IPO Preview | From "Trading Price for Volume" to "Rising Volume and Price" How Does Yinjia Technology Tell a Convincing Hong Kong Stock Growth Story?

Title context: IPO Preview | From "Trading Price for Volume" to "Rising Volume and Price" How Does Yinjia Technology Tell a Convincing Hong Kong Stock Growth Story? Text: Against the backdrop of accelerating intelligent transformation in the automotive industry and the continuous downward migration of ADAS and smart cockpit functions from high-end models to the mass market, the intelligent driving solutions track is ushering in rapid expansion. Frost & Sullivan data shows that China's intelligent driving solutions market has grown from RMB 45.7 billion in 2021 to RMB 197.3 billion in 2025, with a compound annual growth rate of 44.1%, and is expected to reach RMB 553 billion by 2030; the smart cockpit market grew from RMB 68.6 billion to RMB 173.6 billion over the same period, while cockpit visual safety products also grew from RMB 2 billion to RMB 11.8 billion. Amid the industry's high prosperity, companies across the supply chain are accelerating their capitalization. According to a disclosure by the Hong Kong Stock Exchange on September 27, Shanghai Yinjia Electronic Technology Co., Ltd. (hereinafter referred to as "Yinjia Technology") has submitted a listing application to the Main Board of the Hong Kong Stock Exchange, with Guotai Junan Financing Limited as the sole sponsor. The company focuses on intelligent driving, smart cockpit, and general Siasun Robot&Automation solutions and products. Based on 2025 revenue, it ranks ninth among intelligent driving and visual safety solution providers in China and fifth among domestic suppliers, with products already applied to models of all of China's top ten OEMs and seven of the world's top ten OEMs. Scale Effects Beginning to Show Narrowing Losses Point to an Expected Profitability Inflection Point Under the industry tailwinds of accelerating intelligent transformation in the automotive industry and the continuous downward penetration of intelligent driving into mass-market models, Yinjia Technology has delivered a performance report showing explosive growth. The company's revenue scale is in a period of rapid expansion, with revenue jumping from RMB 111 million in 2023 to RMB 229 million in 2024, and further doubling to RMB 481 million in 2025. Entering the first half of 2026, revenue reached RMB 336 million, achieving explosive year-on-year growth of 164% compared with RMB 127 million in the same period of 2025. This growth rate far exceeds the industry average, confirming that the company's products are in a period of large-scale mass production and delivery. With a high-quality customer matrix covering China's top ten and the world's top seven OEMs, its order conversion capability is accelerating. However, behind the high revenue growth, the fluctuation in profitability is a focus of market attention. The company's gross margin shows a "U-shaped" trend, plummeting from 20.3% in 2023 to 10.0% in 2024, reflecting the profit squeeze on upstream suppliers from the fierce "price war" in the automotive industry, as well as the company's early strategy of "trading price for volume" to seize market share. But with the expansion of revenue scale and the emergence of scale effects, combined with an increase in the proportion of high-margin products, gross margin rebounded to 12.3% in 2025 and recovered to 17.8% in the first half of 2026. This indicates that the company's product pricing power has strengthened. Although the company is not yet profitable, the loss margin is improving significantly, with the loss for the period narrowing from a peak of RMB 108 million in 2024 to RMB 95.76 million in 2025. The loss in the first half of 2026 was RMB 35.09 million, a substantial narrowing of about 26.5% compared with RMB 47.73 million in the same period of 2025. With revenue doubling while losses narrowed in the opposite direction, it means the company's operating leverage is taking effect, and it is getting closer and closer to the break-even point. Looking further at the expense structure, Yinjia Technology has maintained high-intensity R&D investment, with R&D expenses increasing from RMB 27.85 million in 2023 to RMB 48.72 million in 2025. R&D expenses in the first half of 2026 were RMB 25.04 million, and their proportion of revenue fell from 25.2% in 2023 to 7.4%. However, in terms of selling and administrative expenses, there was a sharp surge in 2024, and administrative expenses in the first half of 2026 remained as high as RMB 34.08 million, a significant year-on-year increase. In addition, high financial costs are also an important factor eroding profits. In 2025, financial costs and the financial costs of redeemable financial liabilities totaled RMB 35.69 million, and in the first half of 2026 they totaled RMB 22.44 million. Overall, Yinjia Technology's current financial condition is characterized by the coexistence of high growth, high investment, and narrowing losses. Against the backdrop of continued expansion in the intelligent driving and smart cockpit markets, the company has already built a solid revenue foundation through cross-domain technology and penetration into leading OEM customers. Whether it can successfully achieve profitability in the future will require long-term observation. Two Major Businesses Relay Progress Toward Rising Volume and Price Is in Full Swing According to observations, Yinjia Technology is undergoing a benign transformation from "scale expansion" to "rising volume and price and structural optimization," and the explosive expansion of its customer matrix on the operational side has directly reshaped the company's revenue structure. The number of customers for intelligent driving solutions rose rapidly from 16 in 2023 to 45 in 2025, driving sales volume from 130,000 units to 416,000 units; smart cockpit customers also rapidly expanded from an initial 1 to 41. This large-scale penetration on the customer side is directly reflected in the evolution of business revenue proportions: in 2024, smart cockpit revenue once surpassed the intelligent driving business with a 51.1% share, while in 2025 and the first half of 2026, the intelligent driving business, relying on large-scale mass production of advanced functions, quickly rebounded and significantly increased its revenue share to 74.9%. This is not a case of one rising while the other falls, but rather the relayed explosion of the two major businesses at different life cycle stages, demonstrating the company's strong cross-domain solution delivery capability and customer conversion efficiency. More noteworthy is that the "rising volume and price" on the operational side has completely reversed the early profit dilemma of "trading price for volume." Combining the average selling price (ASP) in operational data with the gross margin in business data, the ASP of the smart cockpit business steadily climbed from RMB 273.4 in 2024 to RMB 367.0 in the first half of 2026, behind which is the volume ramp-up of its high-value-added multimodal interaction products; the ASP of the intelligent driving business also rebounded strongly after a brief decline in 2024, reaching RMB 889.5 in the first half of 2026, confirming the upgrade of the product mix toward higher-level intelligent driving. The recovery in unit prices on the operational side directly drove the "U-shaped" repair of gross margin on the business side: smart cockpit gross margin rebounded sharply from the trough of 9.8% in 2024 to 25.8% in the first half of 2026, and intelligent driving gross margin also steadily increased to 15.2%. The simultaneous recovery in the profitability of the two core businesses confirms that after weathering the industry price war, the company's scale effects have emerged, and both product pricing power and cost control capabilities have been substantially enhanced. This solid operational foundation also provides strong support for the company's future performance visibility and second growth curve. There is a lag period from designation to mass production unique to the automotive industry, and in 2025, intelligent driving and cockpit added 8 and 17 designations respectively, and in the first half of 2026 added another 9 and 11, respectively. The abundant reserve of designations locks in sales growth space for the next one to two years. In summary, Yinjia Technology is positioned in the golden track of rapid expansion in intelligent driving and smart cockpits, and has initially completed the switch from "trading price for volume" to "rising volume and price." As scale effects increase, the company's operating leverage is gradually being released, and expectations for a profitability inflection point are strengthening.