Aitek: Some downstream manufacturers shift to self-developed related products, contributing nearly RMB 20 million in revenue. A customer that had previously caused operational confusion with a supplier
Southern Capital Center of JZ Research, Regular BR/Author Xizhou Songlan Yingwei/Risk Control
On April 7, 2026, Wuhu Aitek Automotive Electronics Co., Ltd. (“Aitek”) launched its subscription on the Shanghai Stock Exchange Main Board at an offering price of RMB 33.49 per share. During this listing process, Aitek was questioned twice about industry representation and was required to clarify the accuracy of industry classification, the overall scale of the industry, and competitive landscape.
In addition, while raising funds for expanding production of smart cockpit domain electronic products during this IPO, Aitek’s capacity utilization rate for smart cockpit domain electronic products fell below 60% in the first half of 2025, with both unit prices and gross margins declining. Furthermore, one of Aitek's clients, which supplies chips and other electronic component raw materials, applied for deregistration, and this client had shown signs of operational confusion with Aitek’s suppliers. On the other hand, some of Aitek’s downstream manufacturers have successively begun developing their own related products, and Nezha Auto, a client of Aitek, entered bankruptcy reorganization procedures, leading Aitek to fully provision bad debt exceeding RMB 27 million.
First, the client Wo Jin Technology once planned to deregister and contributed nearly 20 million yuan in revenue, showing operational confusion with Aiteck's suppliers
Notably, Shanghai Wo Jin Technology Partnership (Limited Partnership) (hereinafter referred to as "Wo Jin Technology"), a major client of Aiteck's other businesses, applied for deregistration in 2021, and in recent years, its social security enrollment has not exceeded three people. Moreover, Wo Jin Technology has shown signs of operational confusion with Aiteck's suppliers.
1.1 The proportion of chip procurement exceeds forty percent and is increasing year by year; the main final suppliers are overseas brands, posing risks due to reliance on imports
According to the reply to the inquiry letter regarding the application documents for Wuhu Aiteck Automotive Electronics Co., Ltd.'s initial public offering and listing on the Shanghai Main Board (hereinafter referred to as the "first round inquiry reply on October 15, 2025"), from 2022 to 2024 and January to June 2025, the raw materials used in Aiteck's production mainly include electronic components, display screens, structural parts, PCBs, etc. Apart from chips and display screens, the procurement proportions of other raw materials remained relatively stable.
Specifically, from 2022 to 2024 and January to June 2025, Aiteck’s procurement amounts for chips were 715 million yuan, 989 million yuan, 1.235 billion yuan, and 524 million yuan respectively, with procurement proportions being 41.47%, 42.5%, 47.88%, and 47.78% respectively.
It is not difficult to see that from 2022 to 2024 and January to June 2025, the proportion of Aiteck's chip procurement amount showed an upward trend.
Against this backdrop, attention should be paid to the supply situation of Aiteck’s chips.
According to the tutoring filing report No. [2023]081 dated January 13, 2023, the main final suppliers of chips required by Aiteck include overseas companies such as NXP Semiconductors, STMicroelectronics, Infineon, and Texas Instruments. During the reporting period, Aiteck’s chip procurement was mainly from overseas brands, posing risks due to reliance on imports.
In other words, as one of Aiteck’s main raw materials, the chips it procures are primarily from overseas brands, posing risks due to reliance on imports.
Specifically, according to public information released by the Wuhu Market Supervision Administration on June 26, 2021, on June 23, 2021, at Bortek Automotive Electronics Co., Ltd., the leaders of Wuhu City heard a report from Hu Hailong, the company’s vice general manager, about the impact of upstream chip procurement on production, which had declined by more than 20% after the second quarter.
The Etek prospectus dated March 27, 2026 (hereinafter referred to as the 'prospectus signed on March 27, 2026') states that Etek's wholly-owned subsidiary is Bortek Automotive Electronics (Wuhu) Co., Ltd. (hereinafter referred to as 'Bortek'). In February 2021, Bortek's executive vice general manager was Hu Hailong.
Clearly, Bortek Automotive Electronics Co., Ltd. appears to be Etek's wholly-owned subsidiary, Bortek (collectively referred to as 'Bortek' hereafter). This means that Etek’s subsidiary Bortek experienced a decline in production batches due to upstream chip procurement constraints.
It should be noted that according to the prospectus signed on March 27, 2026, Etek's higher advance payments in 2022 were mainly due to the tight supply of chips in 2022, which led to early payments to some suppliers to ensure chip supply; the situation eased somewhat in 2023 and 2024.
In this context, Etek's customers may deserve attention.
1.2 Over the past three years and the most recent period, the combined sales of raw materials such as chips and other electronic components exceeded 100 million yuan, with client WoJin Technology contributing nearly 20 million yuan in revenue.
