New Stock Interpretation | With accumulated losses exceeding 6.5 billion, can YuShi Technology tell a good capital story through "closed scenes"?

Since 2026, there has been a trend of a wave of autonomous driving companies flocking to Hong Kong for listing, and the Hong Kong stock market is rapidly becoming a new capital gathering place for the autonomous driving track. Behind this trend is not only the inevitable choice under the pressure of early industry capital exit, but also marks the formal entry of autonomous driving technology from the "storytelling" Demo stage into the "competition on the ground" commercialization deep water area. In this capital feast, a company named Mobility Technology (Beijing) Co., Ltd. (hereinafter referred to as "Mobility Technology") has attracted much attention. It has been noted that Mobility Technology has officially passed the hearing for listing on the main board recently, with CITIC SEC serving as the sole sponsor, about to open the door to the capital market. Unlike their peers who are competing on open roads for Robotaxi, Mobility Technology has chosen a more focused and seemingly "sinking" path - deepening the closed scenario L4 level autonomous driving in places such as airports and factory areas. The prospectus reveals a dual performance report: on one hand, it dominates the airport scene with an absolute market share of up to 90.5%, positioning itself as the "only supplier that provides large-scale commercial operational L4-level autonomous driving solutions for airports in the Greater China region" according to Frost & Sullivan's report; on the other hand, the company is facing a real challenge with accumulated losses of over 655 million yuan (RMB) in three years and continuous pressure on cash flow. As the industry shifts from the grand narrative of "all-rounder" to the precise breakthrough of "specialist", what is the future for Mobility Technology? Building a moat by deepening closed scenarios The prospectus shows that Mobility Technology was established in 2016 and has built a set of autonomous driving solutions covering levels L2 to L4 after years of cultivation, focusing mainly on airports and factory areas as their core battlegrounds. In the airport scene, Mobility Technology has shown strong dominance. According to Frost & Sullivan's report, by 2025, in terms of revenue, Mobility Technology holds a market share of 90.5% as a supplier of L4 level autonomous driving solutions for commercial vehicles in airport scenarios in the Greater China region, ranking first. This is not accidental, but the result of its long-term commitment to technology landing and internationalization. The company has not only maintained long-term cooperation with the Hong Kong International Airport since 2018, but has also extended its business to Singapore Changi Airport and major international airports in Qatar. Currently, Mobility Technology has partnered with 20 airports globally. Its unmanned electric towing vehicles, unmanned shuttle buses, and unmanned patrol vehicles have achieved normalized operations in real and complex airport environments. This unique positioning as the "only supplier that provides large-scale commercial operational L4 level autonomous driving solutions for airports" constitutes its most solid competitive barrier. In the factory logistics scene, Mobility Technology also performs well, ranking first with a market share of 31.7%. Its solutions cover various industries such as automobile, chemical, photovoltaic, and lithium battery manufacturing, achieving seamless unmanned delivery from raw materials to finished products indoors and outdoors. It is worth noting that Mobility Technology's unmanned vehicles can operate indoors without GPS, relying solely on scene memory, which addresses the pain points of traditional autonomous driving in weak signal environments. From a business model perspective, Mobility Technology adopts a flexible and diverse strategy. In addition to directly selling commercial vehicles with L4 level autonomous driving functions to enterprise customers, the company also provides autonomous driving kits to vehicle manufacturers and offers a "try before you buy" vehicle leasing service. This "hardware + software + services" model not only reduces the entry barriers for customers but also brings more stable cash flow expectations for the company. As of now, Mobility Technology has deployed services for 249 customers from 6 countries and regions, including 35 Fortune 500 companies in China and worldwide, validating the commercial value of its products. Hidden worries of losses behind high growth Despite occupying a monopoly position in a niche track, the financial data disclosed in the prospectus reveals the "growing pains" that the autonomous driving industry is facing more generally. In terms of revenue scale, Mobility Technology is still in the early stages of commercialization. Although the company holds a high market share in airport and factory scenarios, its revenue volume is still not in line with public expectations of being a "unicorn", limited by the overall capacity of the niche market. The prospectus shows that the company's revenue in 2025 was 328 million yuan. This data reflects that even in closed scenarios with a high market share, the monetization capability of autonomous driving technology still needs time to grow. What investors are more concerned about is the company's profitability. As a typical technology-intensive industry, autonomous driving requires huge early-stage research and development investments. The prospectus shows that from 2023 to 2025, Mobility Technology's net losses were 213 million yuan, 212 million yuan, and 230 million yuan respectively, totaling over 655 million yuan in three years. This continuous loss is mainly due to high research and