations, Mainline Technologies ranks fourth among commercial vehicle automated driving solution providers in China, with a market share of 2.7%. It is also one of the earliest domestic enterprises with three core capabilities: self-developed Level 4 automated driving technology stack, cross-model deployment capability, and commercial operation in multiple logistics and transportation scenarios. The company has created an integrated product system of "Vehicle-End-Cloud", covering the three core modules: AiTruck (intelligent truck), AiBox (intelligent terminal), and AiCloud (intelligent cloud services). The company's three-tier solution aims to improve safety, efficiency, and environmental performance in three core commercial scenarios. Based on this product system, Mainline Technologies' business covers the three core commercial scenarios. Among them, TrunkPort (logistics hub) provides a fully unmanned transportation solution to meet the logistics needs of seaports, river ports, land ports, ports, and industrial parks. According to Frost & Sullivan data, TrunkPort is the first commercial deployment of unmanned transport system solutions in domestic ports, and the company is the first in the industry to achieve fully unmanned, multi-climate, and full-process operations in heavily mixed port environments. TrunkPilot (highway logistics) provides intelligent transportation solutions mainly for express delivery, less-than-truckload freight, bulk commodities, cold chain services, and short-distance towage. The company's TrunkPilot solution was one of the first in China to achieve interstate automated truck platoon transport. TrunkCity (urban traffic) provides intelligent solutions that integrate vehicles, roadside infrastructure, and cloud platforms to upgrade urban distribution logistics and public transportation. As of the most recent feasible date (June 5, 2026), Mainline Technologies has delivered a total of 1283 AiTruck intelligent trucks and 381 sets of AiBox intelligent terminals; as of April 30, 2026, the order backlog amounts to 236 million yuan (RMB). High compound revenue growth, narrowing losses In terms of performance, from 2023 to 2025, Mainline Technologies' operating income was 134 million yuan, 254 million yuan, and 345 million yuan, with a three-year compound growth rate of 60.3%. Revenue growth mainly comes from continuous optimization of products and revenue structure, with a gradual increase in the proportion of high-gross-margin intelligent terminals and cloud services, coupled with the release of scale effects. The company's overall gross margin increased from 12.2% in 2023 to 27.1% in 2025. In terms of business segments, the profit improvement of the main growth driver, TrunkPilot, was particularly significant, with gross profit increasing from 2.43 million yuan in 2023 to 65.93 million yuan in 2025, and the gross profit margin increasing from 3.6% to 30.6% over the same period. It is worth noting that Mainline Technologies has not yet achieved profitability. Net losses from 2023 to 2025 were 213 million yuan, 187 million yuan, and 171 million yuan, with the loss scale narrowing year by year. The core reasons for the losses are concentrated in three areas: high investment in research and development, as a technology-driven company, the company continues to increase investment in algorithm iteration, road testing validation, and product refinement. Although the R&D expenditure ratio decreased from 89.0% to 34.9% over the three years, the absolute investment scale has remained high. Secondly, the redemption of preferred shares formed due to historical financing resulted in significant financial interest expenses, which are temporary financial costs before going public. Thirdly, sales, operations, and other supplementary expenses grew in sync with the business expansion phase. Excluding non-operating factors such as preferred shares, the company's adjusted net loss rate has continued to decrease, reaching 24.2% in 2025. The prospectus also disclosed the company's path to profitability: first, historical revenue growth compounded with the support of 2.36 billion yuan in order backlog for future revenue growth; second, continuous improvement in gross margin, with room for optimization in product and revenue structure; third, gradual release of operating leverage, with research and development, administrative, and other expense ratios expected to decrease as income scales up; fourth, expansion into overseas markets opening up new revenue growth opportunities. However, the operational pressure during the growth stage also objectively exists. For example, the company's net cash flow from operating activities has continued to be negative, and at the current stage, the company still relies on external financing to support its expansion, which is also the practical demand for the company to seek an IPO for capital replenishment. According to the prospectus, as of December 31 in 2023, 2024, and 2025, Mainline Technologies' net cash outflow from operating activities was 82.6 million yuan, 86.5 million yuan, and 80.5 million yuan respectively. The net outflow is mainly attributed to the company's continuous large-scale investment in research and development to maintain a leading technological position, hardware integration purchases during the business expansion phase, and the fact that early commercial revenue cannot cover all operating investments. Resonating demand in a trillion-dollar race, industry opportunities and challenges coexist Supporting Mainline Technologies' long-term growth is the huge market base and clear industry pain points of China's commercial vehicle automated driving field. As of 2025, China has consecutively ranked as the world's largest logistics market for ten years, with the total social logistics value exceeding 36 trillion yuan, of which highway logistics accounts for over 70% of the national freight volume. However, the industry has long faced structural pain points such as a shortage of drivers, high labor costs, high traffic accident rates, and capped transport efficiency, making traditional operational models unsustainable. Automated driving technology, as a systematic solution, significantly enhances safety, reduces costs, improves efficiency, and cuts energy and emissions, making commercial vehicles the core carrier for the implementation of automated driving technology - trucks are expected to account for approximately 70% of China's commercial vehicle sales by 2025, projected to rise to 75% by 2030. In terms of market space, commercial vehicle automated driving is currently in a period of rapid growth. Open road scenarios will become the core industry growth engine. With the relaxation of access standards for long-distance transportation and urban logistics, and the continued maturity of technology, the popularity and economy of automated driving solutions will rapidly increase. By 2030, income from open road scenarios is expected to account for over 85% of the entire market, becoming the main DRIVE of industry growth. With opportunities, common industry challenges also lie ahead for Mainline Technologies. On the technological front, open road scenarios are much more complex than enclosed ports, with extreme weather conditions, non-traditional road conditions, and mixed traffic posing higher demands on algorithm robustness. The safety verification of fully unmanned operations still requires time; on the regulatory front, the pace of policy advancement varies in different regions, and cross-regional large-scale implementation faces issues of inconsistent approval and standards; on the competitive front, traditional automotive companies, technology companies, and startups are all entering the market, and the industry landscape is far from solidifying; on the commercial front, the profit models of new scenarios like urban traffic are still being validated, and customer acceptance and willingness to pay for new technologies need to be nurtured gradually. In conclusion, transitioning from closed port facilities to vast main highways and gradually extending to urban traffic, commercializing Level 4 automated driving for commercial vehicles is entering a critical stage of large-scale implementation. As a leading player in the field, Mainline Technologies holds a prominent position, but its final share in the trillion-dollar market will depend on the speed of large-scale deployment in highway logistics, the pace of cost reduction, and the progress in breaking into new scenarios. For investors, the long-term value of this company lies in the dual iterative process of technology and business in the industrial progress.