Core Viewpoint - Fengwo Co., Ltd. has applied for an IPO on the Shanghai Stock Exchange, aiming to raise 656 million yuan, with a focus on turbocharger development and manufacturing for the automotive market [1] Group 1: Company Overview - Fengwo Co., Ltd. specializes in the research, manufacturing, and sales of turbochargers, expanding into electric turbochargers and core components for air suspension [1] - The company primarily serves the automotive OEM market, supplying turbochargers for various gasoline engines and hybrid powertrains [1] - Since its establishment, Fengwo has focused on turbocharger products, responding quickly to the demands of major automotive manufacturers such as Chery, Geely, GAC, BYD, and Changan [1] Group 2: Market Position and Performance - As of 2024, Fengwo's sales of gasoline engine turbochargers reached 2.2122 million units, capturing 15.3% of the national market share, ranking second overall and first among domestic companies [1] - The company has seen an increase in market share and ranking since 2022, breaking the international giants' monopoly in the domestic gasoline engine turbocharger market [1] Group 3: Financial Performance - The company's revenue for the years 2022, 2023, and 2024 is projected to be approximately 1.399 billion yuan, 1.598 billion yuan, and 2.067 billion yuan respectively [2] - Net profit for the same years is expected to be around 119 million yuan, 130 million yuan, and 204 million yuan respectively [2] - Total assets as of December 31 for 2022, 2023, and 2024 are estimated at 1.698 billion yuan, 1.965 billion yuan, and 1.725 billion yuan respectively [3] - The company's equity attributable to shareholders is projected to be 535 million yuan, 573 million yuan, and 780 million yuan for the same years [3] - The asset-liability ratio has improved from 64.21% in 2022 to 45.67% in 2024, indicating better financial health [3]

Core Viewpoint - The significant related-party transactions of Freetech and Fengwo, which are both rushing for IPOs, raise concerns about the potential drawbacks of Geely's frequent capital operations. The heavy reliance on Geely for revenue and the implications for business independence and fairness of related transactions are questioned [1][2]. Group 1: Fengwo's IPO and Financials - Fengwo's main business involves the research, manufacturing, and sales of turbochargers, with plans to raise 656 million yuan for various projects, including 245 million yuan for producing 1 million turbochargers annually [3]. - Geely Group is Fengwo's largest customer, contributing over 30% of its revenue, with related-party sales accounting for 53.10%, 32.44%, and 34.89% of total sales in recent years [3][4]. - The gross profit margin for related-party sales is lower than that of the main business, indicating potential issues with pricing and profitability [5][6]. Group 2: Freetech's Financial Performance - Freetech is preparing for an IPO on the Hong Kong Stock Exchange, having previously submitted an application that lapsed. The company has significant ties to Geely, with Geely's founder controlling a substantial portion of Freetech [8]. - Despite a strong market position, Freetech has been operating at a loss, with revenues of 328 million yuan, 908 million yuan, and 1.283 billion yuan from 2022 to 2024, but net losses of 855 million yuan, 738 million yuan, and 528 million yuan during the same period [9][10]. - Freetech's revenue heavily relies on a few major clients, with Geely accounting for 22.0%, 43.3%, and 59.4% of its total revenue over the past three years, indicating a concerning dependency [10].

Core Viewpoint - Fengwo Co., Ltd. is seeking to go public on the Shanghai Stock Exchange, aiming to raise 656 million yuan for business expansion and operational support [1][6]. Group 1: Company Overview - Fengwo Co., Ltd. specializes in the research, manufacturing, and sales of turbochargers, with plans to expand into electric turbochargers and core components for air suspension systems [4]. - The company primarily serves the automotive OEM market, focusing on gasoline engines and hybrid powertrains for various passenger vehicles [4]. - Since its establishment, Fengwo has become a key supplier for major automotive manufacturers such as Chery, Geely, GAC, BYD, and Changan, breaking the international giants' monopoly in the domestic gasoline engine turbocharger market [4]. Group 2: Market Position and Performance - As of 2024, Fengwo's sales of passenger car gasoline engine turbochargers reached 2.2122 million units, capturing 15.3% of the national market share, ranking second overall and first among domestic companies [4]. - The company has seen a steady increase in market share and ranking since 2022 [4]. Group 3: Technological Capabilities - Fengwo has accumulated extensive patents and non-patent technologies over more than a decade, including high-performance turbocharger development technologies and NVH control technologies [5]. - The company is recognized for its ability to collaborate with OEMs on comprehensive design solutions, synchronized R&D capabilities, and automated production [5]. Group 4: Financial Performance - Fengwo's revenue for 2022, 2023, and 2024 is projected to be 1.399 billion yuan, 1.598 billion yuan, and 2.067 billion yuan, respectively, with net profits of 119 million yuan, 130 million yuan, and 204 million yuan [5]. Group 5: IPO Fund Utilization - The funds raised from the IPO will be allocated to projects including the annual production of 1 million turbochargers and 600,000 air suspension components, as well as to supplement working capital [6]. - These projects aim to enhance production scale, improve automation, and support the development of new products, thereby strengthening the company's competitive position and ensuring sustainable growth [6].