Core Viewpoint - Junsheng Electronics (00699.HK, 600699.SH) is launching an IPO in Hong Kong, with shares priced at a maximum of HKD 23.60, aiming to raise approximately HKD 36.60 billion [3][4][5]. Group 1: IPO Details - The IPO will offer a total of 155.1 million H-shares, with 15% of the offering subject to adjustment rights [4][5]. - The public offering will account for 10% of the total shares, with the remaining 90% allocated for international offering [4][5]. - The expected listing date on the Hong Kong Stock Exchange is November 6, 2025 [3][4]. Group 2: Financial Projections - The estimated total expenses for the IPO are around HKD 202 million, which includes underwriting commissions and other fees [5]. - The net proceeds from the IPO are projected to be approximately HKD 34.59 billion, with allocations planned for R&D, production capacity improvement, and market expansion [7][8]. Group 3: Shareholder Structure - After the IPO, the controlling shareholder will be Wang Jianfeng, holding a total of 35.86% of the shares [8]. - Other A-shareholders will hold 54.14%, while H-shareholders will own 10% of the company [8]. Group 4: Company Overview - Founded in 2004, Junsheng Electronics is a leading provider of smart automotive technology solutions, focusing on automotive parts, particularly in automotive electronics and safety [8]. - According to Frost & Sullivan, the company ranks as the second-largest provider of passive safety products in China and globally [8].

Core Viewpoint - Junsheng Electronics has submitted a prospectus to the Hong Kong Stock Exchange, aiming to raise funds for business development and manufacturing capacity improvement, amidst fluctuating financial performance and high expenses [2][11]. Group 1: Business Overview - Junsheng Electronics specializes in automotive electronics and safety solutions, with revenue contributions from automotive safety solutions at approximately 69.2% and automotive electronics at about 30.4% for 2024 [2][5]. - The company is the second-largest supplier of passive safety products in China and globally, according to Frost & Sullivan [3]. Group 2: Financial Performance - The company's revenue for 2024 is projected to be 558.64 billion, showing no growth compared to 2023, while net profit is expected to decline by 11.3% due to high financial, administrative, and R&D expenses [6][7]. - In the first half of 2025, Junsheng Electronics reported a revenue of 303.47 billion, a year-on-year increase of 12.07%, and a net profit of 7.08 billion, up 11.13% [7][8]. Group 3: Financial Metrics - Financial expenses have significantly impacted profitability, with total financial expenses from 2022 to 2024 being 4.78 billion, 8.9 billion, and 8.28 billion, respectively, constituting 204.7%, 71.8%, and 62.4% of annual profits [6][7]. - The company's total liabilities have increased from 364.1 billion in 2022 to 468.1 billion by April 2025, with a debt-to-asset ratio of 69.8%, which is relatively high compared to peers [6][7]. Group 4: Investment Plans - The funds raised from the Hong Kong listing will be used for the development and commercialization of automotive intelligent solutions, power electronics products, and new generation wireless charging systems, as well as improving manufacturing capabilities and expanding overseas market share [11].