Speed ​​Composites, which was listed less than half a year ago and became the first LIDAR stock of HKEX, was included in the list of Hong Kong stock connect constituents on June 11th, becoming one of the 559 constituents of Hong Kong stock connect. The company's stock price has also recently experienced significant fluctuations.

As of June 11th, 25 companies have been approved for inclusion in the Hong Kong stock connect this year, but their stock price performances varied that day. Among them, Speed ​​Composites, WuXi APPTEC and Tu Hu, and other companies' stock prices have risen, while the stock prices of companies such as Youbao Online and Junshengtai Medicine have declined.

In the first quarter of this year, Virtual Cognition Co., Ltd. far exceeded its peers in terms of product sales volume, accounting for more than half of the market share, significantly converging net losses, continuously increasing gross margins, and the broad prospects of the LIDAR industry, all of which provided solid support for the company's future growth.

(1) High growth in product sales, with a market share of over 50%

Specifically, in the first quarter of this year, Speed ​​Composites' LIDAR sales volume was 120,400 units, soaring 457.4% year-on-year. Its main product--ADAS LIDAR's sales volume reached 116,000 units, with a higher year-on-year growth rate of 542%.

While the first-quarter LIDAR deliveries of its old rival Hesai Technology reached 59,100 units, with a year-on-year increase of 69.7%.

The continuously triple-digit sales growth of the product has brought Speed ​​Composites' market share to 51.6%, far surpassing the second-ranked Huawei Technologies (market share of 18.6%) and the third-ranked Hesai Technology (market share of 15.2%).

(2) Continuous convergence of net losses, with gross margins returning to more than 10%

The significant increase in product sales not only brings an increase in operating income, but also positive impact on profitability since the economies of scale of products begin to be reflected.

In the first quarter of this year, Speed ​​Composites' operating revenue reached RMB 360 million, a year-on-year increase of 149.1%. While operating revenue and product sales volumes were growing rapidly, the net loss of Speed ​​Composites did not continue to expand, and began to converge clearly. The net loss of Speed ​​Composites was RMB 131 million, a year-on-year decrease of 61.9%, and was only one step away from the breakeven point. In addition, the gross margin also returned to more than 10%, reaching 12.3%.

(3) LIDAR gradually applied to the mass-market automobile market

Previously, LIDAR was only adopted in high-end car models, however, due to technological innovation and cost reductions, it can now be applied to the mass-market automobile market.

The price of early LIDARs was mostly around 2,000-3,000 US dollars. Today, mainstream prices in China have dropped to 500-1,000 US dollars.

The latest LIDAR product of Speed Composites, the MX, released in April this year, is priced at only about 200 US dollars, targeting the 150,000-200,000 RMB automobile market such as Xiaopeng Motors' P7 and SAIC-GM-Wuling's Rongguang Yun Duo. It has now obtained fixed-point designation for three mass-produced projects and is expected to achieve large-scale production in the first half of next year.

In the future, with the expansion of the LIDAR market and technological advances, Speed Composites is expected to seize more opportunities in the smart battle and achieve rapid growth in performance.