According to the first-round inquiry response on October 15, 2025, from 2022 to 2024 and January-June 2025, Etek's other business income primarily came from chipsand sales of raw materials for other electronic components,amounting to 72.2766 million yuan, 20.2211 million yuan, 20.4968 million yuan, and 19.2955 million yuan respectively, accounting for 99.87%, 99.66%, 99.71%, and 99.99% of other business income.
Among them,WoJin Technology is one of the top five clients contributing to Etek's other business income.From 2022 to 2024 and January-June 2025, Etek’s sales revenue from WoJin Technology amounted to 0 yuan, 0 yuan, 6.1041 million yuan, and 13.8167 million yuan respectively, with the sales content being material sales.
In response, E-Tech explained that2022E-Tech's sales of raw materials to key customers in other businesses are relatively large, mainly due to the shortage in the chip market. E-Techincreased its chip inventory to avoid insufficient chip stock from affecting normal production, which led to a higher number of chips being sold during raw material inventory managementresulting in a larger quantity of chips sold。
According to calculations, the cumulative amount of raw material sales by E-Tech to Wo Jin Technology during the periods of 2024 and January-June 2025 was19.9208 million yuan。
It should be noted that based on the contact information of Wo Jin Technology, it appears to have close ties with another company.
1.3 Wo Jin Technology once shared contact details with Sheng Hao Technology, which operates in the semiconductor business and lists E-Tech as one of its core clients
According to data from the Market Supervision Administration, from 2020 to 2023, the enterprise contact number for Wo Jin Technology was 021-64****97.
In 2020, the corporate email of Wo Jin Technology was l********n@shenghaotek.com; from 2021 to 2023, the corporate email of Wo Jin Technology was i********g@shenghaotek.com。
According to the Ministry of Industry and Information Technology's official service platform, as of the query date April 13, 2026, the domain name 'shenghaotek.com' is registered under Shanghai Sheng Hao Technology Co., Ltd. (hereinafter referred to as 'Sheng Hao Technology'), with the approval date being October 25, 2019.Sheng Hao Technology, with the approval date being October 25, 2019.
According to the Market Supervision Administration data, from 2013 to 2024, the corporate contact number of Sheng Hao Technology was 021-64****97.
Moreover, the corporate email of Sheng Hao Technology from 2013 to 2014 and in 2016 was i********g@shenghaotek.com;The corporate email address in 2015 was l*******n@shenghaotek.com; the corporate email address from 2017 to 2021 was l********n@shenghaotek.com。
It is evident that not only did the domain of Wo Jin Technology's corporate email once point to Shenghao Technology, but it also shared a corporate contact number with Shenghao Technology from 2020 to 2023.
Moreover, shareholders of Wo Jin Technology might appear in Shanghai Ju Teng Technology Co., Ltd. (hereinafter referred to as 'Shanghai Ju Teng').
According to data from the Market Supervision Administration, from August 6, 2024, to the query date of April 13, 2026, Dai Xiaoying and Dong Xingda held 99% and 1% stakes in Wo Jin Technology, respectively.
From June 10, 2021, to the query date of April 13, 2026, the sole shareholder of Shanghai Ju Teng was Dai Xiaoying. From 2023 to 2024, the corporate communication address of Shanghai Ju Teng was 'Room 507-508, Tianhong Building, No. 80 Xianxia Road, Changning District, Shanghai.'
According to the official website of Shenghao Technology, as of the query date of April 13, 2026, its headquarters were located in Shanghai (5th Floor, Tianhong Building, No. 80 Xianxia Road, Changning District).
The 'issue' does not end here. Shenghao Technology may be one of Aitek’s suppliers.
According to the official website of Shenghao Technology,core clientsShenghao Technology is a subsidiary of the Sheng Group. Shenghao Technologyis responsible for semiconductor operationsfocusing on automotive electronics, mainly providing system solutions including TFT-LCD displays for smart cockpits such as instrument clusters and central control systems. Additionally, as of the inquiry date, April 13, 2026,Aitech is one of the core clients of Shenghao Technology.
This implies that Xiaoying Dai is a shareholder holding 99% of WOJIN Technology. WOJIN Technology once shared contact information with Shenghao Technology, and Shanghai Juteng, wholly owned by another individual named Xiaoying Dai, was located on the same floor as Shenghao Technology. Based on the above circumstances, Xiaoying Dai, the actual controller of WOJIN Technology, and Xiaoying Dai, the sole shareholder of Shanghai Juteng, might be the same person.
Notably, WOJIN Technology also filed an application for deregistration in 2021.
1.4 WOJIN Technology applied for deregistration in 2021, and in recent years, the number of employees covered by social security did not exceed three people, with several tax payments not declared in a timely manner.
