Backed by BYD, Why Has the Leading EV Charger Firm Seen Revenue Declines and Surging Losses?

The global new energy vehicle sector continues to surge, with leading enterprises delivering outstanding performance. In 2024, global NEV leader BYD reported revenue of RMB 777.1 billion and net profit attributable to shareholders of RMB 40.2 billion.

As a supplier to BYD and the world’s top home EV charger company by volume, Zhida Technology presents a contrasting picture, with consecutive revenue declines and sustained losses. In 2024, the company reported a net loss of RMB 236 million.

On July 18, the Hong Kong Stock Exchange published the IPO prospectus of Shanghai Zhida Technology Development Co., Ltd. ("Zhida Technology"), a global leader in home EV charging solutions, whose primary revenue derives from product sales and after-sales services.

According to Frost & Sullivan, Zhida Technology ranked first globally and domestically by home EV charger volume during the reporting period, and fourth globally by revenue, while retaining the top spot in China.

This top position was supported by partnerships with major automotive clients. The prospectus states that from 2022 to 2024, revenue from Zhida Technology’s top five customers accounted for 65.8%, 69.6%, and 56.1% of total revenue, respectively. The largest customer—BYD—contributed 38.3%, 32.0%, and 25.0% of revenue over the same period.

Although the prospectus does not explicitly name BYD, it refers to the top customer as a shareholder listed on the Shenzhen and Hong Kong stock exchanges, with revenue of RMB 424.1 billion in 2022, matching BYD’s profile. Besides BYD, Zhida Technology's major clients also include other leading domestic automakers such as Great Wall Motors. However, partnering with large enterprises is a double-edged sword: while securing orders and brand recognition, it also brings significant pressure on financial performance.

From 2022 to 2024, Zhida Technology posted revenue of RMB 697 million, RMB 671 million, and RMB 593 million, respectively, with corresponding net losses of RMB 25.147 million, RMB 58.116 million, and RMB 236 million. The company thus experienced both declining revenue and widening losses.

Zhida Technology attributed the revenue decline to intense competition in the traditional charging pile segment and downward pricing pressure from major clients, particularly automakers. Although the prospectus does not name the main client imposing price cuts, it is notable that in 2024 BYD attracted public attention for requesting a 10% price reduction from suppliers. BYD’s Brand and PR Director, Li Yunfei, responded that annual price negotiations are an industry norm and that price targets are not mandatory but negotiable.

Zhida Technology’s response to such industry practice is evident in the data. The company disclosed that the average selling price for direct sales to automakers dropped from RMB 839.1 in 2023 to RMB 679.9 in 2024, stating, “We accepted pricing pressure to maintain competitiveness.”

Significant pricing differences also appear across channels. During the reporting period, the average retail price was RMB 1,290.8, approximately 74.5% higher than the average price for sales to automakers, which was RMB 739.9. This highlights the company's weak bargaining position in dealings with automakers.

Zhida Technology generates most of its revenue from automaker clients, not only through product sales but also service provision. Alongside lower product prices, after-sales service prices also fell—from RMB 832.0 in 2023 to RMB 586.9 in 2024 for direct sales to automakers.

These price reductions in products and services drove down gross margins, a key factor behind rising losses. From 2022 to 2024, the company’s gross margins were 20.4%, 20.5%, and 14.9%, respectively, with the steep decline in 2024 correlating with the spike in losses.

With its heavy reliance on large clients and pricing-for-market-share strategy, Zhida Technology faces a strategic dilemma. As it prepares for IPO, these factors may influence investor perception of its valuation. How the company plans to resolve this challenge amid pricing pressure remains a key question. Facing sustained price pressure, Zhida Technology’s performance and market share have both declined. To reverse this trend, the company is actively implementing countermeasures.

On the product front, the firm is reducing costs through design optimization, raw material integration, and supply chain streamlining. Zhida Technology stated that its top priority is maintaining operational resilience and outpacing competitors to expand market share, with a focus on margin improvement once the competitive landscape stabilizes.

Has this price-for-volume strategy worked? According to the prospectus, Zhida Technology’s product sales volumes were 484,800 units in 2022, 313,300 units in 2023, and 351,100 units in 2024—initially declining before recovering, suggesting that the pricing strategy achieved some traction under pressure.

Specifically, one major client lowered its purchase price target for chargers below Zhida Technology’s expectations, causing the company to lose the bid. Subsequently, Zhida developed a lower-cost, high-quality product and signed a new contract with the client in July 2024.

Despite the sales volume rebound, market share declined. In its February 2024 prospectus, Zhida Technology stated that during the reporting period, it held 20.5% of the Chinese market and 12.2% of the global market by volume. However, in the July 2025 version, the company’s domestic and global market shares dropped to 13.6% and 9.0%, respectively.

To counter this, Zhida Technology is developing higher-margin products like EV charging robots, while also expanding internationally and strengthening retail channels to drive growth.
The top priority of its Hong Kong IPO fundraising plan is overseas expansion, including building production facilities, sales networks, and international supply chains.

In April 2024, Zhida Technology began operations at its first overseas factory in Thailand, with an annual design capacity of 108,000 chargers. The company plans to establish more plants in the Middle East and Europe. As of 2024, the Thailand plant had a capacity utilization rate of 3.3%, which rose to 15.4% in Q1 2025. Future utilization rates and absorption capacity at additional overseas facilities remain to be seen.

Pricing and margin data already indicate the potential of overseas markets. In 2024, the average domestic product price was RMB 788.7, compared to RMB 911.3 overseas. For after-sales services, the contrast was even starker: RMB 570.8 domestically versus RMB 1,796.7 overseas.

Higher overseas prices equate to higher margins. The Q1 2025 prospectus showed overseas gross margins between 37% and 39%, far exceeding the company’s overall margin of 16.5%. Zhida Technology’s overseas revenue share also rose from 1.9% in 2022 to 12.1% in 2024, though still relatively low and with limited impact on overall performance.

The firm’s international growth largely follows the overseas expansion of Chinese automakers, with most overseas income coming from chargers made to meet foreign standards for these clients. This suggests that the client base remains predominantly domestic automakers. Whether Zhida Technology can break free from its weak pricing position remains to be seen.

In summary, despite leading EV charger sales, Zhida Technology must deliver financial results worthy of its top ranking in the booming global NEV sector. Overseas expansion now represents the company’s strategic bet. Whether it can successfully list and reverse its financial trajectory remains a key development to watch.