Unless unexpected developments arise, Avita is on track to make significant strides in its IPO journey. The company filed its IPO application with the Hong Kong Stock Exchange on November 27 of last year, and by the 27th of this month, six months will have passed. Typically, in the Hong Kong stock market, a prospectus remains valid for six months from the date of submission. This means Avita is expected to announce its latest IPO developments before June, with the coming week marking the “final sprint” in its efforts to go public.

According to media reports last year, Avita’s IPO was projected to take place around the second quarter of 2026, following the submission of its listing application. This suggests that Avita’s originally planned IPO is just a month away, though this is not an official announcement. Previously, Avita aimed to complete its listing by 2026. In April of this year, company executives addressed the latest IPO timeline, stating that they would “continue at the current pace and complete the listing when the time is right.” Thus, it is reasonable to infer that Avita’s IPO could occur in the latter half of the year.

Regardless, Avita’s IPO has now reached a critical juncture. At this stage, several questions are drawing particular attention from the outside world, reflecting Avita’s latest developments and changes since submitting its listing application. Addressing these issues before Avita goes public will help evaluate its value and track the progress of its IPO.

1. Will Changan’s integration of Avita with Shenlan Automobile affect its listing?

An intriguing question emerges: Will Shenlan Automobile’s assets be bundled into Avita, creating a new Changan New Energy sector—similar in structure to Zeekr Group (which encompasses Zeekr + Lynk & Co)? In response, Avita executives stated in April that the planned Hong Kong listing of “Avita Technology” would proceed unaffected and at the current pace, with the listing to occur when the time is right. Regarding whether Avita Technology’s listing refers solely to “Avita,” the Southern Metropolis Daily reported in April that company executives emphasized Avita’s standalone brand IPO would remain unchanged, meaning Shenlan’s assets would not be included in the listed entity. However, this has only been reported by this media outlet so far.

At the same time, regarding the impact of the integration, company executives stated that Avita and Shenlan’s strategic integration aims to reduce shared resource costs by 20%–30%. However, company leadership considers a comprehensive reduction in software and hardware costs by 20%-30% to be relatively conservative and believes that, once implemented, the final efficiency gains could likely exceed 30%. This will contribute to cost reduction and help turn losses into profits. Nevertheless, some analysts argue that incorporating Shenlan into Avita’s listing plan to form a Zeekr-style new energy vehicle group could also be a viable option.

2. How has Avita performed in the market since submitting its IPO application?

Since submitting its listing application last year, Avita has experienced five full months of sales. For automakers, sales volume is a key indicator of operational and profit capabilities, and it is currently the most significant KPI for new energy companies in the capital markets. In terms of sales, data from Dongchedi shows the following: In November 2025, Avita sold 11,671 units; in January 2026, 3,115 units; in February 2026, 2,065 units; in March 2026, 5,971 units; and in April 2026, 4,843 units.

However, due to differing statistical channels, the data varies slightly. For example, the China Passenger Car Association (CPCA) reported 7,059 units sold in January and 5,279 units in April this year, with the CPCA’s figures being more favorable. This year, Avita’s sales fluctuations are primarily due to its core products being in a transition cycle, with January and February affected by the Chinese New Year holiday and reduced subsidies, leading to sluggish sales across the industry.

In the first half of this year, Avita successively launched new models such as the all-new Avita 12 and Avita 06T, along with the introduction of the Taihang Chassis 2.0 and an upgraded Huawei intelligent driving hardware package. These are expected to significantly boost its market performance starting in May.

3. Avita’s financial data in the IPO prospectus was updated to the first half of last year. How did it perform in 2025?

According to the prospectus, from 2022 to the first half of 2025, Avita’s operating revenues were RMB 28.34 million, RMB 5.645 billion, RMB 15.195 billion, and RMB 12.208 billion, respectively. In terms of revenue, in the first half of 2025, Avita’s operating revenue exceeded RMB 12.208 billion, doubling from RMB 6.149 billion in the same period of 2024, with a growth rate of 98.52%. Official data also shows that in the first seven months of 2025, Avita’s revenue surpassed RMB 15 billion.