According to data from the Market Supervision Administration,On July 13, 2021, all investors of WOJIN Technology submitted an application for simplified deregistration registration to the registration authority.On August 18, 2021, Vojin Technology had unresolved tax-related issues under objection. From 2020 to 2024, the number of employees covered by social security at Vojin Technology was 0, 0, 0, 0, and 3, respectively.
In addition, in 2023, Vojin Technology was frequently 'named' for failing to report taxes on time.
According to the tax filing notice issued by the Chongming District Tax Bureau of the State Administration of Taxation in Shanghai, on January 17, 2023, Vojin Technology was ordered to make corrections within a specified period for failing to file individual income tax and four other types of taxes; On March 16, 2023, Vojin Technology was ordered to correct within a specified period for failing to file individual income tax; On April 18, 2023, Vojin Technology was ordered to correct within a specified period for failing to file value-added tax and three other types of taxes; On July 18, 2023, Vojin Technology was ordered to correct within a specified period for failing to file value-added tax and three other types of taxes; On October 24, 2023, Vojin Technology was ordered to correct within a specified period for failing to file value-added tax and three other types of taxes.
In the past five years, the number of employees covered by social security at Vojin Technology did not exceed three, and in 2023, it was frequently ordered to correct for failing to report taxes on time.
Aitek stated that during the reporting period, the company's inventory turnover rates were 3.51, 4.04, 4.15, and 3.52, respectively. In 2022, the inventory turnover rate was relatively low. The main customers for other business revenues were Shanghai Vojin Technology Partnership (Limited Partnership), Shanghai Yijia Auto Parts Co., Ltd., and Suzhou Chuangge Electronic Technology Co., Ltd., among others. The sales content for these major customers was all material sales. In 2022, the company’s raw material sales to these customers were relatively large, mainly due to global supply chain tensions, insufficient wafer production capacity, and strong demand in areas such as new energy vehicles and industrial automation. To guard against the risk of chip supply disruptions, the company made advance purchases and maintained appropriate stockpiles of chips; to avoid insufficient chip inventory affecting normal production, the company increased its chip stockpile, leading to a higher volume of chips sold during raw material inventory management.
Overall, during the reporting period, Aitek’s chip procurement accounted for more than 40% and the proportion has been increasing year by year, with the final suppliers mainly being foreign brands. In particular, amidst tight chip market supply in 2021-2022, in 2022, Aitek’s sales revenue from electronic component raw materials such as chips exceeded seventy million yuan. Moreover, Aitek’s other business revenue mainly came from the sale of electronic components such as chips. One of the other business customers, Vojin Technology, applied for deregistration in 2021 and was frequently ordered to make corrections in 2023 for failing to report taxes on time. Additionally, the number of employees covered by social security at Vojin Technology in recent years did not exceed three.
Besides, as a customer of Aitek, Vojin Technology once shared contact information with Shenghao Technology. Dai Xiaoying, who holds 99% of Vojin Technology's shares, may also wholly own Shanghai Juteng, which was located on the same floor as Shenghao Technology. Shenghao Technology claimed that its core customers include Aitek. The relationship between supplier Shenghao Technology and customer Vojin Technology may require further verification.
II. Behind the fundraising for capacity expansion, both product prices and gross profit margins fell, casting doubt over the disclosed capacity of smart cockpit domain electronic products
It is important to note that the CSRC emphasized that companies are strictly prohibited from blindly seeking listing or excessive financing with the purpose of 'raising money.'
In this IPO, Aitek plans to raise funds to expand the production capacity of smart cockpit domain electronic products. However, in the first half of 2025, the capacity utilization rate of this product dropped to less than 60%, with both the gross margin and selling price declining during the same period. Furthermore, there is a discrepancy between the prospectus and the environmental assessment regarding the production capacity of smart cockpit domain electronic products, raising questions.
The base expansion project is one of the fundraising projects, which aims to add an annual production capacity of approximately 1.5 million smart cockpit domain electronic products.
According to the prospectus signed on March 27, 2026, this initial public offering intends to raise 1.5 billion yuan for investment in the 'ATEK's Annual Production of 5 Million Automotive Electronics Project',the 'BOTEK Automotive Electronics Production Base Expansion Project' (hereinafter referred to as the 'base expansion project'),the 'ATEK R&D Center Construction Project', the 'BOTEK R&D Center Construction Project', and replenishment of working capital.
Among these projects, the base expansion project,with an annual production of 1.5 million automotive electronics products.The main entity responsible for implementing this project is BOTEK, which serves as the operational body for ATEK's smart cockpit business. BOTEK mainly engages in the research, production, sales, and technical development services of automotive instrument clusters and othercockpit electronic products.It is not difficult to see that BOTEK, positioned as the entity responsible for conducting smart cockpit business, is also the implementing body of the 'base expansion project'.
