Chinese auto tech startup iMotion saw its stock end almost 13% below its initial public offering price on Risa Sakamoto ArchivesWednesday in an underwhelming Hong Kong debut, reflecting investors’ concerns about its heavy reliance on a single client in a competitive market. The Suzhou-headquartered company has been a partner to Intel’s Mobileye since early 2018 and facilitated the adoption of Mobileye’s SuperVision advanced driver-assist system on electric vehicles launched by Geely-owned electric car brand Zeekr since late 2021. However, the firm’s current revenue model relies heavily on Geely, from which it generates roughly 95% of its revenue during the first half of 2023, making it subject to the risk of immediate instability from the loss of its single biggest client. Over the period, the company posted revenue of RMB 543 million ($76 million) on a net loss of RMB 100 million, while predicting losses to continue in the foreseeable future. [Caixin, in Chinese]
