Taihong Construction has passed the IPO review and has entered the supply chain system of multiple automotive architecture platforms.

On November 8th, Zhejiang Taihong Wanli Technology Co., Ltd. (referred to as Taihong Wanli) passed the listing committee meeting of the Shanghai Stock Exchange Main Board for its IPO. The sponsoring institution is Orient, with a planned fundraising amount of 1.15 billion yuan. According to the prospectus, Taihong Wanli's main business is the research and development, production, and sales of automotive structural components and functional parts. After years of hard work, the company has formed two major product systems centered around structural components and functional parts. The company has become a first-tier supplier to many well-known domestic and foreign car manufacturers or brands such as GEELY AUTO, Great Wall Motor, Volvo, SAIC Motor Corporation, Guangzhou Automobile Group, General Motors Wuling, Jiangling Motors Corporation, Lynk & Co, etc. It has entered the supply chain system of Geely Group's vast, CMA, PMA, as well as Great Wall Motor's A30, B30, and ES11 automotive architecture platforms. In the field of new energy vehicles, the company has actively developed cooperation relationships with well-known enterprises such as TS Company, Chehe Automobile, Nio, Leapmotor, X Company, becoming their first-tier supplier, and also a supporting partner for well-known component suppliers such as Contemporary Amperex Technology, Wuxi Zhenhua Auto Parts, Hayes Lemmerz, Saekoley. The main products of Taihong Wanli are automotive structural components and functional parts, which are major components of automotive bodies and chassis, essential key components for automobile production. The production process of structural components includes blanking, stamping, with stamping as the core process, and some structural components need to be combined into a sub-assembly through welding or riveting after stamping. Financially, in the years 2021, 2022, 2023, and the first 6 months of 2024, Taihong Wanli achieved operating income of approximately 1.011 billion yuan, 1.478 billion yuan, 1.544 billion yuan, and 738 million yuan respectively. During the same period, the company achieved net profits of approximately 85 million yuan, 131 million yuan, 162 million yuan, and 66 million yuan respectively. According to the prospectus, Taihong Wanli's main customers are well-known domestic and foreign car manufacturers and some supporting parts suppliers. During the reporting period, the main business income from the top five customers accounted for 97.01%, 95.37%, 94.36%, and 89.02% respectively, showing a high concentration. During the reporting period, the main business income from Geely Group accounted for 35.91%, 46.11%, 38.71%, and 33.62%, while the main business income from Great Wall Motor accounted for 51.64%, 35.48%, 36.25%, and 30.18%, showing a certain dependency on these customers.