Author: Wang Xinyi, Researcher at iqhcj

Editor: Xu Hui

Aisidi Industrial Technology Co., Ltd. (hereinafter referred to as ASTD) is planning to go public on the Beijing Stock Exchange, with Zheshang Securities as its sponsor. Prior to this issuance, the company's total share capital stands at 51 million shares. It intends to publicly issue no more than 17 million shares to qualified investors (excluding the over-allotment option), representing no more than 25% of the total share capital post-issuance. Additionally, the shares held by public shareholders after the issuance must constitute no less than 25% of the total share capital. ASTD plans to allocate RMB 210 million from the proceeds for expanding the production capacity of lightweight automotive components and upgrading smart manufacturing. The undistributed profits at the end of each reporting period amounted to RMB 219.4 million, RMB 263.3 million, and RMB 316.7 million, respectively. The changes in the undistributed profit balance were mainly influenced by factors such as current net profit, statutory surplus reserve extraction, and cash dividends.

ASTD's principal controller owns 40% of the voting rights, with the IPO review session postponed indefinitely. The company's revenue and net profit growth are declining, with an anticipated decrease in net profit and gross margin in the first half of the year, falling below the industry average. There is also a high concentration of suppliers and customers, along with elevated accounts receivable and inventory levels. ASTD Wuhu has also faced penalties.

Principal Controller Owns 40% of Voting Rights, IPO Review Session Postponed Indefinitely

ASTD was founded on August 1, 2017, and completed its shareholding restructuring on February 8, 2022. On August 22, 2024, the company's shares were listed and publicly traded on the Innovation Layer of the National Equities Exchange and Quotations.

As of the prospectus signing date, Tianjin Hongxing directly holds 32.35% of ASTD's shares and is the controlling shareholder. The company's chairman, Ding Zhengdong, directly owns 8.66% of ASTD's shares and, as the executive partner of Tianjin Hongxing, indirectly controls 32.35% of the company's voting rights through Tianjin Hongxing. Consequently, Ding Zhengdong controls a total of 41.01% of the company's voting rights, enabling him to significantly influence the resolutions of the company's general meetings, making him the actual controller. Mr. Ding Zhengdong, born in July 1967, holds a bachelor's degree in Mechanical Engineering from Tsinghua University and an EMBA degree from the China Europe International Business School. At 59 years old, he is nearing retirement.

iqhcj noted that during the company's historical development, shareholders such as Ding Zhengdong, Yang Yuanzong, and Sun Yiding had equity stakes held on their behalf. Ding Zhengdong borrowed funds from individuals like Zhu Jia to establish Hezhou Hongshi and increase his shareholding in the company. Yang Yuanzong, a company director, is currently the largest contributor to Tianjin Hongxing and previously served as its executive partner.

As of the prospectus signing date, Zhejiang Silk Road holds 4.96% of ASTD's shares, and the actual controller of the sponsor (Zheshang Securities), Zhejiang Communications Investment Group Co., Ltd., directly and indirectly holds a total of 19.90% of Zhejiang Silk Road's shares.

In early 2023, ASTD assisted its external supplier, Tianjin Huaqing Auto Parts Co., Ltd., in bank financing and fund turnover, with a total related fund transaction amounting to RMB 5 million.

As of September 12, 2026, the latest update on ASTD's IPO indicates that the 73rd deliberation meeting of the 2026 Listing Committee of the Beijing Stock Exchange, originally scheduled for the morning of August 6, 2026, has been postponed. The deliberation raised concerns about the accuracy of identifying the actual controller, former shareholders holding over 5% of the shares, directors, and senior management's related party relationships during the historical evolution and subsequent capital increases and old share transfers, as well as potential benefit arrangements, clarity of the company's shareholding, and the presence of equity stakes held on behalf of others. Additionally, concerns were raised about fund transactions with major suppliers, potential benefit transfers and external fund cycles, as well as the accuracy of revenue recognition under the consignment sales model and the soundness of internal control procedures.

