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Senasic Seeks Hong Kong Listing Amid China's EV Safety Push

With a Hong Kong listing, the maker of chips to check tire pressure and battery life wants to capitalize on China's tightening safety standards for electric cars

Key Takeaways:

About 60% of its revenue comes from integrated chips that monitor vehicles' tire pressure

Annual revenue tripled in just two years, but the company is struggling to deflate its losses

With the rise of automotive electronics, motoring has become reliant on tiny, hidden components that ensure a car is fit to drive.

As vehicles have become ever more complex, so demand has grown for embedded chips that wirelessly monitor the status of the batteries or the tires, alerting drivers to potential problems and helping to avert accidents.

A leading Chinese maker of automotive sensor chips, Senasic Electronics Technology Co. Ltd., is now inviting investors to help fund its expanding business through a share listing on the Hong Kong Stock Exchange.

To do so, investors will have to look past the firm's chronic losses and consider the potential for profit down the road.

Senasic specializes in a type of integrated circuit known as a System-on-a-Chip (SoC). These multi-purpose chips perform a range of processing, memory and communications functions, with the benefit of compact size and low power usage. They are commonly used in smartphones, automotive electronics and smart devices.

Senasic focuses its business on automotive systems to monitor tire pressure and manage battery operations. A study commissioned for the IPO filing described the company as the market leader in China and the world's third-largest supplier of wireless automotive SoCs, with a global market share of ...