Good News on Listing | Frost & Sullivan Assists Ningbo Junsheng Electronics Co., Ltd. in Successfully Going Public in Hong Kong (0699.HK)

Ningbo Junsheng Electronics Co., Ltd. (hereinafter referred to as 'Junsheng') successfully listed on November 6, 2025. The company plans to issue 155,100,000 shares, of which 139,590,000 shares will be issued internationally and 15,510,000 shares will be issued in Hong Kong. The issue price per share is HK$22, raising a net amount of approximately HK$3.41 billion.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support and highlight the issuer's competitive advantages, assisting the issuer, investment banks and other intermediaries in completing the writing of relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business and other important chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data (statistical data as of September 30, 2025), from January to September 2025, as well as during the past 12 and 36 months, Frost & Sullivan provided listing industry advisory services to 47 (market share 72%), 62 (market share 69%), and 162 (market share 70%) Hong Kong-listed IPOs respectively, ranking first in terms of number. It has a wealth of industry experience and communication experience with regulatory authorities, exchanges, investment and financing institutions, and various related agencies.

• The company is a global leader in intelligent automotive technology solutions, possessing a series of first-mover advantages;

   

• The company is one of the first in the industry to achieve mass production of 800V high-voltage platforms and 5G-V2X intelligent networking technologies;

   

• The company has built a collaborative platform based on the entire supply chain and has made arrangements in major global automotive markets to achieve optimal resource allocation;

   

• The company has achieved in-depth vertical integration of software and hardware, with a comprehensive product matrix and strong collaborative potential;

   

• The company has a management team with rich industry experience, and possesses extensive professional knowledge in market, technology, and R&D.

According to the Frost & Sullivan report, the company:

• In terms of revenue, the company ranks second among global and Chinese automotive passive safety industry suppliers in 2024;

   

• Ranked second in the global steering wheel industry supplier market by revenue in 2024;

   

• Ranked second among global seat belt industry suppliers by revenue in 2024;

   

• Ranked third among global airbag industry suppliers by revenue in 2024;

   

• In terms of revenue, among the top five global and Chinese intelligent cockpit domain controllers in 2024, the company ranked fourth and second respectively.

The global automotive industry is moving towards a smarter, safer, and more environmentally friendly future

The automotive industry, after decades of development, has entered a mature phase. Due to supply chain disruptions and weakened demand during the COVID-19 pandemic, global automobile sales declined in 2020 and 2022. At the same time, with increased promotion of environmental sustainability, fuel vehicles are gradually being replaced by more energy-efficient and environmentally friendly new energy vehicles. With the continuous growth of new energy vehicles and the recovery of the automotive industry after the pandemic, global automobile sales rebounded in 2023 and reached 92.4 million vehicles in 2024. China accounted for 32.5% of global sales in 2024, becoming the world's largest automotive market, followed by Europe and the United States. With the continuous trend towards electrification and the integration of advanced technologies, the automotive industry is currently undergoing significant transformation. The advancement of automotive intelligent technology is leading the automotive industry towards the vision of an 'augmented living space.' Global automobile sales are expected to reach 1.215 billion vehicles by 2029, with a compound annual growth rate of about 5.4% starting from 2025. Driven by advancements in electrification technology and a large domestic market, China is expected to continue maintaining its position as the global leader in automobile sales, with a market share of about 34.3% by 2029, followed by Europe and the United States.

Data source: China Association of Automobile Manufacturers, Frost & Sullivan report and interviews with industry experts by Frost & Sullivan

