New Stock News: Huada Beidou submitted its application to the Hong Kong Stock Exchange for the third time. The company's shipments of specialized GNSS chips and modules are expected to reach 32.1 million units in 2025.

According to the disclosure by the Hong Kong Stock Exchange on June 26, Shenzhen Huada Beidou Technology Co., Ltd. (referred to as Huada Beidou) has submitted an application for listing on the main board of the Hong Kong Stock Exchange. This is the company's third submission to the Hong Kong Stock Exchange, with CMB International and Ping An Securities (Hong Kong) acting as its joint sponsors. In 2025, Huada Beidou's shipments of dedicated GNSS chips and modules reached 32.1 million units. Company Profile The prospectus shows that Huada Beidou is a well-known space positioning service provider in China, headquartered in Shenzhen. The company provides chips, modules, and related solutions that support major GNSS systems such as Beidou, GPS, GLONASS, Galileo, QZSS, and NavIC. The company's R&D team focuses on GNSS technology and specializes in integrated SoC chip design, chip-level dual-frequency high-precision positioning technology, ultra-low power consumption technology, and multi-source fusion navigation technology. According to Zhishi Consulting data, the company's rankings and market share are based on the dedicated GNSS chip and module market (excluding integrated GNSS chips and modules). In 2025, based on shipment volume, the company ranked fifth in the global GNSS chip and module market, with a market share of 7.4%. According to Zhishi Consulting data, in 2025, based on revenue, the company ranked seventh globally in the dedicated GNSS chip and module market (excluding integrated GNSS chips and modules), and second among mainland Chinese companies, with a market share of approximately 1.8%. According to Zhishi Consulting data, in 2025, based on revenue, the dedicated GNSS chip and module market accounted for 27.1% of the GNSS chip and module market, and the latter accounted for 2.1% of the overall GNSS space positioning service market. Huada Beidou offers a comprehensive product portfolio, including (i) self-developed GNSS chips, modules, and tailor-made solutions for various application areas; (ii) integrated chips and module products purchased from third parties, including a wide range of essential communication and storage products for various electronic devices. Details of the application scenarios of these products and solutions can be found in the prospectus. The company's core products include standard accuracy and high-precision chips and modules used in the fields of transportation (traffic management, shared bicycles, and smart driving), consumer electronics (smartphones, Internet of Things, and wearable devices), and environmental monitoring and early warning (meteorological detection and deformation monitoring), as well as Beidou short message communication chips. The company's GNSS chips, modules, and related solutions can achieve precise and efficient navigation and positioning, location tracking, displacement monitoring, and satellite communication. Huada Beidou's GNSS chip and module business began in 2017 with the acquisition of the navigation chip business from Huada Electronics. Since then, the company has continuously expanded its product portfolio, enhanced its technological capabilities, and diversified its sales and solutions business to meet a wider range of customer needs. Since 2017, the company has achieved several important milestones in the development of GNSS chips and modules. In terms of business evolution, the company initially focused on the independent development of GNSS chips and modules. With an expanding customer base, the company observed the demand for complementary products such as communication and storage chips. In 2020, the company started the business of selling integrated chips and modules, providing one-stop procurement services to meet customer needs. From 2021 to 2025, this business line expanded through the diversification of suppliers and the expansion of customer base (especially in the fields of consumer electronics and Internet of Things). After acquiring Myriad in 2022, the company entered the GNSS-related solutions business, extending its product line from chips to modules and then to end devices, and further leveraging its GNSS expertise to expand into comprehensive projects. Since then, the company's GNSS-related solutions business has continued to expand, covering professional applications such as water conservancy and hydropower, geological disaster prevention and control, mining tailings facilities, and vehicle monitoring, while strengthening its technical strength and market influence. Throughout the entire business development process, the company has strategically focused on GNSS core technology, treating integrated chips and modules business and GNSS-related solutions business as complementary expansions. Financial Data Revenue In the fiscal years 2023, 2024, and 2025, the company achieved revenues of approximately RMB 645 million, RMB 840 million, and RMB 1.014 billion, respectively. Gross Profit and Gross Margin In the fiscal years 2023, 2024, and 2025, the company recorded gross profits of approximately RMB 67.91 million, RMB 81.967 million, and RMB 112 million, with corresponding gross margins of 10.5%, 9.8%, and 11.1%, respectively. Net Loss In the fiscal years 2023, 2024, and 2025, the company reported net losses of approximately RMB 289 million, RMB 141 million, and RMB 113 million, respectively. Industry Overview With the continuous development of mobile Internet and Internet of Things, the global GNSS space positioning service market is expected to grow. In 2025, the global GNSS space positioning service market size