On October 24, Suzhou Huichuan United Power System Co., LTD. (hereinafter referred to as “United Power”) handled the registration of guidance in Jiangsu Securities Regulatory Bureau, and planned to issue shares for the initial public offering and listing, and the guidance institution was Guotai Junan.

It is reported that United Power is A subsidiary of A-share listed company Huichuan Technology. In August 2022, Huichuan Technology announced that based on the company’s overall strategic planning and long-term development, it intends to implement the spin-off of United Power to the domestic stock exchange.

Public information shows that United Power was originally the automotive electronics division of Huichuan Technology. In 2008, Huichuan Technology established Huichuan Automotive Electronics Division; In September 2016, United Power was established and began to independently operate the new energy auto parts business. In August 2017, the company obtained ISO26262 functional safety management system certificate and became the first electric vehicle motor controller parts supplier in China to obtain ISO26262 system certification.

At present, the main products of United Power include electric drive systems (motor, motor controller, electric drive assembly) and power supply systems (DC/DC, OBC, power supply assembly) for new energy vehicles. In terms of shareholding structure, Huichuan Technology holds 96.09% and Suzhou Lianyi Investment Management Partnership (Limited partnership) holds 3.91%.

In terms of performance, by the end of 2022, the company’s motor, electronic control, power supply and powertrain products have sold more than 2 million units, in addition, Volkswagen, Jaguar Land Rover and other car companies are the company’s customers.

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For the spin-off, Huichuan Technology said that it will make full use of the function of direct financing in the capital market, expand financing channels, further consolidate and enhance the market position, competitive advantage and brand influence of United Power, and help United Power become a world-class new energy vehicle power and power product system solution provider.

Data show that Huichuan Technology was founded in 2003, is a leading enterprise in the field of industrial automation control, the main business includes general automation (including industrial robots), smart elevators, new energy vehicles, rail transit.

As the leading brand of industrial automation in China, Huichuan Technology maintains a stable and rapid growth momentum. Data show that in the first half of 2023, in the context of China’s automation market size decreased by about 2.5% year-on-year, Huichuan technology bucked the trend to grow by about 15.52%, and the main product share ranked among the leaders. General servo system in the Chinese market share of 24.3%, ranking first; Low-voltage inverter products in the Chinese market share of 17.5%, ranking first; Small PLC products in the Chinese market share of about 15.4%, ranking second, second only to Siemens; Industrial robots (11.150, 0.04, 0.36%) products in the Chinese market share of 7.02%, ranking sixth, of which SCARA robots in the Chinese market share of 22%, ranking second, and the first domestic brand.

From the business point of view, in the first half of this year, General automation is still the main engine supporting the company’s performance growth, and the contribution of new energy vehicle business is growing rapidly.

In terms of performance, Huichuan Technology is expected to return to the mother’s net profit of 3.239 billion yuan to 3.393 billion yuan in the first three quarters of this year, an increase of 5% to 10%. It is estimated that the net profit attributable to the mother in the third quarter is 1.165 billion yuan to 1.276 billion yuan, an increase of 5% to 15% year-on-year. In addition, operating income maintained rapid growth. Among them, the new energy vehicle business grew rapidly year-on-year, the general automation business grew rapidly year-on-year, and the smart elevator business remained stable year-on-year.