United Power Approved for IPO, Aims to Raise 48.5711 Billion Yuan

On June 12, Suzhou Huichuan United Power System Co., Ltd., commonly known as United Power, received approval for its initial public offering (IPO) on the ChiNext board. The company, a leading provider of intelligent electric vehicle components and solutions, aims to raise 48.5711 billion yuan through this offering. United Power's primary products include electric drive systems, such as electric controllers, electric motors, and integrated drive assemblies, as well as power systems like onboard chargers, DC/DC converters, and integrated power assemblies. These products are crucial components in the new energy vehicle (NEV) power system sector, positioning United Power at the core of the industry's supply chain.

United Power serves over 40 downstream vehicle manufacturers and more than 170 vehicle models, providing comprehensive power system solutions. The company's deep involvement in the NEV lifecycle includes vehicle design, power system development, production and sales, and after-sales services. In 2024, United Power is projected to ship over 4.5 million power system products, demonstrating its significant market presence and technological capabilities. The company collaborates with upstream suppliers of integrated circuits, magnetic materials, and equipment to continuously innovate in areas such as circuit design, material applications, manufacturing processes, and software algorithms. This focus on innovation aims to enhance the technological independence and strength of China's intelligent electric vehicle industry.

In the passenger vehicle sector, United Power holds a notable market share in 2024. The company's electric control products account for approximately 10.7% of the market, ranking first among third-party suppliers. Its electric motor products hold about 10.5% of the market, also ranking first among third-party suppliers. The company's drive assembly products have a market share of around 6.3%, while its onboard charger products hold about 4.5% of the market. These figures highlight United Power's competitive position in the NEV power system market.

United Power's financial performance has been robust, with revenue growing from 50.27 billion yuan in 2022 to 93.65 billion yuan in 2023, and further to 161.78 billion yuan in 2024. The company's net profit also showed significant growth, from -1.8 billion yuan in 2022 to 1.86 billion yuan in 2023, and 9.36 billion yuan in 2024. The IPO proceeds, after deducting issuance costs, will be invested in strategic projects, including the "New Energy Vehicle Core Component Production Project." This project aims to add an annual production capacity of 2.7 million electric drive systems, addressing the current high capacity utilization rate and enhancing the company's production capabilities. Additionally, the funds will support the establishment of a research and development center, further strengthening United Power's innovation and market competitiveness.