Breton Technology, backed by Chinese electric vehicle maker Xpeng, plans to raise HK$234 million (US$30 million) from its Hong Kong initial public offering (IPO) amid tariff tensions that could affect its prospects.
The Shanghai-based company aims to sell 13 million shares at HK$18 each, which would value it at around HK$6.8 billion after the IPO, according to a filing to the Hong Kong stock exchange on Friday. The stock is expected to start trading on May 7.
Breton was ranked first in shipments of battery-electric widebody dump trucks with battery capacities exceeding 650 kilowatt-hours from 2022 to 2024, according to China Insights Consultancy. Last year, it accounted for an 18.3 per cent share of the new-energy widebody dump truck market in China, placing it third place among all manufacturers.
However, its net loss widened 20 per cent year on year to 274.5 million yuan (US$37.5 million) in 2024 due to substantial upfront investments in product development, and an increase in raw material and components costs.
“Currency fluctuations, tariffs, or fluctuations in petroleum supply, along with other economic or political conditions, may lead to significant increases in shipping costs and the prices of raw materials or components,” the company said regarding risk factors in the filing. “Any substantial increase in these costs would raise our operating expenses and could potentially reduce our profit margins.”