It should be noted that this time, Aitaike plans to expand the production of smart cockpit domain electronic products through the 'Base Expansion Project'.
According to the environmental impact report forms for the 'Botech Automotive Electronics Production Base Expansion Project' disclosed by the Wuhu Municipal Ecology and Environment Bureau on April 7, 2023, and March 1, 2024.
These two environmental assessment documents, based on the project approval document numbers, are Aitaike's fundraising project 'Base Expansion Project', hereinafter referred to as '2023 Botech Production Base Project EIA' and '2024 Botech Production Base Project EIA'.
Focus on the types of products produced in this project. According to the '2024 Botech Production Base Project EIA', the 'Base Expansion Project' plans to add automotive instruments, in-vehicle displays, smart cockpit domain controllers, printed circuit boards (not for external sale, not counted in finished product capacity), head-up displays (AR-HUD) and other products, totaling1.5 million sets。
In the first half of 2025, the capacity utilization rate of Aitaike's smart cockpit domain electronic products declined.
2.2 In the first half of 2025, the capacity utilization rate of smart cockpit domain electronic products dropped to less than 60%, with both selling price and gross margin falling.
According to the prospectus signed on March 27, 2026, from 2022 to 2024 and January to June 2025, Aitaike'ssmart cockpit domain electronic productsproduction capacities were respectively945,400 units, 1,117,000 units, 1,366,200 units, and 708,500 units. Production volumes were 643,500 units, 983,900 units, 992,400 units, and 371,700 units respectively.Capacity utilization rates were 68.07%, 88.08%, 72.64%, and 52.47% respectively.
This means that the capacity utilization rate of Aitaike's intelligent cockpit domain electronic products was already below 60% from January to June 2025.
In addition, during 2022-2024 and January-June 2025, the sales prices of Aitaike’s intelligent cockpit domain electronic products were 770.88 yuan/unit, 1,013.62 yuan/unit, 1,250.04 yuan/unit,1,022.98 yuan/unit.During the same period, the gross profit margin for Aitaike’s intelligent cockpit domain electronic products was 11.49%, 13.54%,10.79%、7.28%。
Regarding this, Aitaike stated that the decline in average price and gross profit margin of its intelligent cockpit domain electronic products from January to June 2025 was mainly due to the impact of a significantyear-on-year decrease in the product category.
Moreover, Aitek stated that typically, the automotive industry adopts a front-high-back-low pricing strategy and passes on cost pressures to upstream suppliers through annual price reduction policies. Aitek indicated that if, in the future, these annual price reductions involve more customers, products, or larger price cuts over extended periods, and its cost control capabilities fail to improve accordingly, its operating performance may face risks of decline due to such price adjustment policies.
Against this backdrop, Aitek’s disclosed capacity utilization rate may be worth noting.
According to the prospectus, in recent years, the annual production capacity for smart cockpit electronics has been less than 1.5 million units. However, environmental assessments suggest it could reach 2 million units by 2023.
As per the prospectus signed on March 27, 2026, Aitek's smart cockpit electronic products primarily include digital instrument clusters, in-vehicle display screens, smart cockpit domain controllers, and augmented reality head-up displays (AR-HUDs). The feasibility study for project construction shows that Aitek focuses on the research, development, production, sales, and technical services of smart cockpit electronic products, with current offerings mainly includingautomotive instrument clusters, in-vehicle display screens, and smart cockpit domain controllers,as well as AR-HUDs.
This indicates that Aitek's digital instrument cluster falls under the category of automotive instrument clusters.
According to the '2023 Base Expansion Project Environmental Assessment' and the '2024 Botaike Production Base Project Environmental Assessment,' Botaike's existing projects at that time had an annual output of1 million sets of automotive instrument clusters, 600,000 sets of in-vehicle display screens, 400,000 sets of smart cockpit domain controllers (in-vehicle wireless terminals), zero sets of head-up displays (AU-HUD), and 2 million sets of printed circuit boards (non-retail finished products). The term 'annual output' in the above product plan likely refers to 'annual production capacity.'
According to calculations, in 2023, Potek may have an annual production capacity of at least 2 million sets of intelligent cockpit domain electronic products.
Not only that, Aitek had made changes to the project during the coaching period.
2.4 During the coaching period, the content of the fundraising investment projects was changed twice, including increasing the fixed asset investment amount and postponing the completion date.
According to the coaching registration announcement, on January 13, 2023, Aitek signed the listing coaching agreement. On February 1, 2023, the Anhui Securities Regulatory Bureau agreed to Aitek's coaching registration and issued a coaching registration confirmation.
According to the prospectus signed on March 27, 2026, the base expansion project obtained the 'Enterprise Investment Project Notification Registration Form' on February 3, 2023. Later, due to factors such as project planning adjustments, Aitek’s subsidiary Potek applied for project registration changes to the Development and Reform Commission of ** District, Wuhu City, increasing the building area of new factory buildings and ancillary facilities, the total project investment amount, and the fixed asset investment amount. On November 29, 2023, the Development and Reform Commission of ** District, Wuhu City approved the project content changes.
