On June 29, the much-awaited Momenta officially kicked off its Hong Kong stock offering.

According to publicly available information, this company, hailed as the "Pioneer of Physical AI," plans to offer 19,938,300 shares globally at a price of HK$295.6 each, aiming to raise approximately HK$5.89 billion. It is set to make its official debut on the Hong Kong Stock Exchange on July 8 under the stock code "6880."

As per the offering plan, Momenta intends to issue 19,938,300 shares in this IPO, with 1,993,840 shares reserved for the Hong Kong public offering and 17,944,460 shares for the international offering, representing 10% and 90% of the total global offering, respectively. The offering also incorporates a 15% greenshoe (over-allotment option) mechanism.

The final listing price has been set at HK$295.6, with an anticipated total fundraising amount of approximately HK$5.89 billion, excluding the exercise of the greenshoe option. CICC and Deutsche Bank are serving as the joint sponsors.

Notably, this offering does not set a price range but directly fixes the final offering price, a rare move that underscores the offering's popularity and the issuer's confidence in the listing.

From its inception in 2016 to now approaching the Hong Kong Stock Exchange, Momenta has come a long way over the past decade.

But this is no ordinary IPO story. With 14 cornerstone investors, including industry giants Mercedes-Benz and BYD, rallying behind it, and nine out of the top ten global automakers already on its client roster, along with a commanding 65% market share in third-party city NOA, what commercial rationale underpins these accolades?

Why is it generating so much buzz?

Momenta's cornerstone investor lineup can be described as "exceptionally stellar," a rarity among companies going public on the Hong Kong stock market this year.

Screenshot Source: Prospectus

Specifically, international top-tier long-term funds and sovereign funds abound, encompassing the world's most renowned institutional investors, not only in large numbers but also with substantial individual investment amounts.

Among them, the Government of Singapore Investment Corporation (GIC) and Fidelity International are prominent lead investors, each allocated US$100 million. BlackRock invested US$25 million, Oaktree Capital US$20 million, and Franklin Templeton Investments US$10 million.

Industry "top-tier" strategic investors include leaders in international and Chinese automaking, Mercedes-Benz and BYD, investing US$25 million and US$15 million, respectively. Industry chain partner GigaDevice invested US$6 million. Top-tier Chinese long-term private equity, public equity, and insurance funds include China's premier private equity funds Gaoyi and Boyu, top public equity funds China AMC and GF Fund, and long-term insurance fund leader China Pacific Insurance, each investing US$10 million. Additionally, cornerstone investors include Suzhou Mosu.

Particularly noteworthy are Mercedes-Benz and BYD. These two entities are not just financial backers; they are long-standing shareholders and deep partners of Momenta.

Their decision to double down with real money at this critical IPO juncture sends a significant signal.

How does Momenta generate revenue?

To grasp Momenta's value, we must first elucidate its business model.

Momenta primarily generates revenue in two ways: first, by providing autonomous driving solutions to automakers and earning R&D and licensing fees; second, by collaborating on driverless vehicles for transportation and ride-hailing services and directly earning service fees.

In simpler terms, it sells technology to businesses (B2B) with one hand and operates services to consumers (B2C) with the other.

Momenta's business is succinctly summarized by industry insiders as "one flywheel, two legs." The two legs are mass-production vehicle solutions and autonomous taxi (Robotaxi) service solutions.

The flywheel logic is as follows: the more mass-production vehicles are on the road, the more real-world road data is generated; the more data is fed to algorithms, the faster they iterate; the stronger the algorithms, the better the autonomous driving capabilities; the better the capabilities, the more clients and vehicle models can be secured. This is a classic positive feedback loop that "grows exponentially."

Revenue comes from two main sources: technology development services and licensing services.

Technology development services can be viewed as income generated "before the vehicle hits the road." After automakers decide to adopt Momenta's solution, Momenta customizes its intelligent driving system for specific vehicle models, completing development, testing, validation, and system integration. From 2023 to 2025, this revenue stream grew from RMB 719 million to RMB 1.445 billion.

Licensing services represent income generated "after the vehicle hits the road." After a vehicle model enters mass production, Momenta receives a licensing fee for each vehicle sold with its solution. This is a true "躺着赚钱" (effortless money-making) model, with almost zero marginal cost—the more vehicles sold, the more money earned.

In 2023, this revenue stream was only RMB 23 million, but by 2025, it had surged to RMB 968 million, a 42-fold increase in three years. Its revenue share also rose from 3.1% to 40.1%.

This structural shift is pivotal. In 2023, Momenta primarily earned money through project-based development fees, but by 2025, 40% of its revenue came from a per-vehicle licensing model. The "texture" of the business model has undergone a complete transformation.

Another set of data: mass-production vehicles equipped with Momenta's system have exceeded 900,000 units, with over 210 models awarded contracts and over 100 models delivered. In 2022, it took 24 months to reach the first 100,000 units in mass production; now, it takes less than 40 days to deliver 100,000 units at the fastest. Once the flywheel starts spinning, its speed only accelerates.

How is its financial health?

As a seasoned investment banker, when writing about listed companies, one must not just rely on stories; one must scrutinize the financials.

