Emergence of Lightweight New Energy Vehicles Driven by Dual Carbon Strategy: Shanghai Yousheng Aluminum’s Technological Innovations Gain Industry Edge

Under the dual impetus of the global “dual carbon” strategy and the electrification wave in the automotive industry, the aluminum alloy automotive parts sector is experiencing a historic development opportunity. Shanghai Yousheng Aluminum Co., Ltd. (hereinafter referred to as “Yousheng”) has established a leading position in the field of lightweight new energy vehicles through technological innovation, a diverse product portfolio, and a global layout.

In 2023, China’s new energy vehicle sales surpassed 9.495 million units, with a penetration rate exceeding 30%. Lightweighting, as a core approach to enhancing driving range, has significantly driven the aluminum alloy parts market, which has now crossed the 100 billion yuan threshold. For instance, the battery tray usage in a single new energy vehicle reaches 20-30 kg, with a unit price exceeding 4,000 yuan, creating a segmented market worth over 10 billion yuan.

Yousheng has strategically positioned itself in this market, with products such as threshold beams, battery trays, and bumpers widely used in popular models like the Tesla Model Y and NIO ES series. In 2023, revenue from the company’s new energy vehicle components accounted for 64.25% of total sales, growing by 54.54% year-on-year, well above the industry average. This structural growth reflects the company’s strategic position within the supply chain and its keen insight into market demands.

The strength of Yousheng lies in its substantial technological accumulation. The company has independently developed aluminum alloys with a fibrous microstructure, achieving a tensile strength of 391-396 MPa and a yield strength of 362-369 MPa, both significantly exceeding industry standards. In collision energy absorption tests, this material can absorb energy equivalent to eight times its own weight, providing greater safety redundancy for new energy vehicles. This technological breakthrough not only addresses the balance between strength and ductility in aluminum alloys but also promotes the application of its products in high-end vehicles.

Regarding its product portfolio, Yousheng has achieved synergistic effects through differentiated layouts. The threshold beam series occupies over 60% of the market share for the Tesla Model Y, with sales reaching 27,265 tons in 2023, up 24.4% year-on-year. The battery tray business supports leading battery manufacturers like CATL and BYD, generating an annual revenue of 666 million yuan with a gross margin of 23.36%. The bumper series has become a core supplier for the Tesla Model 3/Y, with the assembly product share increasing to 59.98%. The subframe series products are used in high-end models like GAC Aion, boasting a welding accuracy of ±0.1 mm.

In 2023, Yousheng’s sales of new energy vehicle components reached 52,756 tons, a year-on-year increase of 22.9%, benefiting from economies of scale that reduced unit costs by 3.2 percentage points.

Yousheng has also built a supply chain system covering emerging vehicle manufacturers. In 2023, the concentration of its top five customers reached 52.55%, with Tesla contributing 35.2% of its revenue. Notably, Tesla’s Shanghai factory produced 947,000 vehicles in 2023, with Yousheng providing over 70% of the supporting components, ensuring business stability through deep ties with leading clients. Furthermore, by partnering with CATL, Yousheng entered the supply chain of Li Auto, achieving 134 million yuan in battery tray sales in 2023, a remarkable 712% increase year-on-year. This “designated secondary supplier” model mitigates direct competition risks and ensures a steady stream of orders.

Yousheng’s international expansion is also yielding results. The Mexican factory, which commenced operations in 2023, has localized supply for Tesla’s North American orders, increasing its overseas revenue share to 2.74%. With the advancement of its European production base, Yousheng is gradually establishing a global capacity network, laying the groundwork for its second growth curve.

Financially, Yousheng demonstrates industry-leading profitability. In 2023, its gross margin was 23.36%, exceeding the industry average of 18.7%, with a return on equity (ROE) of 23.13%. The increasing proportion of high value-added products (assemblies comprising 48.9%) and the realization of economies of scale have pushed the per capita output value beyond 2 million yuan, which is 35% higher than the industry average.

In terms of capital expenditure, the company invested 328 million yuan in 2023 for the construction of bases in Yunnan and Chongqing. Once fully operational, these projects will add 500,000 units of battery tray capacity, raising total capacity to 1.2 million units and potentially doubling revenue over the next three years. However, short-term cash flow pressures are notable, with an operational cash flow of -253 million yuan in 2024 due to increased raw material prepayments and extended customer payment terms. Although the asset-liability ratio of 52.98% remains within a controllable range, the 1.27 billion yuan raised from the IPO will still be needed to alleviate funding pressures.

While Yousheng demonstrates strong growth potential, industry risks must also be acknowledged. These include fluctuations in raw material prices, where a 5% change in aluminum prices could impact gross margins by ±1.8 percentage points; a high customer concentration, with Tesla orders accounting for over 30%, presenting a risk of dependency on a single client; and uncertainties in the internationalization process, where initial capacity ramp-up at the Mexican factory may affect expectations.

Nevertheless, long-term development opportunities are substantial. The penetration rate of lightweighting continues to rise, with the aluminum alloy parts market projected to reach 200 billion yuan by 2025, exhibiting a compound growth rate of 25%. The benefits of technological iteration, such as integrated die-casting and CTC battery chassis technologies, could open up new market segments. From a policy perspective, the “Automotive Lightweight Development Plan” clearly requires that by 2030, the aluminum usage per vehicle exceeds 350 kg, providing policy support for the industry.

In summary, Yousheng has established a significant competitive advantage through its technological barriers, customer loyalty, and global layout. While facing short-term pressures from raw materials and cash flow, its mid to long-term growth logic remains clear. Based on comparable company valuations of 25-30 times PE, and considering a projected net profit of 405 million yuan for 2024, a reasonable market capitalization range is estimated between 10 billion and 12 billion yuan. Investors should closely monitor the pace of capacity release, the performance elasticity brought by increasing penetration rates in the new energy vehicle market, and the ongoing optimization of risk management capabilities.

At the intersection of the “dual carbon” strategy and industrial transformation, the case of Yousheng provides important insights for industry participants: only by anchoring on technological innovation and being customer-oriented can sustainable development be achieved in the lightweighting sector of new energy vehicles.