IPO News | 'HUD Solutions Provider' Zejing Corporation launches its IPO, with plans to list on March 24. The minimum subscription amount is HKD 2,424.2.

Futu News reported on March 16 that $NEW VISION CO (02632.HK)$ An announcement was made to launch the IPO from March 16 to March 19. The company intends to offer approximately 16.2265 million shares globally and is expected to be listed on March 24.

Company Overview

Zejing Corporation specializes in HUD solutions. During the performance record period, Zejing Corporation primarily offered an integrated solution centered around its windshield HUD (referred to as 'W-HUD') solution CyberLens and its augmented reality HUD (referred to as 'AR-HUD') solution CyberVision, supplemented by testing solutions and other innovative visual technology solutions. The company collaborates deeply with automakers during the solution definition phase to co-create new models with enhanced human-vehicle interaction and intelligent driving experiences.

Leveraging its platform-based R&D capabilities, the company's integrated, fully self-developed technology architecture enables it to efficiently complete the development and design of HUD solutions without starting from scratch for each project’s custom development. Zenjing Co. has adopted a software-hardware integration approach to build a full-stack self-developed R&D framework that incorporates optical design, mechanical engineering, electronic design, software algorithms, and human-machine interface (HMI). After undergoing rigorous testing and validation, this comprehensive solution encompasses the core competencies of HUD solutions and possesses a unique ability to create sustainable market differentiation.

Financial Overview

In 2022, 2023, and 2024, Zenjing Co.'s revenue reached RMB 214.1 million, RMB 549.4 million, and RMB 577.6 million respectively. During the same periods, the company recorded annual losses of RMB 256.1 million, RMB 174.6 million, and RMB 137.9 million respectively. Meanwhile, the company’s R&D expenditures were RMB 83.4 million, RMB 54.5 million, and RMB 62.1 million respectively, accounting for 39.0%, 9.9%, and 10.7% of the corresponding revenues.

Source: Prospectus

Use of Proceeds

Regarding the use of proceeds, Zenjing Co. expects to receive net proceeds of approximately HKD 662 million from the global offering (assuming no exercise of the over-allotment option and based on the mid-point offer price of HKD 45). According to the prospectus, Zenjing Co. intends to allocate the proceeds from the global offering for the following purposes in the amounts specified:

Approximately 46.7% will be used for production line expansion and automation and intelligent upgrades; around 32.4% will be allocated to enhancing the company’s R&D and technological capabilities, as well as upgrading existing solutions and developing new products based on related technologies; about 10.9% will be used for potential strategic cooperation with industry value chain participants specializing in areas such as optical imaging, near-eye displays, and wearable products, aiming to consolidate and enhance the company’s leading market position and technical capabilities; roughly 10% will be used for working capital and general corporate purposes.

More reading:Zejing Co., Ltd. Prospectus

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Editor/Joe

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