According to information from Well Link International Securities, Black Sesame Intelligence (new listing code: 02533) will initiate its public offering from today (July 31st) until August 5th, 

marking it as the second special technology stock to be listed through Chapter 18C of the "Listing Rules."

Black Sesame Intelligence, a supplier of autonomous driving system-on-chip (SoC), plans to issue 37 million shares, with 5% allocated for public sale in Hong Kong. 

The offering price is expected to range between HKD 28 and HKD 30.3, aiming to raise up to HKD 1.12 billion. Each board lot consists of 100 shares, with an entry fee of HKD 3,060.6 per lot. 

The company is expected to be listed on August 8th, with CICC and Huatai International serving as joint sponsors.

Completing Ten Rounds of Financing, Revenue and Gross Profit Have Both Increased

Black Sesame Intelligence has completed ten rounds of financing, accumulating a total of USD 695 million, approximately equivalent to RMB 5 billion. Investors include renowned institutions and corporations 

such as Northern Light Venture Capital, Xiaomi, Tencent, Wuyuefeng Capital, Dongfeng Motor Corporation, Geely Automobile, NIO, Junlian Capital, and Haisong Capital. After the completion of the C+ round of 

financing, Black Sesame Intelligence's valuation reached USD 2.218 billion, approximately RMB 16 billion.

Financially, Black Sesame Intelligence's revenue rapidly grew from RMB 605 million in 2021 to RMB 3.1 billion in 2023, demonstrating a compound annual growth rate of 127.2%. Gross profit also increased

 from RMB 218.7 million in 2021 to RMB 771.4 million in 2023, with gross margins of 36.1%, 29.4%, and 24.7% respectively. However, the company's net losses during the same period were RMB 2.35 billion,

 RMB 2.75 billion, and RMB 4.85 billion, significantly exceeding the revenue. After adjustments, the net losses were RMB 610 million, RMB 700 million, and RMB 1.25 billion, respectively.

In terms of R&D expenditure, Black Sesame Intelligence invested RMB 5.9 billion, RMB 7.6 billion, and RMB 13.6 billion from 2021 to 2023, respectively, showing the company's emphasis on research 

and development. As of January 31, 2024, the company's cash reserves were RMB 1.16 billion, but the total current liabilities were as high as RMB 129.3 billion, with a net current liability of RMB 114 billion, 

reflecting certain pressures on the company's liquidity.

Deep Cultivation of Technological Innovation, Achieving Industry Leadership

Black Sesame Intelligence focuses on the research and development of automotive-grade SoC, with its Huashan series and Wudang series chips targeting applications such as autonomous driving and

 intelligent cockpits, demonstrating strong technical strength and market competitiveness. The company started with the commercialization of the high-computing-power SoC of the Huashan series and has 

continuously expanded its product line with the launch of the cross-domain SoC of the Wudang series, meeting the diversified and complex needs of intelligent vehicles.

Since 2020, Black Sesame Intelligence has been one of the first companies to provide autonomous driving solutions in the Chinese market, becoming one of the early enterprises to achieve significant sales revenue. 

The company's flagship product, Best Drive, integrates a series of closed-loop autonomous driving technologies, covering autonomous driving functions from Level 1 to Level 3, including Drive Eye, Drive Sensing, 

Drive Brain, and Drive Turing. In addition, Black Sesame Intelligence has also developed the commercial city's active safety system, Patronus, providing advanced safety support for commercial vehicles, 

as well as the V2X edge computing solution BEST Road for emerging markets. The main customer base includes automotive OEMs and tier-one suppliers.

As a leading enterprise in the global automotive-grade high-computing-power system-on-chip (SoC) market, the company ranks third in shipments worldwide. The company places great emphasis 

on the construction of the R&D team and the introduction of high-end talent, currently employing 950 R&D personnel, of which 58% hold master's degrees or higher, a proportion that is leading in the industry.

Joining Hands with Automotive Giants, Expanding the Map of Cooperation

The customer base of Black Sesame Intelligence has grown significantly from 45 at the end of 2021 to 85 at the end of 2023. It has established cooperative relationships with more than 49 automotive

 OEMs and tier-one suppliers, including FAW Group, Dongfeng Group, and JAC Group. At present, it has obtained 23 model intention orders from 16 automotive OEMs and tier-one suppliers. 

The Huashan A1000/A1000L SoC has been mass-produced since 2022, and as of the end of 2023, the total shipment exceeded 152,000 units. Through cooperation with industry giants, 

Black Sesame Intelligence has not only achieved breakthroughs in technology but also made significant achievements in market expansion, laying a solid foundation for its long-term development 

in the field of intelligent vehicles.

New Journey in the Capital Market, Looking Forward to Future Development

It is expected that 80% of the funds raised from Black Sesame Intelligence's Hong Kong IPO will be used for R&D investment over the next five years. This includes the construction of the 

R&D team for automotive-grade SoC, the upgrade of the software platform, material procurement, and the development of autonomous driving solutions. 10% will be used to enhance the group's 

commercialization capabilities, and another 10% will be allocated for working capital and general corporate purposes, especially for purchasing inventory for SoC mass production.

The company expects to improve its commercialization capabilities through the funds raised from the IPO, strengthen market promotion and product sales, further expand market share, and achieve 

growth in revenue and profits. With the rapid growth of the global automotive-grade SoC market, the compound annual growth rate is expected to be 27.0% from 2022 to 2028. Leveraging its 

technological advantages and market position, the company is expected to seize more development opportunities in this vast market.

The listing of Black Sesame Intelligence is not only a significant milestone in the company's development history but also a major event for China's intelligent automotive chip industry. 

With the continuous strengthening of R&D capabilities and the ongoing expansion of market cooperation, Black Sesame Intelligence is expected to become an important force in promoting the development 

of the intelligent automotive industry, bringing considerable returns to investors and contributing more innovation and value to the future of intelligent vehicles.