Haoneng Co., Ltd. Plans to Invest 400 Million Yuan in Differential Project; New Energy Vehicle Demand Drives Production Expansion | Announcement Speed Read

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Caixin News, March 17 — (Reporter Chen Xiaxiao) Automotive transmission system component supplier HaoNeng Co., Ltd. (603809.SH) continues to increase capacity for core new energy vehicle components.

The company announced tonight that its wholly owned subsidiary Luzhou HaoNeng Transmission Technology Co., Ltd. plans to invest 400 million yuan to build the second phase of an automotive differential assembly production base. The project will add 500,000 sets of automotive differential assemblies, 1.6 million planetary half-shaft gears, and 2 million main reduction gears, with a construction period of 35 months and an expected return on investment of 11.10%.

The announcement states that the project aims to “expand the company’s differential system capacity, add a main reduction gear production line, improve business structure and product layout, increase the value per vehicle of differential system products, and effectively support the company’s growth of core customer orders and expansion into overseas markets.” The project funding will come from the company’s own funds and bank loans, with no fundraising involved.

HaoNeng Co., Ltd. was founded in 2006, with core business in automotive parts, including synchronizers, differentials, motor shafts, and reducers. The synchronizer business holds over 30% market share domestically, and the differential business plans to reach a total capacity of 10 million assemblies by 2030. The aerospace parts segment is the company’s second growth engine, mainly providing aircraft structural parts, standard parts, and rocket valves.

According to publicly available information, the first phase of HaoNeng’s automotive differential assembly production base began construction in January 2022, with a total investment of 1.05 billion yuan. It plans to produce 5 million differential units annually, including casting lines for differential housings, machining lines, and assembly lines.

As of the end of September 2025, the first phase project was 100% complete, with a cumulative capacity utilization rate of 82.26%. The company has achieved full manufacturing capability for planetary gears, half-shaft gears, differential housings, main reduction gears, and assembly.

In terms of performance, its differential business is rapidly expanding: from 2022 to the first three quarters of 2025, revenue was 121 million yuan, 272 million yuan, 470 million yuan, and 429 million yuan, respectively. The gross profit margin turned positive from -1.90% in 2023 and increased to 9.03% in 2024.

Caixin reporters note that, besides this differential expansion, in March 2026, the company responded to the Shanghai Stock Exchange’s inquiry letter, proposing to raise no more than 1.8 billion yuan through convertible bonds to fund the “Core Components for Intelligent Manufacturing (Phase II)” project and to supplement working capital. The total investment in this fundraising project is 1.307 billion yuan, which will add production capacity for 6.08 million key precision reducer components and 2.2 million joint reducer-related products annually, mainly for new energy vehicles and intelligent robots.

From 2022 to 2025, HaoNeng’s revenue has maintained steady growth: 1.472 billion yuan, 1.946 billion yuan, and 2.36 billion yuan in 2022–2024; net profit attributable to shareholders was 211 million yuan, 182 million yuan, and 322 million yuan, respectively. In the first three quarters of 2025, the company achieved revenue of 1.895 billion yuan, up 12.25% year-over-year, and net profit of 266 million yuan, up 9.11% year-over-year.