Nisico is targeting a GEM IPO, focusing on the contact components for charging ports, with gross profit margins declining over the past two years.

After the rapid innovation of companies landing on the Hong Kong Stock Exchange and Delan Minghai submitting their prospectus, a recent company from Shenzhen has also made a move towards the capital market.

Gelonghui learned that Shenzhen NISOKO Connectivity Technology Co., Ltd. (referred to as “NISOKO”) responded to the first round of inquiries from the China Securities Regulatory Commission on March 20. NISOKO previously submitted its prospectus on December 27, 2025, seeking to list on the ChiNext board of the Shenzhen Stock Exchange, with CITIC Securities as its sponsor.

NISOKO has responded to inquiries from regulators regarding industry development and growth potential, core technology and technological advancement, as well as changes in gross profit margin.

01

Focusing on high-voltage large-current connection system contacts, registered in Shenzhen Pingshan

NISOKO was established in November 2012 and transformed into a joint-stock company in February 2025, registered in the Kengzi Sub-district of Pingshan District, Shenzhen.

Before this issuance, the actual controller of the company, Ni Quan, held a total of 78.55% of the voting rights of NISOKO through direct and indirect means.

Ni Quan was born in 1975 and holds a bachelor’s degree. He has worked for Qingdao Company of China Light Motorcycle Group, Fujin Precision Industry (Shenzhen) Co., Ltd., Shenzhen Tongmao Electronics Co., Ltd., Amphenol, Shenzhen Basba Technology Development Co., Ltd., and others.

In the equity transfer in March 2025, NISOKO was valued at approximately 800 million yuan. Shenzhen Guozhong Changrong Asset is the company’s external institutional investor, holding a total of 12% of the company’s shares through different entities under its name before this issuance.

NISOKO is a provider of solutions for high-voltage large-current connection system contacts (also known as “connector terminals”), having built a product matrix system covering three core application areas: new energy vehicles, energy storage, communication, and AI data centers. Its applications in the new energy vehicle sector fully cover vehicle manufacturing, mainly including charging ports and the three electrical systems.

High-voltage large-current connection systems play a crucial role in high-voltage electrical equipment and are often referred to as the “energy arteries,” responsible for both efficient power transmission and stable system control.

As the core functional unit of high-voltage large-current connection systems, connection system contacts bear the key responsibility of ensuring the reliability of electrical connections. By forming stable and low-impedance physical contact interfaces with paired connectors, the contacts can achieve efficient and reliable current conduction.

While achieving this core function, the contacts must effectively withstand mechanical mating and unmating lifetimes, thermal effects induced by current loads, and resist the interference from complex environmental factors such as temperature and humidity fluctuations, chemical corrosion, and vibration.

Therefore, the comprehensive performance of contacts—covering not just mechanical properties like mating and unmating life, insertion force control, resistance to vibration and impact, and reliable crimp retention, but also electrical performance including rated current capacity, temperature rise characteristics, signal transmission quality, and stability of contact resistance—is crucial.

NISOKO currently offers a range of contact products, including leaf springs, torsion springs, and contact clips. Additionally, the company has launched new generation products such as rolled contacts, floating contacts, push-pull quick-lock assemblies, and composite material contacts.

Examples of some major product series, source: prospectus

In recent years, NISOKO’s revenue from the new energy vehicle sector has exceeded 85%.

Since 2015, the company has been supplying mass quantities of high-voltage large-current connectors to the domestic leader in new energy vehicles, AVIC Optoelectronics, and has subsequently become a supplier for major players in the connector industry, including Amphenol, Aptiv, Luxshare Precision, Yonggui Electric, Ruikeda, Wolong New Energy, Tianhai Electric, Huazhan Aerospace, and Ningbo Gaosong. Additionally, the company is a first-tier supplier for BYD.

Main customer situation, source: prospectus

02

Gross profit margin has shown a downward trend in the past two years, facing accounts receivable pressure

In recent years, benefiting from the rapid development of industries like new energy vehicles, NISOKO’s revenue has increased.

The company’s operating revenue for the years 2022, 2023, 2024, and the first half of 2025 (reporting period) was 420 million yuan, 483 million yuan, 597 million yuan, and 344 million yuan, respectively, with net profits attributable to the parent company being 111 million yuan, 134 million yuan, 137 million yuan, and 63.288 million yuan.

Key financial data, source: prospectus

It is worth noting that NISOKO’s relatively low R&D expense ratio has also drawn inquiries from regulators. During the reporting period, NISOKO’s R&D expense ratios were 3.27%, 3.34%, 4.61%, and 4.06%, while the average R&D expense ratios of comparable companies in the same industry were 8.75%, 10.29%, 9.15%, and 7.14%.

By product category, the company’s main business revenue structure has remained relatively stable. In the reporting period, sales revenue from leaf spring products accounted for the highest proportion of main business revenue, consistently exceeding 50%.

Sales revenue and proportion of contact clip spring products have increased year by year, with the most recent proportion being 17.91%.

Sales revenue and proportion of torsion spring products have fluctuated significantly, mainly due to large fluctuations in the purchase volume from major end customers of torsion spring products.

