Deepway Eyes IPO as Hefei Bets on Commercial Vehicle Unicorn

Deepway, a new-energy heavy truck and smart logistics solutions provider backed by Baidu Inc. and Hefei state capital, is preparing for an initial public offering five years after its founding, according to recent regulatory filings. The company, headquartered in China's "savviest venture capital city" Hefei, has raised RMB 1.96 billion (US$270 million) across 11 funding rounds and aims to replicate the success of Nio Inc. in the commercial vehicle sector.

The autonomous driving and new-energy vehicle sectors remain among the most capital-intensive technology races globally. On November 6, 2025, WeRide and Pony.ai both went public in Hong Kong, triggering a wave of investor interest in autonomous driving stocks. Deepway's IPO would mark another milestone, particularly as the company represents Baidu's direct foray into commercial autonomous driving through a joint venture model.

Hefei's multi-tier state capital has played an instrumental role in Deepway's development, with provincial, municipal, and county-level funds all participating. The city, already home to Nio and other emerging automakers, views Deepway as a strategic bet on the intelligent heavy-duty truck market, which could approach RMB 256 billion in value by 2030.

Deepway's business momentum has been swift. The company generated revenue of RMB 1.97 billion in 2024, up from RMB 426 million in 2023, with first-half 2025 revenue reaching RMB 1.51 billion, a 97.6% year-on-year increase.

Baidu's Strategic Partnership

Baidu holds a 17.28% stake in Deepway and serves as the company's core technology provider through an exclusive "white-box" licensing arrangement for commercial vehicles. This allows Deepway to access and modify millions of lines of Baidu's autonomous driving source code, accumulated over more than a decade of research and development.

Deepway was established in 2020 as a joint venture between Baidu and Lionbridge Group, with Lionbridge founder Wan Jun serving as CEO and Baidu's former commercial vehicle autonomous driving head Tian Shan as chief technology officer. The collaboration built on Baidu's RMB 1 billion strategic investment in Lionbridge in 2018.

Wan Jun, a Renmin University graduate who founded Lionbridge in 2012, had spent eight years in the logistics industry before launching Deepway. His previous venture operates as one of China's largest truck financing platforms, serving over 140,000 truck drivers across 700 county-level cities in 30 provincial-level regions.

Technology-First Approach

The company adopted a "forward-definition" strategy, designing new-energy heavy trucks from scratch rather than converting existing diesel models. Deepway's vehicles retail between RMB 470,000 and RMB 700,000, including value-added tax, and target the industry's two largest cost centers: fuel, which accounts for roughly 40% of logistics expenses, and driver wages, representing 20-30%.

For autonomous driving capabilities, Deepway chose to skip Level 3 and focus resources on Level 2 assisted driving and Level 4 full autonomy. According to Wan, L3 systems would add over RMB 100,000 per vehicle without meaningful labor cost savings due to required driver oversight. The company's "Tianshu Geese Formation" intelligent convoy transport system represents its unique positioning in the market.

By sales volume in 2024, Deepway ranked first globally in forward-defined new-energy heavy trucks, delivering approximately 6,400 vehicles to 311 customers. Research and development spending reached RMB 365 million in 2024, following RMB 352 million in 2023 and RMB 179 million in the first half of 2025.

Financial Challenges Remain

Despite rapid revenue growth, Deepway remains deeply unprofitable. The company recorded losses of RMB 267 million, RMB 389 million, RMB 675 million, and RMB 371 million from 2022 through the first half of 2025, totaling cumulative losses of RMB 1.70 billion over three and a half years.

New-energy heavy truck sales account for over 99% of revenue during the reporting periods, with parts sales contributing less than 1%. Smart logistics solutions remain in a free trial phase and have yet to generate income. As of June 30, 2025, total liabilities of RMB 5.54 billion exceeded total assets of RMB 3.92 billion. Cash and cash equivalents stood at RMB 593 million.

To improve profitability, Deepway is accelerating construction of a three-electric system smart factory in Huzhou's Changxing County. Upon completion, the facility will produce components supporting approximately 50,000 vehicles annually. Three-electric systems—batteries, motors, and electronic controls—represent about 60% of manufacturing costs, and in-house production aims to significantly reduce expenses.

Hefei's Multi-Level Backing

Hefei state capital has emerged as a consistent supporter through multiple investment vehicles. In 2023, the Zhong'an New Energy Vehicle Fund, backed by Anhui Railway Fund, completed its first investment in Deepway. In December 2024, the company closed a RMB 750 million Series B round co-led by Zhong'an Capital and Puhua Capital, with participation from existing investor CCCC Trust and new investors Greater Bay Area Fund, Hefei Industry Investment, and Feixi Industry Investment.

This represented coordinated deployment across three government tiers: Zhong'an Capital holds 3.33% representing provincial interests, Hefei Industry Investment controls 0.83% at the municipal level, and Feixi Industry Investment owns 0.5% at the county level. Deepway's headquarters formally landed in Feixi County Economic Development Zone in November 2023, just two months after initial negotiations began. Hefei assembled a dedicated service team providing comprehensive support from researcher housing to school enrollment for employees' children.

Investor backing extends beyond local government. Across 11 funding rounds—six in Series A, three in Series B, and two pre-IPO—Deepway attracted Weiqiao Group, Qiming Venture Partners, Legend Capital, Light Leap Capital, CCCC Trust, CLP Fund, Bank of Communications International, Mu Hua Technology Innovation, Huagai Capital, and other prominent institutional and strategic investors. In the August 2025 pre-IPO II round, shares priced at approximately RMB 38.94, implying a valuation exceeding RMB 5.4 billion.

The company has also begun international expansion, establishing sales networks in Singapore, Thailand, Malaysia, United Arab Emirates, Oman, and Australia. Management set ambitious overseas targets: exports should exceed 50% of sales by 2028 and surpass 60% by 2030.

Market Opportunity

China is driving global heavy-duty truck electrification. Data from Commercial Vehicle News showed cumulative new-energy heavy truck sales reached 119,600 units in the first nine months of 2025, already surpassing full-year 2024 volumes and representing 198% year-on-year growth. Consulting firm CIC forecasts new-energy penetration in China's heavy truck market will reach 53.5% by 2030, with total market value hitting RMB 255.8 billion and a compound annual growth rate of 33.3%.

If successful, Deepway's listing would position it as potentially the first intelligent autonomous driving heavy truck company on the Hong Kong Stock Exchange, providing both brand recognition and capital market premiums while validating the broader sector for investors.