Avita Technology (Avita) is preparing to submit an application for listing to the Hong Kong Exchanges and Clearing Limited (HKEX), however, market observers have pointed out that Avita has accumulated a staggering loss of 9.726 billion yuan (RMB) from 2022 to 2024. Such substantial losses have raised concerns among investors about its future development.
According to a report from Sina Finance on September 28, insiders revealed that Avita plans to submit a listing application to HKEX in the fourth quarter of this year. While this may seem like a proactive move, it is seen as a desperate step taken by Avita amidst its challenging circumstances.
Public information indicates that Avita is a “star” brand jointly created by the automobile company Changan, Huawei, and CATL. Leveraging the intelligent manufacturing capabilities of Changan Automobile, the batteries from CATL, and integrating Huawei’s technology in smart mobility, Avita has formed a new generation intelligent electric vehicle technology platform with “new architecture, strong computing power, high-voltage charging.” Despite its strong resource background, substantial financial support, and highly anticipated brand, Avita has fallen into a vicious cycle of “financing-losses-refinancing.”
The report reveals that between 2021 and 2023, Avita completed three rounds of financing, with a total funding amount of nearly 8 billion yuan and a post-investment valuation of close to 20 billion yuan. The most recent financing round took place in December 2024, where Changan Automobile and multiple investors injected a total of 11.101 billion yuan into Avita, resulting in a post-financing valuation of approximately 30 billion yuan. However, despite these large-scale financings, Avita has not been able to achieve self-sufficiency.
Financial data from Changan Automobile shows that from 2022 to 2024, Avita’s operating income was 283.4 million yuan, 5.645 billion yuan, and 15.35 billion yuan respectively, while the net losses amounted to 2.015 billion yuan, 3.693 billion yuan, and 4.018 billion yuan respectively, culminating in a total loss of 9.726 billion yuan over the three years.
The substantial losses have raised doubts among investors about its future prospects. Even if it successfully goes public, how many investors will be willing to support its financial needs? Avita’s listing plans seem more like a way to “extend its life” in the capital market.