Core Viewpoint - The IPO process of Shenzhen Aiwei Electric Technology Co., Ltd. has been suspended due to the expiration of financial documents, adding uncertainty to its controversial listing journey [1] Financial Performance - Aiwei Electric's revenue from 2022 to 2024 was reported as 215 million, 341 million, and 442 million yuan respectively, with net profits of 57.37 million, 86.42 million, and 106 million yuan, and gross profit margins of 41.40%, 42.55%, and 41.71% [5][12] - The company has seen a significant increase in accounts receivable, with balances of 83 million, 140 million, and 222 million yuan, representing 38.47%, 40.96%, and 50.33% of revenue respectively [7][6] IPO Details - The company plans to raise approximately 930 million yuan through its IPO, with allocations of 545 million yuan for a new energy vehicle high-voltage control component manufacturing base, 265 million yuan for a digital control and power electronics technology R&D center, 50.35 million yuan for information system construction, and 70 million yuan for working capital [1][8] Audit and Compliance Issues - The Ministry of Finance revealed serious distortions in Aiwei Electric's 2022 financial statements, including a 89% reduction in cash, 55% reduction in inventory, and 25% reduction in accounts receivable [3][4] - The previous auditing firm, Juyuan Lide, was penalized for issuing false audit reports, and the company did not disclose this change in its IPO application [4][3] R&D and Patent Activity - Aiwei Electric did not apply for any patents for over five years after its establishment in 2017, with a sudden increase in patent applications occurring in 2023 [14] - The company has increased its R&D personnel from 30 in 2022 to 138 in 2024, with R&D expenses growing by 308% over three years [14][15] Production Capacity and Market Position - The company plans to increase its production capacity for high-voltage controllers to 5.9 million sets annually, while its sales in 2024 were only 2.11 million sets, indicating potential overcapacity [12] - Aiwei Electric holds the largest market share in the domestic market for electric compressor controllers at approximately 13.35% and ranks second in PTC controllers with about 5.23% [5]

Core Viewpoint - Shenzhen Aiwei Electric Technology Co., Ltd. is planning to go public on the Shenzhen Stock Exchange's Growth Enterprise Market, focusing on providing digital control and power electronics products for the rapidly growing electric vehicle industry [1] Financial Performance - Revenue increased from 215 million yuan to 442 million yuan from 2022 to 2024, while net profit rose from 57.37 million yuan to 106 million yuan during the same period [4] - The average selling price of the core product, the high-voltage controller for thermal management in electric vehicles, decreased from 255.48 yuan per unit to 208.74 yuan per unit [1][5] - The company has faced scrutiny regarding the authenticity of its financial data, with the Ministry of Finance revealing multiple instances of false reporting in 2022, affecting various financial metrics by 25% to 111% [4] Shareholding Structure - The company has a unique shareholding structure where the founder, Liang Xianghui, initially had his shares held by Han Guang, leading to disputes over ownership [2][3] - After clarifying the shareholding structure, Liang directly holds 47.89% of the shares and controls 56.09% of the voting rights, making him the actual controller of the company [3] Market Position and Risks - Aiwei Electric is identified as the largest third-party supplier of high-voltage thermal management controllers for electric vehicles in China, operating as a Tier 2 supplier in the automotive supply chain [2][5] - The company faces risks related to weak bargaining power and low replacement costs, which could impact its performance during industry adjustments [5] IPO and Fundraising - The company aims to raise 930 million yuan through its IPO, with 70 million yuan allocated for working capital [6] - Prior to the IPO, Aiwei Electric distributed dividends totaling 58.88 million yuan, which is significantly higher than the industry average dividend payout ratio of 25% for 2022 [6][7] - The company's financial practices, including high dividend payouts before fundraising, may raise concerns regarding the legitimacy of its IPO approval [6] Industry Outlook - The electric vehicle thermal management market is projected to exceed 80 billion yuan by 2025, indicating significant growth opportunities for Aiwei Electric [7]

