As competition in smart car technology intensifies, a radar company founded by former Huawei employees has grown significantly in the Chinese automotive radar market thanks to BYD, and is now targeting a Hong Kong IPO based on its technological prowess and market trends.

Chengtai Technology, founded by former Huawei engineers, has filed for an initial public offering (IPO) on the Hong Kong Stock Exchange, challenging the title of China's first forward-facing millimeter wave radar company to be listed, according to Investor's Business Daily.

Since its establishment in 2016, Chengtai Technology has grown rapidly and has emerged as a leader in the automotive millimeter wave radar field.

In particular, it has demonstrated its strength in 'forward detection radar' technology, which is considered one of the core technologies of autonomous driving, and has risen to the top of the market with a 9.3% share of shipments in China as of 2024.

What is most noteworthy is that the company has established a stable sales structure through close collaboration with BYD.

As of 2024, 93.6% of total sales came from BYD, and the industry even has an expression that says, “You can make money even while lying down.”

This growth was not just luck.

Founders Chen Chengwen and Zhou Ke are from Huawei and are experts in communications and sensor technology.

These are autonomous drivingWe found the future in millimeter wave radar and responded one step ahead of global trend changes.

In particular, Tesla's early adoption of millimeter wave radar and its rapid adoption contributed to its popularization.

On the other hand, it wasn't all smooth sailing.

After 2021, Tesla suddenly announced a 'vision sensor-centered strategy' and removed millimeter wave radar, which shocked the market.

Huawei itself also expanded its industry leadership by announcing its laser-based 'Qiankun ADS 1.0' platform.

Due to this, Chengtai Technology experienced financial difficulties and investment decline in 2022-2023, but successfully recovered thanks to a strong partner called BYD.

In fact, the company's revenue more than doubled every year from 2022 to 2024.

In 2024, it achieved sales of about 350 million yuan (about 67 billion won), most of which was supplied through BYD.

However, the company is still in deficit despite reinvesting more than 50% of its annual investment in R&D, which is interpreted as an inevitable strategic choice given the nature of the technology industry.

The Hong Kong Stock Exchange has recently been strengthening its efforts to attract technology companies through a special fast-track listing system for science and technology, and Chengtai Technology is said to be using this as a springboard to secure funds and advance into the global market.

Meanwhile, BYD is slowing down its business expansion, including postponing its current production line expansion plan. This is known to be due to cost-cutting issues or sales not reaching their targets, and BYD's global sales by May 2025 are reported to be only 32% of its annual target.