Tianhai Electronics IPO Registration Approved, Gross Margin Declining Year-over-Year

GateUser-bd883c58 · 2026-03-21T07:37:37+00:00

Tianhai Electronics was approved for an IPO on March 17, and focuses on the research, development, production, and sales of automotive electronics and accessories. However, the company's gross profit margin has been declining since 2022, affected by factors such as sales discounts, rising raw material costs, and labor expenses. The company needs to implement measures to enhance profitability.

GateUser-bd883c58

2026-03-21 07:37:37

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According to the Shenzhen Stock Exchange, on March 17, Tianhai Automotive Electronics Group Co., Ltd. (referred to as “Tianhai Electronics”) received approval for its initial public offering registration.

Data shows that Tianhai Electronics is dedicated to providing automotive transmission systems, connectivity systems, intelligent control solutions, and other automotive components. Its main products include automotive wiring harnesses, connectors, and electronic components, primarily used in new energy vehicles and traditional fuel vehicles manufacturing.

Tianhai Electronics’ gross profit margin has shown a declining trend. Data indicates that from 2022 to the first half of 2025, the gross profit margins of its main business were 15.94%, 15.20%, 14.59%, and 13.93%, respectively.

Regarding the decline in gross profit margin, Tianhai Electronics stated that it is mainly influenced by multiple factors, including increased sales discounts to major customers, higher annual price reductions, rising prices of key raw materials like copper, changes in product mix, and increased labor costs.

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