ZongMu Technology applies for listing on Hong Kong Stock Exchange

Beijing (Gasgoo)- On March 28, Chinese autonomous driving solution developer ZongMu Technology officially submitted its listing application to the Hong Kong Stock Exchange, intending to go public on the main board.

Photo credit: ZongMu Technology

According to the prospectus, the funds raised will primarily support the development of the company’s new generation Drop'nGo platform, integrated parking solutions, energy service robots, as well as the construction of production bases for its intelligent driving systems and energy service robots.

It's worth noting that this is not ZongMu Technology's first attempt at an IPO. Back in 2017, it was briefly listed on the New Third Board (the National Equities Exchange and Quotations) for 11 months. In November 2022, it made another attempt on the Sci-Tech Innovation Board of the Shanghai Stock Exchange, but didn't succeed.

Founded in 2013, ZongMu Technology has deployed its intelligent driving solutions onto 50 mass-produced vehicle models from 16 automakers by December 31, 2023. 

According to the prospectus, ZongMu Technology achieved annual revenues of 225 million yuan, 469 million yuan, and 498 million yuan in 2021, 2022, and 2023, respectively, with a three-year compound growth rate of 48.7%.

However, despite the scale production of its intelligent driving solutions, the company still faces significant losses due to high R&D expenses, sales costs, and capacity investments, accumulating losses of 1.375 billion yuan in the past three years.