Good News on Listing | Frost & Sullivan Assists Beijing Saimo Technology Co., Ltd. to Successfully List on the Hong Kong Stock Exchange (2571.HK)

Beijing Saimo Technology Co., Ltd. (hereinafter referred to as 'Beijing Saimo') successfully went public on January 15, 2025. The company plans to issue 30,000,000 shares, of which 90% will be international offerings. The issue price per share ranges from HK$12.00 to HK$18.00, with a maximum fundraising of approximately HK$600 million.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in writing relevant parts of the prospectus (such as the overview, competitive advantages and strategy, industry overview, business, and other important chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange.

• The company mainly provides comprehensive ICV testing, verification, and evaluation solutions for state-owned enterprises in the public sector, government departments, as well as automakers and technology companies in the private sector.

   

• The company mainly provides ICV testing, verification, and evaluation products and services based on its proprietary core technology tools Sim Pro and Safety Pro, which are independently developed.

   

• The company possesses core technologies independently developed in the field of ICV simulation testing;

   

• The company has a deep understanding and comprehension of ICV-related laws, regulations, policies, standards, as well as the development trends of the ICV industry.

According to the Frost & Sullivan report, the company:

• Based on revenue in 2023, the company is the largest market participant in China's ICV testing, verification, and evaluation solutions industry, with a market share of approximately 5.3%;

   

• Based on 2023 revenue, the company is the largest market participant in the China ICV simulation test software and platform market, with a market share of about 5.9%;

   

• It is one of the few market participants in China that can provide one-stop ICV testing, verification, and evaluation solutions.

After decades of development, China's automotive industry has entered a mature phase. In 2023, China's automobile sales reached approximately 3010,000 vehicles, accounting for about 36.1% of global sales, making China the world's largest automobile market. Looking ahead, driven by automotive electrification and increasing consumer demand, the growth of China's automotive industry is expected to maintain a steady upward trend. By 2028, China's automobile sales are expected to reach approximately 3570,000 vehicles, and China is still expected to remain the world's largest automobile market, with a market share of about 38.3% by 2028.

ICVs refer to a new generation of vehicles equipped with advanced in-vehicle sensors, controllers, brakes, and other devices, integrated with advanced communication network technology, to achieve: (i) information exchange and sharing between vehicles, people, roads, clouds (V2X), and other elements; (ii) perception of complex environments and intelligent decision-making, collaborative control, and other functions; (iii) 'safe, efficient, comfortable, and energy-saving' driving; and (iv) eventually driverless operations. Nowadays, ICVs are closely related to intelligent driving technology. In the Chinese market, ICVs are generally equipped with ADAS (L1+L2) intelligent driving technology. The Chinese government has been actively promoting the development of the ICV industry, viewing it as an important means to solve traffic safety, road congestion, energy consumption, and environmental pollution, thereby driving technological transformation and accelerating upgrades in the automotive industry. In 2019, the market scale of China's ICV industry was about 636 billion yuan, which has grown to about 1653 billion yuan by 2023, with a compound annual growth rate of about 27.0%, and it is expected to increase to about 6,596 billion yuan by 2030, with a compound annual growth rate of about 20.1% starting from 2024.

Market scale of ICV industry (China) based on revenue, 2019 to 2030 (estimated)

Currently, China's intelligent driving technology is still in the development stage. Cars equipped with ADAS driving technology have achieved commercial mass production. ICVs equipped with L3 driving technology can gradually operate on demonstration roads in 2024. ICVs equipped with L4 and L5 autonomous driving technology can only operate in specific experimental or demonstration scenarios. The sales volume of ICVs equipped with ADAS driving technology in China increased from about 7,200,000 units in 2019 to about 15,829,000 units in 2023, with a compound annual growth rate of about 21.8%. It is expected that the sales volume will increase from about 17,500,000 units in 2024 to about 24,679,000 units in 2030, with a compound annual growth rate of about 5.9%.

With technological improvements and the introduction of autonomous driving technology access policies, L3-level vehicles are expected to be sold in 2024, with China's sales volume expected to reach about 7,127,000 units by 2030. L4 and above level vehicles are expected to be sold in the Chinese market in 2025, with the estimated sales volume of L4 and above Level 1C vehicles (ICVs) in China increasing to about 1,630,000 units by 2030. China's ICV industry is currently very fragmented. Driven by the increasing penetration rate of ADAS and higher levels of autonomous driving, the number of participants in the ICV industry is expected to further expand.

