WBTL(SH:603596) Zheng Quan Zhi Xing·2025-06-26 16:49Core Viewpoint - Bethel Automotive Safety Systems Co., Ltd. plans to issue convertible bonds to raise funds, with a total amount not exceeding RMB 2.802 billion, aimed at expanding production capacity and enhancing product development in the automotive safety systems sector. Company Overview - Bethel Automotive Safety Systems Co., Ltd. is located in Wuhu, Anhui, China, and specializes in the research, development, manufacturing, and sales of automotive safety system components and electronic control modules [24]. - The company was established on June 25, 2004, and has a registered capital of RMB 606.51 million [24]. Industry Context - The automotive parts industry in China is closely linked to the automotive manufacturing sector, which is cyclical and sensitive to macroeconomic conditions. The industry has seen significant growth over the past two decades, with 2023 witnessing record production and sales of 30.16 million and 30.09 million vehicles, respectively, marking year-on-year increases of 11.6% and 12.0% [2][3]. - The automotive parts market is highly competitive, with both international giants and domestic suppliers vying for market share. The competition has shifted from price-based to technology and brand-based [3]. Financial Performance - The company reported a high customer concentration, with the top five customers accounting for 77.17% of its revenue in the reporting period. This includes major clients such as Chery Automobile and other well-known manufacturers [4][5]. - The gross profit margins for the company's main business were 20.45%, 19.50%, and 18.81% over the reporting periods, indicating a trend of declining margins due to increased market competition and pricing pressures from automotive manufacturers [6]. Bond Issuance Details - The convertible bonds will be rated AA by China Chengxin International Credit Rating Co., Ltd., with a stable outlook for both the bonds and the issuer [2]. - The funds raised will primarily be used for projects related to electronic mechanical brakes (EMB), wire-controlled brake systems (WCBS), electronic parking brake (EPB) systems, and lightweight components [19]. Risk Factors - The company faces risks related to market demand fluctuations, particularly if the automotive manufacturing sector experiences a downturn. Historical data shows that the automotive market has faced declines due to various factors, including policy changes and economic conditions [2][4]. - The competitive landscape is intensifying, with the need for continuous innovation and improvement in product offerings to maintain market position [3][4].