【Reprint】Bangde, a well-known company in the field of automotive aftermarket condensers, was approved for registration and issuance

(SSE China Securities News) Bangde has announced that the company has been approved by the China Securities Regulatory Commission to register a public offering of shares to unspecified qualified investors. The company announced its conversion of track in November 2021, applied to Shandong Securities Regulatory Bureau about changing the first issue board of counseling filing, and formally entered the counseling period for listing on the Beijing Stock Exchange. The filing was accepted on December 31, 2021, passed on April 11, 2022, submitted to the CSRC on April 28, and was approved on May 9.

According to the prospectus, Bangde is a high-tech enterprise focusing on the R&D, production, and sales of heat exchanger-related products. The company's main products include parallel flow condensers, parallel flow oil coolers and other series, covering more than two thousand types of product models, which are widely used in automotive cooling systems and other heat exchange fields, with its products applied in brands like DS, GMC, Jeep, Mini Cooper, Ram, Smart, BMW, Audi, Tesla, Hyundai and so on. Its products are mainly for middle and high-end users, and it enjoys a good reputation in the industry for stable quality, timely delivery and abundant models. Bangde has grown into a well-known enterprise in the field of condensers in the global automotive aftermarket. The current project includes a heat exchanger digital production project (Phase I), which will add 1.4 million units per year of heat exchanger production capacity, including 1.18 million units per year of condenser and 220,000 units per year of oil cooler.

Financial data show that the company achieved operating revenue of 231 million yuan in 2021, up 49.05% year-on-year, and its net profit attributable to equity reached 36.4052 million yuan. The company's main business revenue majorly comes from foreign countries, such as the United States, Canada, and Europe. Data show that foreign sales revenue accounted for 90.53%, 94.09%, 87.30%, 87.26%, respectively in recent years. It is worth noting that, due to various factors, the company has taken the initiative to reduce the percentage of sales in the U.S. market, and the regional structure of foreign sales is also changing, with the revenue share of North American market decreasing from the highest 76.42% in 2019 to 59.16% in 2021; European market and Asian market increasing from the lowest 11.84% and 5.38% in 2019 to 19.58% and 7.82%. In addition, the company is also continuously strengthening the expansion and construction of domestic sales channels, which lead the domestic sales ratio to increase.

In terms of technology and model innovation, the company has always insisted on making technological innovation and model innovation the priority of enterprise development, focusing on the construction of R&D system while combining theory and practice, as well as the gradual construction of informationization and smart factory, establishing a perfect internal R&D system, and building technical cooperation with Harbin Institute of Technology (Weihai). Distinguished from original technology and original product innovation in emerging technology industries such as information and communication, Bangde focuses on a diversified innovation strategy of technological innovation, represented by product design innovation, mold tooling renovation and upgrade, and model innovation which is represented by a fully integrated R&D system and information-driven lean management system. As of February 28, 2022, the company has 40 utility model patents, and all the company's products have passed ISO9001 quality management system certification and IATF16949 quality system certification.

The company expressed that with the continuous improvement of production capacity and stable growth of downstream demand, the company has entered a phase of regular and steady growth, and is able to achieve a product development speed of "one new product model per day", forming an outstanding and competitive advantage, and a strong comprehensive anti-risk capability in the field of heat exchangers in the automotive aftermarket. At the same time, the company also said that in this development stage, expanding production capacity is one of the development priorities. To cope with the increasingly prominent capacity bottlenecks, Bangde has eliminated old equipment, customized automated production lines, optimized production processes, and expanded production areas so as to continuously improve production capacity. The Company replaced equipment for old brazing furnaces and updated the supporting automated production line in early 2019, and began the construction of the heat exchanger digital production project (Phase I.) In early 2020 and the second half of 2021, Bangde continued to increase its production capacity by continuously optimizing the traditional process for brazing furnaces. The heat exchanger digital production project (Phase I) included in this investment project adds a 1.4 million units/year of heat exchanger capacity, including 1.18 million units/year of condenser capacity and 220,000 units/year of oil cooler capacity, which can effectively solve the capacity problems encountered by the company at the current development stage.

Source：Shanghai Securities News · China Securities Network

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