According to Aitek's listing coaching registration report, on March 19, 2025, Aitek signed a coaching agreement with another sponsor institution.
According to the prospectus signed on March 27, 2026, due to further adjustments to the project plan and other factors, Potek applied for project registration changes to the Development and Reform Commission of ** District, Wuhu City, increasing the estimated average annual sales revenue after reaching full production, and the fixed asset investment amount. The planned completion time was changed from 'March 2026' to 'March 2027,' and the sources and composition of investments were adjusted. On April 29, 2025, the Development and Reform Commission of ** District, Wuhu City approved the project content changes.
It is not difficult to see that during the two coaching processes, Aitek made registration changes to the base expansion project within the fundraising investment projects.
Aitek stated that its prospectus has been prepared and disclosed in accordance with relevant laws, regulations, and requirements of the China Securities Regulatory Commission and the Shanghai Stock Exchange. All disclosed content is true, accurate, and complete. During the reporting period, the company’s overall capacity utilization rates were 88.89%, 99.43%, 91.81%, and 74.05%, respectively, and the overall production-sales rates were 94.60%, 95.37%, 96.85%, and 102.50%, respectively. Both the overall capacity utilization rate and the production-sales rate remained at high levels. The main reason is that with the automotive industry gradually transitioning towards intelligence and connectivity, coupled with the continued increase in sales of certain major customers’ supporting models, the overall production and sales scale of the company’s products increased year by year.
Secondly, the gross profit margin of the company's intelligent cockpit domain electronic products was 11.49%, 13.54%, 10.79%, and 7.28%, respectively, showing a fluctuating trend. In 2023, the company began mass shipments of cockpit domain controllers, enriching the income and gross profit sources of intelligent cockpit domain electronic products, causing both the average price and unit cost of intelligent cockpit domain electronic products to rise significantly year over year. At the same time, the company gradually ceased shipments of some high-cost, low-gross-profit products, resulting in a rebound in the gross profit margin of intelligent cockpit domain electronic products. In 2024, the continuous increase in the shipment volume of the company's cockpit domain controllers caused the average price and unit cost of intelligent cabin domain electronic products to rise rapidly year over year. However, due to the high unit cost of cockpit domain controllers, their gross profit margin level was lower than that of digital instrument products, thus reducing the overall gross profit margin during the period compared to the previous year. From January to June 2025, affected by annual reductions in such products, the product gross profit margin decreased.
In addition, Etek is currently in a stage of rapid development. During the reporting period, the company's sales scale continued to increase. In the future, with the growing level of automotive electrification and the continuous rise in the automotive electronics market size, the market demand for the company’s various products is expected to continue expanding. At the same time, the issue of limited production capacity has gradually emerged. The contradiction between limited production capabilities and rapidly growing market demand has become increasingly prominent, somewhat restricting the company’s future business growth and scale expansion. Currently, the capacity utilization rate of some production lines is approaching saturation, and during peak demand seasons, the company needs to extend working hours to meet delivery requirements. Therefore, improving the supply capacity of existing products has become an urgent need for the company to maintain healthy development.
Finally, regarding the feasibility of the company's fundraising projects, the proceeds from this offering will primarily be used for initiatives closely tied to the company’s core business: 'Etek's Annual Production of 5 Million Automotive Electronics Project,' 'Botech Automotive Electronics Production Base Expansion Project,' 'Etek Research and Development Center Construction Project,' 'Botech Research and Development Center Construction Project,' and 'Supplementing Working Capital.' The 'Etek's Annual Production of 5 Million Automotive Electronics Project' represents a key step in expanding the production scale of automotive electronics products and resolving capacity bottlenecks, which will help improve production efficiency and further enhance profitability. The 'Botech Automotive Electronics Production Base Expansion Project' aims to extend the industrial chain upstream and establish platform-based production lines, enhancing the company's product compatibility in the automotive electronics sector while reducing production costs. It also enriches the company’s product portfolio and supports the growth of intelligent cockpit domain electronics and automotive electronics EMS as important revenue drivers.
Overall, by the first half of 2025, the capacity utilization rate of Etek's intelligent cockpit domain electronics products dropped to less than 60%. Under these circumstances, Etek plans to raise funds to expand the production capacity of its intelligent cockpit domain electronics products. Additionally, regarding the production capacity of intelligent cockpit domain electronics, the prospectus disclosed that in the past three years and the most recent period, the production capacity of its intelligent cockpit domain electronics products did not exceed 1.5 million units. However, environmental assessments suggest it may have reached 2 million units in 2023. Moreover, due to annual price reductions in the first half of 2025, Etek's intelligent cockpit domain electronics products experienced a decline in gross profit margin.
