Nutech Embraces Industry Transformation with Focus on Automotive Lightweighting, Electrification, and Intelligence

Focusing on automotive lightweighting, electrification, and intelligence, Niutai Ge embraces industry transformation. In recent years, the global automotive industry has undergone significant changes driven by electrification and intelligence. Among these changes, lightweighting has become one of the core pathways for achieving energy conservation and emission reduction. As a result, companies specializing in automotive lightweighting have experienced substantial growth.

On the evening of April 17, Niutai Ge (301229.SZ), a core supplier in the automotive lightweighting sector, announced its performance report for 2024. The data revealed that in 2024, Niutai Ge achieved an operating income of 975 million yuan, marking an increase of 8.01% year-on-year, along 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 Niutai Ge went public in 2022, and the ninth consecutive year of growth since 2016. In addition to reaching new heights in total revenue, Niutai Ge’s net cash flow from operating activities for 2024 amounted to 155 million yuan, reflecting a year-on-year increase of 9.49% and an impressive 499.89% growth compared to 2022. This indicates an improved accounts receivable turnover rate and an enhanced industry position.

As a “little giant” in the wave of automotive lightweighting, the lightweighting of new energy vehicles has become a future development direction under the overarching goal of energy conservation and emission reduction. According to the China Automotive Engineering Society, the “Energy Conservation and New Energy Vehicle Technology Roadmap 2.0” outlines a target for new energy vehicles to achieve a 35% weight reduction by 2035. In the view of Niutai Ge’s Chairman, Ge Haoyong, the trend of lightweighting in the automotive industry is ongoing. Automotive lightweighting refers to technical methods aimed at reducing the overall vehicle weight while ensuring safety, strength, performance, and comfort through the optimization of materials, structures, and manufacturing processes. The core objectives are to enhance energy efficiency (reducing fuel consumption in traditional vehicles and extending the range of electric vehicles), decrease carbon emissions, and meet increasingly stringent environmental regulations. Lightweighting is not merely about reducing weight; it is about achieving a balance between performance and weight through scientific design and technological innovation.

Among various automotive lightweighting technologies, aluminum alloy lightweighting holds a significant share. Industry forecasts predict that the domestic automotive aluminum alloy lightweighting market is expected to reach 280 billion yuan by 2025 and 360 billion yuan by 2030, with a compound annual growth rate of 5.2% from 2025 to 2030. This indicates a promising growth opportunity for Niutai Ge in the future. As a key supplier in the domestic automotive lightweighting sector, Niutai Ge has achieved growth in several sub-markets in 2024, leveraging core technologies such as aluminum alloy die casting, precision injection molding, blow molding, chassis shock absorber bushing processing, and surface treatment. Notably, revenue from the “Three Electric” systems (electric motors, batteries, and electronic control systems) increased by 71.49% year-on-year, while revenue from automation and molds rose by 49.08%. Additionally, revenue from suspension and damping systems, as well as power and related systems, saw increases of 6% and 7.5%, respectively.

In 2024, Niutai Ge also made significant enhancements to its production capacity, with the completion 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. Currently, the company occupies a total area of 424 acres with a construction area exceeding 160,000 square meters. This solid foundation supports Niutai Ge’s future expansion, industrial upgrading, and business development.

Continuing to invest in research and development, Niutai Ge, formally known as Jiangsu Niutai Ge Technology Group Co., Ltd, has innovation in its genes. Since its listing, Niutai Ge has consistently increased its R&D expenditures. In 2022, R&D expenses totaled 31.79 million yuan; in 2023, this rose to 46.95 million yuan, an increase of 47.68%; and by 2024, R&D investment reached 57.07 million yuan, marking a year-on-year growth of 21.55%. Understanding the importance of talent, Niutai Ge’s workforce grew to 1,279 employees by the end of 2024, representing a year-on-year increase of 9.97%. The company has recruited a significant number of professionals in die casting, injection molding, mold making, and automation, with the technical team growing by 19%. Currently, Niutai Ge operates several provincial engineering research centers and holds 174 national patents, being recognized as a “National High-Tech Enterprise,” “National Intellectual Property Advantage Enterprise,” and “Jiangsu Province Specialized and Innovative Little Giant Enterprise.” Niutai Ge’s automotive lightweight components have been supplied to numerous companies in the industry, with rich research, development, and production experience in applications such as power, transmission, braking, steering, electric drive, batteries, thermal management, and passive safety. The company has established long-term stable partnerships with renowned automotive manufacturers, including BYD, Seres, SAIC, BMW, Mercedes-Benz, Volkswagen, Leapmotor, and NIO.

Notably, in 2024, Niutai Ge also made a strategic investment in Jiangsu Huachun New Materials Co., Ltd (holding 35% of shares), focusing on 5N high-purity aluminum materials (which have a purity of 99.999% and can replace copper-based materials in high-end conductive applications) to reduce reliance on imports of 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 built the first fully automated production line for 5N high-purity aluminum, achieving small-batch production with a purity of ≥99.999%.

For Niutai Ge, 2025 is a pivotal year for establishing a second growth curve. According to Chairman Ge Haoyong’s annual report address, Niutai Ge plans to pursue this growth through a dual approach: global expansion and investment acquisitions. In terms of global expansion, Niutai Ge 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, Niutai Ge (Hong Kong) Limited (referred to as “Hong Kong Niutai Ge”), and to establish a wholly-owned subsidiary, NTG Europe GmbH, in Germany through Hong Kong Niutai Ge. Niutai Ge envisions becoming a global leader in automotive lightweight components, with a focus on markets in China, Europe, Japan, South Korea, Southeast Asia, and North America. Establishing a company in Europe leverages the region’s importance as a major automotive market with robust technological expertise and talent resources, aligning with Niutai Ge’s business strategy and long-term development plan. Moving forward, NTG Europe will enhance collaboration with European automakers and component suppliers, striving to expand its global business.

On the investment acquisition front, Niutai Ge plans to expand through acquisitions based on its existing core business. This strategy not only responds to the national call for promoting mergers and restructuring but also aligns with Niutai Ge’s medium- to long-term development strategy. In the third quarter of 2024, Niutai Ge established an investment and acquisition team composed of experienced professionals from the financial and automotive sectors and launched Niutai Ge (Shanghai) Investment Management Co., Ltd in December 2024. The company plans to focus on automotive electrification, intelligentization, lightweighting, and related emerging industries through mergers, strategic investments, joint ventures, and other means to gradually enhance its industrial and global presence, achieving sustainable long-term development.