Reporter Fang Chao and Zhang Jiazhen report from Shanghai

"Wind power gearbox giant" Delijia Transmission Technology (Jiangsu) Co., Ltd. (hereinafter referred to as "Delijia") is embarking on the journey of impacting the main board of the Shanghai Stock Exchange.

A few days ago, the official website of the Shanghai Stock Exchange announced that Delijia's IPO application on the main board of the Shanghai Stock Exchange was accepted, and the sponsor was Huatai United Securities. According to the prospectus, Delijia plans to raise 1.88 billion yuan, which will be used for large-scale onshore wind power gearbox projects and large-scale offshore wind power gearbox Shantou projects.

The reporter of "China Business Daily" noticed that as a leading enterprise in the industry, Delijia's core product market share in 2023 will rank second in China and third in the world. However, its IPO journey also faces many challenges, including the unusually high proportion of revenue from the top five customers, the R&D expense ratio is lower than the industry average, and the gross profit margin declines.

Regarding the slowdown in performance growth in 2023, the relevant person in charge of Delijia said in a recent reply to reporters: "The company's sales amount is growing as a whole, the operating situation is good, and there are differences in the growth rate of business in each period, which is a normal business change and no special reason." ”

Associated sales accounted for more than 50%.

According to public information, Delijia was established in 2017 and is an enterprise mainly engaged in the research and development, production and sales of high-speed and heavy-duty precision gear transmission products.

Although it has not been established for a long time, Delijia has a high market share in the wind power gearbox segment. According to QY Research statistics, in 2023, the Chinese market share of Delijia products will be 20.68%, ranking second in the country, and the global market share will be 12.77%, ranking third in the world.

The secret of Delijia's rapid development may be inseparable from the support of its major shareholders.

The reporter noted that Liu Jianguo, chairman and general manager of Delijia, and Kong Jinfeng, director, deputy general manager and secretary of the board of directors, are husband and wife, both of whom have worked in Nanjing High Precision Gear Co., Ltd. (hereinafter referred to as "NGC"), a well-known company. From March 2007 to October 2015, Mr. Liu Jianguo served as a director and deputy general manager of NGC.

After leaving NGC, in January 2017, Liu Jianguo, Kong Jinfeng and his wife joined Sany Renewable Energy (688349. SH), Jiasheng Investment jointly signed the "Articles of Association of Beijing Delijia Transmission Technology Co., Ltd.", and the parties agreed to establish the predecessor of Delijia - Beijing Delijia Transmission Technology Co., Ltd. In 2018, Delijia moved to Wuxi City, Jiangsu Province, and changed the company's name to its current name.

As of the signing date of the prospectus, Liu Jianguo and Kong Jinfeng controlled a total of 41.98% of the shares of Delijia and were the actual controllers of Delijia; Sany Renewable Energy holds 28% of the shares, making it the second largest shareholder; Binjing Investment, a subsidiary of Envision Energy, holds 15.27% of the shares, making it the third largest shareholder.

According to public information, in the 2024 list of winning bids for China's wind turbine manufacturers, Sany Renewable Energy and Envision Energy rank among the top five in the industry.

In the context that the two major shareholders are well-known wind power manufacturers in the industry, Delijia's "large customer dependence" has also attracted the attention of the industry. From 2021 to 2023 and the first half of 2024, the total sales amount of Delijia to the top five customers accounted for 91.94%, 98.86%, 95.92% and 97.89% of operating income, respectively.

"During the reporting period, the company's main customers are all domestic wind power head enterprises, and sales to the top five customers are relatively concentrated, mainly due to the fact that the company's products are currently mainly used in the field of wind power generation, and the downstream wind power manufacturing industry is highly concentrated." The relevant person in charge of Delijia told reporters.

It is worth noting that among the top five customers of Delijia, its shareholders Sany Renewable Energy and Envision Energy have made a significant contribution to the performance. The data shows that from 2021 to 2023 and the first half of 2024, the proportion of Delijia's related sales will be 74.75%, 37.39%, 45.43% and 57.72% respectively, showing a trend of first declining and then rising.

Among the shareholders who hold more than 5% of the company's shares, Sany Renewable Energy and Envision Energy are both leading enterprises in the wind power manufacturing industry. During the reporting period, the company's sale of wind power main gearboxes to it constituted a connected transaction. The relevant person in charge of Delijia replied to reporters, "Although the company's associated sales accounted for a relatively high proportion during the reporting period, with the continuous improvement of production capacity, the follow-up company's customer structure will be further enriched, and it is expected that the proportion of affiliated sales will decline in the future." ”

The R&D expense ratio is lower than the industry average

In addition to the relatively high proportion of related party transactions, Delijia also faces the risk of declining performance.

According to the data, from 2021 to 2023 and the first half of 2024, Delijia's revenue will be 1.762 billion yuan, 3.108 billion yuan, 4.442 billion yuan, and 1.372 billion yuan respectively, and the net profit attributable to the parent company will be 327 million yuan, 540 million yuan, 634 million yuan, and 235 million yuan respectively.