Thirdly, some downstream manufacturers are developing related products in-house. Behind the bankruptcy reorganization of Nezha Auto, one of Etek’s clients, the company fully provisioned bad debt exceeding 27 million yuan.
In the development process of intelligent cockpits, future intelligent cockpits will surpass the simple stacking of functions, using a unified main intelligence system as the interaction entry point. Relying on multiple intelligence systems dynamically collaborating based on scenario demands, they will ultimately move toward a new intelligent service ecosystem driven by scenarios and multi-intelligence system collaboration.
It should be noted that Etek's customer concentration is higher than the average of comparable companies. Against this backdrop, Etek may be developing foundational software for Changan Automobile, its second-largest client. However, Changan Automobile might have already independently developed its operating system and other foundational software. Additionally, another major client, Li Auto, started transitioning to self-developed regional controller products in 2023, making their future cooperation noteworthy.
3.1 The top five clients account for over 70% of revenue, higher than industry peers, including Changan Automobile, Li Auto, Nezha Auto, etc.
According to the prospectus signed on March 27, 2026, Etek has established a product matrix covering four functional domains: body domain, intelligent cockpit domain, power domain, and autonomous driving domain.
Specifically, Etek’s major clients include domestic brand automakers, emerging forces, and automotive parts manufacturers. Among them, domestic brand automakers mainly include Chery Automobile,Changan Automobile; emerging forces mainly includeLi Auto, XPeng Motorsetc.
During the periods from 2022 to 2024 and January to June 2025, revenue from Etac's top five clients accounted for 73.16%, 80.89%, 84.38%, and 77.75% respectively, indicating a relatively high concentration of clients.
Specifically, Changan Automobile, Li Auto, and Hozon New Energy Automobile Co., Ltd. (hereinafter referred to as 'Neta') were Etac’s top five clients during the reporting period.
Moreover, according to the response to the first round of inquiries on October 15, 2025, the proportion of revenue from Etac's top five clients in 2022-2024 was 73.16%, 80.89%, and 84.38%, while the average proportion for comparable companies was 47.96%, 48.41%, and 50.84%, respectively. Etac stated that its higher revenue concentration among the top five clients was mainly due to differences in product mix and client structure.
According to East Money Choice data, as of the query date April 13, 2026, three out of four comparable companies of Etac disclosed their 2025 annual reports, with the highest proportion of revenue from the top five clients being 55.53%.
Against this backdrop, Etac’s cooperation with major clients may deserve attention.
Etac is responsible for the basic software and hardware development of intelligent control electronics products for Changan Automobile, which may have already independently developed its basic layer software.
According to the response to the first round of inquiries on October 15, 2025, the main customer revenues for Etac’s intelligent control electronic products include Chery Automobile and Client A, among others. During the periods from 2022 to 2024 and January to June 2025, Etac's revenue from intelligent control electronic products for Client A amounted to 222 million yuan, 299 million yuan, 292 million yuan, and 145 million yuan, respectively.
Upon comparison, only the revenues contributed by Chery Automobile and Changan Automobile in Etac’s top five clients exceeded the revenue generated by Client A from intelligent control electronic products.
In other words, given that both Client A and Chery Automobile are clients of intelligent control electronic products,Client A is likely the second-largest customer of Aitek, Changan Automobile。
According to the response to the first round of inquiries on October 15, 2025, Aitek's sales to Changan Automobile include products such as body domain electronics and smart cockpit domain electronics.
Meanwhile, the application layer software used in Client A’s intelligent control electronic productsis self-developed by them，while Aitek is responsible for the development of the basic layer software and hardwarewhereas for other clients, Aitek provides both the software and hardware for intelligent control electronic products. Therefore, the quotations and gross profit margin of these products provided by Aitek do not include content related to the development and testing of the application layer softwarewhich results in a relatively lower gross profit margin.
In other words, if Client A of Aitek self-develops the software and hardware for intelligent control electronic products, it may affect Aitek’s gross profit margin.
It should be noted that as the second-largest client of Aitek, Changan Automobile might gradually increase its efforts in self-developing smart cockpits.
According to Changan Automobile’s 2024 and 2025 annual reports, its main business covers vehicle R&D, manufacturing, sales, as well as engine R&D and production. Meanwhile, Changan Automobile is actively developing the three core electric technologies represented by batteries, motors, and electronic controls.Intelligent cockpit, intelligent driving, and other smart technologies。
In 2024, the first digital-intelligent new vehicle, Changan QiYuan E07, achieved mass production integration of seven major technological achievements: SDA TianShu architecture, TianShu large model, TianShu intelligent driving, TianYu OS, TianYu intelligent cockpit, TianHeng intelligent chassis, and TianYu intelligent range extension.