The rapid development of new energy vehicles and their continuous increase in penetration rate are key factors leading to a significant difference in the compound annual growth rates between the entire automotive industry and the new energy vehicle sector. As the global trend towards environmentally sustainable development intensifies, fuel vehicles are gradually being replaced by more energy-efficient, environmentally friendly, and economically viable alternative models. Driven by government incentives, stricter emission regulations, and consumers' increasing demand for smarter and more efficient cars, the new energy vehicle market is experiencing explosive growth. Global sales of new energy vehicles increased from 3.2 million units in 2020 to 19 million units in 2024, with a compound annual growth rate of 56.5%. It is expected that they will increase from 23.4 million units in 2025 to 40.7 million units in 2029, with a compound annual growth rate of 14.9%. At the same time, the sales volume of fuel vehicles decreased slightly from 73.5 million units in 2020 to 73.4 million units in 2024, and then increased to 80.8 million units in 2029. Although the new energy vehicle industry is expected to maintain strong growth, the difference in compound annual growth rates between the overall automotive market and the new energy vehicle industry indicates that new energy vehicles are driving rapid popularization and transformation of the industry, signaling that it is an established trend that new energy vehicles will replace fuel vehicles in the foreseeable future.

With the advancement of battery technology, the widespread development of charging and swapping infrastructure, and increasing consumer acceptance, it is expected that the market penetration rate of new energy vehicles (including pure electric vehicles and hybrid vehicles) globally will increase in the next few years. In terms of sales volume, China will have the largest new energy vehicle market in the world in 2024, with a total sales volume of 12.9 million vehicles, accounting for 67.8% of global sales, followed by Europe and the United States. Looking ahead, by 2029, China will still be the largest new energy vehicle market in terms of sales volume, followed by Europe and the United States. Although the penetration rate of new energy vehicles in Europe and the United States has not met expectations, it is expected that this will continue to steadily increase over time.

The trend towards electrification of vehicles is driving the development of intelligent technologies in multiple aspects. The electronic and electrical architecture of new energy vehicles has a higher degree of integration and scalability, supporting more electronic devices and sensors. This not only lays a solid foundation for realizing intelligent functions but also provides a more flexible architecture and a more stable energy supply for the integration of automotive intelligent systems. In addition, electrification can also improve the vehicle's response speed, control accuracy, and computing power, making intelligent decision-making processes more efficient and accurate. This further accelerates the development of automotive intelligence and enhances overall performance and user experience.

Data source: China Association of Automobile Manufacturers, Frost & Sullivan report and interviews with industry experts by Frost & Sullivan

Automotive parts refer to the individual components and systems that make up a car, which work together to ensure the car's performance, safety, and functionality. The following diagram illustrates the representative automotive parts included in the main areas of the automobile:

Source: Frost & Sullivan report

The automotive parts industry chain is a comprehensive system that encompasses upstream raw material suppliers, midstream automotive parts suppliers, and downstream automakers. Upstream raw material suppliers provide important inputs such as metals, plastics, and electronic components. The midstream mainly consists of automotive parts suppliers, among which the role of intelligent automotive technology solution providers is becoming increasingly important in order to meet the growing demand for automotive electrification and intelligence. The innovation of these solution providers not only enhances the functionality and efficiency of automobiles but also achieves seamless integration of advanced intelligent technologies. Downstream automakers integrate these high-tech parts into the final automobile production, which accelerates technological progress and strengthens their market competitive advantage.

As market competition intensifies, automakers are shifting their strategy from emphasizing full-stack capabilities to prioritizing cost and efficiency. At the same time, automakers (especially smart car manufacturers) are gradually delegating development and manufacturing responsibilities to auto parts suppliers. This transformation not only improves cost-effectiveness but also provides high-quality customized solutions. Moreover, with the increasing demand for intelligent, connected, and electric vehicles, cooperation between automakers and auto parts suppliers will deepen and focus more on advanced technologies such as intelligent assisted driving, AI-powered systems, and integrated platforms. In the highly competitive Chinese automotive market, local suppliers with expertise in automotive intelligence have become key partners for both domestic and foreign automakers, providing deep market insights and flexible responses to changing needs. By jointly developing solutions tailored to China's unique needs, these partnership relationships drive intelligent transformation and benefit from common development.

For a long time, automotive safety has been a key issue in the automotive industry. With the advancement of new technologies and the strengthening of safety standards, the safety performance of modern automobiles has become increasingly advanced and comprehensive. Automotive safety is usually divided into the following two categories:

• Passive safety: The main function of passive safety is to protect drivers and passengers in the event of an accident, reducing the degree of injury caused by collisions. The main components of passive safety include the steering wheel, seat belts, and airbags.

