Huanchuang Technology Launches HK IPO at HK$58.85 Per Share

On September 22, Huanchuang Technology (06802.HK) announced the commencement of its global offering, involving a total of 11,588,800 shares. The following analysis is compiled based on the company's prospectus.

1. Company Overview and Business Analysis

Core Business and Products

Shenzhen Huanchuang Technology Co., Ltd. ("Huanchuang Technology" or "the Company") is a technology enterprise specializing in spatial perception products, with a primary application focus on robotic vacuum cleaners. The Company supplies spatial perception components to robotic vacuum cleaner manufacturers for integration into their devices.

The Company's product portfolio spans multiple technology pathways, including:

• Lidar products: Traditional triangulation lidar, direct time-of-flight (dTOF) lidar, and 3D TOF lidar.
• Line laser sensor products: Notable for edge cleaning and near-field obstacle recognition.
• Core technical capabilities: In-house design capability for sub-millimeter spatial data processing chips and core spatial perception algorithms.

As of the Latest Practicable Date, the Company had shipped over 39 million units. In 2025 alone, total shipments of lidar and line laser sensors exceeded 10 million and 5 million units, respectively.

Business Model and R&D Capabilities

• Revenue model: Primarily generates revenue through sales of various lidar products and line laser sensor products.
• R&D investment: The Company operates in an emerging and rapidly evolving industry, placing high importance on R&D. During the Track Record Period (2023 to Q1 2026), R&D costs were RMB 54.6 million, RMB 76.7 million, RMB 59.4 million, and RMB 14.8 million, respectively. Although high R&D expenditure led to net losses in 2023 and 2024, the Company achieved net profits in 2025 and Q1 2026 (RMB 2.2 million and RMB 7.8 million, respectively), indicating improved operational efficiency driving a return to profitability.
• Intellectual property barriers: As of the Latest Practicable Date, the Company held 172 granted patents (including 58 invention patents and 16 overseas patents), with 30 additional patent applications pending. The patent portfolio covers precision optical systems (112 patents), AI spatial perception algorithms (5 patents), and AI spatial data processing chips (5 patents).
• Customer concentration: Revenue contribution from the top five customers is relatively high, but the Company believes this does not create material dependency risk. It plans to expand into areas such as robotic lawnmowers, pool cleaning robots, and humanoid robots to diversify revenue.

Industry Position and Market Outlook

• Market positioning: In China, spatial perception for robotic vacuum cleaners accounts for only approximately 5.9% of the total intelligent robot spatial perception market (by 2025 sales revenue), indicating significant room for penetration in this segment.
• Market size growth: The global market for robotic vacuum cleaner spatial perception grew from RMB 1.6 billion in 2020 to RMB 3.1 billion in 2025, representing a compound annual growth rate (CAGR) of 14.0%. It is expected to grow at a CAGR of 24.3% from 2025 to 2030, reaching RMB 9.1 billion.
• Technology trends: Lidar is evolving into the mainstream technology, with dTOF lidar favored for its fast response speed and strong anti-interference capability. Line laser scanning technology offers advantages in specific scenarios. The industry is moving toward AI-driven algorithms, multi-sensor fusion, and dedicated chip development.

Competitive Advantages and Risk Factors

Competitive Advantages:

• Full-stack technical capability: Possesses both hardware (lidar, sensors, chips) and software (algorithms) capabilities, providing complete spatial perception solutions.
• Scaled shipment validation: Cumulative shipments exceeding 39 million units demonstrate market acceptance and product stability.
• Patent portfolio: Establishes entry barriers in key technology areas.

Key Risk Factors:

• Limited commercialization track record: As a participant in an emerging industry, there is uncertainty regarding product commercialization success, with potential for high resource investment but low order conversion rates.
• Sustained high R&D expenditure pressure: If R&D outcomes fail to translate into commercial benefits in a timely manner, profitability may be affected.
• Intense competition: Faces competition from both other lidar developers and robotic vacuum cleaner brands building in-house spatial perception capabilities.
• Historical losses: Recorded net losses of RMB 0.9 million in 2023 and RMB 31.4 million in 2024. Although recently turned profitable, the sustainability of future profitability requires observation.

2. IPO Offering Details

Offering Size and Structure

• Global offering shares: 11,588,800 H shares (subject to the exercise of the over-allotment option).
• Hong Kong public offering shares: 1,158,900 H shares (subject to reallocation), representing approximately 10.0% of the total global offering.
• International placement shares: 10,429,900 H shares (subject to reallocation and the exercise of the over-allotment option), representing approximately 90.0% of the total global offering.
• Offer price: HKD 58.85 per H share.
• Par value: RMB 1.00 per H share.
• Estimated entry cost per board lot: Based on the prospectus, each board lot of 100 H shares requires a total payment of HKD 5,944.35 (including the offer price and various transaction fees).
• Over-allotment option (Greenshoe): Up to 1,738,300 additional H shares (representing 15.0% of the initial offering shares).

