Article Source: Online Public Information

On June 30, the Hong Kong Stock Exchange (HKEX) website revealed that Avatr Technology (Chongqing) Co., Ltd. had updated its prospectus and resubmitted its application for a listing on the HKEX. This move represents Avatr's second attempt at an initial public offering (IPO) on the HKEX, following its initial submission in November 2025. The joint sponsors for this listing are CITIC Securities and CICC.

Previously, Avatr officially submitted its prospectus on November 27, 2025. According to HKEX regulations, if a company fails to complete the listing hearing and subsequent listing within six months from the date of prospectus submission, the application documents will automatically become invalid. On May 27, Avatr's initial prospectus officially expired after reaching the six-month validity period. Avatr had previously stated that this was a routine technical procedure in the IPO process and would not impact the overall listing timeline. Approximately one month later, the company completed the prospectus update and resubmitted its application.

Sales Under Pressure: Just 24,000 Vehicles Delivered in First Five Months

According to the updated prospectus, Avatr sold a total of 20,160 vehicles from January to May 2026, including 2,949 units in overseas markets, averaging approximately 4,032 units per month. Monthly sales trends indicated a gradual recovery, with 2,216 units delivered in January, 4,033 in February, 5,143 in March, 5,279 in April, and 7,336 in May.

However, sales have significantly declined compared to the same period in 2025. In the first five months of 2025, approximately 43,700 units were delivered, while the overall new energy vehicle market experienced a 15% decline during the same period in 2026. For context, Avatr's total annual deliveries reached 122,700 units in 2025, nearly doubling from 61,600 units in 2024, with a record-high 14,200 units delivered in November alone.

Currently, the monthly sales benchmark for leading new energy vehicle brands has reached 30,000 units. In May 2026, Leapmotor sold over 80,000 units in a single month, while NIO, XPeng, and Li Auto all exceeded the 30,000-unit monthly sales mark. Taking May as an example, the threshold for the industry's top 10 brands was 18,000 units, while Avatr sold 7,336 units that month. In the cumulative sales ranking of new energy vehicle brands from January to May, Avatr ranked 14th with 24,000 units sold.

Amid overall sales pressure, overseas markets have emerged as a growth亮点 (highlight) for Avatr in 2026. In 2025, overseas revenue reached RMB 1.398 billion, accounting for 5.5% of total revenue, with an average overseas selling price exceeding RMB 300,000. By the end of 2025, the brand had entered 38 countries and regions, boasting over 80 sales outlets.

In the first five months of 2026, Avatr's overseas sales increased by 33.4% year-on-year. By the end of May, its overseas market had expanded to 43 countries and regions, with the number of distribution outlets rising to 95. The company plans to officially enter the European market in 2026.

Coexistence of High Revenue Growth and Persistent Losses

Financially, Avatr has maintained rapid revenue growth. From 2023 to 2025, the company's revenue was RMB 5.645 billion, RMB 15.195 billion, and RMB 25.631 billion, respectively, with cumulative revenue of approximately RMB 46.471 billion over three years and a compound annual growth rate exceeding 113%. In 2025, revenue increased by 68.7% year-on-year.

Gross margin has continued to improve, from -3.0% in 2023 to 6.3% in 2024, and further to 9.4% in 2025, with annual gross profit reaching RMB 2.417 billion. Operating cash flow turned positive in 2024 and expanded to RMB 2.315 billion in 2025. In comparison, the gross margins of leading new energy vehicle companies in 2025 generally ranged from 13% to 20%, indicating that Avatr's 9.4% is still relatively low.

Nevertheless, Avatr has not yet escaped losses. From 2023 to 2025, net losses were RMB 3.693 billion, RMB 4.018 billion, and RMB 3.489 billion, respectively, with cumulative losses of approximately RMB 11.2 billion over three years. Including the RMB 2.016 billion loss in 2022, cumulative losses over four years exceeded RMB 13.2 billion.

The company has continuously increased its R&D investment, with R&D expenditures of RMB 660 million, RMB 1.214 billion, and RMB 2.086 billion from 2023 to 2025, respectively, representing a 71.8% year-on-year increase in 2025. Selling and marketing expenses amounted to RMB 3.281 billion. In 2025, selling costs accounted for as much as 90.6% of revenue, with raw material costs reaching RMB 20.804 billion, accounting for 89.6% of selling costs. The company admitted in its prospectus that its cost structure has not yet fully benefited from economies of scale.

In terms of cash flow, the company's cash and cash equivalents decreased from RMB 19.323 billion at the end of 2024 to RMB 9.687 billion at the end of 2025. The company expects "to possibly continue recording net losses for the year ending December 31, 2026."

According to the prospectus, Changan Automobile holds a 40.99% stake in Avatr, making it the largest shareholder, while CATL holds a 9.17% stake. Since its inception, the company has completed four rounds of financing, raising a cumulative total of approximately RMB 19.067 billion. The C round of financing was completed in December 2024, raising over RMB 11 billion.

Notably, in 2025, Avatr made a strategic investment of RMB 11.5 billion in Shenzhen Yinwang Intelligent Technology Co., Ltd. (Huawei's intelligent driving platform), acquiring a 10% stake. This investment yielded positive returns in its first year, with Avatr sharing RMB 182 million in profit from the associated company in 2025. As of October 2025, Avatr had fully paid all three installments of the transfer price to Huawei.

In Conclusion

The proceeds from this IPO will primarily be used for product development and platform technology development, enhancing and iterating existing products, and continuing to implement a global marketing strategy. On the product front, the Avatr 07L is scheduled to officially debut in July 2026. Positioned as a mid-to-large SUV with a wheelbase of 2,990mm, it will offer both pure electric and extended-range powertrain options, equipped with Huawei's HarmonyOS cockpit and Qiankun Intelligent Driving ADS 5 system as standard across all variants.

Based on the annual sales target of 100,000 units, Avatr has only achieved about 24% of this goal in the first five months, requiring an average of nearly 11,000 units to be delivered per month in the remaining seven months to meet the target. Finding a balance between sales scale, profitability, and continuous investment will be the core challenge Avatr needs to address to the market during its listing process.

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