Benefiting from the development trend of the automotive lightweight industry, Nuttig raises funds to expand production and usher in growth opportunities

Benefiting from the development trend of the automotive lightweight industry, Nuttig raises funds to expand production and usher in growth opportunities

Today, Jiangsu Newtiger Technology Co., Ltd. (hereinafter referred to as “Newtiger”) officially landed on the Growth Enterprise Market. As an auto parts supplier, Newtag has accumulated many years of experience in the production and technology of aluminum alloy and plastic lightweight parts, which conforms to the mainstream development of the automotive lightweight industry.

The IPO of Nutige intends to use the raised funds of 256 million yuan, which are mainly used for the new product development and production project of Jiangsu Meier’s aluminum casting parts, the production project of Jiangsu Meier’s annual processing of 40 million sets of auto parts and supplementary working capital.

The implementation of the IPO fundraising project will help Newtiger to further expand and increase its product line and market share in the field of aluminum alloy and plastic lightweight auto parts. At the same time, it will greatly promote the improvement of the company’s machining capacity and processing capacity, which is conducive to enhancing the company’s R&D and production capacity for complex projects, improving the technical content and added value of products, and continuously enhancing profitability.

Continue to increase R&D investment in line with the development trend of the industry

In recent years, automobile production has shown a trend of light weight and energy saving. Automobile castings are constantly being replaced by aluminum castings with lower density. Increase. Aluminum alloy castings (belonging to metal parts) and injection molded parts (belonging to plastic parts) are more and more widely used in the automotive industry.

Nuttag was established in November 2010. The company’s core business is closely related to the industry demand and development trend of passenger car lightweight. The company starts from the business of lightweight automotive suspension system components, and its main products include automotive suspension shock absorption support , Suspension system plastic parts, interior and exterior trim plastic parts and other auto parts products that adapt to the trend of automobile lightweight, energy saving and environmental protection.

Image source: Newtiger prospectus

Although my country’s automobile production and sales have declined in recent years, the business scale of Newtiger has increased year by year, which is mainly due to the extension of the company’s new business and the development of new projects in recent years. During the reporting period, from 2018 to 2020 and the first half of 2021, the business scale of Newtiger increased year by year, and the operating income was 287 million yuan, 413 million yuan, 496 million yuan and 263 million yuan respectively; net profit was 50.8564 million yuan respectively , 42.9987 million yuan, 57.4268 million yuan and 29.3586 million yuan.

From the perspective of the main business structure, automotive suspension system components are the main source of income of Newtiger, and the revenue proportion in 2018-2020 is 72.86%, 71.28%, and 61.86% respectively. The business of other auto parts products developed rapidly, from 3.44% in 2018 to 12.67% in 2020.

The increase in revenue scale is not unrelated to Nuttag’s years of accumulation in technology research and development. For a long time, the company has attached great importance to the development and improvement of innovation capabilities, and has continuously innovated and improved in production technology and product research and development. One-stop solution from mold development to product manufacturing.

It is understood that at present, Newtiger has gradually realized the process of manufacturing from customers’ drawings and samples, and has transitioned to participating in the simultaneous development of customers’ products in the early stage, providing suggestions on raw material selection, technical index parameter setting, production process feasibility demonstration, etc. In the next three years, the company will further provide customers with complete product development, new technology, new material application solutions and other products and services of the entire business chain.

During the reporting period, the research and development expenses of Newtag were 15.887 million yuan, 26.5437 million yuan, 27.1906 million yuan and 13.3723 million yuan respectively, and the research and development expense ratios were 5.53%, 6.42%, 5.49% and 5.08% respectively. As of the signing date of the prospectus, Newtiger has 7 software copyrights and 98 patents, including 4 invention patents.

Many internationally renowned clients

Relying on years of industry experience and market reputation, Nutige has cooperated with BASF, Tenneco, Mando, Showa, ZF, Kaierbi, Yanfeng Bio, Huayu Vision, Toyo Rubber and Plastics and other well-known domestic and foreign automobile manufacturers. Parts suppliers have established good business cooperation relationships, and their products are mainly used in popular models of Volkswagen, Mazda, Honda, GM, Nissan, Geely, Chery, Changan and other auto brands.

Stable and high-quality customers provide a solid market guarantee for the implementation of this fundraising project. In this IPO, Nutige invested more than half of the raised funds in new product development and production projects for aluminum casting parts. In recent years, the automotive aluminum casting parts business has developed rapidly with the trend of lightweight body. Nutige’s aluminum casting parts products have gradually extended from the field of automobile shock absorbers to the fields of aluminum castings around the powertrain, radiators and other fields . The implementation of this fundraising project will enrich Newtag’s product structure, enhance the synergy between products, and enhance the company’s overall anti-risk capability.

At the same time, the implementation of the investment project “Jiangsu Meier annual processing 40 million sets of auto parts production project” will greatly promote the improvement of the company’s machining capacity and processing capacity, and is conducive to enhancing the company’s R&D and production of complex projects. Ability to create conditions for process improvement, technological improvement and the continuous accumulation of core technologies, and realize the production capacity improvement and product line expansion of the company’s aluminum casting parts machining process.

From the perspective of research and development, in the field of aluminum alloy die-casting business, Newtiger will take ultra-low-speed die-casting, semi-solid die-casting and supporting heat treatment technology as the main process technology research and development direction in the mid-term, combined with the development of new materials such as high thermal conductivity die-casting aluminum alloy, and Give full play to its own mold manufacturing advantages, and continuously consolidate and enhance the company’s industry position in the fields of suspension systems, body brackets, radiators and other fields. At the same time, the company will use aluminum alloy additive manufacturing technology as a key long-term technical reserve to improve the company’s research and development and technical capabilities in the field of auto parts.

In the field of plastic and composite parts business, Nutige will continue to carry out technical research and development around the precision injection molding of fiber-reinforced engineering plastics and the manufacture of high-mirror interior and exterior decorative parts, and further expand dual (multi) color injection molding, high-gloss spray-free injection molding, The application of high value-added technologies such as high glass fiber and thick wall injection molding, and actively carry out the research and development of technical reserves such as optical injection molding and micro-foaming injection molding.

Nutige said that in the future, the company will continue to improve its product R&D capabilities and production process innovation capabilities, and seize the development opportunities for lightweight automobiles. On the basis of gradually expanding and increasing the product line and market share in the field of aluminum alloy and plastic lightweight auto parts, we are committed to becoming a leading domestic supplier in the field of lightweight auto parts.