Car tech firm iMotion shares slump 13% in Hong Kong debut
Chinese auto tech startup iMotion saw its stock slump 13% in its Hong Kong debut, reflecting concerns about its heavy reliance on a single client in a competitive market. The company generates about 95% of its revenue from Geely, making it vulnerable to instability if it loses its biggest client. iMotion posted revenue of RMB 543 million ($76 million) and a net loss of RMB 100 million in the first half of 2023. Losses are expected to continue in the foreseeable future.
Chinese auto tech startup iMotion saw its stock end almost 13% below its initial public offering price on Wednesday 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. []