ICV market size (China) by sales volume and intelligent driving technology level, 2019 to 2030 (estimated)

China has formulated a series of policies and regulations to promote the development of the ICV industry. The 'Medium- and Long-Term Development Plan for the Automotive Industry' promulgated by the Chinese government indicates that by 2025, the penetration rate of new vehicles equipped with intelligent driving technology in the ICV industry is expected to exceed 80%, with over 25% of newly released ICVs carrying L2 and L3 driving technologies. ICVs are expected to achieve widespread recognition among consumers through multi-sensory in-car human-machine interaction and external interconnection, empowered by advanced technologies such as AI, connectivity, cloud data storage, and intelligent driving, making driving more convenient and comfortable for drivers. For example, functions such as automatic parking and lane departure warning systems can reduce the driver's energy requirements and alleviate driving pressure. With continuous technological improvement, cars are becoming intelligent terminals, which will not only change human driving behavior habits but also drive social development and progress in terms of traffic safety, transportation costs, vehicle efficiency, and more.

In addition, government regulations around the world are also driving original equipment manufacturers (OEMs) to equip their ICV models with intelligent driving technologies. For example, the National Highway Traffic Safety Administration (NHTSA) of the United States has mandated that all new vehicles must be equipped with rearview cameras starting from May 2018, and may need to be equipped with other intelligent driving technologies in the future. The Ministry of Industry and Information Technology issued the 'Guidelines for the Construction of the National Connected Vehicle Industry Standard System (Intelligent Connected Vehicles) (2022 Edition)' in September 2022, proposing to formulate and revise more than 100 ICV-related standards by 2025. Compliance with such regulations helps improve public transportation safety. Finally, OEMs that adopt intelligent driving technologies earlier can significantly provide consumers with cutting-edge features that give them a competitive edge over their leading competitors.

From 2024 to 2030, L1, L2, and L3 will still be the mainstream of intelligent driving technology in China. The penetration rate of ADAS is expected to reach about 65.1% by 2030, while the penetration rate of autonomous driving (L3 to L5) is expected to reach about 23.1% before 2030.

Influence of penetration rate (China) by intelligent driving technology level from 2019 to 2030 (estimated)

According to the Frost & Sullivan report, the main market drivers and development trends of the ICV industry in China include the following:

● Favorable policies

China's multiple stimulus policies and measures ensure the stable development of the ICV industry. The Chinese government has promulgated the 'Intelligent Vehicle Innovation and Development Strategy', 'Automobile Driving Automation Classification', 'Medium- and Long-Term Development Plan for the Automotive Industry', and other policies and regulations to stimulate the industry. Government guidance and policy support, the widespread application of advanced technologies, the development of cloud platforms, and the construction of road infrastructure all help to lay a healthy and mature foundation for the development of the ICV industry. In the future, China's ICV industry will continue to develop rapidly, and intelligent technologies for automobiles will gradually penetrate from high-end models to low-end models.

● Redefining the relationship between people and vehicles

As the public's demand for an excellent driving experience continues to grow, cars are transforming from traditional means of travel into mobile living spaces. Drivers and passengers can issue commands to the Intelligent Connected Vehicle (ICV) through voice, gestures, and other methods. The ICV also has intelligent perception capabilities, enabling it to more accurately judge the user's intentions. In addition, the integration of the ICV value chain will help collect and process large amounts of real-time traffic information and data by combining internal and external information of the ICV. In the future, the ultimate interactive development direction of ICVs should be active real-time interaction between vehicles and people. The upgrade and iteration of ICVs will lead to the transformation and upgrading of the automotive industry, reshaping the public's driving experience.

Like traditional vehicles, ICVs also require thorough and comprehensive simulation and field testing to ensure their safety and reliability for commercialization and large-scale production. ICV testing, verification, and evaluation solutions are used to test and evaluate the perception, decision-making, and execution behaviors of intelligent driving systems in real-time continuous operation under different scenarios. By conducting multi-dimensional and multi-angle testing and verification of intelligent driving systems, a stable confidence level is achieved to assess the level of intelligent driving technology equipped on the vehicle.

