New Technology Group Embraces Change in Automotive Lightweighting, Electrification, and Intelligence

Focusing on automotive lightweighting, electrification, and intelligence, New Technology Group embraces industry transformation. In recent years, the global automotive industry has undergone continuous transformation driven by electrification and intelligence. Among these changes, lightweighting has emerged as a core path for achieving energy conservation and emission reduction. Consequently, companies specializing in automotive lightweighting have witnessed significant growth.

On the evening of April 17, New Technology Group (301229.SZ), a key supplier in the automotive lightweighting sector, announced its performance report for 2024. The data revealed that in 2024, New Technology Group achieved an operating revenue of 975 million yuan, marking an increase of 8.01% year-on-year, with a net profit attributable to shareholders of 53.61 million yuan. According to statistics from Tonghuashun, this marks the third consecutive year of revenue growth since New Technology Group was listed in 2022 and the ninth consecutive year of growth since 2016. In addition to reaching record total revenue, the company’s net cash flow from operating activities for 2024 reached 155 million yuan, representing a 9.49% increase from 2023 and a remarkable 499.89% increase from 2022, indicating an improved accounts receivable turnover rate and an enhanced industry position.

Amidst the wave of automotive lightweighting and the overarching goals of energy conservation and emission reduction, lightweighting for new energy vehicles has become a critical future direction. According to the China Society of Automotive Engineers, the Energy Saving and New Energy Vehicle Technology Roadmap 2.0 outlines a goal to achieve a 35% reduction in weight for new energy vehicles by 2035. Chairman Ge Haoyong believes that the trend towards lightweighting in the automotive industry is ongoing. Lightweighting refers to the use of optimized materials, structures, and manufacturing processes to reduce vehicle weight while ensuring safety, strength, performance, and comfort. The core objectives are to enhance energy efficiency (such as reducing fuel consumption in gasoline vehicles and extending the range of electric vehicles), lower carbon emissions, and comply with increasingly stringent environmental regulations. Lightweighting is not merely about reducing weight; it achieves a balance between performance and weight through scientific design and technological innovation.

Among the various lightweighting technologies, aluminum alloy lightweighting holds a significant market share. Industry forecasts predict that by 2025, the domestic market for aluminum alloy lightweighting in automobiles will reach 280 billion yuan and is expected to reach 360 billion yuan by 2030, with a compound annual growth rate of 5.2% from 2025 to 2030. This indicates that New Technology Group has ample room for future growth.

As a leading supplier in the domestic automotive lightweighting sector, New Technology Group has achieved growth in several niche markets in 2024, leveraging core technologies such as aluminum alloy die-casting, precision injection molding, blow molding, chassis shock absorber processing, and surface treatment. Notably, revenue from the three power systems (motor, battery, electronic control, and reduction gear systems) increased by 71.49% year-on-year, while revenue from automation and molds grew by 49.08%. Revenue from suspension and damping systems, as well as from power and related systems, rose by 6% and 7.5%, respectively.

In 2024, New Technology Group also saw substantial improvements in its production capacity, with the completion and commissioning of its second and third phase facilities, adding 58,000 square meters of factory space, over 18,000 square meters of warehouse space, and more than 9,000 square meters of office space. The company’s total land area now covers 424 acres, with a building area exceeding 160,000 square meters, providing a solid foundation for future expansion, industrial upgrades, and business development.

In terms of research and development, New Technology Group, officially named Jiangsu New Technology Group Co., Ltd, has innovation ingrained in its DNA. Since its listing, the company has significantly increased its R&D investments. In 2022, R&D expenses were 31.79 million yuan; this rose to 46.95 million yuan in 2023, a year-on-year increase of 47.68%, and reached 57.07 million yuan in 2024, marking a 21.55% growth. New Technology Group recognizes the importance of talent, with employee numbers reaching 1,279 at the end of 2024, a 9.97% increase. The company has recruited a significant number of professionals in die-casting, injection molding, molds, and automation, with the technical team expanding by 19%. Currently, New Technology Group hosts multiple provincial engineering research centers and has obtained 174 national patents, earning recognition as a “National High-tech Enterprise,” a “National Intellectual Property Advantage Enterprise,” and a “Jiangsu Province Specialized and New Small Giant Enterprise.”

The company’s lightweight automotive components are compatible with numerous industry players, boasting extensive R&D and production experience in areas such as power, transmission, braking, steering, electric drive, battery, thermal management, and passive safety. It has established stable long-term partnerships with renowned domestic and international automakers including BYD, Seres, SAIC, BMW, Mercedes-Benz, Volkswagen, Leap Motor, and NIO.

In a notable strategic move in 2024, New Technology Group also invested in Jiangsu Huachun New Materials Co., Ltd, acquiring a 35% stake to develop 5N high-purity aluminum materials (aluminum with a purity of 99.999%), which can replace copper-based materials in high-end conductive applications, thereby reducing dependence on imported high-end aluminum materials. 5N high-purity aluminum is recognized for its lightweight, high conductivity, thermal conductivity, and corrosion resistance, making it an ideal material for high-end fields such as new energy vehicles, energy storage, semiconductors, and aerospace. Currently, Huachun New Materials has established its first fully automated production line for 5N high-purity aluminum, achieving small-batch production with a purity of ≥99.999%.

For New Technology Group, 2025 is a crucial year for establishing a second growth curve. According to Chairman Ge Haoyong’s annual report remarks, the company will adopt a dual approach: global expansion and investment mergers and acquisitions. In terms of global expansion, New Technology Group aims to deepen cooperation with partners in Europe. In March of this year, the company announced plans to invest up to 40 million yuan in its wholly-owned subsidiary, New Technology (Hong Kong) Co., Ltd, and establish a wholly-owned subsidiary, NTG Europe GmbH, in Germany. New Technology Group envisions becoming a global leader in lightweight automotive components, focusing on markets in China, Europe, Japan, South Korea, Southeast Asia, and North America.

Establishing a presence in Europe is strategic, as it is a significant market in the global automotive industry, rich in technical expertise and talent resources in the automotive components sector, aligning with New Technology Group’s business layout and long-term development plans. In the future, NTG Europe will enhance cooperation and communication with European automotive manufacturers and parts suppliers, striving to expand its global business.

Regarding investment and mergers, New Technology Group aims to expand through acquisitions based on its existing core business, responding to national calls for promoting mergers and restructuring while aligning with its medium to long-term development strategy. In the third quarter of 2024, the company established an investment and mergers team composed of experienced professionals from the finance and automotive sectors, and in December 2024, it founded New Technology (Shanghai) Investment Management Co., Ltd. Future plans include focusing on automotive electrification, intelligence, lightweighting, and related emerging industries through mergers, strategic investments, and joint ventures to gradually improve the industrial chain layout and global positioning, achieving long-term sustainable development.