reached RMB 2.383 trillion, with a compound annual growth rate of 1.3% from 2021 to 2025, mainly driven by the surge in demand brought on by the epidemic, weakening demand for consumer electronics products, longer replacement cycles for devices, and slowing consumer spending. The global GNSS space positioning service market is expected to reach RMB 3.123 trillion by 2030, with a compound annual growth rate of 5.6% from 2025 to 2030, supported by the gradual expansion of emerging application areas such as smart cars and services related to low-altitude economy. GNSS chips and modules form the foundation layer of the GNSS space positioning service industry. Due to weak demand for consumer electronics products, global GNSS chip and module sales increased from RMB 47.7 billion in 2021 to RMB 50 billion in 2025, with a compound annual growth rate of 1.2% during the period. Looking ahead, with the further expansion and application of space positioning services in areas such as smart transportation and applications related to low-altitude economy, the global GNSS chip and module market is expected to reach RMB 61.7 billion by 2030, with a forecast compound annual growth rate of 4.3% from 2025 to 2030. The global GNSS chip and module market is divided into two main categories based on packaging form: dedicated GNSS and integrated GNSS chip and module components. Integrated GNSS chips and modules are mainly SoC chips for smartphones and tablet computers, which integrate wireless communication functions (such as CPU, GPU, Wi-Fi), in addition to navigation chips, with low relevance to satellite communication. Dedicated GNSS chips and modules focus mainly on satellite signal reception, baseband processing, and navigation output, rather than general system control. The sales of dedicated GNSS chips and modules reached RMB 13.5 billion in 2025, with a compound annual growth rate of 9.1% from 2021 to 2025. Looking ahead, this segment is expected to maintain growth momentum and surpass the overall market growth rate with a forecast compound annual growth rate of 11.2% from 2025 to 2030, with sales expected to reach RMB 23 billion by 2030. Consumer electronics is the largest downstream application of GNSS chips and modules. In terms of supply, as the localization of chips accelerates, the impact of geopolitical factors on GNSS chips has become relatively limited, and the balance of supply and demand for GNSS chips is gradually improving. With the iterative upgrade of electronic products brought about by the development of artificial intelligence, demand for products such as smartphones and wearable devices is expected to recover in the next five years. At the same time, with the rapid popularization of smart cars and drones, the penetration rate of GNSS applications in environmental monitoring and early warning areas continues to increase. The demand for GNSS devices in areas such as precision agriculture and smart power is steadily rising. By 2030, global shipments of GNSS chips and modules are expected to grow to 216.71 million units, with a forecast compound annual growth rate of 3.4% from 2025 to 2030. In 2025, major GNSS space positioning service markets (such as Europe and Japan) accounted for approximately 25% and 13% of the global GNSS space positioning service market, respectively. With the continuous adoption of GNSS functions in areas such as smart transportation, industrial automation, and precision agriculture, as well as the increasing penetration rate of multi-system GNSS in end-user devices, the overseas GNSS market is expected to steadily grow. Board of Directors Information The company's board of directors currently consists of nine directors, including two executive directors, four non-executive directors, and three independent non-executive directors. Equity Structure State-owned related entities hold 11.24% of the shares, while the remaining founding shareholders collectively hold 12.83% of the shares. Tianjin Jiutianshu and Hangzhou Hongyu each hold 8.34%, Shenzhen Dingxin holds 7.24%, Suzhou Zhaoyun holds 7.05%, Jiaxing Qixin, Jiaxing Qixin No. 2, and Jiaxing Qibi hold 5.02%, the employee stock platform holds 7.78%, and other pre-IPO investors collectively hold 40.50%. As of the latest practicable date, the largest single shareholder group is affiliated with the State-owned Electronic Corporation. Through the following entities, this group directly or indirectly holds approximately 11.24% equity in the company: (i) CEOVU (Shenzhen) Industrial Development Co., Ltd. (holding approximately 9.22%); (ii) CECJin Xiamen Smart Industrial Fund Partnership (holding approximately 1.26%); and (iii) Shenzhen CECport Technologies Co., Ltd. (holding approximately 0.76%). Other founding shareholders include Shenzhen Jingjia, Ningbo Bodao, Shanghai SAIC Venture Capital, and Shanghai Shangzhi Venture Capital. The employee stock platform includes CQC Beidou Shouhang, CQC Beidou Huihang, and Hainan Beidou Qihang. Advisory Team Joint Sponsors: CMB International Finance Limited, Ping An Insurance Capital (Hong Kong) Limited Company Legal Counsel: Regarding Hong Kong law: Han Kun Law Offices Limited Liability Partnership; Regarding Hong Kong law on the operation of certain subsidiaries in Hong Kong: Kwo Chin & Co. Law Firm; Regarding Chinese law: Jingtian & Gongcheng Law Firm; Regarding international sanctions compliance: JunHe LLP New York Office; Regarding Chinese sanctions compliance: JunHe LLP Shanghai Office Joint Sponsors Legal Counsel: Regarding Hong Kong law: Dechert LLP; Regarding Chinese law: Dacheng Law Firm Auditors and Reporting Accountants: KPMG Industry Consultant: Zhishi Industry Consulting Co., Ltd. Transfer Pricing Tax Advisor: KPMG Taxation Services Co., Ltd. Compliance Advisor: Ligo Enterprise Financing Limited