On April 15, Hongxin Technology, the "first share of pure forged aluminum alloy wheels", will successfully land on the GEM and officially enter the capital market, thus opening a new chapter in the development of the enterprise.
Hongxin Technology is a high-tech enterprise that began to apply forging technology to produce automotive aluminum alloy wheels in mainland China, and this fundraising and expansion will consolidate the company's main business development and further enhance its core competitiveness. With the help of the capital market, Hongxin Technology is expected to run out of "acceleration".
The forging process is leading in the industry, and the company's development is stable and far-reaching
Deeply cultivated in the industry for many years, Hongxin Technology has gradually established the advantages of forging technology and product lightweight.
In the field of aluminum alloy wheels, Hongxin Technology can be called the leader of forging technology. Since its establishment, Hongxin Technology has been committed to the research and development, design, manufacture and sales of forged aluminum alloy wheels, and is the earliest enterprise in China to manufacture aluminum alloy wheels by forging process.
Compared with the traditional casting process, the forging process has the advantages of energy saving and environmental protection, emission reduction and consumption reduction, light weight, high strength and strong plasticity, which is the main development direction of the aluminum alloy wheel production process in the future.
At present, the domestic aluminum wheel production process is still mainly casting, but with the improvement of environmental protection requirements and the development trend of automobile lightweight, the proportion and status of forging technology in the production and application of aluminum alloy wheels in mainland China will continue to increase.
It is understood that a number of domestic automobile wheel companies based on casting technology have shifted the focus of research and development to the field of forged aluminum wheels. Hongxin Technology has accumulated rich experience in the forging process and has an absolute first-mover advantage in the production process, laying a good foundation for the company's sustainable development. From the perspective of the entire industry, Hongxin Technology's technology is very leading, constantly promoting the company's industry status and market influence.
In the field of automotive lightweight, Hongxin Technology's forged aluminum alloy wheels cover the two paths of "material upgrading" and "process innovation" of the automotive lightweight path, with excellent "lightweight" performance.
In fact, automotive lightweight technology has many advantages such as reducing vehicle fuel consumption, reducing exhaust emissions, reducing tire wear, improving mileage, improving operational flexibility and driving safety, and is an important direction for the future technological development of the global automotive industry.
With independent research and development and technological innovation, Hongxin Technology has made important technological breakthroughs in the production process of automotive forged aluminum alloy wheels and product lightweight, and seized the first-mover advantage.
Leading process technology and stable and reliable products have enabled Hongxin Technology to gain the trust and recognition of more and more customers. The company's products are exported to overseas markets, covering the United States, Australia, Canada, Japan and other countries and regions, and maintain long-term and stable cooperative relations with many high-quality customers.
Hongxin Technology, which has the advantages of core technology, has made steady progress on the road of rapid development of the automobile industry. From 2020 to 2022, Hongxin Technology achieved revenue of 617 million yuan, 947 million yuan, and 956 million yuan respectively, with an average annual compound growth rate of 24.48%, and net profit attributable to the parent company after deducting non-profits of 47.6287 million yuan, 54.3935 million yuan, and 62.9959 million yuan respectively, with an average annual compound growth rate of 15.01%.
In the future, the forged aluminum alloy wheel industry will develop with the growth of automobile consumer demand, the growth of automobile ownership, the rapid development of new energy vehicles, and the lightweight of wheel products.
Expand production to consolidate the main business and continue to enhance market competitiveness
It is understood that the funds raised by Hongxin Technology will be invested in an annual output of 1 million pieces of high-end forged automotive aluminum alloy wheel intelligent manufacturing factory and R&D center upgrade project, the investment project and the company's main business is highly compatible, will better help the main business continue to grow and develop.
Among them, the "sub-project of the intelligent manufacturing factory with an annual output of 1 million pieces of high-end forged automotive aluminum alloy wheels" is an expansion of the existing production capacity, which is conducive to enhancing the precision, automation and intelligence level of machinery and equipment and production lines, and further improving the stability of the company's product quality. After the project is put into production, the company's forged aluminum alloy wheel production capacity will be increased to 1 million pieces/year, which is conducive to improving the company's profitability and enhancing the company's core competitiveness.
The "R&D center upgrade sub-project" will focus on the research and development of new technologies, new processes and new products of automotive aluminum alloy wheels, which will help promote the upgrading of the company's existing products and technologies, further expand product categories and optimize the company's product structure. The upgrade of the R&D center will comprehensively improve the company's R&D level and provide surging power for the long-term sustainable development of Hongxin Technology.
It should be noted that the continental auto market has maintained a good trend of steady growth.
In 2023, Continental's automobile production and sales will reach 30.161 million units and 30.094 million units, respectively, a year-on-year increase of 11.6% and 12%, respectively, ranking first in the world for 15 consecutive years. Among them, NEV production and sales totaled 9.587 million units and 9.495 million units, up 35.8% and 37.9% y/y, respectively, with a market share of 31.6%.
The China Association of Automobile Manufacturers predicts that mainland car sales are expected to reach 30 million units by 2025 and possibly 40 million units by 2035. In addition, according to the "New Energy Vehicle Industry Development Plan (2021-2035)", the development of new energy vehicles is the only way for the mainland to move from a large automobile country to an automobile power. Mainland's new energy vehicles have entered a new stage of accelerated development, and there is huge room for future development.
Hongxin Technology chose to raise funds to expand production at this time, which is the right time. Hongxin Technology, which has technical advantages and market advantages, has been continuously growing and developing its main business and strengthening its R&D and innovation strength after receiving the help of the capital market, and is expected to seize more shares in the broad market space in the future.
Hongxin Technology, with lofty aspirations, will strive to build the company into the largest supplier of forged aluminum alloy wheels in the passenger car market and the main supplier in the commercial vehicle market, and strive to become a world-class professional manufacturer of forged aluminum alloy wheels for automobiles. As the first share of pure forged aluminum alloy wheels, Hongxin Technology will attract more attention and become a rising star in the capital market.