Backed by BYD, Why Has the "Charging Pile Leader" Seen Consecutive Revenue Declines and Soaring Losses?

The global new energy vehicle sector is rapidly advancing, with leading companies performing exceptionally well. For example, in 2024, BYD, the global sales champion of new energy vehicles, achieved revenues of 777.1 billion yuan and a net profit attributable to shareholders of 40.2 billion yuan.

As a supplier to BYD and the world's best-selling home electric vehicle charging pile company, its performance tells a different story: revenue has been declining continuously, and it has been sustaining losses, with a loss as high as 236 million yuan in 2024.

On the same trending track, what kind of logic lies behind such a contrast of "similar paths but different fortunes"?

The Double-Edged Sword of Giant Clients: Performance Decline Under Price Pressure

On July 18, the Hong Kong Stock Exchange's official website updated the prospectus of Shanghai Zhida Technology Development Co., Ltd. (referred to as "Zhida Technology"). The company is a global leader in home charging solutions for electric vehicles, with its main revenue coming from product sales and after-sales services.

According to Frost & Sullivan, during the reporting period, in terms of sales volume of home electric vehicle charging piles, Star Charge ranked first globally and also held the top position in the domestic market. In terms of sales revenue, Star Charge ranked fourth globally and first in China.

The "world's number one" performance of this report is inseparable from the support of major clients in the automotive industry. According to the prospectus, from 2022 to 2024, the revenue contributions from Zhidatech's top five customers accounted for 65.8%, 69.6%, and 56.1%, respectively. Among them, the largest customer, BYD, contributed 38.3%, 32.0%, and 25.0% of the revenue, respectively.

In the prospectus, Zhida Technology did not explicitly state that its largest customer is BYD; however, based on the characteristics of being listed on the Shenzhen and Hong Kong Stock Exchanges and having a 2022 revenue of 424.1 billion yuan benefiting the company's shareholders, only BYD fits these criteria.

In addition to BYD, according to the customer profile described by Zhida Technology, the company's major clients also include domestic giants such as Great Wall Motors.

However, relying on a giant is like holding a double-edged sword: it brings orders and brand endorsement, but also puts heavy pressure on the company's performance and profitability.

From 2022 to 2024, Zhida Technology's operating revenues were 697 million yuan, 671 million yuan, and 593 million yuan respectively, with corresponding net losses of 25.147 million yuan, 58.116 million yuan, and 236 million yuan during the same periods.

It is evident that Zhida Technology's performance is characterized by "continuous revenue decline and a sharp increase in losses."

Regarding the decline in revenue, Zhida Technology explicitly stated that in recent years, the company's traditional charging pile business has faced intense market competition and pressure from major customers to lower prices, especially from automobile manufacturers. In its prospectus, Zhida Technology did not specify the names of the main customers exerting pricing pressure.

It is worth noting that in 2024, BYD attracted public attention for “requesting a 10% price reduction from suppliers.” Li Yunfei, General Manager of BYD’s Brand and Public Relations Department, publicly responded, stating, “Annual price negotiations with suppliers are common practice in the automotive industry. Based on large-scale procurement, we propose price reduction targets to suppliers, but these are not mandatory requirements and can be negotiated collaboratively.”

In the face of such "industry practices," what is the choice of Zhida Technology?

In the prospectus, Zhida Technology mentioned the following data: the average selling price of products sold directly to automobile manufacturers decreased from 839.1 yuan in 2023 to 679.9 yuan in 2024. The company stated, "We accept price reductions to maintain our competitive position."

More noteworthy is the significant price difference across different sales channels. According to Zhida Technology's disclosure, during the reporting period, the average price of products sold through retail channels was 1,290.8 yuan, approximately 74.5% higher than the average price of 739.9 yuan for sales to automobile manufacturers.

This data is sufficient to demonstrate that Zhida Technology's bargaining power is clearly at a disadvantage in cooperation with automobile manufacturers.

Most of Zhida Technology's revenue comes from automotive manufacturers. In addition to selling products, the company also provides services. While product prices are declining, the prices for after-sales services are also decreasing. For example, from 2023 to 2024, the average price charged by the company for services provided directly to automotive manufacturers dropped from 832.0 yuan to 586.9 yuan.

The decline in product and service prices has pulled down the gross profit margin, and the drop in gross profit margin is a key variable leading to losses. From 2022 to 2024, Zhida Technology's gross profit margins were 20.4%, 20.5%, and 14.9% respectively, with a significant decline in 2024, which corresponds sharply with the surge in losses that year.

