Andar Co., Ltd. (安达股份) IPO: Die-casting maker faces a structural squeeze between shrinking ICE parts and an immature EV business

IPO filing spotlights the mismatch

It has been reported that Andar Co., Ltd. (安达股份) has filed a prospectus for an initial public offering on the Beijing Stock Exchange. The company is a midstream aluminium die-caster whose main products include oil pans and covers for internal combustion engine (ICE) drivetrains as well as inverter and motor housings for new-energy vehicles (NEVs). Revenue recovery has been visible — the firm projects roughly ¥1 billion in revenue and about ¥70 million in net profit for 2025 — but the filing exposes a deeper structural mismatch: more than 80% of current revenue still comes from ICE-related parts, even as vehicle electrification erodes demand for those components.

Financials, dependencies and cost sensitivity

Andar’s numbers reveal typical midstream tensions. It has been reported that during the disclosure period the top five customers accounted for over 84% of sales, while receivables and inventory levels remain high (accounts receivable ~18–23% of revenue; inventories nearly 30% of current assets). The balance-sheet metrics are thin: current ratios around 1, quick ratios below 1 and an asset-liability ratio that has approached 70%. Aluminium ingots make up more than 60% of procurement costs; reportedly a 10% rise in aluminium prices would cut gross margin by about four percentage points. Can a small die-caster absorb raw-material shocks and concentrated client moves while financing a transition?

Industry shifts compress the runway

The broader industry is accelerating consolidation and technical ramp-up. Integrated die-casting and structural casting reduce part counts and push OEMs to favour suppliers with larger scale and higher technological capability. That benefits head firms and raises barriers for smaller players. Andar plans capacity expansion — an added 3 million pieces and roughly ¥22 million in extra annual depreciation — but expanding output in a low-barrier sector risks adding to overcapacity rather than guaranteeing higher-margin contracts. For investors, the core question is not current profitability but whether Andar can close the time gap between declining ICE cash flow and a profitable, stable NEV product mix.

What markets will watch

Global and domestic policy tailwinds for NEVs in China create demand opportunities, yet they also accelerate structural change and supply-chain reshuffling. For the Beijing Stock Exchange debut, capital markets will be asking: has Andar completed the strategic switch to electrification, or is it still riding wind-down ICE revenues that will erode over time? Reportedly, the filing suggests the latter — a company in transition, not yet at a new foothold. That ambiguity, combined with customer concentration, commodity exposure and an industry leaning toward scale, will shape investor appetite.