Simulation testing is one of the most important parts of ICV testing, verification, and evaluation solutions. Depending on the test objectives, it can be used for model-in-the-loop (MiL), software-in-the-loop (SiL), hardware-in-the-loop (HiL), vehicle-in-the-loop (ViL), and driver-in-the-loop (DiL) tests, collectively referred to as various types of in-vehicle (XiL) tests, to test and verify the intelligent driving functions and safety levels of ICV products (especially L3 and above autonomous driving products).

Functional Safety (FuSa) and Software-Defined Automotive (SDA) are of great significance for the upgrade and development of Intelligent Connected Vehicles (ICVs). FuSa mainly targets the electronic and design functions of ICVs to avoid dangerous situations when normal functions fail. SOTIF, on the other hand, is primarily aimed at intelligent driving to prevent dangerous scenarios caused by misuse of functions.

Compared to traditional internal combustion engine vehicles, electric vehicles are more suitable for carrying more advanced intelligent driving technologies. Currently, as consumers' awareness of ICVs continues to grow, automakers are paying more attention to high-level (L3 and above) intelligent connectivity and intelligent driving technologies to gain a competitive edge, thereby stimulating the demand for ICV testing, verification, and evaluation solutions.

The upstream of the ICV testing, verification, and evaluation solution industry mainly includes operating system providers, communication service providers, and software and hardware vendors that provide foundational support for ICV testing, verification, and evaluation. Their contribution lies in laying a solid foundation for the development of ICV testing, verification, and evaluation solutions, ensuring the availability of necessary infrastructure.

The midstream mainly includes ICV testing, verification, and evaluation solution providers, offering standard or customized solutions to downstream customers. These solutions cover a range of products, such as ICV simulation testing software and platforms, ICV data platforms and other products, simulation testing services, road testing services (closed-site testing and open-road testing), and others. Their contributions ensure the safety and reliability of ICVs, while promoting innovation and integration of intelligent driving technologies.

Downstream customers come from both the public and private sectors. In the private sector, automotive manufacturers and technology companies focusing on developing high-end vehicles and technologies are willing to establish their own ICV testing platforms and data platforms, expand existing simulation technologies, and adopt new technologies. By utilizing ICV testing, verification, and evaluation solutions, ICV manufacturers can optimize the performance and technology of ICV products on one hand, and provide valuable feedback on software applicability and effectiveness on the other hand to enhance ICV testing, verification, and evaluation solutions. This meets the ever-changing industry needs and contributes to the value chain.

Tech companies play a dual role as intermediaries (such as solution integrators) and end customers, promoting the distribution of ICV simulation test software or using it for their own R&D, thereby driving technological development in the ICV-related technology industry. Without directly competing with ICV test solution providers, tech companies add value by acquiring development rights to customize and integrate software for specific applications and engage in R&D. This collaborative approach promotes mutually beneficial relationships and enhances the functionality and adoption of simulation test software in the ICV technology field. Public sector customers include state-owned enterprises, local governments, universities, automotive research institutions, and other government departments that purchase solutions for administrative and public purposes. Public sector customers contribute to government initiatives, public safety, and regulatory compliance in the ICV industry.

Driven by the continuous development of autonomous driving technology and the increasing penetration rate of ICVs in China, the market scale of the ICV testing, verification, and evaluation solution industry has been steadily growing based on revenue, increasing from about RMB 1.2 billion in 2019 to about RMB 3.3 billion in 2023, with a compound annual growth rate of about 27.8%.

In 2023, there were approximately 300 to 400 ICV manufacturers in China, with less than 50 engaged in developers of L3 or higher-level autonomous driving solutions. Potential direct downstream customers for ICV testing, verification, and evaluation solution providers include not only ICV manufacturers but also other market participants in the ICV industry, such as technology companies. These mainly include intelligent driving technology companies that focus on developing ICV-related software and hardware and providing innovative solutions at all levels of ICVs. In addition to these intelligent driving technology companies, our potential technology company customers may also include other types of technology companies specializing in technical solutions, such as cloud servers, driver identity recognition devices, and automotive inspection services, which can be widely applied in ICVs and related industries.

