A company from Wenzhou, Zhejiang has gone public. It supplies battery liquid cooling plates to CATL, and its net profit has declined for two consecutive years.
Recently, the sentiment in the A-share market has been high. The Shanghai Composite Index has broken through 3800 points. Companies in the automotive industry chain such as Great Wall Motor, Jianghuai Automobile, and Sanhua Intelligent Control have all witnessed a round of price increases. Now, another enterprise in the automotive industry chain is gearing up for an IPO.
According to Gelonghui, on August 28, Nabaichuan New Energy Co., Ltd. (hereinafter referred to as "Nabaichuan") will appear before the IPO review meeting at the Shenzhen Stock Exchange. The sponsor is Zheshang Securities Co., Ltd.
Nabaichuan focuses on the R & D, production, and sales of products related to thermal management of new energy vehicle power batteries, thermal management of fuel vehicle power systems, and thermal management of energy storage batteries. Its customers include CATL, CALB, NIO, and XPeng. The company's revenue in 2024 exceeded 1.4 billion yuan. However, there are also some operational concerns, such as a high degree of customer concentration and a continuous decline in net profit for two consecutive years.
Over 70% of Revenue Comes from Battery Liquid Cooling Plates, with Heavy Dependence on Major Customer CATL
In its early days, Nabaichuan mainly engaged in the production of fuel vehicle parts such as engine radiators and heater blowers. In 2011, it initiated independent R & D of thermal management products for new energy vehicle power batteries. In 2015, these products were verified through real - vehicle applications. In 2016, it successfully supplied parts for SAIC Volkswagen's first domestic new energy vehicle.
After years of development, Nabaichuan has gradually grown into a provider of solutions for different application scenarios, including mobile thermal management (passenger cars, commercial vehicles), fixed thermal management (energy storage, mobile power sources), and special thermal management (air transportation, construction machinery, ships).
Application of battery liquid cooling plates in power batteries. The picture is from the prospectus.
The company currently has three production bases in Wenzhou, Zhejiang; Ma'anshan, Anhui; and Chuzhou, Anhui. It also plans to set up production bases in Sichuan and other places to achieve comprehensive supporting supply capabilities for core customers.
Specifically, from 2022 to March 2025 (hereinafter referred to as the "reporting period"), the proportion of revenue from battery liquid cooling plate products increased from 79.79% to 92.27%. The proportion of revenue from fuel vehicle thermal management components decreased from 16.21% to 7.27%. The proportion of revenue from battery boxes, molds, and other products was relatively low.
The products produced by the company, such as battery liquid cooling plates, engine radiators, and air - conditioning blowers, are mainly used in the automotive industry. During the reporting period, the proportion of revenue from the power battery field decreased but still exceeded 62%. The proportion of revenue from the fuel vehicle field also decreased, while the proportion of revenue from the energy storage field increased.
Composition of the company's main business revenue. The picture is from the prospectus.
Nabaichuan's battery liquid cooling plates are mainly supplied to the domestic market. The company usually supplies liquid cooling plate products to power battery manufacturers as a supporting supplier, and these products are ultimately used in new energy vehicles of downstream automakers. At the same time, the company also supplies products directly to some automakers as a first - tier supplier.
The company mainly serves automobile manufacturers, power battery manufacturers, and energy storage equipment manufacturers. Its major customers include CATL, CALB, Farasis Energy, Jiangsu Hengyi, etc. It has also established cooperative relationships with automakers such as NIO, XPeng, Li Auto, Geely, Changan, GAC Group, Mercedes - Benz, Volkswagen, Chery, and Seres.
Due to the high concentration of the downstream industry, Nabaichuan's major customers are also relatively concentrated. According to SNE Research data, in 2024, CATL's global market share in the power battery market reached as high as 38%, ranking first in the world. During the reporting period, the proportion of the company's operating revenue from direct sales to CATL and indirect sales through battery box manufacturers and other accessory suppliers exceeded 44%, indicating a significant dependence on CATL.
At the end of each period during the reporting period, the book value of Nabaichuan's accounts receivable was approximately 323 million yuan, 382 million yuan, 560 million yuan, and 462 million yuan respectively, showing an overall upward trend. The proportion of accounts receivable in current assets exceeded 30%, posing a risk of bad debts.
Performance Affected by the Downstream New Energy Vehicle Industry, with Net Profit Declining for Two Consecutive Years
In recent years, although Nabaichuan's revenue has been on the rise, its net profit has declined for two consecutive years.
In 2022, 2023, and 2024, the company's operating revenues were approximately 1.031 billion yuan, 1.136 billion yuan, and 1.437 billion yuan respectively, and the corresponding net profits were approximately 113 million yuan, 98 million yuan, and 95 million yuan respectively.
After review, from January to June 2025, Nabaichuan's operating revenue was approximately 743 million yuan, a year - on - year increase of 45.88%. The net profit attributable to the parent company after deducting non - recurring gains and losses was 31.2828 million yuan, a year - on - year increase of 39.14%. This was mainly due to the growth in downstream demand and the expansion of the company's production and sales scale.
The company predicts that its operating revenue in 2025 will reach approximately 1.737 billion yuan, a 20.86% increase compared to the previous year. It is estimated that the net profit attributable to the parent company in 2025 will be approximately 105 million yuan, a 9.72% increase compared to the previous year.