Core Viewpoint - Shenzhen Aiwei Electric Technology Co., Ltd. is advancing its IPO process on the ChiNext board despite past financial misconduct, with key inquiries focusing on performance, product technology, and related party transactions [1] Group 1: Company Overview - Aiwei Electric is the largest third-party supplier of high-voltage controllers for thermal management in the domestic new energy vehicle sector [1] - The company is undergoing its IPO with CICC as the sponsor and Xinyong Zhonghe CPA as the auditing firm [1] Group 2: Regulatory Issues - In January 2023, the Ministry of Finance named Aiwei Electric in an administrative penalty decision due to discrepancies in its 2022 financial data, which included multiple instances of inflated or deflated figures [1] - The Ministry's inspection revealed issues with the auditing quality of the accounting firm that audited Aiwei Electric [1]

Core Viewpoint - Shenzhen Aiwei Electric Technology Co., Ltd. (Aiwei Electric) has completed its first round of inquiries for its IPO, raising concerns about the authenticity of its financial data due to an administrative penalty involving its auditor [1][5]. Financial Performance - Aiwei Electric is the largest third-party supplier of high-voltage controllers for thermal management in new energy vehicles in China [1]. - The company reported revenues of 215 million yuan, 341 million yuan, and 442 million yuan for the years 2022 to 2024, respectively, with net profits of 57.37 million yuan, 86.42 million yuan, and 106 million yuan during the same period [5][6]. - The company claims that its performance growth is sustainable due to continuous customer acquisition and a strong order backlog, despite a decline in sales prices of its main product [6]. Financial Data Issues - The Ministry of Finance's penalty against the auditing firm revealed significant discrepancies in Aiwei Electric's 2022 financial statements, including a 137.6 million yuan reduction in cash and a 33% inflation of R&D expenses [5][6]. - The audit firm failed to implement necessary audit procedures, leading to the issuance of a false audit report [5]. Product and Market Dynamics - Aiwei Electric's main product, the high-voltage controller, accounts for over 99% of its revenue, but the sales price has been declining, with a 3.58% drop in 2023 and a projected 15.26% drop in 2024 [6]. - The company attributes the price decline to industry practices and competitive pressures in the new energy vehicle market [6]. Fundraising and Dividend Distribution - The company plans to use the funds raised from the IPO for projects including an intelligent manufacturing base for high-voltage components and a digital control and power electronics R&D center [6][7]. - Despite raising funds, Aiwei Electric has distributed a total of 58.88 million yuan in cash dividends over the past three years [7][8]. Shareholding and Legal Issues - The actual controller of Aiwei Electric, Liang Xianghui, has faced legal disputes related to shareholding arrangements, including a lack of formal agreements regarding shareholding proxies [9][10][13]. - The company asserts that these legal issues do not affect its current shareholding structure or the stability of control [13][14].

Core Insights - The rapid development of domestic electric vehicles has led to increased attention on the related industrial chain, particularly companies like Shenzhen Aiwei Electric Technology Co., Ltd. (Aiwei Electric), which specializes in digital control and power electronics products for electric vehicles [1] - Aiwei Electric's main product, the thermal management high-voltage controller, is a new component for electric vehicles compared to traditional fuel vehicles, impacting vehicle safety, range, and intelligence [1] - The company has established a technology research and development system centered around a technology platform, focusing on iterative upgrades, customized development, and new product development, ensuring industry leadership in technological advancement and product innovation [1] Technology Platform - Aiwei Electric has developed a "mature, unified, efficient, stable, reliable, and intelligent" software and hardware platform through continuous iteration and development [2] - The intelligent control algorithm software platform can accommodate diverse product needs, enhancing software development efficiency, while the power electronics hardware platform utilizes standardized circuit topology and advanced simulation platforms to improve development efficiency and cost control [2] Core Technologies - The company has accumulated over 17 core technologies in software algorithms, semiconductor applications, and product engineering design, focusing on high reliability, energy efficiency, precision, high voltage, low noise, and low cost [4] - Innovations such as the motor intelligent control algorithm and a low-resource operating system have optimized product performance and reduced costs, allowing for significant simplification of product architecture [4] - Aiwei Electric has gained recognition from leading Tier 1 customers and has become the largest third-party supplier of thermal management high-voltage controllers for electric vehicles in China, establishing strong market competitiveness and brand recognition [4]