Faced with reliance on major clients for performance on one hand and the dilemma of cutting prices to gain market share on the other, the "double-edged sword" predicament of Zhidatech has become evident. At this critical juncture of its IPO push, it may affect investors' judgment of the company's value. Under the pressure of price reductions, how should this company break the deadlock?

Global and domestic market share both decline, overseas expansion becomes the new bet.

Under the pressure of price reductions, both the performance and market share of Zhida Technology have faced considerable challenges. To reverse the downturn, Zhida Technology has already begun to take action.

On the product side, Zhida Technology compresses costs by optimizing design, integrating raw material procurement, and streamlining the supply chain. The company has made it clear that its primary goal at this stage is to maintain operational resilience and outcompete rivals to seize a larger market share. Once the competitive landscape stabilizes, it will then focus on improving gross profit margins.

So, how effective has this "price-for-volume" strategy been? Has sales volume increased as prices were lowered? Has market share continued to expand?

According to the prospectus, the sales volumes of Zhida Technology's products from 2022 to 2024 are 484,800 units, 313,300 units, and 351,100 units, respectively, showing a trend of first declining and then increasing. The sales growth in 2024 reflects the effectiveness of the company's "price for volume" strategy under extreme pressure.

Specifically, a major client of Zhida Technology once lowered the target procurement price for charging piles below Zhida Technology's expectations, resulting in the company failing to win the bid. Subsequently, Zhida Technology developed high-quality products with lower costs, and the company signed a new contract with the client in July 2024.

However, while sales have rebounded, the company's market share has faced challenges.

In the prospectus disclosed in February 2024, Zhidat Technology stated that during the reporting period, the company's market share in China for home electric vehicle charging piles was 20.5%, and its global market share reached 12.2%.

In the prospectus dated July 2025, the data shows that during the reporting period, the company's market share in China was 13.6% based on the sales volume of household electric vehicle charging piles, and the global market share was 9.0%.

It is not difficult to see that, over time, the market share of Star Charge has declined both globally and domestically.

At the product end, Zhida Technology is also developing high gross margin potential products such as electric vehicle charging robots. In addition to product adjustments, Zhida Technology is committed to expanding overseas markets and strengthening the construction of retail channels, viewing these as drivers of growth.

In this Hong Kong IPO, the first item for Zhida Technology's fundraising project is overseas expansion, specifically including the expansion of overseas production facilities, the establishment of sales and marketing networks, and the strengthening of the international supply chain.

In April 2024, StarCharge Technology began operating its first overseas factory in Thailand, with a designed annual capacity of 108,000 electric vehicle charging piles. The company plans to establish more overseas factories in the Middle East and Europe.

From the perspective of capacity utilization, Zhida Technology's overseas factories are still in the ramp-up phase. In 2024, the capacity utilization rate of the Thailand factory was 3.3%, increasing to 15.4% in the first quarter of 2025. The future capacity utilization of this factory and how the capacity of other overseas factories under construction will be absorbed are worth paying attention to.

The potential of overseas markets is already evident in the price and gross margin data.

According to the prospectus, Zeekr Technology's prices in overseas markets are higher than those in the domestic market. For example, in 2024, the average selling price of products in the domestic market was 788.7 yuan, while the price overseas was 911.3 yuan. The price gap is even more pronounced in after-sales services: in 2024, the average after-sales service price in the domestic market was 570.8 yuan, compared to 1,796.7 yuan overseas.

The higher selling prices in overseas markets imply higher gross profit margins. According to the prospectus, the overseas sales gross profit margin of Zhida Technology in the first quarter of 2025 is between 37% and 39%, significantly higher than the company's overall gross profit margin of 16.5% during the same period.

Meanwhile, the proportion of overseas revenue for Star Charge has grown rapidly, increasing from 1.9% in 2022 to 12.1% in 2024. However, the proportion is still relatively low, and its impact on overall performance remains to be improved.

Zhida Technology's overseas business is largely developed alongside the overseas expansion of Chinese car manufacturers. The company explicitly stated that its overseas revenue mainly comes from producing charging piles that meet overseas specifications for Chinese car manufacturers going abroad.

This means that the company's client base is still primarily domestic automobile manufacturers, and whether it can escape the pricing dilemma in the future remains to be seen.

Overall, under the global trend of the new energy vehicle industry, Zhida Technology leads in charging pile sales, but it still needs outstanding performance to match its market position as the "global number one." Now, overseas expansion has become the company's new bet. We will continue to pay attention to whether the company can successfully go public in the future and thereby overcome its performance difficulties.