On the last day of 2024, the Shenzhen Stock Exchange released information on the acceptance of the GEM IPO application of Suzhou System Co., Ltd. (hereinafter referred to as "United Power"), a subsidiary of Inovance Technology.

This is one of the three IPOs accepted by the Shenzhen Stock Exchange in 2024.

In addition to United Power, the Shenzhen Stock Exchange will only accept two companies, Jiangxi Liyuan Haina Technology and China Uranium Industry, in 2024.

In 2024, only 11 IPOs will be accepted by the two major exchanges in Shanghai and Shenzhen, most of which will be concentrated at the end of the year. Since November 25, 2024, the Shanghai Stock Exchange and the Shenzhen Stock Exchange have accepted 6 and 2 IPOs respectively.

The 21st Century Business Herald reporter found that a considerable number of these lucky companies have relatively strong shareholder backgrounds.

Image source: IC photo

United Power was originally a subsidiary of Inovance Technology (300124. SZ) New Energy Vehicle Division, established in 2009, is equipped with electromechanical controllers from Geely, JAC, Haima, Zotye and other OEMs.

In September 2016, the department established an independent legal person to officially engage in new energy vehicle powertrain systems, motor controllers, motors and other business types.

In 2023, United Power will launch IPO counseling, and the spin-off of Inovance Technology and the listing of United Power will initially surface.

In April 2024, Inovance announced that United Power will be listed independently as the only entity operating the electric drive system and power supply system of new energy vehicles within the listed company system. However, the parent company, Inovance, retains control of United Power and consolidates the latter.

Up to now, Inovance holds 96.09% of the shares of United Power and is the single largest shareholder of the company. The shareholding ratio of more than 90% is also the largest single-shareholder ratio of the proposed IPO project in recent years. Inovance Technology is the largest domestic supplier of servo systems, PLC/HMI and other domestic suppliers, with a market value of more than 140 billion yuan so far.

With a parent company of 100 billion yuan as a "backer", United Power's own strength is not weak, and it is already a leading provider of intelligent electric vehicle components and solutions in China.

From the perspective of market position, in 2023, United Power will become the second largest electronic control company in China after BYD with 848,000 shipments and a market share of 10.2%.

If BYD's self-supply is excluded, United Power is already the largest third-party electronic control system supplier in ChinaJudging from the situation in the first half of 2024, the share of United Power's domestic electronic control products is about 11%, ranking first among third-party suppliers; The share of drive assembly products is about 5.9%, ranking fourth; The share of motor products is about 4.7%, ranking fifth; OBC products accounted for about 4.6%, ranking eighth.

From the perspective of financial data, in 2021, 2022 and 2023, United Power will achieve operating income of 2.903 billion yuan, 5.027 billion yuan and 9.365 billion yuan respectively, and net profit attributable to the parent company of -250 million yuan, -179 million yuan and 186 million yuan respectively in the same period. In the first half of 2024, United Power achieved an operating income of 6.055 billion yuan and a net profit attributable to the parent company of 285 million yuan, and the profit has exceeded that of the whole year of 2023.

Up to now, United Power's main OEM customers include Li Auto, Guangzhou Automobile Group, Chery Automobile, Changan Automobile, Geely Group, etc.

It is worth noting that throughout the fourth quarter of 2024, all of the companies that have been accepted have strong shareholder backgrounds and relatively proud industry positions.

For example, on the same day that United Power was accepted, another IPO company accepted by the Shanghai Stock Exchange, which is also the eighth company to be accepted by the Shanghai Stock Exchange in 2024, has Sany Renewable Energy (688349. SH) and Envision Energy, a leading domestic wind power company.

According to QYResearch statistics, Delijia is the second largest wind power transmission equipment supplier in China and the third largest in the world, with a global and domestic market share of 12.77% and 20.68% respectively.

In terms of shareholding structure, Liu Jianguo and Kong Jinfeng are the actual controllers of Delijia, controlling a total of 41.98% of the company's shares; Sany Renewable Energy is the second largest shareholder of Delijia, with a shareholding ratio of 28%; Binjing Investment, a subsidiary of Envision Energy, is the third largest shareholder of Delijia, with a shareholding ratio of 15.27%. The total shareholding ratio of the two companies even exceeds that of the actual controller and his wife.

At the same time, another IPO company accepted by the Shanghai Stock Exchange in the fourth quarter of 2024 is also a spin-off listed company, Huandong Technology, which is listed by Shuanghuan Transmission (002472. SZ), holding 61.29% of the shares.

From the perspective of the company's industry status, Shuanghuan Transmission is the world's largest single gear parts manufacturing enterprise; Huandong Technology is the first and largest domestic RV reducer manufacturer incubated by the company.

The first accepted project of the Shenzhen Stock Exchange in 2024 appeared on June 20 last year, and the company is China Uranium, a subsidiary of the state-owned China National Nuclear Corporation, and the former indirectly controls 79.48% of the shares of China Uranium through China Nuclear Uranium, Asahi Nuclear Fund, China Nuclear Power, China Atomic Energy, Nuclear Chemical and Metallurgical Institute, China Nuclear Dadi and other entities.

CNNC Uranium is the largest natural uranium producer in China and one of the top 10 natural uranium producers in the world, and the Luoxin uranium mine controlled by it ranked sixth among global uranium mines in terms of output in 2022 and the second largest open-pit uranium mine in the world.

In addition to the above enterprises, BOE (000725. SZ) founder Wang Dongsheng's other company, ESWIN Materials, was also accepted by the Shanghai Stock Exchange at the end of November 2024.

From the analysis of equity structure, the IPO companies that will be accepted in 2024 tend to have a clear shareholding structure, a relatively concentrated shareholding by controlling shareholders and persons acting in concert, or a good quality of important shareholders. This is also conducive to controlling the degree of withdrawal of market funds from the company's non-reduction after the company's shares are listed and circulated.