On April 7th, subscriptions open for Aitek (603293.SH) on the Shanghai Stock Exchange Main Board and Hengdao Technology (920177.BJ) on the Beijing Stock Exchange.
Aitek is a provider of automotive electronic intelligent solutions. The company is primarily engaged in the research and development, production, and sales of automotive electronic products, including body domain, smart cockpit domain, powertrain domain, and intelligent driving domain controllers. It also offers automotive electronic manufacturing services (EMS) and technology development services to its clients.
Technologically, through long-term innovation and product development, Aitek has established a comprehensive, self-reliant innovation system covering forward product R&D, testing and validation, and smart manufacturing. The company has achieved technological innovation, system architecture development, vehicle adaptation, and full-stack independent development of hardware and software for body domain controllers, positioning itself as one of the few domestic automotive electronics manufacturers with the capability to supply complete body control solutions.
In terms of its client base, after over two decades of development, Aitek has accumulated a diverse customer portfolio including domestic brand automakers, new energy vehicle manufacturers, and automotive parts suppliers. Its domestic brand automaker clients primarily include Chery Automobile, Changan Automobile, Great Wall Motor, SAIC Motor, Geely Automobile, BAIC Group, and Dongfeng Motor. New energy vehicle manufacturer clients include Li Auto, XPeng Motors, and Leapmotor. Furthermore, by providing automotive electronic EMS to companies like Bosch, Aitek's products are ultimately used in vehicles from renowned automakers such as Volvo and Audi.
Regarding market position, according to statistics from Gaogong Intelligent Automotive Research Institute, Aitek held a 25.50% share of the pre-installed standard body (domain) controller market (including zonal controllers) for domestic brand passenger vehicles in China in 2024, ranking first for three consecutive years and breaking the long-term monopoly of international automotive electronics suppliers in this segment. The company also held a leading 13.83% share of the pre-installed standard physical remote key market for passenger vehicles in China. Additionally, it secured a 6.41% share, ranking third, in the pre-installed standard cockpit domain and display unit market for domestic brand passenger vehicles.
Notably, Aitek has cautioned investors about risks associated with macroeconomic and automotive industry fluctuations. The company's business development is closely tied to the automotive industry, which is significantly influenced by the macroeconomy. Cyclical fluctuations in the global and domestic economies can impact automotive production and consumption in China. Influenced by government incentive policies and increased promotional efforts by automakers, China's automotive production and sales reached 31.282 million and 31.436 million units respectively in 2024, representing year-on-year growth of 3.7% and 4.5%. Although China's automotive production and sales have achieved positive growth in recent years, macroeconomic development faces uncertainties due to multiple factors. If the global economic situation deteriorates or domestic economic growth slows in the future, it could significantly impact China's automotive industry, adversely affecting the company's production, operations, and profitability.
Hengdao Technology is a high-tech enterprise specializing in the R&D, design, production, and sales of hot runner systems for injection molds and related components. It is recognized as a National-Level Specialized, Refined, Distinctive, and New (SRDN) "Little Giant" enterprise. The company's main product is the hot runner system, a core heating component system for hot runner injection molds, widely used in automotive lighting, automotive interiors and exteriors, and consumer electronics.
Technologically, Hengdao Technology has deep expertise in the hot runner industry cultivated over many years. Through continuous R&D investment and process accumulation, the company possesses substantial technical reserves and has developed multiple core technologies. These include multi-color hot runner system technology, hot runner system technology for light guide injection molds, hot runner system molding and runner layout analysis technology, dead-zone-free hot runner system technology, precise temperature control technology for hot runner systems, and hot runner drive system control technology. Among these, the company's "Three-Color Hot Runner System for Taillights," based on its core multi-color hot runner injection molding technology, was certified as a "2023 Zhejiang Province First (Set of) Equipment."
From 2023 to 2025, Hengdao Technology's hot runner system products are primarily applied in the automotive sector, covering components such as automotive lighting and interiors/exteriors, with a smaller portion used in consumer electronics and home appliances. After years of market cultivation, the company has built a substantial customer base, becoming a supplier to well-known domestic and international automotive OEMs, automotive parts manufacturers, and injection mold makers. It has established long-term, stable cooperative relationships with prominent companies such as Byd Company Limited, the wholly-owned subsidiary of Anrui Optoelectronics, Jiali Shares, Changzhou Xingyu Automotive Lighting Systems Co.,Ltd., Qingdao Hi-Tech Moulds&Plastics Technology Co.,Ltd., and Gree Electric Appliances,Inc.Of Zhuhai. Its products are used downstream in vehicles from renowned automotive brands including BYD, SAIC Volkswagen, SAIC General Motors, Li Auto, NIO, and Chery.
Hengdao Technology has reminded investors of risks related to industry competition. The hot runner industry has long been dominated by foreign brands. Although the company has gradually developed into a well-known and competitive producer and service provider through years of technological and experiential accumulation, foreign hot runner manufacturers started earlier, have larger business scales, and higher brand recognition, still holding the major share of the domestic hot runner market. In recent years, as domestic brand enterprises have developed, industry competition has intensified. The number of competitors the company faces in market expansion is gradually increasing. Furthermore, if foreign brands engage in strategies like price wars to capture market share, it could adversely affect the company's business operations.
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