Ge Long Hui·2025-06-09 10:27Core Viewpoint - Chongqing Zhixin Industrial Co., Ltd. (referred to as "Zhixin Co.") has submitted its IPO application to the Shanghai Stock Exchange, marking it as the first A-share listing application from Chongqing this year and the third company accepted for listing on the Shanghai main board in 2023 [1][2]. Company Overview - Zhixin Co. specializes in the automotive parts sector and has experienced growth in recent years, although it faces challenges due to high accounts receivable and inventory ratios [2][22]. - The company was established in January 1995 and underwent a share reform in August 2023, with its headquarters located in Yuzui Town, Jiangbei District, Chongqing [4]. - The controlling shareholders are Chen Zhiyu and Jing Bing, who collectively hold 83.75% of the voting rights [5][6]. Financial Performance - Zhixin Co.'s revenue has shown growth, with reported revenues of 2.091 billion yuan, 2.564 billion yuan, and 3.088 billion yuan for 2022, 2023, and 2024 respectively, reflecting a compound annual growth rate (CAGR) of 21.52% [9]. - The net profit attributable to the parent company for the same years was 52.25 million yuan, 120 million yuan, and 185 million yuan, with a CAGR of 88.02% [9]. - The company’s total assets reached approximately 3.79 billion yuan in 2024, with a debt-to-asset ratio of 52.17% [10]. Product and Market Position - Zhixin Co. primarily produces automotive stamping and welding parts, which are essential components in vehicle manufacturing [7][11]. - In 2024, the revenue from welding parts accounted for 95.93% of total revenue, while stamping molds contributed 3.81% [11]. - The company has established itself as a first-tier supplier for major automotive manufacturers such as Changan Automobile, Geely, and BYD [13][20]. Industry Context - The automotive parts industry is characterized by a large market size and a fragmented structure, with many small players and few large-scale enterprises [18][21]. - The global automotive parts market is projected to grow from approximately $2.39 trillion in 2022 to $3.07 trillion by 2029, with a CAGR of about 3.6% [21]. - The Chinese automotive market has seen significant growth, with production increasing from 2.066 million vehicles in 2000 to 31.282 million in 2024, driven largely by the rise of the new energy vehicle sector [19]. Future Outlook - Zhixin Co. plans to raise 1.329 billion yuan through its IPO, primarily for expanding production capacity and technological upgrades, with 300 million yuan allocated for working capital [15][16]. - The company has seen a significant increase in revenue from new energy vehicle components, with the proportion rising from approximately 20% in 2022 to over 50% in 2024 [20].