   

• Active safety: The aim of active safety is to prevent accidents by intervening at critical moments before they occur. It assists drivers by reducing human errors, reminding them of potential dangers, and prompting them to take corrective measures.

Active safety aims to prevent accidents by intervening at critical moments before they occur. It assists drivers by reducing human errors, reminding them of potential dangers, and prompting them to take corrective measures.

The market scale of the global automotive passive safety industry increased from RMB 120 billion in 2020 to RMB 1602 billion in 2024. Looking ahead, with the continuous strengthening of safety standards and automakers' increasing emphasis on automotive safety performance, the market is expected to maintain stable growth. It is projected that the market scale of the global automotive passive safety industry will grow to RMB 2136 billion by 2029, with a compound annual growth rate of 5.4% starting from 2025.

The market scale of China's automotive passive safety industry increased from RMB 26.7 billion in 2020 to RMB 34.5 billion in 2024. It is expected that the market scale will reach RMB 49.7 billion by 2029, with a compound annual growth rate of 7.8% starting from 2025.

Data source: China Association of Automobile Manufacturers, Frost & Sullivan report and interviews with industry experts by Frost & Sullivan

In 2024, by revenue, the global market sizes for steering wheels, airbags, and seat belts were RMB 277 billion, RMB 810 billion, and RMB 515 billion respectively, accounting for 17.3%, 50.5%, and 32.1% of the global automotive safety market total. It is estimated that by 2029, global revenue from steering wheels, airbags, and seat belts will reach RMB 337 billion, RMB 1130 billion, and RMB 669 billion respectively.

Data source: China Association of Automobile Manufacturers, Frost & Sullivan report and interviews with industry experts by Frost & Sullivan

In 2024, by revenue, the market scale of steering wheels, airbags, and seat belts in China was RMB 69 billion, RMB 155 billion, and RMB 121 billion, respectively, with market shares of 20.1%, 44.9%, and 35.1%. It is estimated that by 2029, the market revenue for steering wheels, airbags, and seat belts in China will reach RMB 87 billion, RMB 249 billion, and RMB 161 billion, respectively.

Data source: China Association of Automobile Manufacturers, Frost & Sullivan report, and interviews with industry experts by Frost & Sullivan.

● With the development of intelligentization in the automotive industry, safety standards are continuously being upgraded

With the improvement of automotive safety standards in various countries and regions around the world, as well as the continuous development of automotive intelligence, the pace of technological upgrading in the automotive safety industry is accelerating.

In terms of automotive active safety, the European Union and China have mandated the installation of systems such as Driver Monitoring Systems (DMS). Since July 2022, the EU has required new vehicles to be equipped with DMS, while China has implemented mandatory DMS requirements for several commercial vehicles. In October 2022, it issued the national standard 'Performance Requirements and Test Methods for Driver Attention Monitoring Systems (GB/T 41797-2022)'.

