Zhejiang Taotao Vehicles Co., Ltd. (301345.SZ) has recently filed for a Hong Kong IPO, accelerating its "A+H" dual listing strategy.
The HK prospectus claims Taotao ranked second globally in low-speed electric vehicle (LSEV) revenue for 2024 with an 8.4% market share. However, its reported annual revenue of approximately RMB 3 billion appears inconsistent with domestic industry data showing multiple Chinese LSEV manufacturers exceeding RMB 10 billion revenue. Discrepancies also exist between Taotao's prospectus and third-party reports regarding the top-ranked competitor's identity and founding year.
Notably, Taotao completed its RMB 2.007 billion A-share IPO in March 2023. Despite holding RMB 1.718 billion in cash with modest debt (35% leverage ratio) as of Q3 2025, the company is pursuing additional HK fundraising. Several A-share IPO projects show sluggish progress, with completion rates below 60% as of mid-2025. The company also conducted its sole interim dividend payout of RMB 163 million before the HK filing, benefiting controlling shareholder Cao Matao who holds 67.41% equity.
Financial metrics reveal contradictions: - Industry-leading gross margins (34-40% vs peer average 20%) attributed to overseas sales and vertical integration - R&D spending at 2.8-4.2% of revenue, consistently below peer average (4.2-5.5%) - Highest sales expenses (9-15% of revenue), doubling industry norms
While the HK prospectus emphasizes AI and robotics partnerships (including collaborations with Kepler Robotics and Unitree Tech), Taotao's limited R&D investment raises questions about its technological positioning. The company's aggressive marketing focus and sudden conceptual pivot present valuation challenges for potential HK investors.
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