Core Viewpoint - The administrative penalty issued by the Ministry of Finance against an accounting firm unexpectedly implicates Aiwei Electric, raising concerns about the authenticity of its financial data [2][3]. Group 1: Financial Data Issues - The Ministry of Finance's penalty against Juyuan Lide Accounting Firm revealed multiple discrepancies in Aiwei Electric's 2022 financial data, including a reduction of cash by 13.76 million yuan (89% reduction), accounts receivable by 20.25 million yuan (25% reduction), and inventory by 36.27 million yuan (55% reduction) [7]. - The audit report issued by Juyuan Lide was found to be fabricated, lacking necessary audit procedures and containing significant inconsistencies with the obtained audit evidence [7]. Group 2: Company Performance and Growth - Aiwei Electric, the largest third-party supplier of high-pressure controllers for new energy vehicles in China, reported revenues of 215 million yuan, 341 million yuan, and 442 million yuan from 2022 to 2024, with net profits of 57.37 million yuan, 86.42 million yuan, and 106 million yuan respectively [8][7]. - The company claims that its performance growth is sustainable due to continuous customer acquisition and a strong order backlog, despite a decline in the sales price of its main product [8][9]. Group 3: Dividend Distribution and Fundraising - Aiwei Electric has distributed a total of 58.88 million yuan in cash dividends over the past three years, while simultaneously raising funds for various projects, including a smart manufacturing base for high-pressure components [10][9]. - The company plans to allocate 70 million yuan for working capital to enhance its capital strength and operational performance [9]. Group 4: Shareholding and Legal Issues - The actual controller of Aiwei Electric, Liang Xianghui, has faced legal disputes related to shareholding arrangements, including a history of shareholding proxies that led to lawsuits [11][12]. - The company asserts that these legal issues do not affect its current shareholding structure or control stability, and they are merely historical matters [14][15].

Core Viewpoint - The financial data of Shenzhen Aiwei Electric Technology Co., Ltd. (Aiwei Electric) has been called into question due to the issuance of a false audit report by its auditing firm, Juyuan Lide, which failed to implement necessary audit procedures and produced inconsistent data [1][2]. Group 1: Financial Performance and Audit Issues - Aiwei Electric is the largest third-party supplier of high-pressure controllers for new energy vehicles in China, with projected revenues of 215 million yuan, 341 million yuan, and 442 million yuan from 2022 to 2024, respectively [3]. - The audit report for Aiwei Electric's 2022 financial statements revealed significant discrepancies, including a reduction of cash by 13.76 million yuan (89%), accounts receivable by 20.25 million yuan (25%), and inventory by 36.27 million yuan (55%) [2]. - The audit also indicated a fictitious increase in retained earnings by 33.36 million yuan (111%) and a fictitious increase in R&D expenses by 5.86 million yuan (33%) [2]. Group 2: Product Pricing and Market Dynamics - Despite strong revenue growth, the sales price of Aiwei Electric's high-pressure controllers has been declining, with prices dropping from 255.48 yuan per unit in 2022 to 208.74 yuan in 2024, reflecting a decrease of 15.26% [4]. - The company attributes the price decline to industry practices of annual price reductions following mass production and competitive pressures from the new energy vehicle market [4]. Group 3: Fundraising and Dividend Distribution - Aiwei Electric plans to use the funds raised from its IPO for projects including the establishment of an intelligent manufacturing base for high-pressure control components and a digital control and power electronics R&D center [5]. - The company has distributed a total of 58.88 million yuan in cash dividends over the past three years, including 3.8 million yuan in 2022 and 990,000 yuan in 2023 [5]. Group 4: Shareholding Structure and Legal Issues - The actual controller of Aiwei Electric, Liang Xianghui, has faced legal disputes related to shareholding arrangements, including a lack of formal agreements for shareholding proxies, which has led to lawsuits [6][7]. - The company has stated that ongoing legal matters regarding historical shareholding proxies do not affect its current shareholding clarity or control stability [7][8].

