The First Hong Kong Stock Intelligent Cockpit Is Coming! Botai Vehicle Connection Begins Subscription, Backed By FAW, Dongfeng, Horizon, and Others

On September 22, BoTai Vehicle Networking Technology (Shanghai) Co., Ltd. (hereinafter referred to as "BoTai Vehicle Network", stock code: 2889.HK) officially launched its IPO on the Hong Kong Stock Exchange and is set to be listed on September 30, 2025.

For this public offering, PATEO CONNECT+ plans to globally issue 10,436,900 H-shares (subject to the exercise of over-allotment options), including 1,043,700 shares in Hong Kong, China, and 9,393,200 shares for international offering. The subscription period is from September 22 to September 25, 2025, with an offer price of HKD 102.23 per share.

It is worth mentioning that Botai Car Union has successfully introduced cornerstone investors, including Horizon Together Holding Ltd., wholly owned by the leading company in the assisted driving field, Horizon Robotics-W (09660.HK), Huangshan Development Investment Group Co., Ltd., which was established with investment from Huangshan SP, and Smart Ventures Limited, owned by the Li family of Hong Kong's Union Hospital. The three plan to subscribe for 465.9 million HKD of the issued shares, with the subscription price calculated at 102.23 HKD per share, resulting in a total subscription of 4.55752 million shares.

In fact, during the pre-IPO financing stage, the company has attracted numerous star institutional investors, such as Shanghai Guosheng, Ping An, Xinchang Gaotou Venture Capital, Sichuan Manufacturing Collaborative Development Fund, Beijing Zhongke Rongyi, and the Electric Vehicle Hundred People Association; it is also the only automotive intelligence empowerment enterprise to have received joint investments from multiple automakers including FAW and Dongfeng. The participation of these investors has not only injected development funds into Botai Car Link but also highlighted the market's high recognition of its technological strength and industry prospects.

Deepen the development of intelligent cockpits and build an integrated barrier of "software, hardware, and cloud."

As a leader in the field of automotive intelligence in China, Pateo Connect+ has been focusing on the core track of automotive intelligence since its establishment in 2009 and is one of the earliest companies in China to develop smart cockpit solutions.

Differentiating itself from most of its hardware-focused peers, Botai Automotive Connectivity has built an integrated model of "software + hardware + cloud services" from the very beginning. This allows it to provide customers with more comprehensive and customized intelligent cockpit solutions, meeting the diverse needs of various OEMs and Tier 1 clients. It is precisely this differentiated approach that has enabled it to rapidly establish technological barriers in industry competition.

The prospectus shows that in 2013, Botai Chelian launched China's first automotive-grade operating system developed by a private enterprise. In 2023, it was jointly recognized by the National Development and Reform Commission, the Ministry of Finance, and other four departments as a "National Enterprise Technology Center." Its two self-developed technological innovations related to intelligent cockpits and connected services were recognized by the National New Energy Vehicle Technology Innovation Center as reaching an internationally advanced level.

According to information from CSCI Consulting, PATEO CONNECT+ is one of the only two suppliers providing intelligent cockpit solutions based on the Kirin 9610A processor and HarmonyOS. Public information shows that PATEO CONNECT+ is a founding member of the OpenHarmony Working Committee. In 2022, it also formed a global cross-licensing agreement with Huawei related to patents in the vehicle machine field.

As of December 31, 2024, Botai Automotive Connectivity ranks first among domestic suppliers of intelligent cockpits and intelligent connected solutions in terms of the number of registered invention patents, with technological barriers continuously strengthening.

In terms of specific business, intelligent cockpit solutions and connected services are the two main businesses of Pateo, among which intelligent cockpit solutions are its core source of revenue.

In the smart cockpit solutions, the domain controller is the core product of Pateo CONNECT+, integrating the operating system, application software, and hardware components. It can realize vehicle interaction control, navigation, augmented reality head-up display (AR-HUD), driver monitoring system (DMS), occupant monitoring system (OMS), and infotainment functions. It is a pillar component of the smart cockpit and is regarded as the "central system" of the smart cockpit.

For the domain controller products, Botei Car Connectivity offers flexible cooperation models. For example, customers can choose an integrated solution of "domain controller + operating system + hardware components," or they can purchase components such as domain controllers, displays, T-boxes, etc., separately. In addition to product supply, Botei also provides customized R&D services, designing and developing intelligent cockpit products or solutions based on the specific needs of different customers.

