Zhejiang Jingu Company Limited: history, ownership, mission, how it works & makes money

Born in 1996, Zhejiang Jingu Company Limited (SZSE: 002488) has grown from a domestic wheel maker into a recognized National Export Base of Auto Parts, registering milestone sales of RMB 1.05 billion in 2015 and expanding to 1,878 employees by 2025 (up 6.28% year‑on‑year), while building a product range that spans passenger, commercial, trailer and agricultural wheels and exporting to Europe, the U.S. and Southeast Asia; recent ownership moves saw founders Sun Jinguo and Sun Liqun reduce holdings by 3.20% via a transfer of 31.85 million shares to Hangzhou Stable Development Guidance Fund at RMB 10.66/share, leaving Sun Jinguo with 4.00% and Chair Sun Fengfeng with 10.09%-all against a market capitalization of about RMB 8.14 billion (12 Dec 2025) and trailing‑12‑month revenue of RMB 3.56 billion (down 4.20%) with net income of RMB 32.82 million (EPS RMB 0.03); the company's model-two segments (auto parts manufacturing and steel trading), partnerships with GM, Volkswagen, Ford and Ninebot, and a push into lightweight, low‑carbon Avatar wheels-ties technological innovation, export scale and OEM relationships to diversified revenue streams and new EV market opportunities.

Zhejiang Jingu Company Limited (002488.SZ) - Intro

• Founding year: 1996
• Core business: R&D, manufacturing, sale of automobile wheels (steel wheels for passenger cars, commercial vehicles, trailers, agricultural vehicles)
• Public listing: Shenzhen Stock Exchange (stock code 002488.SZ)

• 1996: Company founded with a focus on steel wheel R&D and manufacturing.
• 2010s: Rapid capacity expansion and OEM partnerships; by 2015 achieved RMB 1.05 billion in annual sales.
• 2020s: Continued workforce and capacity growth; headcount reached 1,878 in 2025 (up 6.28% from prior year).

• Listed company (002488.SZ) with ownership split among institutional investors, retail shareholders, and controlling shareholders through holding entities.
• Corporate governance aligned to support export-oriented manufacturing and OEM contracts.

• Mission: To be a leading global supplier of high-quality, cost-efficient wheel solutions through continuous R&D, manufacturing excellence, and export-oriented operations.
• Strategic focus: product diversification (passenger, commercial, trailer, agricultural), quality certifications for export markets, and scale-driven cost-efficiency.

• End-to-end wheel manufacturing: metallurgy and steel sourcing → forming/rolling → machining → coating/painting → quality inspection → assembly and shipping.
• R&D and testing centers develop wheel designs and validate performance to meet OEM specifications and international standards for export.
• Sales channels: direct OEM supply contracts, aftermarket distributors, and export agents serving Europe, the U.S., and Southeast Asia.

• OEM contracts: long-term supply agreements with vehicle manufacturers, typically higher-volume, lower-margin but stable revenue.
• Aftermarket sales and exports: regional distributors and international buyers generate higher-margin opportunities and currency diversification.
• Product mix: diversification across passenger, commercial, trailer, and agricultural wheels stabilizes revenue against single-segment cyclicality.
• Value-added services: customized wheel designs, finishing/coating options, and technical support for OEMs enhance pricing power.

• Scale advantage in steel-wheel manufacturing supports cost competitiveness for exports.
• Recognition as a National Export Base supports export facilitation and credibility in foreign markets.
• Workforce growth (1,878 employees in 2025, +6.28% YoY) indicates ongoing capacity and operational expansion.

Zhejiang Jingu Company Limited (002488.SZ): History

• On September 26, 2025, major shareholders Sun Jinguo and Sun Liqun collectively reduced their holdings by 3.20%, transferring 31.85 million shares to Hangzhou Stable Development Guidance Fund at RMB 10.66 per share (total consideration ≈ RMB 339.77 million).
• Following the transaction, Sun Jinguo holds 4.00% of shares; Sun Liqun holds 0.00%.
• Sun Fengfeng (Chairman & General Manager) retains a material holding of 10.09%.
• The transaction implies a total share capital of approximately 995.31 million shares outstanding (31.85m ÷ 3.20%).

• The 3.20% transfer (31.85m shares) at RMB 10.66/share valued the block at ~RMB 339.77m, signaling strategic reallocation of equity to a government-guidance fund.
• Despite the reduction by major individual shareholders, the controlling shareholder and actual controller remain unchanged, preserving continuity in corporate control and strategy.
• The change underscores potential liquidity and governance effects: increased institutional stake via the Hangzhou fund and concentrated management ownership through Sun Fengfeng.

Zhejiang Jingu Company Limited (002488.SZ): Ownership Structure

• Mission: Become a global leader in steel wheel manufacturing through continuous technological innovation and superior product quality.
• Core values: continuous improvement, equality, mutual benefit and win-win cooperation in business dealings.
• Sustainability: committed to meeting national standards (e.g., Plastic Restriction Order in the Electric Bicycle Safety Technical Specification) by developing environmentally friendly products.
• Strategic partnerships: collaboration with Ninebot Technology Co., Ltd. to develop lightweight, high‑strength materials for electric vehicles.

• Primary business: design, manufacture and sale of steel and alloy wheels for passenger vehicles, commercial vehicles and new-energy/electric mobility platforms.
• Revenue model: direct sales to OEMs, aftermarket sales, long-term supply contracts and technology/licensing partnerships for advanced materials.
• Competitive edge: in-house R&D, process control (forged/flow-formed/heat-treatment technologies), and materials partnerships that reduce weight while maintaining strength.
• Profit drivers: scale manufacturing, cost control in raw-material procurement, premium OEM contracts, and value-added R&D for EV/lightweight applications.

