Yilian Technology IPO Registration Submitted Major Dependence on Contemporary Amperex Technology (300750.SZ)

On July 22nd, Shenzhen Yilian Technology Co., Ltd. (referred to as Yilian Technology) applied for the change of the IPO review status on the Shenzhen Stock Exchange's Growth Enterprise Market to "registration submitted". CMSC is its sponsoring institution, planning to raise 1.19329 billion yuan. The prospectus disclosed that Yilian Technology is a company that integrates research, design, production, sales, and service of electrical connection components. The company has established production bases in various locations such as Shenzhen, Guangdong, Ningde, Fujian, Liyang, Jiangsu, Yibin, Sichuan, Yueqing, Zhejiang, etc. Its main products include battery connection components, power transmission components, and low-voltage signal transmission components, covering a wide range of electrical connection components. The company focuses on the development of the new energy vehicle industry, with a presence in energy storage systems, industrial equipment, medical devices, consumer electronics, and other application fields. Public information shows that Yilian Technology has high-quality customer resources, with downstream customers including Contemporary Amperex Technology, Xiaopeng Motors, Volvo, Volkswagen, Nissan, GEELY AUTO, LEAPMOTOR, Chongqing Changan Automobile, Weirui Electric, Sunwoda Electronic, Haibosi Innovation, CSI Solar Co., Jinko Solar, Trina Solar Co., NEDEC, Dometic, Shenzhen Mindray Bio-Medical Electronics, and other well-known domestic and foreign enterprises. During the reporting period, the main operating income of the issuer is as follows: Financially, in 2021, 2022, and 2023, Yilian Technology achieved operating income of approximately 1.434 billion yuan, 2.758 billion yuan, and 3.075 billion yuan respectively. During the same period, the company's net profit was approximately 139 million yuan, 230 million yuan, and 255 million yuan respectively. It is understood that after deducting the issuance expenses, Yilian Technology plans to invest the total amount of funds raised in the construction of the following projects for this issue: The prospectus warns of the significant risk of Yilian Technology's dependency on Contemporary Amperex Technology. During the reporting period, the proportion of sales revenue to Contemporary Amperex Technology accounted for 64.72%, 67.98%, and 71.13% of the operating income respectively, posing a significant risk of dependence on Contemporary Amperex Technology. On one hand, the downstream market concentration of the company's products, mainly in the field of new energy power batteries, is relatively high. According to data from the China Automobile Power Battery Industry Innovation Alliance, the market share of the top five companies exceeds 80%. The downstream market concentration also extends to upstream new energy supporting companies, making the company's electrical connection components industry relatively centralized in customer selection and supply. As the leading company in the global new energy power battery field, Contemporary Amperex Technology's market share is high, and its demand for raw materials is increasing. The company's main products are important components in new energy power batteries, showing high sales volume to Contemporary Amperex Technology during the reporting period and a growing trend. On the other hand, at present, the dependen...Factors such as changes in demand have led to a decline in Contemporary Amperex Technology's market share, resulting in reduced purchases of the company's products. The company's business development and financial performance will be adversely affected as sales revenue depends on Contemporary Amperex Technology.Je suis dsol, je ne parle pas franais.