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.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
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.”
Breton said it would focus its expansion in Southeast Asia, the Middle East and Africa. “Accordingly, we do not foresee the escalating US-China tensions having a significant impact on our business,” it said.
Hong Kong’s IPO market remains resilient amid global tensions stoked by the US’ “reciprocal” tariffs, with more than 100 companies waiting to list in the city since late 2024. The city ranked third globally for IPOs in the first quarter, with 15 companies raising HK$17.7 billion, nearly triple the amount from a year earlier, according to KPMG.
Breton’s shareholders include Rockets Capital, a private equity firm backed by Xpeng, Shenzhen-listed Broad-Ocean Motor and state-owned fund Hunan Xiangtan Caixin.
The cornerstone investors are HongKong Xinwei Electronic and Hong Kong-based Changfeng Asset Management, which agreed to subscribe to HK$63.5 million, or around 27 per cent of the shares on offer.
Breton plans to use the IPO proceeds to invest in technology, develop new products and services, establish manufacturing plants and procure machinery.
China International Capital Corporation and CMB International are the joint sponsors of the IPO.
More from South China Morning Post:
- Fifth time lucky? Chinese restaurant chain Green Tea makes another Hong Kong IPO attempt
- IFBH seeks Hong Kong IPO as coconut water bottler exits Singapore to be near China market
- Trade tensions offer opportunities for Hong Kong IPOs and trade, Paul Chan says
For the latest news from the South China Morning Post download our mobile app. Copyright 2025.
