Bohai Connected Vehicles Aims for IPO Amid Rapid Growth in Smart Automotive Sector

In the midst of a significant transformation in the automotive industry, the shift from electrification to smart technology brings new opportunities and challenges. Behind this evolution lies a mature and interconnected industrial chain, exemplified by the prosperity of the power battery industry driven by CATL, enabling a battery cost as low as 0.3 RMB per watt-hour, making electric vehicles more accessible. Technological breakthroughs from companies like Konghui Technology are also bringing advanced features to everyday consumers, once exclusive to luxury vehicles. Bohai Connected Vehicles, established in 2009, was one of the first to recognize the onset of automotive intelligence, launching China's first 3G vehicle networking system. This marked a significant milestone in the development of smart connected vehicles in China as the industry began to evolve alongside internet car technologies and autonomous driving advancements. Over 16 years, Bohai has remained committed to its mission as a trailblazer in automotive intelligence, continuously evolving and gearing up for its upcoming IPO in the Hong Kong market, aiming for a valuation in the tens of billions. The company has encapsulated the journey of automotive intelligence from conceptual beginnings to industrial explosion. In the first half of 2025, China's new energy vehicle market saw historic breakthroughs, with sales and penetration rates reaching all-time highs. According to the China Association of Automobile Manufacturers, the market penetration of new energy vehicles increased from 41.4% in January to 53.3% in June, maintaining over 50% for four consecutive months. The once flourishing market landscape is now transitioning into a competitive elimination phase, with the number of players dwindling to single digits. To survive in this evolving landscape, companies must identify their technological anchor points in both electrification and intelligence realms, or risk being shuffled out of the market. Bohai has made significant strides in the smart vehicle domain, aiming to establish itself as a Tier 1 supplier for digital cockpit solutions, focusing on domain controllers that serve as the brain of digital cockpits. The founder of Bohai, Ying Lun, has strategically navigated the company through various industry shifts. The digital cockpit needs emerged before 2015 but exploded with the entry of consumer electronics firms like Qualcomm and Intel, propelling the demand for digital solutions in vehicles. In 2023, Bohai joined the ranks of the first companies in China to provide smart cockpit solutions using Qualcomm's fourth-generation Snapdragon 8295 chips. The company has also been among the few suppliers offering solutions based on the Kirin 9610A processor and HarmonyOS. As of June 13, 2023, the China Securities Regulatory Commission has approved Bohai’s plan to issue up to 12.1142 million overseas ordinary shares and list them on the Hong Kong Stock Exchange. In 2022, Bohai shipped 488,000 domain controllers, which is projected to rise to 915,000 by 2024, reflecting an 87.5% increase. Bohai has raised over 4 billion RMB across eight rounds of financing, backed by major industry players including Dongfeng Group and FAW Group. The company has invested over 700 million RMB in R&D over the past three years, leading to the acquisition of 6,034 patents, with 1,721 patents granted. The firm is seen as a leader in the smart automotive sector, with a significant market share in China for smart cockpit domain controllers. Bohai continues to innovate, having introduced the first Chinese natural language vehicle voice interaction system, iVoka, and the first navigation system that avoids traffic congestion. Bohai aims to use the IPO proceeds to expand its product offerings, enhance technology, and build its capabilities across software, hardware, and cloud services. With a strong focus on technology and strategic foresight, Bohai Connected Vehicles is poised to remain at the forefront of automotive intelligence, driving innovation and exploring new frontiers in smart vehicles.