New Stock Preview | Yinjia Electronics: Dual drivers fuel high performance growth, cash on hand only 100 million yuan.

Title context: New Stock Preview | Yinjia Electronics: Dual drivers fuel high performance growth, cash on hand only 100 million yuan. Text: The intelligent driving industry has entered deep waters. From the admission permits for the first batch of L3-level conditionally autonomous driving models at the end of last year, to the launch of L3 full-domain on-road pilots in major cities this year, including Beijing, Shanghai, Guangzhou and Shenzhen, expanding from limited test areas to city-level open roads, the L3 intelligent driving era is accelerating toward us. Policy support and regulation are also in place. The "Safety Requirements for Combined Driving Assistance Systems of Intelligent Connected Vehicles" (GB 479552026) and the "Safety Requirements for Automated Driving Systems of Intelligent Connected Vehicles" (GB 447212026) will both take effect on January 1, 2027. The development of intelligent driving is also driving rapid iteration and maturation across the entire industry chain, from perception sensors such as onboard cameras and LiDAR to core hardware such as onboard chips and steer-by-wire chassis. Yinjia Electronics, which focuses on intelligent driving and intelligent cockpits, has submitted a listing application to the Hong Kong Stock Exchange. This supplier, hidden behind automakers such as Toyota, Volkswagen and Geely, has accumulated losses of approximately 285 million yuan over three and a half years, and has thus stepped into the spotlight. It is understood that Yinjia Electronics is an intelligent solutions provider focused on the R&D and sales of intelligent driving, intelligent cockpit and general Siasun Robot&Automation solutions and products, with Guotai Junan Financing serving as its sole sponsor. According to Frost & Sullivan, by revenue, the company ranks ninth in China's intelligent driving solutions market with a 0.2% market share, and also ranks ninth in China's intelligent driving and visual safety solutions market with a 0.6% market share. The company's performance is eye-catching. From 2023 to 2025, revenue increased from 111 million yuan to 481 million yuan, a compound growth rate of 108.2%. In the first half of 2026, revenue was 336 million yuan, up 164.6% year on year. However, the company has posted losses for consecutive years, with net losses of 47 million yuan, 108 million yuan, 96 million yuan and 35 million yuan in the above periods respectively, for cumulative net losses of 286 million yuan. With high growth coexisting with weak profitability, how solid is this national-level specialized and sophisticated "little giant"? Dual-wheel drive fuels high performance growth, net loss continues to narrow Yinjia Electronics focuses on the R&D and sales of intelligent driving, intelligent cockpit and general Siasun Robot&Automation solutions and products, and maintains long-term cooperation with leading global OEMs. During the track record period, by sales volume, our solutions and products have been applied to models of all of China's top ten OEMs and seven of the world's top ten OEMs. The company mainly has two businesses: intelligent driving solutions and intelligent cockpit solutions. From the revenue structure, intelligent driving solutions are the core business and maintain a high-growth trend. In the first half of 2026, revenue from this business was 252 million yuan, up 256.4% year on year, accounting for 74.9% of revenue. Intelligent cockpit solutions had a revenue compound growth rate of 58.9% from 2023 to 2025, and accounted for 22.7% of revenue in the first half of 2026. The two businesses are driving continued high performance growth. Image source: Company hearing document The company's customers are mainly automakers. From 2023 to the first half of 2026, it had 17, 55, 88 and 77 customers respectively and obtained 8, 19, 25 and 20 new design wins. During the track record period, it has delivered a total of more than 2 million sets of solutions and products. Customer concentration has also shown a declining trend. In the first half of 2026, the top five customers contributed 54.7% of revenue, down 38.5 percentage points from 2023. It is worth noting that Yinjia Electronics' profitability fluctuates significantly. Gross margins from 2023 to the first half of 2026 were 20.3%, 10%, 12.3% and 17.8% respectively. This is mainly due to two reasons. First, the acquisition of Shanghai Yuzhou Electric in 2024 increased the revenue share of intelligent cockpits, a business with lower gross margins. Second, intelligent driving gross margins fluctuate, with cost-plus pricing combined with automakers' customary "annual price cuts," leaving bargaining power in the hands of customers. However, amid scale growth, the company's optimization of various expenses has continued to narrow its net loss. From 2023 to the first half of 2026, the adjusted net loss ratios were 36.4%, 34.1%, 12.1% and 1.1% respectively. Nevertheless, the company's operating cash flow has continued to show net outflows, with net outflows of 89 million yuan, 126 million yuan, 78 million yuan and 110 million yuan in the above periods respectively, for cumulative net outflows of 402 million yuan. As of the end of July 2026, the company had cash and cash equivalents of approximately 100 million yuan, while borrowings due within one year amounted to 382 million yuan. Redeemable financial