Avatr, a state-backed EV brand born from the joint forces of Changan, Huawei, and CATL, is experiencing explosive growth—yet massive losses. Despite revenue surging 500× in three years, its cumulative loss has surpassed RMB 10 billion. On November 27, Avatr officially filed for an IPO in Hong Kong, becoming the first central-SOE-backed EV company to do so.

Rapid Revenue and Delivery Growth

• Revenue: from RMB 28.34 million (2022) to RMB 15.2 billion (2024);
  2025 H1 revenue reached RMB 12.2 billion (+98.5%).
• Deliveries: 210,000 units delivered by Oct 2025;
  eight consecutive months with 10k+ monthly sales;
  four models covering the 200k–400k RMB range.

But Losses Remain Heavy

• RMB 2.016B loss in 2022
• RMB 3.693B in 2023
• RMB 4.018B in 2024
• RMB 1.585B in 2025 H1
  → Total loss exceeds RMB 10 billion.

IPO funds will support next-gen EV development, L3/L4 ADAS, global expansion, branding, and working capital.

The CHN Model: Strengths and Structural Risks

C–H–N: Changan + Huawei + CATL

This gives Avatr fast access to production, intelligence, and battery supply—but also locks in high costs and profit-sharing obligations.

Avatr started in the high-end pure EV segment (300k+ RMB), but weak brand recognition and a cooling EV market halted its ambitions.

The turning point came in 2024 when its first EREV model, Avatr 07, turned its gross margin positive (6.3%).
With Avatr 06 and 07 joining the lineup, sales rose—but average revenue per vehicle dropped sharply, squeezing margins.

The Core Issue: High Volume ≠ High Profit

Even with rising sales, Avatr faces:

• high tech licensing fees to Huawei
• high battery costs to CATL
• heavy R&D investment (up 167% in 2025 H1)
• expensive strategic moves like the RMB 11.5B investment in Huawei’s Yingwang Intelligent

Its profit ceiling is essentially capped by the CHN partnership structure.

Industry Model Comparison

ModelStrengthWeakness

Full-stack self-developed (Nio/Xpeng/Leapmotor)

High autonomy

Capital-intensive

Huawei Smart Selection (Aito, Luxeed)

Fast iteration

OEM dependence

CHN Model (Avatr)

Strong startup foundation

Profit-sharing & slow decision chain

Avatr avoids self-research cost burdens but struggles to capture value.

Three Tests From Capital Markets

1. Growth sustainability:
   Competitors are hitting 40k+ monthly sales; Avatr’s 10k+ is no longer impressive.
2. Brand independence:
   Consumers still view Avatr as “Changan + Huawei + CATL,” not as a standalone high-end brand.
3. A clear profit path:
   With an ambitious plan for 17 models by 2030 and L4 ADAS development, cost pressure will remain high without better margins.