New stock outlook | The background of Vedaforce Technology going to Hong Kong: On one side, 70% depends on key customers, on the other side, seizing opportunities in AI new hardware.

At the beginning of 2026, "invisible champion" Veda Force Technology Co., Ltd. (hereinafter referred to as "Veda Force Technology"), which has long been hidden behind the supply chain of global technology giants, officially submitted an application for listing on the Main Board of the Hong Kong Stock Exchange, revealing its years of deep cultivation in the consumer electronics field. As the world's largest provider of PVD interface enhancement solutions for consumer electronics metal components, Veda Force Technology empowers hundreds of millions of smartphones, wearable devices, and key components of smart cars with its ultimate "last nanometer" process. Its technology not only determines the gloss, color, and texture of the device surface, but also directly affects structural strength, optical performance, and energy efficiency - on the eve of the explosion of AI hardware, this seemingly small interface engineering has become a key infrastructure for reshaping human-machine interaction experience. So how likely is this "hidden player" behind the giants to succeed in its Hong Kong journey this time? From "single dependence" to "multi-engine drive" It is understood that PVD was originally used in the semiconductor industry, which is a technology that vaporizes coating materials in a vacuum environment and deposits them on substrates to form thin films. This technology significantly improves the structural strength and corrosion resistance, allowing devices to maintain their original appearance even under frequent use. As early as the 1990s, Veda Force Technology was the first to introduce this cutting-edge technology into consumer-grade products and achieve large-scale commercial applications. With the rapid pursuit of lightweight, high-strength, and aesthetic design in smartphones, tablets, and smartwatches, PVD technology quickly became an indispensable manufacturing process for high-end terminals. The company relies on its deep integration capabilities in materials, equipment, and processes to construct a "Research-Development-Engineering" (R-D-E) full-chain closed-loop system, and through a highly intelligent production mode, continuously breaks through the interface performance limits. Its solutions cover two main mainstream substrates - metal and glass, which respectively accounted for 26.2% and 14.9% of the global consumer electronics PVD interface enhancement market in 2024, firmly occupying the industry leader position. Against this background, the performance of Veda Force Technology has maintained a strong growth trend in recent years. In the first three quarters of 2023, 2024, and 2025, the company's revenue was 3.481 billion yuan, 5.199 billion yuan, and 4.618 billion yuan, respectively. The net profit during the same period reached 363 million yuan, 618 million yuan, and 572 million yuan, with a gross profit margin remaining stable in the 23%-24% range, demonstrating outstanding cost control and profit resilience. In terms of business segments, Veda Force Technology's income structure is undergoing a key transformation from "single dependence" to "multi-engine drive". As the world's largest provider of PVD interface enhancement solutions for consumer electronics metal components, Veda Force Technology has long been deeply integrated with top global customers. In 2023, revenue from smartphones, tablets, and laptops accounted for a high proportion of 83.5%; although this proportion slightly decreased to 76.3% in 2024 due to business diversification, the absolute revenue increased from 2.9 billion yuan to nearly 4 billion yuan, highlighting its irreplaceability in the high-end consumer electronics manufacturing chain. In the first three quarters of 2025, the revenue from this sector had reached 3.618 billion yuan, accounting for a rebound to 78.4%, reflecting continued demand support brought by flagship model iterations and PVD technology penetration. The explosive growth of the smart wearable device sector is even more eye-catching. In 2024, the business revenue doubled to 1.16 billion yuan, with its share of total revenue increasing significantly from 15.3% in 2023 to 22.3%, becoming the company's second largest source of income. Behind this growth is the extreme pursuit of lightweight, high wear resistance, and aesthetic texture in products such as smartwatches and TWS earphones - PVD technology can meet both functional and design requirements at the same time. Although the proportion decreased slightly to 20.2% in the first three quarters of 2025, its high-speed growth trend has been established, and future development is promising. In comparison, the smart car business, while contributing only about 1% of revenue, is the most strategically promising track. In 2024, related revenue exceeded 65 million yuan, a year-on-year growth of over 100%, mainly from the laser radar glass window pieces and HUD free-form mirrors. With the acceleration of L2+ and above intelligent driving penetration, the demand for these two critical optical components will experience exponential growth. With its deep accumulation in material engineering and nanoscale coating fields, Veda Force Technology has successfully entered the supply chain of top global laser