Black Sesame Technologies Goes Public, Giving Birth to China’s First ‘Smart Car AI Chip’ Stock

On August 8, Black Sesame Technologies, a Chinese AI chip firm, made its official debut on the Hong Kong Stock Exchange. The company, listed under the stock code “02533,” launched with a share price of 28 Hong Kong dollars.

Since its inception, Black Sesame Technologies has attracted substantial investment from major industry players such as Xiaomi, NIO, Tencent, Geely, and Bosch, raising nearly $700 million in total. The company has been actively implementing solutions for L2 and L3 level Advanced Driver Assistance Systems (ADAS) and autonomous driving perception systems. Furthermore, its unique algorithm and image processing technologies have found applications in various consumer electronics sectors, including smartphones, smart cars, and smart homes.

Black Sesame Technologies officially submitted its prospectus to the Hong Kong Stock Exchange on June 30 of the previous year and successfully passed the listing hearing on June 12 of the current year.

The company’s financial health is evident in its revenue growth over the past three years. In 2021, 2022, and 2023, the company reported revenues of 60.5 million, 165 million, and 312 million yuan, respectively. This represents a fourfold increase in revenue over three years.

The company’s customer base has also seen significant growth. By the end of 2023, Black Sesame Technologies had established partnerships with more than 49 automotive Original Equipment Manufacturers (OEMs) and tier-one suppliers, including industry leaders like FAW Group, Dongfeng Group, Jiang Auto Group, HiPhi, Ecarx Technology, Baidu, Bosch, ZF, and Marelli. As of June 30, 2024, the company had a backlog of approximately 160 million yuan in orders.

According to data from Frost & Sullivan, Black Sesame Technologies’ market share in China is projected to reach 7.2% in 2023, a notable increase from 5.2% in 2022.

Over the past three years, the company’s revenue and gross profit have grown at compound annual growth rates of 127.2% and 87.8%, respectively. The gross profit margin for the company’s autonomous driving products and solutions has also improved, increasing from 18.6% to 21.4%.

Black Sesame Technologies’ commitment to innovation is reflected in its substantial R&D spending and large R&D team, which comprises 86.7% of its total workforce. Between 2021 and 2023, the company’s R&D expenditures were 595 million yuan, 764 million yuan, and 1.363 billion yuan, respectively, accounting for a significant portion of its total operating expenses each year.

This investment in R&D has yielded impressive results. Black Sesame Technologies now holds 104 registered patents, 174 patent applications, two integrated circuit layout design registrations, 92 software copyrights, and 141 registered trademarks globally.

To date, Black Sesame Technologies has completed ten rounds of financing. As disclosed in the prospectus, the company completed a C+ financing round in June 2023, raising $218 million at a pre-investment valuation of $2 billion, with a cost per share of $3.473268.

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