Intelligent driving technology companies act as intermediaries, using ICV testing, verification, and evaluation of solution providers' technologies to enhance their own solutions, which will ultimately be used by ICV manufacturers to improve their ICV products. They also play the role of integrators, integrating ICV simulation test products with other technical solutions to end customers (such as ICV manufacturers). By 2023, there will be about 500 to 600 intelligent driving technology companies in China. There are no overlapping companies between the aforementioned 300 to 400 ICV manufacturers and the 500 to 600 technology companies. It is estimated that by 2030, there will be about 800 to 1,200 ICV manufacturers engaged in developing L3 or higher-level intelligent driving solutions, and 2,500 to 3,500 technology companies focusing on developing ICV-related software and hardware.

Looking ahead, China's intelligent driving technology will continue to upgrade, and the demand for ICV testing, verification, and evaluation is expected to increase. With the accelerated commercialization of L3 and above autonomous driving technologies, the market for ICV testing, verification, and evaluation solutions has good prospects. In addition, central and local governments will continue to promote the construction of ICV testing demonstration areas and the formulation of industry laws and regulations to ensure product quality, vehicle safety, and data security in the ICV industry. In terms of revenue, it is estimated that the market size of China's ICV testing, verification, and evaluation solutions industry will continue to expand from 2024 to 2030.

The rapid growth of China's ICV testing, verification, and evaluation solution industry is mainly attributed to the following factors:

● Growth of the ICV industry

In recent years, the ICV industry has been growing steadily. The market size of China's ICV industry increased from about 7,200,000 units in 2019 to about 15,829,000 units in 2023, with a compound annual growth rate of about 21.8%. Due to advancements in AI, 5G, and intelligent driving technologies, coupled with strong government support and growing consumer demand for safer and more efficient transportation solutions, it is expected that the market size of China's ICV industry will reach about 33,436,000 units by 2030, with a compound annual growth rate of about 11.4% starting from 2024. To ensure the traffic safety and reliability of ICVs, the aforementioned developments have led to an increased demand for ICV testing, verification, and evaluation solutions.

● The need to comply with regulations

Chinese government departments and regulatory agencies have been implementing supervision over the automotive and IVC industries, including testing, verification, and evaluation requirements for IVCs. For example, in 2023, the Ministry of Industry and Information Technology, together with the Ministry of Public Security, the Ministry of Housing and Urban-Rural Development, and the Ministry of Transport, issued pilot notices, laying a solid foundation for the rapid and sustainable development of China's IVC testing, verification, and evaluation solution industry. In 2024, the government issued three mandatory national standards for IVCs, namely 'Technical Requirements for Information Security of Complete Vehicles', 'General Technical Requirements for Software Upgrades of Vehicles', and 'Autonomous Driving Data Recording Systems for Intelligent Connected Vehicles'. These standards will come into effect on January 1, 2026, setting more detailed and higher-level regulatory requirements for the development of China's automotive and IVC industries.

●Advancement of technology

With the emergence of advanced technologies and functions such as autonomous driving, ADAS, and connectivity, ICVs are becoming increasingly complex. The continuous improvement in AI, sensor technology, and real-time data processing capabilities is further enhancing the performance and safety of ICVs. Innovative technologies such as cloud computing and 5G connectivity have made data transmission faster and achieved more efficient vehicle-to-everything (V2X) communication, thereby further promoting the development of ICVs. These standards have led to an increased demand for solutions that can test, verify, and evaluate related functions. In addition, the diverse needs of downstream automakers have led the ICV testing, verification, and evaluation solution industry towards highly customized applications and solutions.

ICV testing, verification, and evaluation solutions market size (China), by domain and customer type, and by revenue, 2019 to 2030 (estimated)

According to the type of product and service, ICV testing, verification, and evaluation solutions can be categorized into the following categories: ICV simulation test software and platforms, ICV data platforms and other products, simulation test services, road test services (closed site testing and open road testing), and others. There are significant price differences across these areas. In addition, local governments, automakers, and other testing, verification, and evaluation agencies are also willing to build their own simulation test capabilities and purchase related systems. It is expected that the market share of ICV simulation test software and platforms will continue to exceed 50% of the overall market share starting from 2023 and further increase to nearly 60% by 2030.

