Raytheon Technology accelerates Hong Kong IPO: net loss expands by 1041.8% in 2025, trade receivables turnover days reach as high as 440 days

Principal Business and Business Model: Focusing on Visual Intelligence, #1 in Civil Aviation Market Share

Ruiwei Technology is an AI company that provides visual intelligence technology and products for enterprise clients. Based on its independently developed visual foundation models, deep learning-related technologies, multispectral imaging technology, and software-hardware co-design capabilities, the company provides a series of intelligent visual perception, visual cognition, and visual reasoning products, mainly applied in scenarios such as civil aviation, commercial spaces, and safe driving.

According to data from Frost & Sullivan, measured by revenue in 2024, the company ranks first in China’s enterprise visual intelligence products market for civil aviation enterprises, with a market share of 8.9%. It ranks fourth in China’s enterprise visual intelligence products market for commercial spaces, with a market share of 1.7%. The company adopts a light-asset model of “technology R&D + hardware design + contract manufacturing.” Its core technologies include foundation technologies, integration technologies, and component technologies, forming three major visual intelligent agents—RecoSee, RecoAware, and RecoThink—to support product development across different scenarios.

Operating Revenue and Changes: Growth Rate Drops Sharply from 63% to 12.1%

The company’s revenue has shown an upward trend over the past three years, but the growth rate has clearly slowed. In 2023, 2024, and 2025, revenue was 242 million yuan, 395 million yuan, and 443 million yuan, respectively. Revenue grew 63.0% year over year in 2024, and the growth rate slowed to 12.1% in 2025.

In 2025, the revenue growth rate fell significantly, mainly because revenue from its smart civil aviation business declined by 24.7%, dragging down overall results. The segment’s revenue decreased from 229 million yuan in 2024 to 172 million yuan, reflecting a slowdown in the tender cycle for domestic airport expansion and renovation projects. Smart commercial and smart safe driving businesses grew by 59.3% and 68.0%, respectively, partially offsetting the decline in the civil aviation business.

Net Profit and Changes: Net Loss Widened to 68.149 million yuan in 2025

The company’s profitability fluctuates significantly. In 2023, it recorded a net loss of 32.577 million yuan. In 2024, it achieved net profit of 8.288 million yuan. In 2025, it fell back into deep losses, with net loss widening to 68.149 million yuan, a year-over-year decline of 1,041.8%.

The net loss in 2025 widened by 1,041.8% year over year, mainly due to: 1) impairment losses of financial assets and contract assets totaling 70.05 million yuan (18.91 million yuan in 2024); 2) an increase in R&D costs by 35.3% to 71.9 million yuan; and 3) a 156.7% increase in financing costs to 4.99 million yuan. It is worth noting that the company has had negative cash flow from operating activities for three consecutive years. In 2025, net cash outflow reached 125 million yuan, indicating concerns about the quality of profitability.

Gross Margin and Changes: Comprehensive Gross Margin Down by 3.1 Percentage Points Over Three Years

The company’s comprehensive gross margin has been trending downward year by year, decreasing from 40.8% in 2023 to 37.7% in 2025. This is mainly due to changes in product mix and intensifying market competition. By segment, the smart civil aviation business maintains a gross margin of over 50%, which is the main source of profit. The smart safe driving business has a lower gross margin; in 2025 it was only 16.4%.

In 2025, the comprehensive gross margin declined by 2.1 percentage points, mainly due to changes in revenue structure. Although the gross margin of the smart safe driving business rebounded from 13.3% to 16.4%, it is still down by 21.9 percentage points compared with 2023, indicating that the profitability of this segment has not yet recovered. The smart civil aviation gross margin increased by 7.4 percentage points, mainly driven by an increased proportion of revenue from high-gross-margin products.

Net Margin and Changes: Plunges from 2.1% to -15.4%

Driven by fluctuations in net profit, the company’s net margin has fluctuated sharply. In 2023, net margin was -13.4%. In 2024 it turned positive to 2.1%. In 2025 it fell sharply to -15.4%, reflecting that the company’s profitability is extremely unstable.

The net margin in 2025 decreased by 17.5 percentage points compared with 2024, mainly because asset impairment losses surged by 376%, alongside increased R&D investment. Something to be wary of is that since 2023, the company’s cumulative net losses have reached 98.32 million yuan. In addition, by the end of 2025, cash and cash equivalents fell by 30.3% from the beginning of the year to 38.14 million yuan, highlighting mounting liquidity pressure.