Composition of main business revenue, source: prospectus

During the reporting period, the company’s main business gross profit margins were 41.55%, 42.82%, 38.68%, and 30.02%, showing a downward trend over the past two years.

The proportion of direct materials in the main business cost exceeds 50%. The main raw materials needed for production include copper materials and various processed metal parts. If copper prices rise in the future and the company cannot effectively transmit the pressure of rising raw material prices to customers, it will squeeze product profit margins and adversely affect the company’s operating performance.

At the same time, if there is a slowdown in downstream demand for new energy vehicles, a slowdown in the development and iteration speed of the company’s new products, intensified competition, and other negative scenarios, the company faces a risk of further decline in gross profit margins.

Gross profit margin comparison with industry peers, source: prospectus

During the reporting period, the sales revenue from NISOKO’s top five customers accounted for 53.72%, 60.99%, 64.97%, and 62.09% of operating revenue, indicating a high customer concentration.

Sales situation to the top five customers, source: prospectus

In addition, NISOKO is also facing pressure from accounts receivable. The book value of accounts receivable was 187 million yuan, 245 million yuan, 287 million yuan, and 234 million yuan, accounting for 51.01%, 52.96%, 42.88%, and 34.62% of current assets, indicating a large scale of accounts receivable.

Cash flow statement, source: prospectus

03

The company has approximately a 7% market share in China’s new energy vehicle contact components, facing competition from overseas giants

The high-voltage large-current connection system contact business that NISOKO engages in falls under the “C39 Computer, Communication, and Other Electronic Equipment Manufacturing” major category, “C398 Electronic Components and Electronic Special Materials Manufacturing” middle category, and “C3989 Other Electronic Components Manufacturing” minor category.

High-voltage large-current connection systems are core functional components used to achieve high-voltage and large-current power transmission in scenarios such as new energy vehicles, energy storage, communication, AI data centers, power grids, and industrial equipment. By integrating insulation material design, high-voltage interlocking structures, electromagnetic shielding technology, and intelligent data interfaces, they ensure safety, reliability, and efficiency during power transmission, while also meeting requirements for lightweight and environmental resistance (such as high temperature, vibration, corrosion).

High-voltage large-current connectors are the “core joints” of high-voltage large-current connection systems, transmitting electrical power current or signal current between devices, components, equipment, and subsystems, while maintaining effective functional cooperation between systems and realizing the overall functionality, making them essential basic components for connecting entire systems.

High-voltage large-current connectors typically consist of contacts, insulators, housings, and accessories, working together to ensure efficient power transmission.

The core technology of high-voltage large-current connectors is reflected in their current-carrying capacity, temperature rise, mating and unmating life, protection level (condensation, electromagnetic interference, etc.), and resistance to vibration and impact, with the number of components reaching dozens.

High-voltage large-current connectors and classifications, source: prospectus

High-voltage large-current connector contacts are key conductive components in high-voltage equipment for large current transmission, with upstream activities involving basic materials and equipment, and downstream activities including high-voltage large-current connectors and system integration, ultimately applied in new energy vehicles, energy storage, communication, and AI data centers.

This electronic component constitutes an independent functional system within terminal devices, being an indispensable key component that affects the safety, performance, and efficiency of terminal devices such as new energy vehicles, energy storage, communication, and AI data centers.

High-voltage large-current connector contact industry chain, source: prospectus

According to Frost & Sullivan statistics, the market size of high-voltage large-current connector contacts in China is expected to reach 11.12 billion yuan in 2024 and to grow to 25.33 billion yuan by 2029, with a compound annual growth rate of 18.9% from 2025 to 2029, primarily driven by demand from downstream markets such as new energy vehicles, energy storage, communication, and AI data centers.

Market size of high-voltage large-current connector contacts, source: prospectus

The global connector industry is dominated by leading manufacturers from countries such as the United States, Japan, and Germany. According to Bishop & Associates statistics, in 2022, TE Connectivity, Amphenol, and Molex ranked as the top three global connector manufacturers, with a combined market share exceeding 30%.

Additionally, other industry participants include foreign companies like Aptiv and domestic companies such as AVIC Optoelectronics, Luxshare Precision, Dalian Technology, Ruikeda, Yonggui Electric, and Weifeng Electronics.

The company’s market share in the contact components of China’s new energy vehicle sector is approximately 7%. In the niche area of charging port contacts for new energy vehicles, NISOKO’s market share in China is projected to be 37% in 2024, ranking first in the industry.

NISOKO plans to raise 1.373 billion yuan, primarily for investment in headquarters base projects, production construction projects for stamped contacts and copper-aluminum bus products, research and development center construction projects, and to supplement working capital.

Use of raised funds, source: prospectus

Overall, the high-voltage large-current connector contact market that NISOKO operates in is heavily influenced by demand from the new energy vehicle market and faces competition from global giants. It may encounter certain pressures in the future, and the niche category has a limited market size ceiling.

In the future, whether the company can gain more market share and improve gross profit margins will be closely monitored by Gelonghui.