liabilities formed through multiple financing rounds increased from 160 million yuan to 459 million yuan. This IPO is, in a sense, a race against time to "replenish capital." Emphasis on R&D and "full-stack in-house development," two major businesses achieve "rising volume and price" Yinjia Electronics is centered on its VT-Navigara technology platform, which is "algorithm-based with integrated software and hardware." The platform has two general software architectures, namely the basic adaptation architecture under the VT-Fundra series and the function enablement architecture under the VT-Bridgara series, as well as three integrated software and hardware modules, supporting three product lines upward: intelligent driving (VT-Pilot), intelligent cockpit (VT-Cockpit) and Siasun Robot&Automation (VT-Robotics). From 2023 to the first half of 2026, the company's R&D expenses were 28 million yuan, 38 million yuan, 49 million yuan and 25 million yuan respectively, maintaining a growth trend. As of the latest practicable date, the company owns 121 registered patents, 30 registered trademarks and 49 software copyrights in China, covering multiple categories such as visual perception, automated parking, intelligent lighting, in-cabin interaction, domain controllers and calibration. In terms of production capacity and delivery, the company's R&D centers and production bases are located in Shanghai, Suzhou, Xiamen, Taiwan, Jiaxing, Wuhu, Dongguan and other places, with a mass production delivery cycle of six to nine months. In May 2026, it signed an agreement with Feidong, Hefei to build a global business headquarters and intelligent driving hardware production base, planning to produce core components such as intelligent driving controllers, camera modules and millimeter-wave radar. The new production base in Wuhu, Anhui is expected to be completed in May 2027. Image source: Company hearing document Product advantages are reflected in "rising volume and price": from 2023 to 2025, sales volume of intelligent driving products increased from 130,400 units to 416,200 units, and average selling price rose from 685.8 yuan to 768.3 yuan. In the first half of 2026, sales volume was 283,000 units, up about 218% year on year, and average selling price further rose to 889.5 yuan, as the product mix upgraded toward higher configurations. The product matrix covers functions such as AEB, ACC (adaptive cruise control), APA (automated parking assist), DMS (driver monitoring system) and CMS (electronic exterior mirrors), with some software charged separately in the form of SDKs (software development kits). As of the end of June 2026, the company had a total of 77 customers and more than 120 cumulative design wins. Industry growing rapidly, a PS of 5.8x is not high From an industry perspective, according to Frost & Sullivan, China's intelligent driving solutions market was worth 197.3 billion yuan in 2025, with a compound growth rate of 44.1% over the past five years, and is expected to reach 553 billion yuan by 2030. The cockpit visual safety products market is expected to grow from 11.8 billion yuan in 2025 to 44.6 billion yuan in 2030, a compound growth rate of 27.0%. At the end of 2025, China issued the first batch of admission permits for L3-level conditionally autonomous driving models. "Intelligent driving for all" is driving high-level functions down to mass-market models, and the penetration rate of ADAS (advanced driver assistance systems) in the Chinese market is expected to reach about 80% by 2030. Industry concentration shows a fragmented trend. In 2025, the top ten players in China's intelligent driving and visual safety solutions market together held a 48.1% market share, with the top player alone holding 13.6%. Yinjia Electronics ranked ninth with a 0.6% share and fifth among domestic suppliers. However, the cards in Yinjia Electronics' hand are not without weight. For example, rising volume and price validate product competitiveness, more than 120 design wins in hand build a delivery base, and its positioning in "full-stack in-house development + cockpit-driving synergy" is also an advantage. Moreover, the company has a strong shareholder base, with names including Shenzhen Capital Group, Shenzhen High-Tech Investment, Oriental Fortune Capital and several local industrial funds. Its post-investment valuation in the Pre-IPO round was approximately 2.78 billion yuan. As the company is still at the filing stage, there are no investment bank ratings or target prices available in the market. However, based on the Pre-IPO round valuation, the corresponding price-to-sales ratio is about 5.8x, which is not high relative to valuations of more than 10x in hot sectors, but with profitability not yet achieved, the valuation "anchor" is inherently blurred. Overall, Yinjia Electronics has strong revenue growth, with its two major businesses driven by dual wheels. "Rising volume and price" are driving continued high performance growth, and profitability is showing an improving trend, with the adjusted loss ratio narrowing to 1.1%, and a turnaround "inflection point" faintly visible. However, the company's operating cash flow has not yet turned positive, and the time pressure posed by redemption rights and debt means how solid its quality is still needs to be verified by the hearing and its first financial report after listing. What remains for the company is also a window to complete its listing before the end of 2027.