Operating Revenue Composition and Changes: Share of Safe Driving Business Improves by 13.7 Percentage Points Over Three Years

The company’s revenue structure shows a diversified trend: the share of smart civil aviation business revenue fell from 53.2% in 2023 to 38.9% in 2025; smart commercial business rose from 33.5% to 34.9%; and smart safe driving business rose sharply from 12.5% to 26.2%.

Over three years, the share of revenue from the smart safe driving business increased by 13.7 percentage points, becoming the second growth curve. The share of the smart civil aviation business declined significantly, reflecting that the company’s business focus is shifting from reliance on large projects toward diversification. In 2025, the growth in smart commercial revenue mainly came from smart park management solutions delivered to customer H, contributing revenue of 56.4 million yuan.

Customer Concentration: Top Five Customers Account for Over 60% of Revenue

The company faces a serious customer concentration risk. In 2023, 2024, and 2025, the share of revenue from the top five customers was 59.1%, 73.5%, and 60.3%, respectively. Among them, the largest customer accounted for 24.0%, 31.7%, and 14.4% of revenue, respectively. In 2024, the top customer contributed revenue of 125 million yuan, accounting for 31.7% of total revenue, indicating extremely high customer dependence.

In 2024, the revenue share of the top five customers was as high as 73.5%, with a single customer contributing revenue of 125 million yuan, accounting for 31.6% of the revenue for that year. Although concentration declined slightly in 2025, it is still above 60%, implying risks of reliance on major customers. The company explains that long project cycles and large deal sizes in the civil aviation sector are the main reasons for high concentration, but excessively high customer concentration may adversely affect pricing power and revenue stability.

Supplier Concentration: Top Five Suppliers Account for 73.7% of Purchases

The company’s supplier concentration is also relatively high. In 2023, 2024, and 2025, purchases from the top five suppliers as a proportion of total purchases were 43.3%, 68.7%, and 73.7%, respectively. In 2025, the largest supplier accounted for 18.0% of purchases, indicating a substantial dependency risk in the supply chain.

Actual Controller and Major Shareholders: Founder Zhan Donghui Controls 36.55% of Equity

The company’s controlling shareholder group consists of Mr. Zhan Donghui, Mr. Su Xiaosheng, Ms. Chi Chang, Mr. Han Songguang, and partners including Ruiyuan Technology partnership enterprise, Shenzhen Ruiyuan Technology partnership enterprise, and Ruiyi Tong Technology partnership enterprise, collectively controlling about 43.61% of the company’s total share capital. Among them, founder Zhan Donghui directly holds 27.74% of the shares and indirectly controls 8.81% of the shares through three employee shareholding platforms, making him the actual controller of the company.

The company’s equity structure is highly concentrated. Among the top ten shareholders, it includes institutional investors such as Greenland Financial and Wuxi Saitian Zhihang, with total holdings of 56.4%. The company has implemented an employee shareholding plan, holding 9.81% of the shares through three partnership enterprises such as Shenzhen Ruiyuan Technology, tightly aligning interests of the core team.

Profiles of Core Management: Led by a Huawei-background Founder, with a PhD Team Steering the Technology

• Zhan Donghui: Chairman and General Manager, founder, with 20 years of experience in the technology industry. He has worked at companies such as Huawei and is responsible for the company’s overall strategy and business development. In 2023, he was named a Fujian Province high-level A-category talent.
• Han Songguang: Executive Director and General Manager of the Intelligent Vehicle Connectivity Business Department, with extensive experience in the intelligent driving field.
• Su Xiaosheng: Chief Scientist, an expert in computer vision, with approximately 20 years of experience in machine learning algorithm research.
• He Yifan: Chief Technology Officer, PhD in Electrical Engineering from Eindhoven University of Technology in the Netherlands, focusing on AI algorithm optimization and processor architecture design, has published more than 70 international papers, and holds more than 30 patents.
• Li Tianda: Chief Financial Officer, registered accountant, previously worked at TCL Technology and Visioneering Electronics.

In 2025, the total remuneration for directors was 3.9 million yuan, down 50.6% from 2023, reflecting cost-control measures by the company.

