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According to a disclosure by the Hong Kong Stock Exchange on November 22, Freetech Intelligent Technology Co., Ltd. has submitted an application for listing on the main board of the Hong Kong Stock Exchange. CITIC Securities, CICC, Huatai International, and HSBC are acting as its joint sponsors.
Freetech is a leading supplier of intelligent driving solutions, covering Advanced Driver Assistance Systems (ADAS) and Autonomous Driving Systems (ADS) technologies. The company is committed to providing end-users with a safe, comfortable, and intelligent driving experience through open and deep cooperation with OEM customers. The company has independently developed an integrated software and hardware intelligent driving platform called ODIN.
As of June 30, 2024, Freetech has established business partnerships with 46 OEMs, covering all the top ten domestic OEMs by automobile sales in 2023. It has accumulated over 280 designated projects and over 200 mass production projects, covering a diverse and growing range of vehicle models. Freetech Group has become the preferred supplier for several top-tier OEMs. According to data from Zhuisi Consulting, Freetech Group ranked third among independent suppliers in China in 2023, with a market share of 14.6% in terms of the number of vehicles equipped with L2 and L2+/L2++ intelligent driving solutions.
Currently, Freetech’s intelligent driving solutions include FT Pro, FT Max, and FT Ultra, offering intelligent driving capabilities from L0 to L3 levels, with various features to enhance vehicle intelligence and safety. Freetech Group’s intelligent driving solutions show high compatibility with different vehicle models, “System on a Chip” (SoC) platforms, and other key automotive components, suitable for a variety of vehicles, and can meet customers’ diverse needs.
In terms of market prospect, the penetration rate of cars equipped with L2+/L2++ intelligent driving solutions in China was only 3.6% in 2023, but it is expected to grow to 22.1% by 2028. The market size will expand from 18.6 billion yuan in 2023 to 1,200 billion yuan in 2028.
One of the risk factors mentioned in Freetech’s prospectus is that the company cannot ensure that there will be sufficient market adoption of intelligent driving solutions to drive its growth in the future, nor can it ensure that industry development and market acceptance of intelligent driving solutions will be beneficial to the company. If the market for smart cars and intelligent driving solutions is unstable or the growth of these trends is not as rapid or positive as expected, the company’s business, operating performance, and financial condition may be adversely affected.
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