image credit: Bamboo Works
Key Takeaways:
Bethel has filed for a Hong Kong listing with plans to invest the money in developing integrated chassis systems for braking, steering and suspension
Intelligent electronic control products have become the company's biggest revenue earner, but margins and cash flow have been tightening
Never mind batteries and laser sensors, competition in China's electric vehicle sector is now shifting towards state-of-the-art undercarriages, equipped with intelligent chassis systems.
In new-energy models, the frame of the car is transforming into a high-tech platform in which mechanical parts are replaced by electrical components controlled by software or AI. The feature has attracted limited investor attention so far but is coming to the fore as a new competitive battleground in the EV supply chain.
One of the Chinese companies aiming to ride the trend, Bethel Automotive Safety Systems Co. Ltd. (603596.SH), filed for a Hong Kong listing this month to help fund its ambitions, with CICC serving as sole sponsor.
Originally focused on brake components, the company is now looking to make bigger inroads into the market for intelligent chassis systems and electronic braking technologies, which has long been dominated by multinational brands such as Germany's Bosch, Continental (CON.DE) and ZF.
Bethel Chairman Yuan Yongmei worked on braking R&D at U.S. auto parts giant TRW, now a part of the ZF Group, before returning to China to start his own business. He founded Bethel in Wuhu, Anhui province, in 2004. The company initially supplied conventional braking products before gradually shifting into automotive electronics.
The new braking methods use motors, sensors and electric signals rather than cables and hydraulics to slow a car or lock its wheels. They include electronic parking brake systems (EPB), brake-by-wire systems and electro-mechanical braking (EMB) systems.
Bethel's products cover all three types, as well as steering-related systems.
According to third-party data ...