development expenditure, with the company's R&D expenses during the same period amounting to 184 million yuan, 196 million yuan, and 234 million yuan, accounting for as high as 114.3%, 74.0%, and 71.2% of the revenue, respectively. In addition, the salaries of technical personnel and market expansion expenses have exacerbated the company's losses. For a company that has not yet achieved self-sufficiency, going public is not only a need for expansion but also a "blood transfusion" to sustain its survival. Furthermore, the company's cash flow is also facing severe challenges. As of the end of 2025, Mobility Technology had approximately 113 million yuan in cash and cash equivalents, while the net cash used in operating activities during the same period was about 174 million yuan. At the current burn rate, the company's cash reserves are not sufficient, which is a key reason why it urgently needs to go public in Hong Kong to raise funds. In addition, the company's trade accounts receivable have risen with the increase in revenue, reflecting a relatively weak bargaining power when facing large airport groups and state-owned enterprises in the manufacturing industry, leading to a longer receivables cycle and further exacerbating operational cash flow pressure. However, the prospectus also reveals some positive signals. The company expects to achieve a pure profit and loss balance in the next three years, mainly based on three judgments: continuous strong revenue growth, maintaining a relatively high gross profit margin, and operational efficiency improvement with the expansion of revenue scale. In terms of the ratio of operating expenses to revenue, this trend is indeed happening - from 2023 to 2025, the ratio of operating expenses to revenue has been continuously decreasing, indicating that operating leverage is gradually improving. Differentiated breakout in a trillion-dollar profit pool When looking at the future prospects of Mobility Technology, one cannot overlook the macro background that the global autonomous driving industry is on the eve of an explosion. Goldman Sachs recently pointed out in a report that autonomous driving is accelerating to become the most certain source of investment returns in AI, injecting a strong stimulant into the whole track. Goldman Sachs predicts that by 2035, the global Robotaxi market will reach 415 billion US dollars, and the autonomous driving truck market will surpass 560 billion US dollars. What is even more appealing is the profit structure, with vertically integrated operators expected to achieve gross profit margins of 30% to 50%. This trillion-dollar "profit pool" expectation is the underlying logic behind the high attention from the capital market to autonomous driving companies. However, the grand industry narrative cannot cover the survival differences under different technological paths. The Goldman Sachs report emphasizes that the core driving force behind industry expectations is the breakthrough in end-to-end large models and embodied intelligent technologies, as well as the large-scale deployment of top companies on open roads. This "high and long" route, while with a high ceiling, also faces various challenges such as technology tail effects, lagging laws and regulations, and public trust-building. In comparison, the path of "closed scenarios" chosen by Mobility Technology, while not as attractive in terms of market size imagination as Robotaxi, provides a more practical and clearer path to positive cash flow in commercialization. In terms of industry structure, autonomous driving is undergoing a differentiation from "technology validation" to "business validation". In the open-road field, competition has evolved into a "heavenly battle" between technology giants and top unicorns, with high capital thresholds; while in closed scenarios such as airports and factory areas, the key to competition lies in a deep understanding of vertical industries and engineering implementation capabilities. Mobility Technology's 90.5% market share in the airport scene in the Greater China region proves that its moat in this niche field is deep enough. This "small and beautiful" monopoly position allows it to avoid the red ocean competition on open roads and achieve the commercial closed loop in specific high-value scenarios first. Looking ahead, the development path of Mobility Technology will depend on its ability to find a balance between "deepening" and "expanding". On one hand, the company needs to continue consolidating its dominance in airports and factory logistics, using the funds raised in the IPO to further optimize algorithms, reduce costs, increase the proportion of high-margin leasing and service revenues to improve the financial model. On the other hand, facing the trend of the industry extending towards open roads in cities as a whole, Mobility Technology also needs to carefully explore the technological migration from closed scenarios to semi-closed and open scenarios. The deployment of unmanned city buses in locations like Singapore and the UAE mentioned in the prospectus is a signal of its attempt to break through the scene ceiling. Overall, Mobility Technology's listing is not just a capital milestone for a company, but also a microcosm of the diversified development of the autonomous driving industry. It proves to the market that on the long journey to L4/L5 fully autonomous driving, there is not only the single bridge of Robotaxi. By achieving high-frequency, high-reliability commercial operations in specific scenarios, Mobility Technology is providing a referenceable survival sample for the industry. With the support of the capital market, whether this "specialist" can secure a place in the trillion-dollar autonomous driving landscape remains a topic that investors should continue to follow closely.