[IPO Express] Zhefu Intelligence Ventures into Hong Kong Stocks: A Giant in Heavy Truck Lithium Battery Safety Protection with Highly Concentrated Equity

The Hong Kong stock market has gathered $Contemporary Amperex Technology (300750.SZ)$ (03750.HK), $CALB (03931.HK)$ 、 $REPT BATTERO (00666.HK)$ and other lithium battery manufacturers. However, there is still a lack of a listed company in the field of lithium battery safety protection. Now, this gap is expected to be filled.

On May 4, Zephyr Intelligence Systems (Shanghai) Co., Ltd. (hereinafter referred to as 'Zephyr Intelligence') filed its initial prospectus with the Hong Kong Stock Exchange for the first time, planning to list on the Main Board of the Hong Kong Stock Exchange, with Nanhua Financing Company Limited acting as the sole sponsor.

Zephyr Intelligence was founded in 2015 and is a one-stop thermal safety solutions provider for new energy batteries, offering lithium battery thermal safety solutions for sectors such as new energy vehicles, electrochemical energy storage systems, battery swapping stations, and internet data centers.

The company provides a one-stop four-level cascading closed-loop safety solution (L1 to L4 systems) and after-sales services, covering complete capabilities from battery pack-level thermal management to monitoring, early warning, and fire prevention. Specific products include: active safety (battery pack-level - intelligent battery thermal management system), monitoring and early warning (battery pack-level - intelligent battery detection and early warning system), passive safety (battery pack-level - intelligent battery cooling suppression system), and fire suppression (cabin-level total flooding fire suppression system).

In terms of market position, based on 2025 revenue, Zephyr Intelligence holds a dominant first place in China's new energy heavy-duty truck lithium battery thermal management system (L1) market with a 35.3% market share, significantly ahead of the second place (27%) and third place (13.2%).

With the continued expansion of electric vehicle ownership, China’s lithium battery thermal safety solutions market is entering a golden period of development. From 2023 to 2025, the compound annual growth rate (CAGR) of revenue in China's new energy heavy truck L1 (BITS) thermal management system market will be as high as 84.7%.

As a provider of battery thermal safety products primarily targeting heavy truck manufacturers and electrochemical energy storage systems, Zephyr Intelligence has fully benefited from industry tailwinds. The revenue generated by its L1 products recorded a CAGR of approximately 127.9% from 2023 to 2025. The company's total revenue also performed impressively, growing from RMB 234 million in 2023 to RMB 916 million in 2025.

In terms of revenue breakdown, the company operates in two major segments: electric vehicles (L1) and electrochemical energy storage systems (L2+L3+L4), with revenue shares of 58.6% and 41.4%, respectively, in 2025.

In terms of profitability, the company has not yet achieved profitability. It reported a loss of RMB 102 million in 2024, which narrowed significantly to RMB 28.567 million in 2025. Additionally, adjusted profit for the year turned positive at RMB 22.302 million.

Zephyr Intelligence faces the risk of high customer concentration. From 2023 to 2025, the combined revenue from the top five customers accounted for approximately 50.92%, 49.62%, and 64.74% of total annual revenue, respectively.

Moreover, the company faces certain cash flow pressures and has remained in a net debt position, with net debt reaching -RMB 318 million in 2025. Meanwhile, the current ratio and quick ratio stood at 0.7x and 0.58x, respectively, in 2025.

The company's equity structure is highly concentrated. Li Fei, executive director and chairman of the board, his spouse Cao Jiaping, who serves as an executive director and president of the company, along with Jiafeng Lihex, Shanghai Yanhang, Shanghai Changxun, and Shanghai Changyan, together form the controlling shareholder group, currently holding approximately 80.22% of the company’s voting rights.

Since its establishment, Zhefu Intelligence has completed multiple rounds of financing, with investors including FAW Innovation Fund, Chengdu Economic Development Zone Double Innovation Fund, and Shanghai Xinrang. After completing the second capital increase in April 2026, the implied valuation of the company reached 2.42 billion yuan.

Regarding the use of proceeds from the Hong Kong stock listing, Zhefu Intelligence plans to allocate the funds for: enhancing the company's R&D capabilities in battery thermal safety solutions; expanding production capacity and upgrading factory facilities; strengthening the company's talent pool, management capabilities, and infrastructure in mainland China; repaying part of the existing bank loans; and replenishing working capital and general corporate purposes.

Author: Yuan Yao

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