Berthel seeks Hong Kong listing despite ample cash, raising questions about its acquisition strategy

Automotive supplier Berthel has filed for a Hong Kong listing, despite holding over 4 billion yuan in liquid assets. The company, a key player in China's intelligent automotive chassis sector, reported strong revenue and profit growth from 2023 to 2025. However, concerns have been raised regarding its compliance and financial management, including issues with related-party transactions and the use of funds. Berthel's decision to take on debt for acquisitions while having substantial cash reserves and delaying core projects has drawn scrutiny, especially given recent reports of declining cash flow from operations and a slowdown in net profit growth.