Youjia Innovation announced on July 3rd that it plans to issue 6.8 million shares at a price of HKD 23.26 per share, raising approximately HKD 158 million. The allotment price is discounted by approximately 14.80% from the previous closing price of HKD 27.30, and the allotted shares are equivalent to approximately 1.67% of the enlarged issued shares.
The announcement shows that assuming all the allocated shares are allocated to the allottees, the expected net proceeds from the allocation (after deducting commissions and estimated expenses) are approximately HKD 155 million. Among them, 40% will be used to enhance the functional performance of intelligent driving solutions and meet the large-scale landing needs of mid to high-level assisted driving projects; 30% will be used for technological upgrades of L4 level autonomous driving solutions, supporting the commercial implementation of manned and cargo autonomous driving scenarios; 20% is used to explore potential strategic partners, alliances, and acquisition opportunities; 10% is used as operating capital.
Youjia Innovation stated in the announcement that as an intelligent driving and cabin solution provider, it provides solutions for key aspects of the driving experience, including navigation, parking, and cabin functions. Based on continuous iteration of innovative technologies and efficient and stable mass production capabilities, Youjia Innovation continues to empower intelligent vehicles and help the industry quickly achieve large-scale commercialization of intelligent driving. In addition, Youjia Innovation is also one of the few companies in the industry with full stack self-developed capabilities in algorithm development, software engineering, and hardware design. The advantage of full stack self-developed makes it more competitive in mid to high-level assisted driving projects.
Driven by the intelligent driving equality strategy of automobile manufacturers since 2025, the demand for mid to high-level assisted driving has grown rapidly, and the number of mid to high-level assisted driving projects undertaken by Youjia Innovation has significantly increased year-on-year; Meanwhile, the demand for L4 autonomous driving projects has also exploded this year.
On the one hand, this financing will ensure the delivery of Youjia Innovation's new designated project and support the scale expansion of mid to high-level assisted driving business; On the other hand, we will strengthen investment in the research and commercialization of L4 autonomous driving technology.
It is worth mentioning that Youjia's two core businesses of innovative intelligent driving and intelligent cockpit have received multiple designated projects in the first half of this year, with clients including Changan Automobile, SAIC Maxus, joint venture brands and luxury brands under globally renowned car companies; Recently, we have also received repeat purchases from old customers and provided the iPilot 4 integrated software and hardware assisted driving domain controller for a certain mid to large luxury off-road vehicle. At the same time, Youjia Innovation's L4 business continues to break through. The unmanned minibus not only completed its first delivery in Suzhou, but also received project designation from China Telecom, entering the fast lane of L4 commercial development.
While gaining recognition from the industry and customers, Youjia Innovation has also been recognized by cornerstone investors. On June 27th, Youjia Innovation entered its first unlocking period after going public, and cornerstone investor Kang Chengheng International; Zero reduction within 3 months, and no more than 10% reduction within 9 months; The promise releases long-term confidence. After the lifting of the ban, the stock price of Youjia Innovation remained stable.
At the same time, CITIC Lyon, Everbright Securities, and CSI International have all released research reports and given Youjia Innovation "better than the market", "increase holdings", and "buy" ratings, respectively. In a research report, CITIC Lyon mentioned that Youjia Innovation will achieve rapid growth with its large customer base and rich product line. It is expected that the compound annual growth rate of total revenue for the 2024-2027 fiscal year will reach 49%, with a target price of HKD 32.00.
