Recently, Shentong Technology Group Co., Ltd. (hereinafter referred to as "Shentong Technology") announced that the company held the 14th meeting of the 3rd Board of Directors, at which the "Proposal on External Investment" was reviewed and approved. The company plans to sign the "Investment and Support Agreement" with the Management Committee of Lingang New Area of China (Shanghai) Pilot Free Trade Zone and the Situan Town People's Government of Fengxian District, Shanghai. The company plans its wholly-owned subsidiary Shanghai Mingyi Auto Parts Co., Ltd. (hereinafter "Shanghai Mingyi"), as the implementation entity, to invest 700 million yuan in Shanghai’s Lingang New Area to construct its Auto Parts Intelligent Manufacturing Project.
This investment not only marks Shentong Technology's in-depth layout in the fields of intelligent cockpits and smart access systems, but also represents a key strategic move to break through existing capacity bottlenecks and optimize its industrial layout.
Expanding into the Automotive Electronics Sector
Shentong Technology was founded in March 2005. Headquartered in Yuyao City, Zhejiang Province, the company was listed on the Main Board of the Shanghai Stock Exchange on January 20, 2021. It is a high-tech enterprise deeply engaged in the field of auto parts.
The company's main business involves the R&D and manufacturing of automotive powertrain systems, trim systems, optical lenses, and molds. Its primary products include powertrain components and trim system components. It possesses core capabilities for synchronous development with OEMs and holds multiple patented technologies in areas such as automotive lightweighting and intelligent cockpits. Relying on solid R&D strength, the company has successfully developed innovative products such as polycarbonate (PC) windows and active oil-gas separators. Meanwhile, it actively explores horizontal technology applications, expanding into automotive-grade optical lenses and consumer electronics.
As a national high-tech enterprise, the company owns 684 patents and 81 qualification certifications. It provides supporting services to over 30 mainstream OEMs, including SAIC General Motors, FAW-Volkswagen, BMW, and NIO, and has deployed production bases across seven major automotive industry clusters nationwide.
In 2025, the company achieved a revenue of 1.884 billion yuan, a year-on-year increase of 35.70%; the net profit attributable to the parent company was 133 million yuan, a year-on-year increase of 515.85%. In the first quarter of this year, the company's performance continued to rise, achieving a revenue of 412 million yuan, a year-on-year increase of 20.40%; the net profit attributable to the parent company was 46.4306 million yuan, a year-on-year increase of 420.14%.
Shentong Technology stated that the explosive growth in performance is primarily attributed to the simultaneous increase in operating revenue and gross profit, coupled with a significant reduction in credit impairment losses due to the efficient recovery of accounts receivable. The combined effect of multiple favorable factors has driven a substantial improvement in profitability.
In recent years, the penetration rate of intelligent cockpits has increased year by year, and automotive intelligence has become a crucial development direction for the global automotive industry. To seize industry opportunities, Shentong Technology has accelerated its expansion.
Shentong Technology stated in the announcement that Of the planned total investment of 700 million yuan, 520 million yuan will go toward fixed-asset investment. The project is planned to be located in the Haigang Development Zone, Situan Town, Lingang New Area, Shanghai, covering a land area of approximately 60 mu. The specific implementation of the project has been entrusted to Shanghai Mingyi, a wholly-owned subsidiary of Shentong Technology.
Financial data shows that Shanghai Mingyi achieved an operating revenue of 368 million yuan and a net profit of 45.9001 million yuan in 2025, demonstrating strong profitability and a solid business foundation.
Regarding the core driving force behind this investment, Shentong Technology stated in the announcement that the project aims to resolve the current limitations of production in leased factories, break through existing capacity bottlenecks, and enhance operational stability. By purchasing land to build its own industrial base, the company seeks to reduce costs, increase efficiency, and improve asset quality.
In terms of business positioning, this intelligent manufacturing project will not only be a simple expansion of capacity but also an upgrade at the technical level. The announcement pointed out that, relying on the company's technical accumulation in automotive intelligent cockpits and smart access systems, Shanghai Mingyi will further expand into the system integration of automotive electronic and electrical control software and hardware, building upon its original production of automotive interior and exterior trim components. Equipped with advanced R&D equipment for auto parts and electronic systems, the focus will be on the R&D of automotive intelligent cockpits, smart access systems, and automotive electronic software and hardware integration technologies. This will continuously strengthen technological innovation and product development capabilities in the automotive electronics field, creating an auto parts industrial base that integrates R&D, manufacturing, and testing.
This means that Shentong Technology is leveraging its accumulation in injection molding processes and optical technologies to accelerate its comprehensive extension from traditional structural manufacturing to the field of software and hardware integration development with high technical content and high added value.
Shentong Technology has a clear plan for the construction cycle of the project. The announcement indicates that the company commits to to start construction within six months after winning the land bid, complete the project within 24 months of land handover, and launch production within 30 months of land handover.
Why Choose Lingang?
From the perspective of industrial layout, Shentong Technology's strategic move in the Lingang New Area of Shanghai plays a key strategic role. The announcement shows that investing in the Lingang New Area allows the company to leverage the advantages of the local automotive electronics industry cluster and improve its industrial chain layout.
As a core area of the Shanghai Free Trade Zone, Lingang has formed a high-end and comprehensive industrial ecosystem. Lingang has gathered two major OEM giants, Tesla and SAIC Motor, attracting over 200 automotive-related enterprises to settle, including more than 50 automotive electronics companies and over 20 automotive software companies, building an automotive industry ecosystem that integrates manufacturing, R&D, and testing.
Public data shows that From 2019 to 2023 over five years, Lingang’s intelligent new energy vehicle (NEV) industry output value jumped tenfold, rising from 31.4 billion yuan to more than 300 billion yuan, becoming the largest and most driving frontier industry in the local economy.
Besides intelligent vehicles, the Lingang New Area also highlights frequent achievements in key industries such as IC (Integrated Circuit) and high-end equipment.
In the IC field, Lingang is striving to build a core development position, promoting the production of projects such as JCET's automotive-grade packaging and testing and Sunny Optical's optical waveguides, and introducing leading enterprises like SJ Semiconductor and Xiandao Technology. In the first half of 2025, the related output value increased by 23.8% year-on-year. In the field of high-end equipment, the construction of large-scale independent energy storage power stations is being promoted, and new energy storage technologies such as sodium-ion batteries are being planned. The annual output value of the energy storage industry is expected to reach 30 billion yuan.
The superposition of national-level strategies and the unique policy dividends of the free trade zone, such as institutional innovations like tax incentives and cross-border logistics facilitation, provide enterprises with a solid foundation for development and a smooth express lane for "going global". Currently, Lingang has gathered over a hundred enterprises engaged in offshore trade, supporting Chinese enterprises in forming an internationalized model of "local headquarters + global production".
In addition, the steadily improved innovation and entrepreneurship environment in Lingang, including comprehensive services such as plug-and-play office spaces, thousands of talent apartments, and free transitional housing, has also created superior conditions for attracting high-end technical talents and enterprises.
As Shentong Technology stated in the announcement, this investment aligns with national industrial policy guidelines and industry development trends, and is highly synergistic with the company's strategy. It will help the company enhance customer service capabilities and production efficiency, strengthen R&D strength, and expand team size, thereby improving the industrial layout and consolidating and enhancing the company's core competitiveness. Through a diversified industrial layout, the company will effectively disperse operational risks, improve asset quality and risk resistance, and lay a solid foundation for long-term development.
Editor: Liu Chengxing; Layout: Yu Feng