CHERVON-AUTO(SH:603982) Zheng Quan Zhi Xing·2025-06-24 17:13Core Viewpoint - Nanjing Quanfeng Automotive Precision Technology Co., Ltd. maintains an A+ credit rating, but is placed on a credit rating watch list due to continuous losses, reliance on external financing, and concerns over debt levels and repayment capacity [1][2][6]. Financial Overview - Total assets increased from 62.91 billion in 2022 to 67.94 billion in 2023, with a projected increase to 69.87 billion in 2024 [4]. - Owner's equity decreased from 28.52 billion in 2022 to 23.11 billion in 2023, with further declines expected [4]. - Total liabilities rose from 34.39 billion in 2022 to 44.83 billion in 2023, indicating increasing financial leverage [7]. Business Performance - The company has experienced three consecutive years of losses, with a net profit of -1.54 billion in 2022 and -5.65 billion in 2023, improving slightly to -5.17 billion in 2024 [7]. - Operating revenue increased from 17.45 billion in 2022 to 21.35 billion in 2023, with expectations for further growth in 2024 [7]. - The company aims to raise up to 2 billion through a private placement to strengthen capital, although this has not yet been completed [5][11]. Market Position - The automotive parts industry is highly competitive, with the company holding a certain market competitiveness and technical strength in various segments [6][10]. - The company is transitioning its product structure towards new energy vehicles, with sales of related components expected to increase, contributing to revenue growth in 2024 [6][13]. Production Capacity - The company has production bases in Nanjing, Ma'anshan, and Hungary, with the Hungarian base already supplying to North American and European automakers [14][22]. - Despite the expansion, the company faces challenges in effectively utilizing new capacities, with low utilization rates reported [15][22]. Customer and Supplier Relationships - The company maintains stable relationships with major customers, but customer concentration remains high, with the top five customers accounting for 54.11% of total sales in 2024 [21]. - The procurement strategy involves stable relationships with suppliers, with raw material costs, particularly aluminum, comprising about 47% of operating costs [19][22]. Research and Development - The company is actively engaged in R&D, focusing on high-strength aluminum alloys and advanced manufacturing technologies, holding 229 patents [22].