Moreover, the company's financial data is one of the reasons institutional investors have remained consistently interested.

The prospectus reveals that Momenta's revenue has grown exponentially over the past three years: from RMB 743 million in 2023 to RMB 2.413 billion in 2025, tripling in three years with a compound annual growth rate exceeding 80%. For investors, this data is highly enticing, fueling infinite imagination about the future.

Data Source: Tonghuashun

Momenta's revenue primarily consists of technology development income and licensing income, with the latter showing particularly impressive growth, surging from RMB 23 million in 2023 to RMB 968 million in 2025, a 42-fold increase in three years.

Data Source: Prospectus

Technology development income has grown steadily: from 2023 to 2025, it reached RMB 719 million, RMB 1.032 billion, and RMB 1.445 billion, respectively.

Licensing income has skyrocketed: notably, Momenta's revenue mainly consists of technology development income and licensing income, with the latter showing particularly impressive growth, surging from RMB 23 million in 2023 to RMB 968 million in 2025, a 42-fold increase in three years.

The underlying reasons: With the continuous rise in the penetration of high-level intelligent driving, Momenta's customer base and vehicle model count have surged, indicating strong sales momentum for mass-production models equipped with Momenta's intelligent driving solutions in the end market.

Astonishing gross margins, continuously improving: Momenta's gross margin has continuously improved over the past three years: from 17.5% in 2023 to 49.0% in 2024 and 71.6% in 2025, quadrupling in three years and reaching the level of software and SaaS companies.

The company's gross profit has grown significantly over the past three years: 13-fold growth from 2023 to 2025.

Losses have narrowed significantly. For investors on the Hong Kong Stock Exchange, current losses are not a concern; what matters is the expectation. Thanks to continuously rising revenue and gross margins, Momenta's loss amount has narrowed significantly over the past three years: adjusted annual losses were RMB 1.093 billion, RMB 959 million, and RMB 303 million from 2023 to 2025, nearly reaching break-even in 2025 and demonstrating strong commercial and operational capabilities. This data sets a high expectation for investors.

What position has Momenta secured in the trillion-dollar market?

How vast is the market space for physical AI?

FutureMarkets estimates that the global physical AI market will grow from approximately US$383 billion in 2026 to US$3.26 trillion in 2040. This will be one of the largest technological market expansions in history.

Specifically, in the autonomous driving sub-sector, data from CIC Insights shows: by 2030, the global Robotaxi market size will reach approximately US$81.8 billion, with China accounting for US$38.1 billion; the global Robovan market will reach approximately US$85 billion, with China accounting for US$53.5 billion.

Just these few niche markets combined represent a scale of hundreds of billions of dollars.

And what position does Momenta hold in this sector?

Number one in market share. According to CIC Insights, from March 2025 to February 2026, Momenta held a 65% sales market share in China's third-party city NOA supplier market, firmly ranking first in the industry.

Among all independent intelligent driving solution providers globally, it ranks first in terms of both city NOA solution sales volume and cumulative mass-production model count.

Broadest customer coverage. Momenta has established collaborations with 24 global automakers, covering all mainstream passenger vehicle manufacturers in China and nine out of the top 10 global automakers. Seven global automakers—SAIC, GM, Mercedes-Benz, Toyota, BYD, Hyundai, and Chery—are also shareholders of Momenta. This deep binding of "customers as shareholders" is extremely rare in the intelligent driving industry.

According to CIC Insights, by 2030, the global and Chinese Robotaxi market sizes will grow to approximately US$81.8 billion and US$38.1 billion, respectively, with China's Robotaxi penetration rate expected to reach 11.9%, higher than the global rate of 5.7%.

According to CIC Insights, by 2030, the global and Chinese Robovan market sizes will reach approximately US$85 billion and US$53.5 billion, respectively, with market penetration rates of 6.9% and 14.0%; the global and Chinese Robotruck market sizes will reach approximately US$33 billion and US$16.5 billion, respectively, with market penetration rates of 0.6% and 1.2%.

Most in-depth global layout. Mass-production solutions have been implemented in more than 10 countries and regions across Asia, Europe, Oceania, Latin America, and North Africa. Robotaxi has collaborated with global mobility platforms such as Uber, Grab, and Lumo, launching in Asia, Europe, and the Middle East.

Founder Cao Xudong has a judgment: the scale effect and first-mover advantage in the intelligent driving industry are even stronger than in the chip industry because software has zero marginal cost. The larger the scale, the lower the cost, the more data, and the better the experience, forming a positive feedback loop.

He predicts that China will ultimately have only 2 to 3 intelligent driving suppliers. If this judgment holds, the position Momenta has secured now is its ticket to the finals.

Another signal that has excited the market is the R7 World Model. In April this year, Momenta achieved the first mass production of its R7 World Model. Company founder Cao Xudong defined it as the 'ChatGPT moment for physical AI.' The R7 enables the system not only to perceive and understand the world but also to predict it.

This technological path has elevated Momenta from an 'autonomous driving solution provider' to a 'builder of foundational models for physical AI,' completely transforming its commercial potential.

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