Underwriting and Sponsorship Team

The IPO features a strong lineup led by CICC and Guosen Securities:

• Joint sponsors, sponsor and overall coordinator, overall coordinator, joint global coordinators, and joint bookrunners:
• China International Capital Corporation Hong Kong Securities Limited (CICC)
• Guosen Securities (Hong Kong) Financing Company Limited (GUOSEN SECURITIES (HK))
• Overall coordinator, joint global coordinator, and joint bookrunner:
• GF Securities (Hong Kong) Brokerage Limited (GF SECURITIES)
• Joint bookrunners:
• CCB International Capital Limited
• First Shanghai Securities Limited
• Futu Securities International (Hong Kong) Limited
• Huafu International Securities Limited
• Shenwan Hongyuan Securities (Hong Kong) Limited
• Somerley Capital Limited
• SWHYHK
• Skyvast Securities Limited
• Somerville Financial Limited
• Tiger Brokers (Hong Kong) Global Limited

Key Timeline

• Offer commencement date: September 25, 2026 (Friday) at 9:00 a.m.
• Application deadline: September 25, 2026 (Friday) at 12:00 p.m.
• Allotment result announcement: On or before September 29, 2026 (Tuesday) at 11:00 p.m.
• Dispatch of share certificates/refund cheques: On or before September 29, 2026 (Tuesday)
• Expected listing date: September 30, 2026 (Wednesday) at 9:00 a.m.

(Note: All dates and times are Hong Kong local time.)

3. Investment Value Assessment (Based on Prospectus Information)

Investment Highlights / Catalysts

• High-growth sector: Benefiting from the proliferation of smart homes and functional upgrades of robotic vacuum cleaners, the upstream spatial perception market is expected to grow at a CAGR of 24.3% from 2025 to 2030, significantly outpacing the growth rate of the previous five years. The industry is in a rapid expansion phase.
• Technological leadership and scarcity: The Company is one of the few enterprises capable of simultaneously offering dTOF lidar, line laser sensors, and self-developed chips. As market demand for high-precision, strong anti-interference perception increases, high-end product lines such as dTOF are expected to become new growth engines.
• Earnings inflection point: After incurring losses due to high early-stage R&D investment, the Company achieved profitability in 2025 and early 2026, demonstrating the self-sustaining capability of its business model and ongoing operational efficiency optimization.
• Key customer relationships and overseas potential: Although specific customer names are not disclosed, the mention of "high revenue contribution from top five customers" suggests the Company has entered the supply chains of mainstream robotic vacuum cleaner brands. Additionally, the Company is actively expanding into non-vacuum cleaner areas such as XR and industrial automation, opening a second growth curve.

Risk Warnings and Mitigation

• Valuation volatility risk: The prospectus explicitly states that the H share offer price may not represent the trading price after listing, and the share price may fluctuate significantly. Investors should be aware of the risk of new share price declines.
• Single-industry dependency risk: Current revenue is highly dependent on the robotic vacuum cleaner industry. If downstream consumer electronics demand weakens or a disruptive technological shift occurs (e.g., pure vision solutions completely replacing lidar), the Company could be impacted. Mitigation: The Company is actively expanding into new scenarios such as robotic lawnmowers and humanoid robots to diversify risk.
• Margin pressure from intensified competition: The industry has numerous competitors, and some large brands even develop in-house perception modules. If a price war erupts, the Company's profits could be eroded. Mitigation: Relies on patent barriers, cost advantages from in-house chip development, and algorithm iteration to maintain competitiveness.
• Lock-up share expiration pressure: Shares held by pre-IPO investors are prohibited from trading for one year from the listing date. If concentrated selling occurs after this period, it may exert downward pressure on the share price.

4. Summary Comments

Huanchuang Technology (06802.HK), as a hard-tech company deeply rooted in the spatial perception sector for robotic vacuum cleaners, presents an IPO with typical characteristics of a "high-growth sector + technological barriers + earnings inflection point."

Key Points to Watch:

• Strong industry beta: The sector is transitioning from a phase of普及 (popularization) to intelligent upgrading, with broad market space and accelerating growth.
• Emerging alpha capability: The Company has built a moat through in-house chip and algorithm development and has recently returned to profitability, demonstrating operational resilience.
• Strong underwriting syndicate: Leading investment banks such as CICC and Guosen Securities are at the forefront, which should help ensure a smooth offering and subsequent market liquidity support.

Potential Risk Points:

• Uncertainty in technological iteration: The spatial perception technology pathway is still evolving. The Company must continue high R&D investment to maintain its leading position, posing challenges to cash flow management.
• Downstream concentration risk: Dependence on a few major customers remains a double-edged sword, securing the base business while limiting bargaining power and risk resilience.
• New share pricing and market sentiment: Whether the offer price of HKD 58.85 fully reflects its growth premium requires assessment in conjunction with initial market sentiment and the performance of comparable companies in the same industry.

Overall, for investors bullish on the localization of core upstream components for smart homes and the trend of technological upgrading, Huanchuang Technology offers a potential investment target. However, given that it is still in a rapid growth phase and faces intense competition, investors are advised to closely monitor its progress in expanding into new application areas and changes in gross profit margins, and to participate rationally.

Disclaimer: This report is based solely on the analysis of the provided prospectus content and does not constitute any investment advice or offer. The stock market carries risks; investment should be undertaken with caution.

The above content is compiled by Securities Star based on publicly available information and generated by AI algorithms (Internet Information Service Algorithm Filing No. 310104345710301240019). It is for reference only and does not constitute investment advice.