Moreover, in the field of intelligent software technology, relying on the self-developed Changan TianYu OS operating system, Changan TianShu large model, and full-scenario multimodal AI cockpit, Changan TianYu intelligent cockpit realizes functions such as AI voice programming and multi-intent voice vehicle control.
Furthermore, Changan Automobile's development strategy includes the intelligent 'BeiDou TianShu' plan.
Specifically, Changan Automobile plans to promote upgrades in four areas: digital-intelligent products, digital-intelligent manufacturing, digital-intelligent operations, and digital-intelligent ecosystems. In terms of digital-intelligent product upgrades, it will continue to deepen core capabilities such as 'TianShu intelligent driving,' 'TianYu intelligent cockpit,' and 'TianHeng intelligent chassis,' enabling rapid application and iteration to achieve comprehensive breakthroughs in key core technologies.
According to publicly available information, an operating system is a common type of foundational software.
This means that Changan Automobile has independently developed the foundational software 'Changan TianYu OS Operating System' and stated that it will rely on this system for continuous intelligent upgrades.
It should be noted that Changan Automobile's intelligent upgrades may gradually be promoted in new vehicles.
According to the Automotive Industry Association, citing public information from 'China Changan' on November 22, 2025, at the Guangzhou International Auto Show on November 21, 2025, Changan Automobile launched the 'TianShu Intelligence' brand. 'TianShu Intelligence' is Changan Automobile’s all-encompassing protection system built around 'driving assistance, cockpit, and chassis.' According to the plan, by 2030, Changan Automobile will have cumulatively launched over 50 all-new new energy models, all equipped with TianShu Intelligence, with overseas sales accounting for over 30%.
Clearly, Changan Automobile may have already independently developed foundational software.
Not only that, but other automakers also have instances of developing similar products in-house.
3.3 Over the past three years and the most recent period, the overall unit price of Li Auto has decreased, mainly due to Li Auto's shift to in-house development of its regional controller products starting from 2023.
According to the reply to the first round of inquiries on October 15, 2025, Etas's main business revenue from Li Auto was RMB 75.7288 million, RMB 342.1671 million, RMB 202.3799 million, and RMB 70.6672 million for the periods of 2022-2024 and January-June 2025, respectively. The revenue showed a trend of first increasing and then decreasing. The sales unit prices were RMB 119.26 per unit, RMB 94.62 per unit, RMB 42.45 per unit, and RMB 32.95 per unit, respectively.The overall unit price shows a downward trend.。
The above changes are mainly due toLi Auto gradually shifting its regional controller products to in-house development starting from 2023,with Etas’s supporting products transitioning from high-priced regional controllers to lower-priced products.
It is not difficult to see that downstream automakers’ in-house development involving Etas’s related products may not be isolated incidents.
3.4 In 2025, two emerging new energy vehicle companies recalled vehicles, and major customer Hozon Auto entered bankruptcy reorganization proceedings, with Etas fully provisioning bad debts exceeding RMB 27 million.
According to the reply to the first round of inquiries on October 15, 2025, Etas’s productsPrimarily supporting Li Auto, XPeng Motors, Leapmotor, and Hozon (Neta)and other major brands of emerging automakers.
However, new force brands such as Li Auto and XPeng Motors faced vehicle recalls in 2025.
According to public information released by the Defective Product Recall Technical Center of the State Administration for Market Regulation on September 12, 2025, Zhaoqing XPeng New Energy Investment Co., Ltd. filed a recall plan with the State Administration for Market Regulation. Starting from September 15, 2025, some XPeng P7+ vehicles produced between August 20, 2024, and April 27, 2025, totaling 47,490 units, will be recalled. In some of the vehicles within this recall range, poor contact in the steering assist motor sensor harness may cause fluctuations in the steering gear sensor signal, trigger the steering fault warning light, result in loss of steering assist, and pose safety hazards.
Additionally, according to information published by Li Auto on October 31, 2025, a fire incident involving a Li Auto MEGA 2024 model occurred in Shanghai on October 23, 2025. Li Auto filed a recall plan with the State Administration for Market Regulation. The vehicles subject to the recall were Li Auto MEGA 2024 models manufactured between February 18, 2024, and December 27, 2024, totaling 11,400 units.
In addition, one of Etage's new energy vehicle clients encountered a broken capital chain.
According to the prospectus signed on March 27, 2026, Hozon Auto experienced deteriorating operations in the second half of 2024,with a broken capital chain, leading to a complete production halt and layoffs.In June 2025, the client enteredbankruptcy reorganization.The program expects that ETAC cannot recover its receivables and has fully provided for bad debts on accounts receivable of 27.9753 million yuan.