Revenue and Net Profit Growth Decline, with an Expected Drop in Net Profit and Gross Margin in the First Half of the Year

ASTD primarily engages in the research, development, production, and sales of aluminum alloy components for automotive lightweight applications. Its main products include key precision aluminum alloy components for electric drive systems, electronic control systems, power systems, transmission systems, thermal management systems, body systems, and chassis systems of new energy and traditional fuel vehicles. These products are widely used in new energy vehicles, traditional fuel vehicles, off-road vehicles, and other industries. From 2023 to 2025, the company's operating revenue was RMB 566.8 million, RMB 739.3 million, and RMB 827.6 million, respectively, with net profits of RMB 43.556 million, RMB 55.4008 million, and RMB 63.8592 million. Revenue growth rates were 30.43% and 11.94%, while net profit growth rates were 27.19% and 15.27%, indicating a declining trend in both revenue and net profit growth during the reporting period.

The company anticipates its operating revenue for January-June 2026 to be approximately RMB 410.9 million to RMB 454.1 million, representing a year-on-year increase of approximately 8.35% to 19.75%. Net profit attributable to the parent company's owners is expected to be approximately RMB 27.0227 million to RMB 29.8672 million, representing a year-on-year decrease of approximately 1.97% to 11.30%. Net profit attributable to the parent company's owners after deducting non-recurring items is expected to be approximately RMB 25.2654 million to RMB 27.9250 million, representing a year-on-year change of approximately -4.67% to 5.37%.

During the reporting period, ASTD's overseas sales revenue was RMB 252.1 million, RMB 254.2 million, and RMB 250.7 million, accounting for 45.36%, 34.92%, and 30.84% of the main business revenue, respectively, showing a declining trend. The company's overseas sales are mainly concentrated in Europe and North America, with sales revenue to the United States being RMB 146.7 million, RMB 167.2 million, and RMB 164.8 million, accounting for 25.88%, 22.62%, and 19.91% of the operating revenue, respectively.

Since the escalation of Sino-U.S. trade frictions in 2018, most products exported by ASTD to the United States have been subject to a 25% tariff increase by the U.S. side. However, the increased tariff costs have been primarily absorbed through customer undertakings or compensation methods. Meanwhile, the current international trade environment shows a significant trend of 'deglobalization,' with increased policy uncertainty. For example, U.S. tariff policies have undergone several changes. As of the prospectus signing date, the main tariffs imposed by the United States on the company's products include a basic tariff + Section 232 tariff (25%).

During the reporting period, the average unit price of ASTD's aluminum alloy component products showed a declining trend due to changes in order structure, with a 9.04% decrease in 2024 compared to 2023.

During the reporting period, ASTD's revenue from traditional fuel vehicle products was RMB 324.7 million, RMB 366.2 million, and RMB 363 million, respectively, but the proportion of main business revenue decreased from 58.44%, 50.31%, to 45.21% in each period. Revenue from new energy vehicle products was RMB 129.5 million, RMB 253.2 million, and RMB 339.4 million, respectively, accounting for 23.31%, 34.78%, and 42.28%, showing a continuous and rapid increase. Revenue from off-road vehicles and other products was RMB 84.0544 million, RMB 91.2542 million, and RMB 100.4 million, respectively, showing an increasing trend, but the proportions were 15.13%, 12.54%, and 12.51%, respectively, showing a year-by-year decline.

During the reporting period, ASTD's revenue from new energy vehicle component business grew rapidly, with an increasing proportion of revenue from the domestic market. However, the domestic new energy vehicle market is highly competitive, with overall pressure on component product pricing. Affected by competitive pricing for key new projects, customer bargaining requirements for mass-produced products, and changes in raw material prices, the company's gross margin showed a certain decline. During the reporting period, the company's gross margins were 21.77%, 18.97%, and 17.47%, respectively, while the average gross margins of comparable companies in the industry were 21.83%, 20.44%, and 19.94%, respectively.

