[IPO Frontline] Middle school teacher enters Hong Kong stock market with sensors, Audiowell faces competitive pressure

As the wave of intelligence sweeps across industries, sensors, as the "nerve endings of the Internet of Things," have become the hidden core force behind smart devices. Now, Beijing Stock Exchange-listed company Audiowell (920491.BJ) is sprinting toward the Hong Kong stock market, attempting to secure another victory in the capital markets.

This company, steered by a former high school teacher, has established itself with ultrasonic sensing technology but also faces multiple challenges such as pressure on gross margins, imbalanced production, and intensifying industry competition. Its IPO journey is not only a microcosm of domestic sensor companies breaking through but also reflects the deeper propositions of industry development.

From Classroom to Capital Markets: The Growth Trajectory of a Sensor Leader

The birth and rise of Audiowell began with the cross-border journey of a high school teacher.

According to Qichacha data, Audiowell's Executive Director and Chairman Zhang Shuguang holds a bachelor's degree in metallurgy. In 1990, at just 23 years old, he resigned after only eight months as a teacher at a high school in Shunde, Foshan, to enter the workforce. In 1991, he joined a radio factory in Shunde as a technician; a year and a half later, he moved to Panyu Xingye Electronics Co., Ltd. as Deputy General Manager, where his capabilities gradually became evident.

Zhang Shuguang spent eight years at Panyu Xingye Electronics, accumulating solid industry experience. In 2000, he joined Audiowell's predecessor, Guangzhou Panyu Audiowell Electronics Co., Ltd., and was promoted to Executive Director and Deputy General Manager two years later. In 2010, he officially became the company's Chairman and General Manager, leading its transformation from traditional passive actuators to the smart sensor sector.

Before the IPO, Zhang Shuguang held 15.39% of Audiowell's shares, making him the single largest shareholder; his wife Huang Haitao serves as an Executive Director, holding 1.80% of the shares. Additionally, Zhang holds influential positions in the industry, including Vice Chairman of the China Electronic Components Industry Association and Vice President of the Guangdong Robotics Association.

Under Zhang Shuguang's leadership, Audiowell has secured a notable market position. In 2024, by revenue, the company ranked second in China's smart home product sensor market, though with only a 0.1% market share. Globally, it ranked third in automotive ultrasonic sensor and actuator shipments, with an 11.3% market share.

Its overseas expansion has also been significant. From 2022 to the first half of 2025, over 40% of the company's total revenue came from international markets outside mainland China, with a customer network covering more than 46 countries and regions.

Audiowell specializes in smart sensors, actuators, and related applications, serving industries such as smart homes, robotics, smart vehicles, and high-end consumer electronics. It has provided services to over 3,000 global clients, including well-known multinational corporations.

Steady Growth, Margin Pressure

Audiowell operates in a promising sector, with strong demand for smart sensors and actuators from downstream industries like smart homes, smart vehicles, and robotics.

According to Frost & Sullivan data, the global and Chinese sensor and actuator markets are expected to maintain steady growth, with compound annual growth rates of approximately 4.8% and 6.2%, respectively, from 2024 to 2029. By 2029, the markets are projected to reach $703.6 billion and RMB 1.2 trillion, respectively.

Benefiting from market opportunities, Audiowell's revenue and net profit have shown steady growth in recent years, though not explosive. According to its A-share earnings report, in the first three quarters of 2025, revenue rose 12.31% year-on-year to RMB 502 million (in RMB, same below), while net profit grew 5.9% to over RMB 71 million, with profit growth lagging behind revenue growth.

Despite its strong performance and industry standing, Audiowell's IPO path is not without challenges. The prospectus reveals issues such as margin pressure and imbalanced capacity utilization, testing its resilience for sustained growth.

The gross margin for its core growth driver, smart vehicle solutions, fell from 25.5% in 2022 to 22.1% in the first half of 2025, mainly due to intensified competition in the domestic auto parts supply chain and price wars squeezing profits. By product category, the profitability of its actuator business, one of its two core operations (alongside sensor sales), also declined from 27% in 2022 to 21.3%, pressured by rising precious metal prices and industry competition.

Structural imbalances in capacity utilization are also concerning. In the first half of 2025, overall capacity utilization was just 53.9%, with actuator utilization as low as 36.1%, nearly halving from 63.3% in 2024. While domestic capacity sits idle, the company plans to raise funds in Hong Kong to expand overseas production. If overseas expansion falls short, new capacity could further strain inventory.

Conclusion: The Breakthrough Path for Domestic Sensors

Audiowell's Hong Kong IPO is not only a milestone for the company but also a microcosm of domestic sensor firms competing globally. Driven by the intelligence wave, the sensor market continues to expand, but challenges like technological iteration, cost pressures, and competition are becoming more pronounced. For Audiowell, the key post-listing questions will be how to convert technological advantages into sustained profitability, balance capacity expansion with market absorption, and maintain technological leadership amid industry changes.

Capital markets weigh both growth potential and risks. Audiowell's IPO success hinges on proving it has the core competitiveness to navigate industry cycles.

For the domestic sensor industry, Audiowell's journey offers valuable lessons. Only through continuous innovation, structural optimization, and risk resilience can companies truly establish themselves in the global supply chain, transitioning from "followers" to "leaders." Whether Audiowell can continue its growth story in Hong Kong remains to be seen.

Author: Yao Yuan