NJEC(SH:600699) Sou Hu Cai Jing·2025-08-25 07:35Core Viewpoint - Junsheng Electronics is applying for a secondary listing on the Hong Kong Stock Exchange, marking its second attempt since its initial public offering in 2011 on the A-share market. The company specializes in smart automotive technology solutions, focusing on key areas in the automotive parts industry, particularly automotive electronics and safety [1] Financial Performance - Junsheng Electronics reported revenues of 497.93 billion RMB, 557.28 billion RMB, 558.64 billion RMB, and 197.07 billion RMB for the years 2022 to 2024 and the first four months of 2025, respectively. The gross profit for the same periods was 55.42 billion RMB, 80.57 billion RMB, 90.64 billion RMB, and 35.14 billion RMB, with net profits of 2.33 billion RMB, 12.40 billion RMB, 13.26 billion RMB, and 4.91 billion RMB [2] - The gross margin for the reported periods was approximately 11.13%, 14.46%, 16.22%, and 17.83%, while the net profit margin was around 18.28%, 18.21%, 20.48%, and 18.83%, indicating an overall upward trend in performance [2] Research and Development - The company invested significantly in R&D, with expenditures of 21.39 billion RMB, 25.41 billion RMB, 25.85 billion RMB, and 11.08 billion RMB for the years 2022 to 2024 and the first four months of 2025, which supports its competitiveness in the automotive electrification transition [3] Global Strategy and Market Position - Junsheng Electronics has evolved into the fourth-largest provider of smart cockpit domain control systems globally, ranking 41st in the automotive parts industry by revenue in 2024. It is the second-largest supplier of passive automotive safety products in both China and globally [4] - The company has engaged in over ten cross-border acquisitions since its A-share listing, with a total transaction value exceeding 30 billion RMB, establishing a business structure that spans both automotive safety and electronics [5] - As of April 2025, Junsheng Electronics operates 25 R&D centers and over 60 production bases worldwide, reflecting its global operational scale [5] Debt and Financial Strategy - The total liabilities of Junsheng Electronics were reported at 364.1 billion RMB, 377.6 billion RMB, 443.2 billion RMB, and 468 billion RMB for the years 2022 to 2024 and the first four months of 2025, with corresponding debt-to-asset ratios of 67.3%, 66.4%, 69.1%, and 69.8% [6] - The increase in debt is attributed to loans and borrowings aimed at enhancing liquidity and supporting business needs, including share repurchases and production expansion [7] Market Outlook - The global automotive market is expected to recover, with sales projected to reach 92.4 million vehicles in 2024, with China accounting for 32.5% of this market. The global automotive passive safety industry is anticipated to grow to 49.7 billion RMB by 2029, with a compound annual growth rate of 7.8% from 2025 [8] - Junsheng Electronics holds significant market shares in various automotive components, ranking second in China's passive safety industry with revenues of 90 billion RMB, capturing 26.1% of the market. It ranks second globally in steering wheels and safety belts, and third in airbags, with respective market shares of 35.9%, 22.1%, and 19.0% [9]