Fueled by the rapid growth of the new energy vehicle (NEV) industry, Jiangyin Huaxin Precision Technology Co., Ltd. (Huaxin Precision) has seen its NEV drive motor core sales grow at an annualized rate of 25.71% during the reporting period (2022 – 2024). Specializing in precision stamping cores and molds, the company recently passed the Shanghai Stock Exchange’s IPO review, marking a significant milestone.
As a national-level “little giant” enterprise and high-tech firm, Huaxin Precision holds 76 authorized patents. Its products, including cores for NEV drive motors, micro-motors, and electrical equipment, serve major global players like BYD, BMW, and Bosch. Notably, its in-mold dispensing technology products have passed validation by BMW Group and ZF, entering mass production.
From 2022 to 2024, Huaxin Precision’s revenue rose from 1.192 billion yuan to 1.421 billion yuan, while net profit fluctuated, peaking at 156 million yuan in 2023. This growth mirrors China’s booming NEV market, with sales surging at a 36.68% CAGR from 2022 – 2024.
However, challenges persist. The company faces ballooning accounts receivable—jumping from 476 million yuan in 2022 to 577 million yuan in 2024—and rising inventory, which together consume substantial working capital. These factors contributed to volatile operating cash flows, swinging from -65.18 million yuan in 2022 to 458.14 million yuan in 2023, then back to -63.38 million yuan in 2024.
Huaxin Precision’s proposed 712 million yuan IPO fund-raising plan, with 444 million earmarked for expanding NEV motor core production, has drawn scrutiny. Despite idle capacities—NEV drive motor core utilization rates ranged from 48.71% to 84.98% from 2022 – 2024—the company argues the expansion aligns with future demand. Regulators have questioned the project’s viability, urging analysis of market trends, competition, and customer needs. As Huaxin Precision eyes growth, balancing risks and opportunities will be key to its success.