Market size of ICV testing, verification, and evaluation solutions by domain (China), 2023, 2027 (estimated), 2030 (estimated)

The main drivers and trends in the China ICV testing, verification, and evaluation solution industry include the following:

●Accelerated development of the ICV industry

As more and more people embrace the concept of 'software-defined vehicles,' leading Chinese technology companies, intelligent driving software firms, and automakers continue to invest heavily in researching and developing advanced intelligent driving technologies and in-vehicle infotainment (IVI) systems to gain a larger market share. At the same time, the Chinese government is actively promoting the development of the IVI industry. In November 2022, the Ministry of Industry and Information Technology, together with the Ministry of Public Security, the Ministry of Housing and Urban-Rural Development, and the Ministry of Transport, issued a pilot notice aimed at improving the performance and safety of IVI systems and promoting the healthy and standardized development of the IVI industry.

With the continuous development of intelligent and automation technologies, cars are becoming intelligent terminals. Currently, ICVs equipped with intelligent driving technology have gradually entered the commercial operation phase in China, which will bring huge growth potential to the industry of ICV testing, verification, and evaluation solutions. At the same time, relevant central and local authorities have successively issued road test management specifications and implementation rules, creating a favorable environment in terms of test demonstration area project support, construction, and application.

As of the end of 2021, the Chinese government has allocated a total of 20 ICV testing demonstration zones, located in provinces and cities such as Jilin, Beijing, Tianjin, Jiangsu, Shanghai, Zhejiang, Hunan, Guangdong, Hubei, Chongqing, Sichuan, and Shaanxi. Driven by the government's active deployment of ICV testing demonstration zones, the demand for ICV testing, verification, and evaluation solutions from automakers, technology companies, public institutions, governments, and universities will continue to grow. Some local governments such as Beijing, Guangzhou, Shenzhen, Chongqing, Wuhan, and Suzhou provide subsidies for the business and R&D activities of ICV market participants to accelerate the development of the ICV industry. With the continuous increase in the number of ICV manufacturers, the demand for testing, verification, and evaluation solutions after mass production is quite substantial.

● Strengthen and standardize new and constantly changing market supervision

ICV testing, verification, and evaluation are key to the widespread application and commercialization of ICVs, as these technologies are at the core of ICV product quality supervision and data security management within the industry. The United Nations issued the 'Multi-pillar Approach' in 2019, which consists of simulation testing, closed-road testing, and open-road testing, and has been widely recognized globally. The European Union, the United States, China, and Japan have explicitly stated that the 'Multi-pillar Approach' is an important method for ICV testing, verification, and evaluation, and have used it as a guiding document.

Given the importance of ICV testing, verification, and evaluation technologies in ensuring the safe operation and commercialization of ICVs, these technologies are strategic technologies urgently needed in China.

In recent years, the Chinese government has issued a series of policies and regulations, formulated technical standards related to ICVs, and emphasized the need to develop ICV testing, verification, and evaluation technologies. These include (i) the 'Intelligent Vehicle Innovation and Development Strategy' released by 11 Chinese ministries and commissions in 2020; (ii) the 'New Energy Vehicle Industry Development Plan (2021-2035)' issued by the State Council in 2020; and (iii) the opinions of the Ministry of Industry and Information Technology issued in 2021. Although these policies and regulations are relatively new and may continue to be improved, they have laid a solid foundation for the rapid and sustained development of China's ICV testing, verification, and evaluation solution industry.

Some local governments have also announced a series of policies and incentives to support market development. For example, according to Article 4 of the 'Fifteen Measures on Supporting the Innovative and Leading Development of the Intelligent Connected Vehicle Industry in Zhongguancun Science City' issued by the People's Government of Haidian District, Beijing on June 5, 2019, local Beijing government encourages leading ICV-related enterprises to set up headquarters or R&D centers in Haidian District and provides support on a 'case-by-case' basis. For leading and unicorn enterprises, the government will provide comprehensive policy support in terms of talent and funding. Looking ahead, with the continuous improvement of intelligent driving technology and the introduction of national unified access standards, more mass-produced intelligent connected software systems will need to undergo ICV simulation and road testing before entering the market, which will stimulate industry expansion.

● Requirements for complex data platforms

Establishing a data platform and applying it in the field of ICV is extremely important for promoting industry development and innovation. The foundation of ICV testing, verification, and evaluation solutions is data collection and sharing.