Core Insights - Shenzhen Aiwei Electric Technology Co., Ltd. specializes in digital control and power electronics products and solutions for new energy vehicles, with a focus on high-voltage controllers for thermal management [1] - The company has established a strong market position and brand recognition in the thermal management high-voltage controller sector through years of independent innovation and industry experience [1] Industry Dynamics - The automotive industry experiences long R&D cycles and significant investment in components, leading to strong supplier relationships due to high product quality requirements and lengthy testing times [2] - This stable cooperation is crucial for the efficient operation and quality assurance of the automotive supply chain, prompting all parties to enhance their capabilities to maintain a healthy collaborative ecosystem [2] Market Position - Aiwei Electric has long-term partnerships with leading Tier 1 companies, resulting in its products being utilized by several mainstream new energy vehicle manufacturers [2] - According to ZhiShi Consulting, Aiwei Electric ranks first among third-party controller suppliers in the domestic market for thermal management high-voltage controllers in 2024 [2] - The company is also expanding its overseas business, having entered the supply chain of international automotive parts giant Valeo, establishing a dual-circulation business model for domestic and international markets [2]

Core Insights - The report emphasizes the critical role of thermal management in electric vehicles (EVs), highlighting its importance in addressing range and safety concerns associated with battery technology [4][5][6] - The global market for electric compressor controllers in the thermal management systems of EVs is projected to grow significantly, with a compound annual growth rate (CAGR) of 59.93% from 2020 to 2024, reaching approximately 5.664 billion by 2024 [8][11] - The Chinese market for electric compressor controllers is expected to grow at an even higher CAGR of 77.27%, reaching around 3 billion by 2024 [11] Group 1: Importance of Thermal Management - Thermal management is essential for addressing the unique challenges posed by the electrification of vehicles, particularly in maintaining battery performance and safety [4] - The high-voltage electrical systems in EVs necessitate efficient thermal management to prevent overheating and ensure safe operation [6][7] - Intelligent thermal management systems can optimize energy use and enhance the overall user experience by maintaining optimal operating temperatures [5][6] Group 2: Market Growth and Projections - The global market for electric compressor controllers in thermal management systems is expected to grow from approximately 0.866 billion in 2020 to 5.664 billion by 2024, indicating a robust demand for these components [8] - By 2027, the global market is projected to reach 11.31 billion, driven by increasing EV sales and advancements in thermal management technology [8] - In China, the market for electric compressor controllers is anticipated to expand from about 0.304 billion in 2020 to 3 billion by 2024, with a forecasted growth to 5.21 billion by 2027 [11] Group 3: Technological Advancements - The integration of smart algorithms in thermal management controllers allows for real-time monitoring and adjustment of vehicle temperature, enhancing energy efficiency and extending vehicle range [6][7] - Advanced thermal management systems utilize data from various sensors to optimize performance, ensuring that components operate within safe temperature ranges [5][6] - The ability to perform over-the-air (OTA) updates and diagnostics through connected systems enhances the reliability and performance of thermal management solutions [7]

Core Viewpoint - Shenzhen Aiwei Electric Technology Co., Ltd. has applied for listing on the Shenzhen Stock Exchange's ChiNext board, with a fundraising target of 930.07 million yuan, focusing on digital control and power electronics products for the new energy vehicle sector [1] Group 1: Company Overview - Aiwei Electric is a leading third-party supplier of thermal management high-voltage controllers for new energy vehicles, leveraging self-developed intelligent control algorithms and power electronics hardware platforms [1][2] - The company has achieved the largest market share among third-party suppliers in China for thermal management high-voltage controllers, with specific products like electric compressor controllers and PTC controllers holding market shares of approximately 13.35% and 5.23%, respectively [1][2] Group 2: Sales and Clientele - The company's sales model is primarily direct sales, with a small portion through consignment sales, targeting Tier 1 clients such as Suzhou Zhongcheng and Huagong Gaoli, which supply major new energy vehicle manufacturers like Geely and BYD [2] Group 3: Financial Performance - Aiwei Electric's projected revenues for 2022, 2023, and 2024 are approximately 215 million yuan, 341 million yuan, and 442 million yuan, respectively, with net profits of around 57.37 million yuan, 86.42 million yuan, and 106 million yuan [3] - Key financial metrics for the end of 2024 include total assets of approximately 816.61 million yuan, equity attributable to shareholders of approximately 573.89 million yuan, and a debt-to-asset ratio of 29.65% [4]