In terms of automotive passive safety, with the introduction of regulatory requirements and industry standards, the number of airbags per car has gradually increased. Developed countries and regions such as Europe, the United States, and Japan have implemented mandatory regulations for installing front-seat airbags in cars since 1991, 1993, and 1998, respectively. In recent years, a series of regulations aimed at improving automotive safety measures have been continuously issued, focusing on protecting both drivers and passengers. For example, the revised General Safety Regulation (GSR) enacted by the European Union in 2019 and came into effect in 2022 stipulates that all new cars must be equipped with advanced safety features, including powerful side collision protection and occupant detection systems. Although there is no clear mandate to increase airbags, increasingly stringent crash test standards (such as the updated European NCAP regulations) have prompted vehicle manufacturers to install more airbags (such as side, curtain, or front seat center airbags) to meet regulations. In 2023, the National Highway Traffic Safety Administration (NHTSA) of the United States issued an advance notice (ANPRM) proposing to develop regulations for side collision protection. The regulation suggests updating Federal Motor Vehicle Safety Standard (FMVSS) No. 214 to address the issue of oblique side impacts and enhance protection for rear occupants. This may lead to provisions for increasing side or curtain airbags or strengthening the coverage of airbags. In China, with the continuous update of the "Technical Conditions for the Operation Safety of Motor Vehicles (GB 7258)", the requirements for vehicle collision safety performance are becoming increasingly strict, especially for side and frontal collision test standards. In addition, a series of standards have been issued in recent years to further strengthen vehicle safety requirements, including "Occupant Protection in Frontal Collisions of Motor Vehicles (GB 11551-2014)", "Occupant Protection in Side Collisions of Motor Vehicles (GB 20071-202X)", "Safety Requirements for Rear Collisions of Passenger Vehicles (GB 20072-202X)", "Technical Requirements for Occupant Protection in Frontal Airbag Debris (GB/T 37437-2019)", "Methods and Requirements for Misoperation Tests of Automotive Airbag Systems (GB/T 37474-2019)", and "Standards Related to Automotive Side and Curtain Airbags (GB/T 38795-2020)". Moreover, automotive safety has become a key factor in shaping brand image. Manufacturers are developing airbags that can protect multiple parts of the body, including the head, chest, neck, legs, and knees. Rear side, knee, and curtain airbags are becoming increasingly common. In addition, intelligent steering wheels and electronic seat belts will improve vehicle safety, thereby driving market growth.

● Technological advancements in the global passive vehicle safety industry

Technological innovation is the main trend driving the development of the global passive vehicle safety industry, capable of promoting more advanced and efficient protection. A significant advancement is the diversification of airbag gas generator systems, including hybrid, cold air, and pyrotechnic systems, enabling airbags to deploy more accurately and reliably based on specific collision conditions. In addition, seat belt technology has also been improved, integrating electrically active pretensioners and adaptive force-limiting devices into retractors, which can activate seat belts faster in case of an accident and distribute forces more reasonably, minimizing the risk of injury. The use of new materials in safety components is also noteworthy; steering wheels now use environmentally friendly polyurethane foam materials, which not only support sustainable development but also greatly enhance impact absorption capabilities. These technological advancements collectively raise the standards of occupant protection and promote the development and innovation of the passive vehicle safety industry.

● Integration of proactive safety and intelligent driving

With the rapid development of intelligent driving technology, active safety is becoming a core focus in the automotive safety industry. As the level of automotive intelligence continues to improve, active safety can not only detect the surrounding environment in real time to help drivers avoid potential risks but also provide optimal avoidance strategies to further enhance driving safety. The deep integration of active safety with intelligent driving technology can not only provide more comprehensive safety protection for future vehicles but also drive the continuous upgrading of safety functions, making active safety an important part of a broader intelligent automotive ecosystem. This evolution will not only improve accident prevention capabilities but also promote the development of intelligent driving, setting new standards for vehicle safety.

● The development of the automotive industry and the emergence of new modes of transportation have driven innovation in automotive safety products

With the development of transportation technology, continuous innovation in automotive safety products is crucial for meeting emerging needs. For example, pedestrian safety solutions such as active engine hood lifts and pyrotechnic devices aim to reduce head impacts by raising the car's hood during collisions and comply with European Economic Commission Regulation No. 127, thereby mitigating injuries. In addition, battery protection systems for new energy vehicles, such as pyrotechnic battery circuit breakers, cut off electrical connections in case of battery overload or short circuit, protecting drivers and passengers. Furthermore, the emergence of electric vertical takeoff and landing aircraft represents a breakthrough innovation in the transportation field and poses new challenges to safety, especially in ensuring operational safety during flights. This requires transforming and upgrading existing automotive safety products, promoting technological research, regulatory frameworks, and standardization progress to meet the unique needs of air travel. These innovations collectively reflect the automotive safety industry's transition from traditional vehicle safety measures to a comprehensive, multi-dimensional safety development aimed at meeting the evolving needs of transportation technology.