Black Sesame Technologies, a prominent self-driving chip startup, has taken a significant step towards becoming the first Chinese company in its field to go public on the Hong Kong Stock Exchange. While the number of shares to be issued and the amount of capital to be raised have not yet been disclosed, the company has provided an elaborate overview of its operations and objectives.
Established in 2016, Black Sesame Technologies specializes in supplying automotive System-on-Chips (SoCs) and solutions, earning recognition as one of China’s early players in the autonomous driving chip sector. The company gained prominence in January 2018 when it announced the successful completion of a Series A+ financing round, securing nearly RMB 100 million, with NIO Capital leading the investment.
Among its product offerings, Black Sesame Technologies boasts the Huashan series of autonomous driving SoCs and the recently launched Wudang series of cross-domain SoCs. The company’s prospectus reveals that in 2022, it emerged as the third-largest global supplier of high computing power automotive SoCs by shipments, according to data from Frost & Sullivan.
Black Sesame Technologies has already received intent orders for 15 models from ten automotive Original Equipment Manufacturers (OEMs) and Tier 1 suppliers. Additionally, it has forged partnerships with over 30 automotive OEMs and Tier 1 suppliers, solidifying its position in the industry.
In terms of revenue, Black Sesame Technologies reported RMB 53.02 million ($7.32 million) in 2020, RMB 60.5 million in 2021, and RMB 165 million in 2022. Over these three years, the company plans to allocate RMB 255 million, RMB 594 million, and RMB 766 million, respectively, to research and development (R&D) investments.
However, the company has incurred annual adjusted net losses of RMB 273 million in 2020, RMB 614 million in 2021, and RMB 700 million in 2022. Black Sesame Technologies anticipates that its net loss will further increase in 2023 due to its ongoing expansion in the automotive SoC and solutions market, along with continued investments in research and development.
During 2022, Black Sesame Technologies provided products and solutions to a total of 89 customers, both domestically and internationally, shipping over 25,000 SoC products and generating 86 percent of its annual revenue.
Based on its 2022 shipments, Black Sesame Technologies captured a market share of 5.2 percent and 4.8 percent in China and globally, respectively, for SoCs with high computing power, according to its prospectus.
By filing for an initial public offering (IPO) on the Hong Kong Stock Exchange, Black Sesame Technologies aims to solidify its position as a leader in the autonomous driving chip industry while capitalizing on the growing demand for self-driving technologies worldwide.