On the government side, establishing a data platform can transform scattered and isolated automotive data into a collection of comprehensive data systems, helping the government manage the market effectively. For ICV manufacturers, the data platform can help promote the integration of technology, business, and data, break down information barriers between internal departments, deepen understanding of market changes, and introduce the latest ICV models. In November 2020, the State Council of China issued the 'New Energy Vehicle Industry Development Plan (2021-2035)', proposing a national plan for the automotive industry and related sectors to build comprehensive cross-regional and cross-industry data platforms. Data platforms are conducive to enhancing data collection and sharing capabilities as well as promoting the development and innovation of the ICV industry.

● Competition among domestic market participants is becoming increasingly fierce

With the rise of domestic alternatives in the ICV testing, verification, and evaluation solution market, more and more Chinese automakers are showing preference for domestic suppliers. The ICV testing-related products and services provided by these suppliers are comparable to those offered by international market participants in terms of technical capabilities, product quality, reliability, customization according to local needs, cost-effectiveness, and compliance with local industry standards. Concerns about the user-friendliness and data security of foreign ICV simulation testing software, as well as the uncertainty of foreign partnership relationships due to political relations, are also driving the competitiveness of domestic market participants to increase.

● Industry participants collaborate more closely

ICV testing, verification, and evaluation solution providers will further collaborate closely with upstream and downstream participants in the industry chain, strengthen independent research and development, accelerate the upgrading of the ICV industry, and gradually build a comprehensive service closed-loop for the entire process of ICV testing, verification, and evaluation. This move is conducive to reducing enterprise testing costs and difficulty, improving testing efficiency, and serving more customers with testing needs. Leading automakers and technology companies have begun collaborating with third-party ICV testing, verification, and evaluation solution providers to assess their new generation V2X, intelligent driving technologies, etc. In addition, governments, universities, research institutions, and vehicle commercial service providers are also actively cooperating with ICV testing, verification, and evaluation solution providers to ensure compliance with the latest industry standards, aiming to enhance the performance and reliability of the latest ICVs.

● The demand for cloud-based solutions continues to grow

Currently, the demand for cloud-based ICV testing, verification, and evaluation solutions is increasing continuously. With cloud-based ICV testing, verification, and evaluation solutions, downstream customers can perform a large number of simulation tests simultaneously in a faster manner and on a larger scale through parallel and accelerated computing, thereby overcoming the limitations of non-cloud-based simulation testing solutions in terms of speed and efficiency when testing and verifying intelligent driving solutions. In addition, cloud-based solutions can effectively reduce labor costs and the acquisition and maintenance costs of related hardware, thereby further stimulating the demand for cloud-based ICV testing, verification, and evaluation solutions among ICV market participants.

● The demand for highly customizable applications and solutions continues to grow

Currently, downstream automakers tend to design and develop intelligent driving systems that align with their target market's brand positioning, vehicle model development strategies, and driving environment. These factors vary greatly among different manufacturers. In addition, the developed intelligent driving systems need to be compatible with other related vehicle systems, which also differ among different vehicle models and manufacturers. Therefore, the diverse needs of downstream automakers lead to an industry trend towards highly customizable applications and solutions for ICV testing, verification, and evaluation.

China is one of the world's largest automotive markets. With the acceleration of R&D processes for ICV and intelligent driving technologies, the demand for ICV simulation and road testing is increasing day by day. It is of great significance for market participants in China to achieve independent research and development to gain competitiveness in the global market. Resources such as customers, data, and road test sites are particularly important for market participants.

The market scale of China's ICV simulation test software and platform market reached approximately RMB 1.7 billion in 2023. In terms of revenue, the top five market participants contributed about 25.7% of the total market. The Group ranked first in China's ICV simulation test software and platform market in 2023, with revenue of approximately RMB 10.05 billion.

Top 5 Companies in China's ICV Simulation and Testing Software and Platform Market by Revenue, 2023

In 2023, the total market size of China's ICV testing, verification, and evaluation solution industry was approximately RMB 3.3 billion in terms of revenue. The Group recorded total revenue of approximately RMB 1.757 billion from ICV testing, verification, and evaluation solutions, accounting for approximately 5.3% of the market share, ranking first.

Top 5 companies in China's ICV testing, verification, and evaluation solutions market by revenue in 2023

Currently, there is an increasing demand for ICV data platforms and other products in the ICV industry. The market for ICV data platforms and other products is relatively fragmented. The main service providers are leading data and technology companies, with automotive-related ICV data platforms and other product businesses accounting for only a small fraction of their overall business. For customers in the public sector, due to reasons such as data security, Chinese market participants are more competitive.