New stock news | Leading smart parking company, KeTuo Technology, knocks on the door of Hong Kong stocks, transforming into an operational service provider to achieve high growth in its second curve.

Recently, Xiamen Kotell Technology Co., Ltd. (hereinafter referred to as "Kotell Co., Ltd.") officially passed the listing hearing on the main board of the Hong Kong Stock Exchange, entering the final stage of the listing process. The joint sponsors for this IPO are CICC and CMBC CAPITAL. As the second-largest digital parking space operator in China, Kotell Co., Ltd. has been deeply involved in the industry for nearly twenty years, serving over 70,000 parking lots and covering more than 60 countries and regions worldwide. In recent years, the company has actively promoted strategic transformation, successfully upgrading from a traditional parking equipment manufacturer to a leading urban parking digital operation company in "AI+ parking." In 2025, the company's operational service business achieved a high-speed growth of 40.9%, adjusted net profit increased by 32.6% year-on-year, and operating cash flow continued to significantly exceed net profit. This not only marks a milestone in Kotell's own development but also sets a typical example for a traditional hardware enterprise successfully transitioning to digital operations in the Hong Kong stock market. Twenty years of hard work have established a leading position in the industry Kotell Co., Ltd. was founded in 2006, headquartered in Xiamen, Fujian province, and was one of the first technology companies to enter the smart parking industry in China. According to the 2024 revenue calculation, the company ranks as the second-largest digital parking space operator in China with a market share of 3.3%. Most companies in the industry can only provide products or services at a single link, while Kotell is one of the very few comprehensive service providers with self-developed hardware, software platform development, and operational capabilities. By the end of 2025, the company had served 30,644 parking lots, a 36.3% increase from 22,497 in 2023, continuously expanding its scale advantage. In terms of ownership structure, the founders Sun Longxi and Huang Jinlian directly hold 26.3% and 23.94% of the shares, respectively, and collectively control over 53% of voting rights through a concerted action agreement. With a stable core team, the company's strategy has long-term consistency. Since 2018, Tencent has made two rounds of strategic investments, currently holding 8.46% of the shares, making it the third-largest shareholder in the company. In addition, the company has also received investments from well-known institutions such as Hongtai Zhiying under the founder of New Oriental, Yu Minhong, establishing a strong shareholder lineup. On the endorsement level, in 2025, Kotell Co., Ltd. once again won the national-level "Little Giant" enterprise specializing in new industries, and also received recognition as a national high-tech enterprise, highlighting its technological strength. Transforming business models to boost core growth engines The most notable aspect of this prospectus that has attracted capital market attention is the structural transformation of Kotell Co., Ltd.'s business model. In the past, the company primarily focused on sales of digital parking systems, with a strong ToB hardware cycle property, and performance heavily influenced by downstream real estate development rhythms. After three years of proactive strategic adjustments, the company has built a new business matrix of "hardware foundation, software empowerment, and high-growth operational services." From a financial perspective, the results of the transformation are significant. In 2025, the company's parking lot operational revenue reached 175 million RMB, a 40.9% year-on-year increase, with the revenue share increasing significantly from 13.1% in 2023 to 21.1%, becoming the strongest growing segment. Correspondingly, the revenue share of traditional digital parking system business decreased from 61.3% to 57.5%, with revenue of 478 million RMB in 2025, remaining relatively stable. This is not a passive contraction caused by declining market demand but a strategic result of the company actively optimizing customer structure and eliminating low-margin engineering orders. It is worth noting that the gross profit margin of the digital parking system segment itself has increased from 41.8% to 45.9%, significantly improving profitability. The revenue share of parking management services has remained stable at around 21%. The three major businesses have formed a more balanced and resilient revenue structure. This marks Kotell Co., Ltd. completely shedding the label of a single hardware manufacturer. As the revenue share of operational services surpasses one-fifth and continues to rise, the company's revenue model is transitioning from one-time project-based to continuous subscription revenue, significantly weakening the cyclical nature of the business model. For investors, this means higher income visibility, stronger customer stickiness, and a platform-based business model that deserves a valuation premium. Financial indicators rise in quantity and quality, continuous profitability highlights If the optimization of business structure is the "face" of the company's transformation, the comprehensive improvement in financial quality is the "substance" that supports long-term development. In 2025, Kotell Co., Ltd. achieved revenue of 831 million RMB, with adjusted net profit reaching 122 million RMB, a 32.6% year-on-year increase from 92 million RMB in 2024. The profit growth rate far exceeds the revenue growth rate, reflecting the concentration of transformation dividends. The company's comprehensive gross profit margin remains at a high level of 46.4%, which is a rare profitability performance in the manufacturing industry. More importantly, there is a significant improvement in the quality of profits. In 2025, the company's operating cash flow reached 144 million RMB, significantly higher than the net profit of 94 million RMB during the same period. This means that for every 1 RMB of net profit earned, the company has more than 1.5 RMB of actual cash flow. Looking back at 2023, the company's operating cash flow reached 182 million RMB, about 2.1 times the net profit of that year. The long-term positive difference in cash flow fully validates the "gold content" of the company's profits. As