CATL-Backed Smart Driving Tech Firm to Kick Off Hong Kong IPO This Week: Sources

The Hong Kong IPO market has been a hotbed for electric vehicle (EV) sector startups in recent years. The latest entrant is NASN Intelligent Tech, backed by China’s largest battery maker CATL. As this venture prepares to kick off its book-building process as early as Thursday, investors and industry observers are left wondering if the hype surrounding EV tech companies will translate into financial returns.

Founded in 2016, NASN has completed multiple rounds of fundraising before embarking on this IPO journey. Its investor list includes CATL, Hillhouse Investment, Qiming Venture Partners, and Bank of China Capital. However, despite its impressive roster of investors, NASN remains unprofitable, posting losses of 189 million yuan in 2025 and a first-quarter loss of 54.9 million yuan this year.

One of the company’s main challenges is its high research and development spending. As it continues to operate at a loss, NASN relies heavily on a small group of clients. The top five clients account for over 94% of revenue, with the largest client contributing 44% of revenue in the first quarter. This raises questions about NASN’s long-term sustainability and ability to diversify its customer base.

In China’s broader EV landscape, NASN’s story serves as a reminder that not all electric dreams translate into financial realities. CATL itself has faced significant challenges in recent years, including supply chain disruptions and declining battery prices. The company’s decision to back NASN may be seen as an attempt to diversify its revenue streams, but it also underscores the risks associated with investing in EV startups.

The Hong Kong IPO market has been kind to EV startups in recent years, with several high-profile listings. However, as NASN Intelligent Tech prepares to list, it remains to be seen if this trend will continue. While CATL’s backing is certainly a draw for investors, the company’s own struggles and reliance on a few key clients make its long-term prospects uncertain.

The EV sector is becoming increasingly complex and competitive. For startups like NASN, the challenge will be not only to innovate but also to demonstrate financial viability and scalability. In an environment where electric dreams are being chased by many, the reality of profitability may prove to be a much harder hurdle to overcome.

Investors would do well to remember that EV startups like NASN are still high-risk propositions, despite rapid innovation and growth in the sector. While CATL’s involvement may provide some assurance, it also underscores the importance of due diligence in this complex landscape. As we watch NASN Intelligent Tech take its first steps on the public market, only time will tell if its electric dreams will become a financial reality.