Avatr Technology has renewed its application for a Hong Kong initial public offering (IPO), updating its prospectus with financial results through the end of 2025 as the Chinese electric vehicle manufacturer continues its push toward a main board listing.
The company, jointly backed by Changan Automobile, Huawei and CATL, refiled its application with the Hong Kong Stock Exchange after its previous prospectus expired in May following the end of its six-month validity period.
IPO Process Moves Forward
The updated filing indicates that Avatr remains committed to completing a Hong Kong listing, while providing investors with revised financial and operating information.
According to the prospectus, Avatr delivered 20,160 vehicles between January and May 2026, including 2,949 units in overseas markets.
The figures equate to average monthly deliveries of approximately 4,000 vehicles, highlighting the challenge the company faces in scaling production compared with larger Chinese EV manufacturers.
Losses Continue Despite Revenue Growth
Avatr reported cumulative losses exceeding 13.2 billion yuan (approximately US$1.9 billion) between 2022 and 2025 and said it expects to remain loss-making through 2026.
The company attributed part of the pressure on profitability to limited production scale, noting that lower purchasing volumes reduce its bargaining power with suppliers and weigh on manufacturing costs.
In 2025, the cost of sales accounted for 90.6% of revenue, while gross margin improved to 9.4%, up from 6.3% a year earlier.
Cash and cash equivalents also declined from 19.32 billion yuan at the end of 2024 to 9.69 billion yuan at the end of 2025, before falling further to 6.25 billion yuan as of April 30, 2026.
Financial Performance Shows Progress
Despite ongoing losses, Avatr reported improving operating performance during 2025.
Revenue increased to 25.63 billion yuan, representing more than fourfold growth over the previous three years.
Gross profit rose 151.7% year over year to 2.42 billion yuan, while the company’s annual net loss narrowed to 3.49 billion yuan.
The automaker also recorded 182 million yuan in investment income after acquiring a 10% stake in Yinwang, Huawei’s intelligent automotive business, through an investment valued at 11.5 billion yuan.
Overseas Expansion Continues
Avatr has continued expanding its international presence alongside its domestic business.
By the end of 2025, the company had established more than 80 sales outlets across 38 countries and regions as it sought to increase overseas deliveries.
At the same time, Avatr faces strategic questions surrounding Changan Automobile’s plans to integrate its Deepal brand more closely with the premium EV maker, a move that could reshape product positioning and increase competition between the group’s electric vehicle brands.