On January 19, Yundong Intelligent disclosed its prospectus on the Hong Kong Stock Exchange, signaling its intention to list.
Yundong Intelligent's primary business is providing comprehensive in-vehicle communication and intelligent connectivity solutions for automobile manufacturers. In the first three quarters of 2025, affected by intensifying industry competition and product transition and upgrades, the company's revenue growth slowed and its profit declined year-over-year. Concurrently, Yundong Intelligent's gross margin is lower than that of comparable companies like Huihan Co., Ltd. and continues to decline against the prevailing industry trend.
Notably, Yundong Intelligent's top five automotive clients contribute over 95% of its revenue, with CHERY AUTO alone accounting for a substantial 90%, indicating a severe reliance on major customers.
Furthermore, after declining for two consecutive years, Yundong Intelligent's debt ratio remains high at 78%, significantly exceeding industry peers. Despite this financial position, merely 20 days before submitting its listing application, Yundong Intelligent executed a sudden dividend distribution of 15 million yuan. The practice of distributing dividends first and then seeking public funding raises questions about the underlying motives.
Intensifying competition has slowed revenue growth, while the gross margin, already lower than peers, continues to decline against the trend.
Yundong Intelligent's core business involves providing comprehensive in-vehicle communication and intelligent connectivity solutions for automobile manufacturers. Its main products include Telematics Control Units (T-Box), emergency call terminals (eCall), central gateways, and some sensor and domain controller-related products, supplemented by customized design and technical services.
According to Frost & Sullivan data, Yundong Intelligent is China's third-largest domestic supplier of in-vehicle communication solutions, holding approximately a 7% market share. Based on shipments of 4G in-vehicle communication control units in 2024, it ranked first among domestic manufacturers with a 7.8% market share. The T-Box is the company's primary product, accounting for 83.5% of revenue in 2024, with shipments reaching 1.1385 million units, a year-on-year increase of 80.40%.
However, entering 2025, the 4G vehicle networking market is gradually becoming saturated and peaking, while the penetration of 5G upgrades is accelerating. Simultaneously, the emergence of both existing players like Huihan Co., Ltd. and GaoXin Novel, as well as new entrants, has intensified industry competition. Yundong Intelligent, which benefited from the 4G era, is now facing significant pressure on its existing business.
Data from Gaogong Intelligent Automotive Research Institute shows that in the first 11 months of 2025, the delivery volume of pre-installed 5G models in China reached 5.619 million units, a year-on-year increase of 91.1%. In contrast, Yundong Intelligent's shipments of 5G solutions in the first three quarters of 2025 were only approximately 27,300 units.
Affected by factors such as industry-wide product transitions, upgrades, and intensified competition, Yundong Intelligent's revenue for the first three quarters of 2025 was 301 million yuan, a year-on-year increase of 16.84%. This growth rate slowed significantly compared to the 93.50% growth in 2024. The company achieved a net profit of 23 million yuan, a year-on-year decrease of 10.04%, marking a shift from growth to decline.
Furthermore, compared to Huihan Co., Ltd. and GaoXin Novel, Yundong Intelligent's gross margin continues to decline against the trend, despite already being at a relatively low level.
The top five customers contribute 95% of revenue, with CHERY AUTO alone accounting for 90%; the debt ratio reaches 78%, and a sudden dividend was distributed just 20 days before the application.
The decline in Yundong Intelligent's profitability against the trend is likely highly correlated with the company's long-standing issue of heavy reliance on major customers.
Data shows that in 2023, 2024, and the first three quarters of 2025, revenue from Yundong Intelligent's top five customers was 201 million yuan, 385 million yuan, and 288 million yuan, respectively, accounting for 97.6%, 96.7%, and 95.6% of total revenue. The top five automotive clients contribute over 95% of total revenue.
Specifically, revenue from CHERY AUTO alone was 149 million yuan, 362 million yuan, and 263 million yuan, constituting 72.6%, 90.8%, and 87.2% of total revenue, respectively. Clients such as SAIC, Dongfeng, JAC, and Jiangling Motors collectively accounted for only about 10%.
It is evident that CHERY AUTO's position as the overwhelmingly dominant customer significantly weakens Yundong Intelligent's bargaining power and pricing power, while also markedly increasing the company's vulnerability to risks.
By the end of the third quarter of 2025, Yundong Intelligent's debt ratio had decreased to 78.62% from 96.75% in 2023, yet it remained substantially higher than the 20%-40% debt ratio levels of peers like Huihan Co., Ltd. and GaoXin Novel.
As of the end of the third quarter of 2025, the company's combined cash, various deposits, and wealth management products totaled approximately 30 million yuan, slightly higher than its short-term borrowings of 15 million yuan during the same period.
However, despite operating with a high debt level, on December 30, 2025, just 20 days before submitting its listing application, Yundong Intelligent executed a sudden dividend distribution amounting to 15 million yuan. This means the company distributed the entire 15 million yuan difference between its cash on hand and short-term borrowings as dividends.
Amidst a shifting industry landscape and abruptly intensifying competition, Yundong Intelligent's decision to pay dividends and immediately file for an IPO warrants close attention.
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