On August 19th, Balanse (920112.BJ) is available for subscription on the Beijing Stock Exchange. The company is a high-tech enterprise specializing in the research, development, production, and sales of automotive repair, inspection, and maintenance equipment.

The company's main products include tire changers, wheel balancers, vehicle lifts, refrigerant recovery and recharge machines, pneumatic oil extractors, and other automotive maintenance equipment.

According to the prospectus, Balanse is one of the largest manufacturers in China's automotive maintenance equipment industry. Its domestic sales network covers most provinces, autonomous regions, and municipalities across the country. Products are ultimately sold to automotive 4S dealerships, auto repair and maintenance shops, and automotive manufacturers (including their affiliated 4S stores) nationwide, establishing high brand recognition in the domestic market.

In terms of client resources, Balanse's domestic customers include renowned automotive manufacturers such as BYD Company Limited, Li Auto, Great Wall Motors (including their affiliated 4S stores), major automotive maintenance chain stores like Tuhu Auto Care, Tmall Auto Care, and JD Auto Care, as well as well-known oil companies including PetroChina, Mobil, and Shell. The company's products are exported to over 100 countries and regions across Europe, South America, North America, Africa, and other parts of Asia, accumulating rich and high-quality customer resources.

Notably, Balanse is currently certified as a high-tech enterprise and recognized as a Shanghai "specialized and innovative" small and medium-sized enterprise. The company also serves as vice-chairman of the China Automotive Maintenance Industry Association, vice-chairman of the China Automotive Maintenance Equipment Industry Association, and vice-chairman of the Shanghai Federation of Industry and Commerce Automotive Maintenance and Repair Equipment Chamber of Commerce.

A subsidiary participated in drafting the national transportation industry standard "Automotive Vehicle Lifts" (JT/T 155—2021) released by China's Ministry of Transport in February 2021. In March 2025, Balanse received the "Top 30 Chinese Auto Maintenance Equipment Manufacturers of 2024" honor from the China Automotive Maintenance Equipment Industry Association.

Regarding revenue, from 2022 to 2024, Balanse's total operating revenue was 643 million yuan, 794 million yuan, and 1.057 billion yuan respectively, with net profit attributable to shareholders of 30 million yuan, 81 million yuan, and 129 million yuan respectively. Both total operating revenue and net profit showed upward trends over the three years. The company's comprehensive gross profit margins were 23.62%, 27.04%, and 28.55% respectively, maintaining an overall growth trend.

However, despite establishing partnerships with numerous renowned automotive companies, Balanse acknowledges in its prospectus the risks associated with OEM sales models. The company notes that overseas sales primarily follow an OEM model, with foreign customers mainly being local automotive maintenance equipment brand companies. Under the OEM model, the company cannot use its own brand, and end users cannot directly access the company's product information.

Balanse states that if major OEM clients experience significant revenue declines, poor operations, or if the company fails to meet major clients' product development or quality requirements, or if other strong competitors emerge, leading to reduced cooperation or declining orders from major OEM clients, the company will face risks of business performance fluctuations or even significant performance declines due to changes in major client demand.

Additionally, the prospectus shows that from 2022 to 2024, Balanse's overseas sales revenue accounted for 75.91%, 74.06%, and 75.59% of current main business revenue respectively, with overseas sales primarily settled in US dollars. During the same period, the company's foreign exchange gains were 1.6535 million yuan, 1.2345 million yuan, and 5.2161 million yuan respectively.

Balanse points out that if the Chinese yuan appreciates significantly against the US dollar in the future, the competitiveness of the company's exported products will decline while generating foreign exchange losses, thereby adversely affecting the company's operating performance.

(Disclaimer: Article content is for reference only and does not constitute investment advice. Investors operate at their own risk.)