Financial Challenges: Current Ratio Falls to 1.17, and Cash Can Only Sustain 5 Months of Operations

The company faces multiple financial challenges: first, significant fluctuations in profitability, with the loss amount in 2025 far exceeding the level in 2023; second, ongoing deterioration in cash flow, with net cash outflow from operating activities expanding from 63.36 million yuan in 2023 to 125 million yuan in 2025; third, declining asset liquidity, with the current ratio falling from 1.64 in 2023 to 1.17 in 2025 and the quick ratio falling from 1.43 to 1.13; and fourth, deterioration in the capital structure, with net asset value decreasing from 122 million yuan in 2024 to 108 million yuan in 2025.

In 2025, the number of days for trade receivables to turn over increased by 178 days year over year, mainly due to: 1) revenue recognition concentrated in the fourth quarter (77.9% of the full year); 2) longer acceptance cycles for civil aviation projects; and 3) some customers using letter-of-credit payment arrangements, leading to delayed collections. Although the company mitigated funding pressure by extending the payables cycle (324 days), the scale of accounts receivable has reached 587 million yuan, accounting for 43.5% of total assets, and the exposure to bad debt risk has expanded.

Peer Comparison: Leading in Civil Aviation Market, Lagging in Commercial and Safe Driving Domains

Based on 2024 data, the company ranked first in the civil aviation visual intelligence market with a 8.9% share, leading significantly over the second-place company A (1.6%). In the commercial space market, it ranked fourth with a 1.7% share, lagging behind company E (7.0%), company A (2.8%), and company F (2.5%). In the safe driving market, it ranked fifth with a 3.7% share, far below market leader company H (20.6%).

Compared with industry-compared companies, Ruiwei Technology exhibits characteristics of “high growth, high R&D, and low profitability.” From 2023 to 2025, revenue compound growth was 35.2%, higher than the industry average of 28%. R&D spending as a percentage was 16.2%, significantly higher than the industry peers’ 12%. However, the net profit margin was -15.4%, lower than the industry average of -5%.

Risk Factors: Six Major Risk Alerts, Ongoing Going-Concern Capability in Question

2. Risk of continued losses: In 2025, net losses expanded to 68.15 million yuan. Net cash outflow from operating activities was 125 million yuan. Cash consumption rate was 10 million yuan per month. Based on existing cash reserves, operations can only be sustained for about 5 months.

3. Customer concentration risk: The top five customers account for over 60% of revenue. The business mainly relies on systems integrators and government projects. If key customers reduce procurement or delay payments, it will have a major impact on performance.

4. Uncertain returns on R&D investment: R&D investment for 2023-2025 was 46.63 million yuan, 53.14 million yuan, and 71.9 million yuan, respectively. While it continues to grow, it has not translated into stable profitability, and there is uncertainty regarding the commercialization of core technologies.

5. Risk of accounts receivable recovery: At the end of 2025, trade receivables reached 587 million yuan, up 90.9% from 2024. The days for accounts receivable turnover extended from 262 days to 440 days. Impairment losses of 70.05 million yuan were recognized, accounting for 15.8% of revenue for that year.

6. Seasonal fluctuation risk: The fourth-quarter revenue share has long exceeded 50% (77.9% in 2025). Performance is concentrated in year-end recognition, which may cause seasonal tightness in cash flow.

7. Supplier dependency risk: The purchases share of the top five suppliers is 73.7%. There is a risk of interruption in the supply of key hardware components, and some core components depend on imports from the United States, creating geopolitical risk.

Conclusion: Technologically Leading but Burdened with Multiple Risks, Investors Need to Assess Prudently

As a special technology company in the visual intelligence sector, Ruiwei Technology has leading advantages in niche sectors such as civil aviation. However, it faces multiple risks including continued losses, customer concentration, and tight cash flow. In 2025, net losses expanded by 1,041.8%, and financial indicators such as days for trade receivables turnover reaching as high as 440 days have turned red flags, reflecting clear shortcomings in the company’s business model, profitability quality, and operational efficiency.

Investors should closely monitor its ability to commercialize technology, optimize its customer structure, and improve cash flow, and evaluate its investment value cautiously. Especially in the current market environment, whether the company can effectively alleviate liquidity pressure through IPO fundraising and improve its ongoing going-concern capability is still to be observed.

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