Annual revenue exceeds 1.1 billion yuan, with over 96% concentration from the top client: Millimeter-wave radar manufacturer Chengtai Technology aims for a Hong Kong IPO

Ask AI · How does Chengtai Technology balance rapid growth with excessive customer dependence?

Produced by | Company Research Institute IPO Team

By | Wang Zheping

On March 23, Shenzhen Chengtai Technology Co., Ltd. officially submitted an application for listing on the main board of the Hong Kong Stock Exchange. Guotai Junan International serves as the sole sponsor. Previously, the company had already completed the listing filing for Hong Kong stocks and is expected to soon enter the listing hearing stage.

Chengtai Technology’s core team has a strong technical background. Both co-founders graduated from Huawei. Chen Chengwen, Chairman and General Manager, previously served as a technical director at Huawei. Zhou Ke, Deputy General Manager, also has work experience at Huawei in a technical role.

In terms of equity structure, before the IPO, founder Chen Chengwen held 15.48%, Zhou Ke held 4.98%, employee shareholding platform Chengtai Venture Capital held 6.57%, and Huacheng Venture Capital and Chengyan Venture Capital each held 4.38%.

Financial data show that the company’s performance has been on a fast-growth trajectory. From 2023 to 2025, revenue was 1.57 billion yuan, 3.48 billion yuan, and 11.23 billion yuan, respectively, with a compound annual growth rate of 167.8% from 2023 to 2025.

At the same time, profitability continued to improve. In the same period, net losses narrowed from 966.0 million yuan in 2023 to 218.0 million yuan in 2024, and further decreased to 58.0 million yuan in 2025, with the loss reduction narrowing significantly.

From the revenue mix, the company’s business is highly focused on millimeter-wave radar products. Its revenue proportion increased continuously from 98.5% in 2023 to 99.9% in 2025.

Within millimeter-wave radar, the product structure has undergone a fundamental change. Although forward millimeter-wave radar revenue rose from 104.0 million yuan to 251.0 million yuan, its share of total revenue dropped sharply from 66.6% to 22.3%. Angle millimeter-wave radar delivered explosive growth, with revenue jumping from 50.0 million yuan to 871.0 million yuan, and its share surging from 31.9% to 77.6%. It replaced forward radar as the company’s core revenue engine, directly driving rapid growth in overall performance.

On the gross margin side, the company’s overall profitability efficiency showed significant fluctuations. From 2023 to 2024, the company’s overall gross margin inched up slightly from 31.0% to 34.0%, but in 2025 it fell sharply to 15.1%.

By product, forward millimeter-wave radar’s gross margin had remained at a relatively high level: 40.3% and 43.1% in 2023 and 2024, respectively, but it dropped steeply to 12.1% in 2025. Meanwhile, from 2023 to 2025, angle millimeter-wave radar’s gross margin was 11.9%, 17.5%, and 16.0%, respectively—consistently lower than forward radar. However, backed by explosive revenue growth, its gross profit rose from 5.926 million yuan to 1.392 billion yuan, becoming the core driver pulling up overall gross profit growth.

The key drivers behind Chengtai Technology’s high performance growth stem from the company’s successful entry into BYD’s supply chain in 2022, becoming its core millimeter-wave radar supplier. Its products are used in main车型 such as Han, Tang, Song, and others. With advantages in product, pricing, and delivery, the company achieved rapid volume expansion.

However, closely accompanying this is the problem of highly concentrated customers. The prospectus shows that the vast majority of the company’s revenue comes from Customer A. From 2022 to 2025, the share of revenue from that customer increased year by year from 81.9% to 96.4%, and reliance on a single customer has continued to rise.

The funds raised in this IPO will be used mainly for six directions, including R&D of new technologies and new products, replenishment of testing equipment and upgrading of production lines, marketing and channel building, strategic mergers and acquisitions or investments, repaying bank loans, and supplementing working capital. The core focus is on consolidating the company’s leading position in the millimeter-wave radar industry.

Overall, relying on the supply chain of leading automakers, Chengtai Technology has achieved explosive performance growth, and the continued narrowing of losses reflects a favorable development trend.

But its extremely high reliance on a single customer is its core hidden concern. How the company will, in the future, expand its customer base and reduce operating risk through the fund-raising efforts will become an important issue after the company’s listing.