Black Sesame Intelligence has updated its prospectus, continuing its push for a listing on the Hong Kong Stock Exchange.
On March 22, Black Sesame International Holding Limited (Black Sesame Intelligence) updated its prospectus, further advancing the process of listing on the main board of the Hong Kong Stock Exchange, with CICC and Huatai International acting as joint sponsors.
This signifies Black Sesame Intelligence's continued pursuit of becoming the "leading player in the domestic autonomous driving chip market." In fact, Black Sesame Intelligence became the first company to formally submit an A-1 listing document under the 18C rule since its implementation on March 31, 2023. The 18C rule primarily targets specialized technology companies, requiring a high level of technological attributes within the industry, encompassing next-generation information technology, advanced hardware and software, advanced materials, new energy and energy conservation, new food and agricultural technology, among other industry domains.
Established in 2016, Black Sesame Intelligence, as a supplier of automotive-grade computing SoCs and SoC-based intelligent automotive solutions, has designed the Huashan series high-performance SoCs and Wudang series cross-domain SoCs. The SoC-based intelligent automotive solution integrates IP cores of ISP and NPU independently developed by Black Sesame Intelligence, middleware, toolchains, algorithms, and support software to meet a wide range of customer needs.
The Huashan series high-performance SoC, focusing on autonomous driving applications, has already achieved commercialization. In 2022, the Huashan A1000 series began mass production and delivered over 25,000 units, propelling it into the top three global suppliers of automotive-grade high-performance SoCs. As of December 31, 2023, the total shipment of the Huashan A1000 series SoCs has exceeded 152,000 units.
Notably, Frost & Sullivan anticipates a substantial increase in the shipment of high-performance SoCs in China and globally in 2023, estimated at 1,050,000 and 1,200,000 units, respectively. They also project Black Sesame Intelligence's market share in China to be around 10% in 2023, a significant rise from 5.2% in 2022.
According to Black Sesame Intelligence's plan, the next-generation SoC, Huashan A2000, which has been under development since September 2022, is expected to be launched in 2024. Furthermore, efforts are underway to expand capabilities in automotive-grade chip development, including further development and commercialization of the Wudang series cross-domain SoCs.
As of March 13, 2024, Black Sesame Intelligence has collaborated with over 49 automotive OEMs and tier-one suppliers, such as FAW Group, Dongfeng Group, Jiangxi Automobile Group, Horizon Robotics, iCatch Technology, Baidu, Bosch, ZF Friedrichshafen, and Marelli. As of the same date, Black Sesame Intelligence has secured production intention orders for 23 vehicle models from 16 automotive OEMs and tier-one suppliers.
Furthermore, Black Sesame Intelligence continues to invest heavily in research and development. In recent years, the company has been consistently focused on technological innovation, particularly in the field of chip development. Black Sesame Intelligence aims to assist automotive manufacturers in implementing more intelligent technologies while continually providing customers with revolutionary products and solutions that structurally reduce costs and enhance efficiency. Currently, Black Sesame Intelligence's chips have entered mass production and are compliant with all automotive-grade certifications. As of December 31, 2023, the research and development team of Black Sesame Intelligence consists of 950 members, accounting for 86.7% of the total workforce. From 2021 to 2023, the research and development expenditure of Black Sesame Intelligence was CNY 595 million, CNY 764 million, and CNY 1.363 billion, accounting for 78.7%, 69.4%, and 74.0% of the total operating expenses for each respective year.
In its prospectus, Black Sesame Intelligence states that approximately 80% of the net proceeds from the IPO will be allocated to research and development (including the development team for automotive-grade intelligent SoCs, the development and upgrade of intelligent automotive software platforms, procurement of materials for the research and development of intelligent automotive SoCs and automotive-grade IP cores, and the development of autonomous driving solutions); around 10% will be used to enhance commercial capabilities; and approximately 10% will be utilized for operational capital and general corporate purposes.