Author｜Gong Xingchao

Editor｜Chen Xiaoran

Suzhou Yingtemo Technology Co., Ltd. (Yingtemo), a company specializing in powertrain R&D testing, is gearing up for a listing on the ChiNext board.

Against a backdrop of booming demand for new energy testing, Yingtemo witnessed significant revenue and profit growth in 2025. However, concerns linger over its fluctuating gross margins, declining R&D expenditure, and the financial strain caused by ongoing capacity expansion during its IPO journey.

Racing for ChiNext Listing

On September 10, disclosures from the Shenzhen Stock Exchange indicated that Yingtemo's ChiNext IPO is currently progressing through the inquiry phase.

Yingtemo's IPO application was formally accepted on June 5, with its review status changing to "under inquiry" on June 24. Huatai United Securities is acting as the sponsor. The company plans to issue 43,981,797 new shares, which will constitute 25% of its total equity post-issuance.

The IPO aims to raise RMB 1 billion, with RMB 478 million earmarked for upgrading and expanding the automotive intelligent testing equipment and testing center in Changshu, RMB 340 million for constructing automotive R&D testing equipment production and base facilities in Wuhan, and RMB 182 million to bolster working capital.

The scale of the fundraising is approximately 1.5 times Yingtemo's 2025 revenue, signaling its ambitious expansion plans.

Established in 2014, Yingtemo essentially operates as a provider of "essential tools" for powertrain R&D.

The company does not manufacture complete vehicles but instead assists automakers in verifying the performance, safety, and reliability of motors, electronic controls, electric drive assemblies, and engines through testing rigs, measurement and control software, and testing services before new models and powertrains enter mass production.

From a business structure perspective, Yingtemo's operations primarily consist of R&D testing services and R&D testing equipment.

In 2025, R&D testing services generated RMB 516 million in revenue, accounting for 77.39% of its main business revenue; R&D testing equipment contributed RMB 145 million, representing 21.76%.

Within this, testing services for the new energy sector alone reached RMB 430 million, with new energy testing equipment contributing RMB 136 million. Combined, these two segments accounted for approximately 85% of main business revenue, making new energy Yingtemo's core performance pillar.

Its client roster includes major players in the automotive industry.

In 2025, Yingtemo's top five clients were BYD, Cummins, Xiaomi Auto, Li Auto, and Jaguar Land Rover, collectively contributing RMB 281 million in revenue, or 42.11% of total revenue; BYD alone accounted for RMB 125 million, or 18.74%.

As business expanded, Yingtemo's testing rig count increased from 346 units/sets at the end of 2023 to 504 units/sets by the end of 2025, with capacity utilization rising from 71.69% to 86.18% during the same period.

The fact that existing testing resources were operating near full capacity became a key factor driving the continued construction of testing bases in Changshu and Wuhan.

High Performance Volatility

Financially, Yingtemo's most notable feature is undoubtedly its rapid growth in 2025.

From 2023 to 2025, Yingtemo's revenue reached RMB 381 million, RMB 421 million, and RMB 667 million, respectively, with net profit attributable to shareholders of RMB 50.87 million, RMB 24.79 million, and RMB 93.58 million. Notably, revenue and net profit in 2025 surged by 58.70% and 277.47% year-on-year, respectively.

However, a longer-term view reveals non-linear profit growth. Yingtemo's net profit attributable to shareholders declined by 51.27% year-on-year in 2024 before rebounding sharply in 2025, showing significant volatility.

Profit fluctuations are closely tied to price competition in the automotive industry, the mix of testing projects, and capacity ramp-up.

From 2023 to 2025, Yingtemo's comprehensive gross margin stood at 39.80%, 30.14%, and 34.95%, respectively, showing an overall declining trend.

In 2024, newly added new energy testing rigs came online but remained underutilized, increasing depreciation and amortization costs. Meanwhile, declining demand for internal combustion engine vehicles put pressure on pricing for some testing services.