In terms of revenue composition, the domain controller in the Botai Carlink intelligent cockpit solution currently contributes the most and is its core growth engine. According to the prospectus, from 2022 to 2024, the revenue from domain controllers grew from 674 million yuan to 1.959 billion yuan, with a compound annual growth rate of 70.5%. Its proportion of total revenue increased from 55.4% to 76.6%, making it the most essential source of income. This also drove the revenue share of the entire intelligent cockpit solution to rise from 88.6% in 2022 to 95.5% in 2024, significantly increasing the concentration of core business.

As a supplementary service, networked services primarily target OEM customers, providing network support services and network platform maintenance services. The former can assist OEMs in offering technical support, roadside assistance, and emergency response services to vehicle owners; the latter provides infrastructure maintenance and service application maintenance to ensure stable platform operation.

Currently, this business has served multiple OEMs, and the business scale is stable. According to the prospectus, the revenue from connected services is 89 million yuan, 122 million yuan, and 110 million yuan from 2022 to 2024, respectively, accounting for 4.3% to 8.2% of the total revenue, providing a stable income supplement for the company.

The concentration of the industry is increasing, and the advantages of leading companies are becoming more prominent.

With its technological leadership and continuous innovation, PATEO has accumulated significant competitive advantages and impressive achievements in the industry.

According to data from ZhiShi Consulting, in terms of shipment volume in 2024, Botai Connected Vehicles holds a market share of 7.3%, ranking as the third largest supplier of intelligent cockpit domain controller solutions for passenger cars in China. Additionally, three of the top five OEMs in China have adopted Botai Connected Vehicles' intelligent cockpit solutions.

In the high-end market, Pateo Connect+ has shown a more outstanding performance. According to data, as of December 31, 2024, based on the number of designated installations of intelligent cockpit solutions equipped with Qualcomm's fourth-generation Snapdragon 8295 chip (a mainstream high-end automotive-grade chip), Pateo Connect+ ranks first among domestic suppliers, becoming a key player in the high-end intelligent cockpit field.

From the perspective of industry competition, some analysis points out that as technological barriers rise and customers demand more integrated solutions, companies with full-stack capabilities in software, hardware, and cloud will have greater advantages. With its technological lead, stable customer partnerships, and global presence, Pateo IoT is expected to further expand its market share as industry concentration increases.

Furthermore, solutions based on domain controllers and AI computing platforms also benefit from the enormous potential demand in the embodied intelligence sector. The core technology and systematic capabilities in the automotive electronics field will be a unique competitive edge for automotive component manufacturers entering the robotics sector. The self-developed Qinggan large model by Pateo IoT is expected to become the AI core of the next generation of smart cars, bringing new growth opportunities to the market.

From the industry's perspective, Pateo's imminent listing on the Hong Kong stock market is not only a capitalization journey for a company but also reflects the immense growth potential of China's passenger car intelligent cockpit industry.

The intelligent cockpit solutions industry for passenger vehicles in China is currently in a rapid development phase. Benefiting from the accelerated transformation towards automotive intelligence, the increasing consumer demand for intelligent driving experiences, and policy support, the industry is experiencing rapid growth.

According to data from Frost & Sullivan, the market size of the intelligent cockpit solutions industry for passenger vehicles in China reached 129 billion yuan in 2024 and is expected to increase to 299.5 billion yuan by 2029, with a compound annual growth rate of 18.4% over five years. Among them, as a core component of intelligent cockpits, the penetration rate of domain controller solutions for passenger vehicles in China, measured by shipment volume, has increased from 13.7% in 2020 to 44.1% in 2024, and is expected to exceed 90% by 2029.

This means that in the next five years, China's smart cockpit solutions industry will experience explosive growth. As a leading company in the industry, PATEO is undoubtedly set to benefit greatly from this trend.

In addition to the domestic market, Pateo also actively explores overseas markets and has made significant progress. It is understood that it has reached a cooperation agreement with a certain German luxury car company, which will not only bring continuous and considerable revenue growth but also further expand its influence in the luxury car sector.

Summary:For the capital market, investing in PATEO CONNECT+ is not only investing in a high-end intelligent cockpit solution provider but also investing in the future of China's automotive intelligence transformation. From technological barriers to market share, from rapid growth to industry dividends, PATEO CONNECT+ has established a clear growth logic. With the continuous release of high-end products, the gradual opening of overseas markets, and the continuous improvement of profitability, this leading Chinese intelligent cockpit company is expected to deliver an impressive long-term performance to investors on the stage of the Hong Kong Stock Exchange.