of the end of 2025, the company's asset-liability ratio was only 19.3%, with no interest-bearing debt and a very solid financial cushion, demonstrating strong anti-cyclical capabilities. Regarding the issue of accounts receivable that the market is concerned about, the accounts receivable turnover days in 2025 have been significantly reduced from 142 days in 2024 to 126 days, indicating a clear improvement in collection efficiency. The company's operating cash flow has significantly exceeded net profit for several years in a row, fully proving the company's robust ability to recover accounts receivable and the solid and reliable nature of its profitability. Building core barriers with self-developed full stack capabilities, unique advantages with Tencent's ecosystem support Compared to most competitors in the industry, the most essential differentiating advantage of Kotell Co., Ltd. is its integrated capability of "full-stack self-development + nationwide operations." The company has a 23,000 square meter self-owned hardware production base, possesses core AI algorithms such as license plate recognition and parking space detection, independently developed the "Speed Parking" cloud platform and a national unified operation management system. It is one of the very few companies in the industry that can independently complete the entire chain of front-end hardware development, middleware software platform, and back-end operational services. Based on this foundation, the company has established a 5,000 square meter national parking operation command center in Dongshan, Zhangzhou, with parking lots nationwide simultaneously connected for centralized management, significantly reducing single-site operating costs and creating substantial economies of scale. The deep collaboration with Tencent's ecosystem is a unique traffic barrier for Kotell. Its "Speed Parking" mini-program, relying on the WeChat ecosystem, has accumulated millions of active user users, providing a one-stop C-end traffic entry from parking navigation, contactless payment to parking management. This differentiation advantage is difficult to replicate within the industry. While other parking companies are still relying on offline channels to acquire customers, Kotell has built a pool of millions of C-end users through "Speed Parking," making a leap from a B-end equipment supplier to a C-end traffic platform. Furthermore, the company has successfully implemented projects in various cities and landmark locations such as the Greater Bay Area Cultural and Sports Center, the Yungang Grottoes in Shanxi, the Wanxiang City in Xi'an, the International Convention Center in Changsha, and the Hangzhou International Conference and Exhibition Center, demonstrating its comprehensive delivery capability for large-scale government and commercial complexes. Sustained release of growth momentum, clear long-term growth path Looking ahead to the post-listing development path, Kotell Co., Ltd.'s growth logic is clearly visible, with multiple growth engines gearing up. The scaling and precise operation of existing parking lots will be the company's core source of growth. Currently, the company has surpassed 30,000 parking lots in operation, yet the total number of parking lots in China exceeds one million, with the industry penetration rate still at a low level, offering broad room for future growth. With increasing operational density and optimized profitability per site, economies of scale will continue to be realized. Continued breakthroughs in city-level smart transportation package projects will open up larger market spaces for the company. The company has implemented overall solutions for static transportation in cities such as Chongqing, Taiyuan, and Luoyang. These projects are typically large in scale, have long cooperation cycles, and high barriers, providing the company with stable income and cash flow, while enhancing its brand influence. The integration of "Parking + Charging" as a new business is becoming a new source of profit growth for the company. The company's "Speed Parking & Dasheng Charging" brand has achieved integrated control of "location, pile, and spot," facilitating deep interconnectivity of parking and charging data through a SaaS platform. Leveraging the active flow of millions of users on the Speed Parking platform, the company can quickly enter the new energy charging market, which is a trillion-yuan increment opportunity. The expansion into high-margin overseas markets will provide long-term growth momentum for the company. The company's business has already covered over 60 countries and regions globally, and has localized products in countries such as Thailand, Singapore, and Kuwait. By utilizing cost-effective domestic technological solutions for internationalization, the company is at the forefront of the industry. Anchoring long-termism to empower the industry with capitalization for a new journey According to data from the Ministry of Public Security and Sihan Industry Research Institute, the current number of motor vehicles in China has exceeded 469 million, with 103 cities having over a million cars, and the urban parking supply-demand imbalance continues to intensify. The average ratio of cars to parking spaces in urban areas nationwide is only 1:0.8, still significantly below the 1:1.1 threshold set by the Ministry of Housing and Urban-Rural Development. The industry is accelerating its transformation towards intelligence and low carbon, with the smart parking operation market estimated to exceed 90 billion RMB by 2029, with a compound annual growth rate exceeding 30% in the next five years. Deeply cultivating the industry for twenty years, Kotell Co., Ltd. has been in tune with the industrial evolution, completing the strategic transformation from a hardware supplier to a full industry chain operation service provider. Initial approval from the Hong Kong Stock Exchange provides important support for the company to connect with international capital and accelerate its core business layout during this critical period of industry transformation. Smart parking is a long-term track that requires deep cultivation. As a leading company in the industry, Kotell Co., Ltd. with its first-mover advantage and full-stack capabilities, is expected to continue expanding its market share during the industry consolidation period, creating long-term steady returns for investors, and helping to address the challenge of urban parking.