So, how did Avita perform in the full 2025 fiscal year? As Avita is an associated company and its financials are not consolidated, direct data is unavailable in the financial reports. However, Changan’s financial reports provide relevant information on its financial situation. The Avita brand sold 123,000 units in 2025, a 63% year-on-year increase, with average monthly sales exceeding 10,000 units, successfully establishing itself in the high-end new energy market priced above RMB 300,000. Alongside the expansion in sales volume, Avita’s losses also narrowed significantly.

Changan Automobile’s financial report shows that in 2025, Changan’s long-term equity investment in Avita Technology resulted in an investment loss of RMB 1.212 billion under the equity method of accounting. This suggests that Avita’s net loss for the full year of 2025 has also significantly narrowed compared to the RMB 4.018 billion loss in 2024, indicating a clear positive signal. Thus, Avita’s financial performance in the most recent complete fiscal year before its listing shows steady improvement.

4. When exactly will Avita’s management “choose the right time” for the IPO?

Currently, we believe Avita’s listing pace may undergo changes, based on judgments made considering the present circumstances. In the race with Dongfeng Group, both sides have been vying for the title of the “first new energy stock among central and state-owned enterprises.” However, VOYAH has already taken the lead in listing through a faster “restructuring” model. At this point, racing for speed is no longer significant. For Avita, focusing on completing a higher-quality IPO is the core objective. Secondly, under the strategic integration of Avita and Shenlan, Avita’s IPO should carry new significance, aligning more closely with the theme of “new central enterprises, new Changan.”

On the other hand, according to the plan, Avita and Shenlan will complete their strategic integration by the end of this year. For Avita, this may involve complex integration and benefit allocation, particularly in terms of clarifying business operations in line with listed company management, which takes time. Therefore, we believe Avita should pace its listing carefully, prioritizing quality over speed to create a strong asset base as a listed company and serve as a high-quality benchmark for new energy listings. Next, we will see how Avita proceeds. Regardless, Avita Technology remains a company with significant potential and value.

5. Where does Avita’s unique value lie, and will it change in the future?

Unlike other automakers, Avita’s distinctive feature is its unique “tripartite collaboration.” Avita was established through a joint effort by Changan, CATL, and Huawei, with Huawei even considering Avita strategically as its “prodigal son.” As a result, Avita has received maximum support from these three industry leaders in core technologies such as vehicle design, intelligent software, and battery power. Now, with Changan upgraded to a new central enterprise, Avita enjoys even greater resource support, and the tripartite cooperation has deepened further.

Through the empowerment of these three parties, Avita has now completed the layout of four main models, including the Avita 11, Avita 12, Avita 07, and Avita 06, achieving a full range of pure electric and extended-range dual-power options. It has also introduced the Avita 11 and Avita 12 Royal Theater Editions, as well as the Avita 011 and Avita 012, two limited-edition collaborative models in the 0 series, covering the mainstream high-end and luxury markets priced between RMB 200,000 and RMB 700,000. The Avita 11 and Avita 06T, launched in the first half of this year, have redefined product excellence in their respective segments, with additional models like the Avita 07L set to expand into new markets.

Moreover, Avita is one of the two non-Huawei shareholders in Huawei’s subsidiary, AITO Motors, which is another aspect of Avita’s unique value. Currently, Avita holds a 10% stake in AITO, with an investment of RMB 11.5 billion (fully paid). This not only provides Avita with reliable technical support but also significantly boosts its performance. In 2025, AITO’s revenue reached approximately RMB 45.018 billion, a 72.1% year-on-year increase. While official profit data is unavailable, market estimates suggest profits of RMB 12 billion to RMB 15 billion, meaning Avita could receive a 10% share of the investment returns, which is substantial.

In 2026, Avita plans to launch five upgraded models, with 17 all-new models set to debut by 2030, covering segments such as sedans, SUVs, and MPVs. Technologically, ongoing support from Changan, Huawei, and CATL will be crucial for Avita’s continuous market improvement. Of course, as AITO develops, its contributions to Avita will grow, providing significant support for Avita’s valuation. From these perspectives, Avita possesses unique investment value with substantial growth potential.