radar manufacturers, laying the foundation for tapping into the billion-level incremental market in the future. Continued industry demand growth It is believed that the solid performance of the company's performance is inseparable from the support of industry demand. In recent years, with the migration of AI large models to the terminal side, intelligent devices with speech, vision, and touch feedback capabilities are experiencing a period of explosive growth. Whether it's AI smartphones, AI glasses, or smart cabins and Siasun Robot&Automation, their interactive interfaces are no longer just "shells", but composite carriers that integrate sensing, display, aesthetics, and structural functions. This directly drives the surge in demand for high-performance PVD interface solutions. According to data from Zhishi Consulting, the global market size of PVD interface enhancement solutions reached 12 billion yuan in 2024, and is expected to soar to 45.1 billion yuan by 2029, with a five-year compound annual growth rate of 30.4%. Including substrates, the overall market size will expand from 87.8 billion yuan to 206.9 billion yuan. Among them, the sub-track of consumer electronics is expected to reach 31.9 billion yuan in 2029, with metal and glass components growing to 22.9 billion yuan and 7.8 billion yuan, respectively, with the main DRIVE being the increase in lightweight metal penetration, expansion of interaction area, and popularization of advanced glass materials. In this context, Veda Force Technology has clearly identified the AI+ product matrix as the strategic focus for the next stage, aiming to provide top clients in various industries with interface solutions that combine functional breakthroughs, user experience, and aesthetic value, truly realizing "redefining the interaction between people and technology with nanometer-level processes." Currently, the company has proactively deployed emerging intelligent terminals such as AI glasses and Siasun Robot&Automation, although the current revenue is small, it demonstrates its strategic intent to seize the next generation of human-machine interaction interface. However, every investment story has another side, and the risk for Veda Force Technology comes from the high concentration of large customers. In the risk factors, the company pointed out that as of the end of 2023, the fiscal year ended December 31, 2024, and the nine months ended September 30, 2025, revenue from the top five customers accounted for 86.9%, 80.5%, and 85.2% of the total revenue for each period. This means that a large portion of Veda Force's revenue is in the hands of just five customers. Of more concern is the weight of two "super customers": revenue from customer A accounted for 53.2%, 47.7%, and 55.8% of total revenue for each period; revenue from customer B accounted for 15.7%, 15.0%, and 14.9% of total revenue for each period. Together, these two customers contributed 68.9%, 62.7%, and 70.7% of revenue in the reporting period. This is a common feature of consumer electronics supply chain companies, and a risk factor that investors must face. This means that any unforeseen events, such as lower-than-expected sales of a flagship model, redistribution of supplier shares, or a supply chain reorganization triggered by geopolitical factors, could instantly change Veda Force's financial statements. There are two paths for Veda Force to respond, one is to horizontally expand the boundaries of the industry, and the other is to extend product coverage. From the company's actions, the leading market share of laser radar window pieces globally proves that this strategy has initially paid off, but it is still a long way from completely decoupling from dependence on large customers. Currently, the size of the company's automotive business is still small, and its proportion in total revenue is not enough to hedge against any fluctuations in consumer electronics customers. When 70% of revenue comes from two customers, any narrative about "risk diversification" is still at the visionary level. This is the real situation that Veda Force Technology is facing at the moment: on one hand, there is the opportunity for a trillion-level reconstruction of interactive interfaces brought about by the explosion of AI hardware; on the other hand, there is the concentration risk of 70% of revenue coming from two major customers; on one hand, there is the irreplaceability of the consumer electronics base, on the other hand, there is the second growth curve of smart cars and emerging terminals. Going public in Hong Kong is not only a financing move to strengthen capacity and accelerate technological iteration, but also a crucial step to prove its ability to "de-single dependence" to the capital market. If Veda Force can steadily increase its share in the wearable, automotive, and AI new hardware fields while maintaining core customer cooperation, it may transform from an "invisible supplier" into a high-end material platform enterprise with global pricing power. On the other hand, if the expansion of new businesses falls short of expectations, its growth ceiling and bargaining space will still be constrained by the cyclical fluctuations of large customers. The ultimate judgment of the market will depend on its ability to build a more balanced and resilient business ecosystem on top of its technological advantages in the "last nanometer".