• Ninebot collaboration: joint development of lightweight, high-strength wheel materials and processes targeted at electric two- and four-wheel platforms.
• Standards adherence: product development aligned with national EV/bicycle safety technical specifications and environmental rules (plastic restriction, emissions and recyclability requirements).
• Customer focus: long-term OEM contracts, quality certifications and continuous product testing to meet automaker safety and durability specs.

Zhejiang Jingu Company Limited (002488.SZ): Mission and Values

• Business model: two core segments - automobile parts (steel wheel design, casting, machining, finishing and aftermarket wheels) and steel trading (procurement, processing and distribution of steel inputs).
• Integrated production system: in-house R&D, die-casting/forging, heat treatment, machining, painting/coating and final inspection tied to centralized sales and logistics.
• Manufacturing capability: multi-plant setup with automated lines for different wheel types (steel rims, stamped steel wheels, and specialty high-strength/low-weight products for EVs).
• Global supply chain: exports to Europe, the United States and Southeast Asia; serves OEM and aftermarket channels.
• Strategic OEM partnerships: direct supply agreements and development projects with major automakers such as General Motors, Volkswagen and Ford.
• Technology collaboration: strategic cooperation with Ninebot Technology Co., Ltd. to develop lightweight, high-strength materials and manufacturing processes tailored for electric vehicles.

• Product sales: primary revenue from sale of steel wheels to OEMs (contract pricing, long-term supply agreements) and aftermarket customers (volume, margin mix differs).
• Steel trading margin: procurement and resale of steel inputs; hedging and short-term trading contribute to gross margin variability.
• Value-add services: custom wheel development, finishing/painting options, logistics and just-in-time delivery arrangements for OEM lines.
• Export premium: international sales capture higher ASPs (average selling prices) in developed markets, affected by currency and freight.
• R&D-driven differentiation: materials and process improvements (e.g., lightweight alloys, high-strength steels) enable higher-margin product tiers, especially for EV and performance segments.

• Export network spans major developed and emerging markets, supporting diversified demand and FX exposure management.
• Strategic collaborations with global OEMs underpin recurring revenue streams via supply contracts and co-development projects.
• Partnerships with tech firms such as Ninebot aim to accelerate lightweight wheel adoption in electric vehicles - a key growth vector as EV penetration rises.

Zhejiang Jingu Company Limited (002488.SZ): How It Works

• Primary product lines: steel wheels for passenger cars, light commercial vehicles, heavy trucks, trailers and agricultural machinery.
• Production footprint: multiple manufacturing facilities focused on die casting, forging and surface finishing to deliver from commodity wheels to higher-value, specialty lightweight wheels.
• Distribution channels: direct OEM supply agreements, aftermarket sales, and export to international distributors and vehicle manufacturers.

• Direct OEM sales: long-term supply contracts with automakers and commercial vehicle manufacturers provide predictable, recurring revenue streams and volume-based pricing.
• Aftermarket and exports: sales to replacement-part channels and overseas markets diversify income and improve utilization of capacity.
• Value-added products: premium, high-precision and lightweight wheels command higher margins versus commodity wheels.
• Technical collaborations: joint development agreements (e.g., with Ninebot Technology Co., Ltd.) open new product lines for electric vehicles and micro-mobility, creating incremental revenue opportunities.

• Export orientation: serving international markets increases scale and spreads cyclical risk-higher export volumes lift topline and improve asset utilization.
• Collaboration with Ninebot: co-development of lightweight materials and wheel solutions for electric vehicles enables access to the fast-growing EV and last-mile mobility segments and allows premium pricing for high-performance, low-weight wheels.
• Technological differentiation: proprietary processes, quality certifications and tighter tolerances allow Zhejiang Jingu to charge premium prices and secure long-term OEM contracts.
• Partnerships with major automakers: strategic supply agreements stabilize demand and enable volume discounts from suppliers, improving margin structure.

• Scaling exports and aftermarket penetration to increase volume leverage across fixed-cost base.
• Expanding EV-focused product lines via collaborations (e.g., Ninebot) to capture higher-margin, faster-growing segments.
• Investing in automation and yield improvements to lower per-unit cost and protect margins amid commodity price swings.
• Securing long-term OEM contracts and co-development deals to lock in revenue and justify premium pricing for advanced products.

Zhejiang Jingu Company Limited (002488.SZ): How It Makes Money

• Core product sales: steel and aluminum wheel assemblies for passenger vehicles and commercial vehicles.
• Value-added products: low-carbon wheels and lightweight structural components sold under the Avatar brand and via industrial partnerships.
• Aftermarket & services: spare wheels, refurbishment, and technical support for OEM and aftermarket channels.
• R&D and licensing: revenue from co-development agreements and material technology licensing (e.g., collaborations with Ninebot Technology).

• Avatar low-carbon wheel line: targets emissions and weight reduction demands from OEMs and regulators.
• Partnerships: co-development with Ninebot Technology Co., Ltd. on lightweight materials for EVs enhances product relevance in electrification trends.
• Operational efficiency: unit-cost improvement through scale in core wheel manufacturing and material substitution.
• Innovation pipeline: continued R&D investment to adapt wheel performance for EV torque/load profiles and energy efficiency needs.