ETAC stated that the company is a mature business model, stable operating performance, large scale, and industry-representative enterprise, meeting the main board positioning requirements stipulated in the 'Initial Public Offering Registration Management Measures' and the 'Shanghai Stock Exchange Stock Issuance Listing Review Rules.' The company operates in the midstream of the automotive electronics industry chain - the automotive electronics sector, mainly providing functional control module or centralized controller solutions based on the needs of downstream vehicle manufacturers, and integrating upstream electronic components and parts according to these solutions. The automotive electronics industry chain where the company operates is relatively complete, with upstream and downstream enterprises having formed stable cooperation habits and trading models, evolving into a mature industrial chain system with high maturity. Since its establishment, the company has always focused on the automotive electronics field, building a complete business system from product R&D design, testing validation to mass production delivery, forming a product layout covering four major functional domains: body domain, intelligent cockpit domain, power domain, and autonomous driving domain.
After years of industry cultivation, the company has strong core competitiveness in product development, technological innovation, production scale, product quality, and service response, effectively meeting the customized product development and industrialization needs of vehicle manufacturers. The company is familiar with the industrial policies, market competition landscape, and the development situation of upstream and downstream industries in its sector. Combining specific customer needs with its own resource elements and operational capabilities, the company has established long-term stable cooperative relationships with upstream domestic and international suppliers and downstream influential customers, creating a complete system and a mature model, thus forming a stable business model.
Secondly, the company's overall operating performance is stable, with a large asset scale, strong profitability, and continuous inflow of operating cash. During the reporting period, the company's operating revenues were 2.1744143 billion yuan, 3.002759 billion yuan, 3.4665584 billion yuan, and 1.521509 billion yuan, respectively; non-GAAP net profits were 77.4422 million yuan, 170.9592 million yuan, 201.8518 million yuan, and 85.6129 million yuan, respectively; net cash flow generated from operating activities was 66.7923 million yuan, 242.2654 million yuan, 254.4788 million yuan, and 365.1268 million yuan, respectively; total asset sizes at the end of each period were 2.1926228 billion yuan, 2.8307016 billion yuan, 3.2706372 billion yuan, and 3.4667521 billion yuan, respectively.
Additionally, the company holds a leading position in the industry and represents a high-quality enterprise within its sector. For a long time, key technologies and markets in the five major functional domains of vehicles have been dominated by large international automotive electronics companies such as Bosch, Denso, and Continental. As the overall technical strength of local automotive electronics enterprises continues to improve, some leading domestic automotive electronics companies represented by this company have developed self-sufficient capabilities in niche areas, gradually breaking the monopoly of large international automotive electronics vendors in core component fields. According to statistics from the Gaogong Intelligent Automotive Research Institute, the company's share of the BCM (including zone controllers) in China's domestic brand passenger car market (excluding imports and exports, hereinafter the same) was 25.50% in 2024, ranking first for three consecutive years; its share of pre-installed standard remote physical keys in China's passenger car market was 13.83%, ranking first; and its share of pre-installed standard cockpit domain and display assembly in China's domestic brand passenger car market was 6.41%, ranking third. The company’s products are supplied to well-known vehicle manufacturers and mainstream models.
Currently, the company has entered the supply systems of domestic vehicle manufacturers such as Chery Automobile, Changan Automobile, Great Wall Motors, SAIC Motor, Geely Auto, BAIC Group, Dongfeng Motor, as well as new EV makers like Li Auto, XPeng Motors, and Leapmotor. By providing automotive electronics EMS services to companies like Bosch, the products ultimately equip renowned vehicle manufacturers such as Volvo and Audi. Customer recognition also reflects the company's industry status and representativeness.
In short, while the revenue contribution from the top five clients exceeds that of peers, ETAC's key clients such as Changan Automobile and Li Auto may shift some products to in-house development. On the other hand, in 2025, both Li Auto and XPeng recalled vehicles. Additionally, in 2025, client Hozon Auto (Neta) entered bankruptcy reorganization proceedings, and ETAC anticipates that the receivables cannot be recovered, resulting in a full provision for bad debts of 27.9753 million yuan.
Fourth, Conclusion
In summary, ETAC not only supplies chip raw materials and other electronic components to WOJIN Technology but is also one of the core customers of Shenghao Technology. Notably, WOJIN Technology once planned to deregister in 2021, and in recent years, its social security contributions involved no more than three employees and multiple tax payments were not reported on time.
Furthermore, ETAC's IPO aims to raise funds for expanding the production capacity of smart cockpit domain electronics, yet in January-June 2025, the capacity utilization rate of these products was less than 60%. Additionally, regarding product capacity disclosures, there are doubts about consistency between the prospectus and environmental impact assessments. Notably, some downstream manufacturers have shifted towards self-developing related products, and behind Hozon Auto's bankruptcy restructuring, ETAC fully provided for over 27 million yuan in accounts receivable bad debts.
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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