Sidi Smart Driving (03881) proposed to sell 5.408 million H shares globally from December 11 to December 16 to introduce cornerstone investors such as Xiangjiang Zhicheng

According to the Zhitong Finance App, Sidi Smart Drive (03881) will raise shares from December 11, 2025 to December 16, 2025. The company plans to sell 5.408 million H shares globally, of which the Hong Kong public sale accounts for about 5%, international sales account for about 95%, and 15% over-allotment rights. The sale price per share is HK$263, with 10 H shares per lot. It is expected that H shares will start trading on the Stock Exchange at 9:00 a.m. on December 19, 2025 (Friday).

The Group is an innovative product-driven supplier of intelligent driving products and solutions for commercial vehicles in China. The Group focuses on developing closed environment autonomous trucks, V2X (Internet of Vehicles) technology and intelligent sensing solutions for mining and logistics, and provides products and solutions based on proprietary technology. During the track record period, it mainly focused on intelligent driving in closed environments.

According to Insight Consulting: The Group ranked 6th among all intelligent driving commercial vehicle companies in China (including Hong Kong, Macau and Taiwan), with a market share of about 5.2%; as of the last practical date, the Group delivered 56 autonomous mining cards to a mining area in China (including Hong Kong, Macau and Taiwan), mixed driving with about 500 manned trucks to form the world's largest hybrid mining fleet; the Group delivered the first fully driverless pure electric mining fleet in China (including Hong Kong, Macau and Taiwan); based on revenue in 2024, the Group delivered the first fully driverless pure electric mining fleet in China (including Hong Kong, Macau and Taiwan) (Macau and Taiwan) ranks third in the autonomous driving mining card solution market; the Group is one of the first intelligent driving companies in China (including Hong Kong, Macau and Taiwan) to launch commercial V2X products; the Group's Autonomous Train Sensing System (TAPS) is currently the only product in China (including Hong Kong, Macau and Taiwan) to achieve independent safety sensing for trains.

The Group has entered into a cornerstone investment agreement with Xiangjiang Zhicheng, ICBC Credit Suisse International, and Qianhai Kaiyuan Qunwei (each referred to as a cornerstone investment agreement and collectively referred to as a cornerstone investment agreement). Based on this, Cornerstone investors have agreed to purchase a number of shares with a total amount of approximately HK$546 million at the offering price (down to the nearest complete trading unit of 10 H shares in the first batch) (Cornerstone Investment). Based on the offering price of HK$263.0 per share in the offering, the total number of shares to be subscribed by Cornerstone investors is 2,0776,400 shares.

Assuming that the over-allotment rights are not exercised, after deducting the underwriting commission and other estimated sale expenses payable by the Group in connection with the global offering, assuming that the offering price is HK$263.00 per share, the Group estimates that the net proceeds from the global sale will be approximately HK$1,309 billion. The Group intends to use the proceeds from the global sale for the purposes set out below in the amounts set out below: 1. Approximately 55% of the net proceeds will be used for the Group's research and development over the next five years. Among them: about 30% will be used for the Group's next-generation intelligent driving platform R&D team; about 5% will be used for the Group's next-generation intelligent driving platform software, hardware and algorithm integration; about 15% will be used for the Group's V2X and intelligent sensing upgrade R&D teams; and about 5% will be used for the Group's R&D software and hardware equipment upgrades. 2. Approximately 15% of the net proceeds will be used to enhance domestic and foreign commercialization capabilities and further strengthen the Group's cooperation with domestic and global customers. Of these, about 10% will be used to improve sales and marketing capabilities and delivery capabilities; about 5% will be used to enhance the international layout. 3. Approximately 20% of the net proceeds will be used for potential investment and mergers and acquisitions aimed at further integrating upstream and downstream resources in the industrial chain. 4. Approximately 10% of the net proceeds will be used for working capital and general corporate purposes.

The Group's revenue increased from RMB 31.1 million in 2022 to RMB 410 million in 2024, with a CAGR of 263.1%. The Group's revenue increased 57.9% from RMB 259 million for the six months ended June 30, 2024 to RMB 408 million for the six months ended June 30, 2025. The Group's gross profit increased from RMB 26.8 million in 2023 to RMB 101 million in 2024. The Group's gross profit increased 57.1% from RMB 44.4 million for the six months ended June 30, 2024 to RMB 69.7 million for the six months ended June 30, 2025.