In recent years, competition in the downstream automotive industry has intensified, with some new energy vehicle manufacturers experiencing operational difficulties, production shutdowns, and other risks, accelerating the pace of market elimination in the new energy vehicle sector. Since 2023, against the backdrop of reduced new energy subsidies, a large number of automakers have announced price reductions, and this trend has spread to traditional fuel vehicle manufacturers. Increased competition in the downstream market will also lead to stricter annual price reduction requirements from vehicle manufacturers for upstream component suppliers.

High Supplier and Customer Concentration

During the reporting period, procurement amounts from ASTD's top five suppliers accounted for 72.56%, 75.39%, and 77.74% of the total procurement of raw materials (including outsourced processing) for the respective periods, indicating a high concentration. Among them, procurement from the largest supplier, Lizhong Group, accounted for 64.98%, 58.39%, and 41.07%, respectively, showing a high supplier concentration. However, the company does not heavily rely on major suppliers.

Comparing 2024 and 2025, the company's procurement amount from Lizhong Group, the largest supplier, decreased from RMB 228.2 million in 2024 to RMB 184.7 million, while procurement from Shunbo Aluminum Alloy increased from RMB 17.4688 million to RMB 74.2909 million, and procurement from Anhui Hongjin Material Technology Co., Ltd. increased from RMB 18.7501 million to RMB 50.5487 million. Although there are numerous domestic aluminum alloy material suppliers, the company's major suppliers are relatively concentrated due to considerations of product quality and supply stability.

Tianjin Tasong Aluminum Co., Ltd., one of the newly added top five suppliers during the reporting period, has been subject to environmental penalties in 2018, 2020, and 2023, according to publicly available environmental protection data.

During the reporting period, sales revenue from ASTD's top five customers accounted for 85.91%, 78.56%, and 78.10% of the company's operating revenue, respectively. Revenue from Great Wall Motors, the largest customer, accounted for 35.64%, 35.73%, and 41.29%, respectively. Among the main customers for power system products, sales to Great Wall Motors were RMB 170.2 million, RMB 237.7 million, and RMB 281 million in each period, making it the company's largest customer for this type of product.

BYD entered the list of major customers for power system products starting in 2024, with sales amounting to RMB 91.1372 million in 2024 and decreasing to RMB 57.3908 million in 2025, representing a year-on-year decrease of approximately 24% in 2025 compared to 2024. However, BYD remained the second-largest customer for power system products. BAIC Power, as a long-term cooperative customer, saw steady progress in its power system business cooperation during the reporting period, with sales of RMB 7.8184 million, RMB 20.7524 million, and RMB 53.8827 million in each period, showing rapid growth.

Among the main customers for emission system products, BorgWarner was the company's exclusive core customer in this field, with sales of RMB 122.4 million, RMB 97.2699 million, and RMB 90.8255 million in each period. The slight decrease in sales was mainly due to adjustments in the vehicle models of BorgWarner's downstream automaker customers. Among the main customers for three-electric system products, the company further expanded its business cooperation with Great Wall Motors and BYD in this field, in addition to its existing customers, BorgWarner and Jingjin Electric.

Elevated Accounts Receivable and Inventory Levels, with ASTD Wuhu Having Been Penalized

At the end of each reporting period, ASTD's accounts receivable balances were RMB 162.6 million, RMB 272.1 million, and RMB 238.2 million, accounting for 28.69%, 36.81%, and 28.78% of the operating revenue for each period, respectively. The significant increase in the proportion at the end of 2024 was mainly due to higher revenue in the second half of the year. One of the company's major customers, BYD, uses 'Di Chain' for payment, which the company accounts for in accounts receivable.

The book balances of inventory at the end of each reporting period were RMB 91 million, RMB 99.9548 million, and RMB 99.1863 million, respectively. The company's inventory mainly consists of raw materials, work-in-progress, and finished goods.