It is worth noting that, generally speaking, the automotive industry usually adopts a pricing strategy of high - at - first - then - low. That is, new models are priced higher when they are launched and then gradually become cheaper. Some automakers may also require parts suppliers to appropriately lower the supply price according to their vehicle pricing.
Affected by the overall price decline in the new energy industry and the low capacity utilization rate in the short term after the commissioning of new production lines, Nabaichuan's gross profit margin of the main business has been continuously declining. During the reporting period, the company's gross profit margin of the main business dropped from 22.36% to 14.34%, which is lower than the average gross profit margin of comparable companies in the industry.
In the future, as the growth rate of the new energy vehicle industry slows down and competition in the energy storage industry intensifies, the demand growth rate of the downstream industry will weaken. If major customers continue to require upstream suppliers to reduce costs, the company will face the risk of further decline in product prices and gross profit margins.
Comparison of the company's gross profit margin of the main business with that of comparable companies in the industry. The picture is from the prospectus.
It is worth noting that during the reporting period, the direct material cost of Nabaichuan accounted for more than 70% of the main business cost. If the prices of the company's main raw materials, such as aluminum, increase, it may affect the company's gross profit margin and profitability.
In addition, the company's main product, the power battery liquid cooling plate, is a key component of the new energy vehicle power battery system. The demand and price of the company's products are mainly affected by the downstream new energy vehicle industry.
Since the fourth quarter of 2020, the global new energy vehicle market has officially entered a period of rapid growth. During the reporting period, the penetration rates of new energy vehicles were 25.6%, 31.6%, 40.9%, and 41.16% respectively. As the industry matures, the overall sales growth rate and penetration rate of the domestic new energy vehicle industry have slowed down. In the future, if there are changes in fiscal subsidies and tax incentives, or if the demand for automobile consumption is sluggish, it may affect the company's production and operation.
The new energy vehicle industry is in a stage of continuous growth driven by market demand and technological innovation. As competition intensifies, market and customer demands may change rapidly in the future. To enhance its core competitiveness, Nabaichuan needs to increase R & D investment to develop new products, improve product quality, reduce production costs, and enhance production capacity.
During the reporting period, Nabaichuan's R & D expenses were 34.0696 million yuan, 43.9405 million yuan, 54.1117 million yuan, and 10.1653 million yuan respectively, accounting for 3.30%, 3.87%, 3.77%, and 3.01% of operating revenue respectively. Although the company's R & D investment has increased, the R & D expense ratio is still lower than the average of comparable companies in the industry.
The representative enterprises in the automotive thermal management industry where the company is located mainly include multinational giants such as Japan's Denso, France's Valeo, South Korea's Hanon, and Germany's Mahle, as well as leading domestic parts enterprises such as Sanhua Intelligent Control and Yinlun Co., Ltd.
During the reporting period, major competitors have carried out investment and construction of new projects, leading to a rapid increase in industry supply capacity. In the future, if the demand from the downstream industry weakens, there may be an oversupply situation in the company's niche market, posing a risk of intensified competition.
An IPO Contender from Wenzhou, Zhejiang, with a Family as the Controlling Shareholders
Nabaichuan is from Taishun County, Wenzhou City, Zhejiang Province. Its predecessor, Taishun Nabaichuan Auto Parts Co., Ltd., was established in 2007, jointly funded by Zhang Liqin, Chen Rongbo, and Zhang Chuanjian. In 2023, it was restructured into a joint - stock limited company.
As of the end of March 2025, Nabaichuan and its subsidiaries had paid work - related injury insurance, endowment insurance, medical insurance, and unemployment insurance for a total of 1,071 on - the - job employees, with a payment ratio of 91.15%. They had also paid housing provident funds for 1,085 on - the - job employees, with a payment ratio of 92.34%.
In terms of equity structure, as of August 20, 2025, Chen Rongxian, Zhang Liqin, and Chen Chaopengyu directly held and indirectly controlled a total of 55.58% of the company's shares and are the actual controllers. Chen Rongxian is the controlling shareholder of the company. Chen Rongxian and Zhang Liqin are husband and wife, and Chen Chaopengyu is their son. In addition, Zhang Chuanjian, Chen Rongbo, and Yongqing Technology are also shareholders of the company.
Chen Rongxian was born in 1969 and graduated from the MBA program of Renmin University of China. He has served as the factory director of Ruian Benqiu Shoe Factory, the sales manager of Ruian Shengcheng Jundefa Garment Factory, the general manager of Ruian Aotexi Auto Parts Co., Ltd., and the chairman and general manager of Zhejiang Nabaichuan Auto Parts Co., Ltd. From April 2008 to January 2023, he served as the executive director and general manager of Nabaichuan Co., Ltd. Now, he is the chairman and general manager of Nabaichuan.
Chen Chaopengyu was born in 1993 and holds a master's degree. He has worked as an employee at Guangzhou Jierya Trading Co., Ltd. and the head of the technology department at Ma'anshan Nabaichuan. Since January 2023, he has served as a director and the secretary of the board of directors of the company.
Equity structure before the company's IPO. The picture is from the prospectus.
In this IPO, Nabaichuan plans to raise 729 million yuan for the Phase I project of an annual production of 3.6 million sets of water - cooling plates by Nabaichuan (Chuzhou) New Energy Technology Co., Ltd. and to supplement working capital.
The company's plan for raising funds and the filing status of investment projects. The picture is from the prospectus.
This article is from the WeChat official account "Gelonghui New Stocks". The author is Fa Ge, and it is published by 36Kr with authorization.