On December 12, Jiangsu Xihua New Energy Technology Co., Ltd. (603248.SH) opened its IPO subscription with an issue price of RMB 10.10 per share. The subscription cap is set at 21,000 shares, and the P/E ratio stands at 33.12x. The listing is on the Shanghai Stock Exchange, with Guotai Junan Securities and Haitong Securities as joint sponsors.
According to the prospectus, Xihua Technology specializes in the R&D, manufacturing, and sales of high-end, large-scale equipment components, primarily focusing on wind power gearbox components and supplemented by thick-walled components for injection molding machines. The company is a globally leading manufacturer of high-quality, technologically advanced components for large-scale high-end equipment.
Xihua Technology’s products are mainly used in large wind power equipment and injection molding machines. It is one of the few domestic companies capable of providing full-process services for wind power gearbox components. From 2022 to 2024, the company’s sales volume showed an overall upward trend, increasing from 77,744.88 tons to 91,397.22 tons, while its main business revenue remained stable with slight growth. During this period, Xihua Technology held approximately 20% of the global market share in the casting segment for wind power gearbox components.
The company serves as a long-term key supplier for top global wind power gearbox manufacturers such as Nanjing High Speed & Accurate Gear Group (NGC), Flender, and ZF, as well as for leading injection molding machine producer Haitian Plastics Machinery. Most of its major clients have maintained partnerships with Xihua for over a decade. The company has also established stable collaborations with other competitive players in the wind power gearbox industry, including Delijia and CRRC.
Data from the Global Wind Energy Council (GWEC) and Delijia’s disclosures indicate that NGC, Flender, Delijia, and ZF dominate the global wind power gearbox market, collectively accounting for over 70% of the market share. NGC has maintained a global market share exceeding 30% for several years. In the domestic Chinese market, NGC and Delijia lead with a combined share of nearly 70%, of which NGC holds close to 50%.
Financially, Xihua Technology reported revenues of approximately RMB 942 million, RMB 908 million, and RMB 955 million in 2022, 2023, and 2024, respectively. Net profits for the same periods were RMB 184 million, RMB 177 million, and RMB 142 million.
The company anticipates strong performance for the first nine months of 2025, with year-on-year growth in sales, revenue, and net profit. This outlook is driven by the sustained high volume of wind power project bids in China since 2024. Notably, domestic wind turbine manufacturers secured orders totaling 220.64 GW in 2024, marking an 89.41% increase year-on-year. Given that order volumes across the wind power supply chain are significantly influenced by the previous year’s project bids, demand in the wind power industry is expected to remain robust in 2025.
Comments