By 2025, average new energy testing prices rebounded, capacity utilization improved, and the gross margin for R&D testing services recovered from 32.76% to 40.96%, driving overall profitability improvement.

Notably, the rapidly growing equipment business maintains relatively low profitability.

In 2025, R&D testing equipment revenue accounted for 21.76% of main business revenue but had a gross margin of just 11.93%, significantly lower than the 40.96% margin for R&D testing services.

The prospectus reveals that Yingtemo adopted relatively low pricing strategies to expand market share, while actual development costs for some customized powertrain equipment projects exceeded initial estimates.

While expanding equipment revenue can boost overall revenue, it may not proportionally increase profits.

Another noteworthy metric is R&D investment.

From 2023 to 2025, Yingtemo's R&D expenses reached RMB 25.44 million, RMB 24.91 million, and RMB 28.63 million, respectively, totaling RMB 78.98 million over three years. However, the R&D expense ratio declined from 6.68% to 4.29%.

In other words, while absolute R&D investment grew in 2025, its growth rate lagged significantly behind revenue.

For a technology-driven company planning to list on the ChiNext board, with core competitiveness in software, testing equipment, and testing capabilities, whether it can re-intensify R&D investment after scaling up warrants continuous observation.

Expansion and Challenges

Yingtemo's decision to expand capacity now is indeed supported by industry momentum.

The prospectus cites Frost & Sullivan data showing China's automotive R&D testing market grew from RMB 9.86 billion in 2021 to RMB 15.22 billion in 2025, with an expected compound annual growth rate (CAGR) of 12.6% to reach RMB 27.51 billion by 2030.

Specifically, the new energy vehicle R&D testing market reached RMB 8.71 billion in 2025 and is projected to grow to RMB 21.37 billion by 2030, with a 2025-2030 CAGR of 19.7%.

Shorter new energy vehicle development cycles, rapid technological iterations, and automakers increasing their reliance on third-party testing services continue to drive demand.

Within the more niche powertrain testing market, Yingtemo has secured a solid position.

According to Frost & Sullivan data cited in the prospectus, Yingtemo ranked third in China's 2025 powertrain R&D testing market with RMB 640 million in revenue, capturing a 9.1% market share. In the new energy vehicle powertrain R&D testing segment, Yingtemo led with approximately RMB 550 million in revenue and a 12.4% market share.

Moreover, Yingtemo is extending its testing capabilities beyond automotive to include shipping, aviation, low-altitude economy, and computing infrastructure scenarios.

Particularly against the backdrop of computing infrastructure expansion, large data centers require reliability testing for diesel and gas backup power systems. Yingtemo has already participated in R&D testing for high-power generator engines for companies like Cummins, Yuchai, and Weichai.

This suggests its traditional internal combustion engine capabilities may not lose value entirely with the decline of fuel-powered passenger vehicles but could migrate to new scenarios like computing energy and shipping.

However, expansion also brings heavier asset and funding pressures.

From 2023 to 2025, Yingtemo's asset-liability ratio increased from 36.42% to 53.79%. In 2024, net cash flow from operating activities once reached -RMB 62.05 million, recovering to RMB 52.50 million in 2025 but still significantly lower than the RMB 93.58 million in net profit for the same period.

Meanwhile, as of the end of 2025, Yingtemo's accounts receivable and contract asset balance from BYD reached RMB 108 million, accounting for 35.65% of related balances.

For Yingtemo, accelerated new energy vehicle R&D and rising third-party testing outsourcing ratios provide an expanding market. Its head automaker clients and existing testing capabilities also form entry barriers.

After raising RMB 1 billion, Yingtemo must prove not just "market existence" but whether new capacity can continuously convert into high-quality orders.

While 2025's impressive performance offers a strong starting point, 2024's profit collapse reminds the market that testing is not a stable rental business.

Ultimately, Yingtemo's valuation will depend on whether high growth can withstand automaker price wars and whether expansion speed aligns with cash flow, R&D investment, and profitability.