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Breaking: Deren Electronics financial fraud—Connector Industry Alert
On December 31, 2025, Deren Electronics (002055), a leading A share connector manufacturer, received an Advance Notice of Administrative Penalty from the Shenzhen Regulatory Bureau of the CSRC. Due to falsified operating receipts over 2020–2022, the company will be subject to an “Other Risk Warning”. Its stock abbreviation will change from “Deren Electronics” to “ST Deren”（ST=Special Treatment）. Trading will be suspended for one day on January 5, 2026, and when it resumes on January 6, 2026, the daily price fluctuation will be limited to ±5%. This three-year financial fraud not only plunged the veteran connector company into a trust crisis, but also sounded a compliance alarm across the fast-growing connector industry. Enforcement Implemented: The $76.7 Million Fictitious Receipts Fraud Timeline The investigation by the Shenzhen Regulatory Bureau revealed that the financial fraud at Deren Electronics was orchestrated by the actual controller, Qiu Jianmin, who was serving as Chairman and CEO at the time. From 2020 to 2021, due to major customers facing financial difficulties and unable to repay debts, Deren Electronics experienced tight cash flow.Qiu Jianmin, the company’s actual controller and then Chairman & CEO, used his personal funds and external loans to provide financial support to customers, subsidiaries, and equipment suppliers, who then repaid
Copper Prices Soar — Can the Connector Industry Hold Steady
On December 31, China’s copper futures market experienced short-term volatility.The Shanghai copper futures main contract saw a slight pullback during the session and closed at USD 12,500 per metric ton, posting an intraday gain of 0.84% From a longer-term perspective, supported by tight supply on the mining side and improving expectations for global demand, international copper prices have shown a broadly volatile upward trend over the course of the year. The price center has continued to move higher, with copper remaining in a historically elevated range. From below USD 8,600 per metric ton at the beginning of the year to a stable range of USD 11,600–12,000per metric ton in the fourth quarter, LME copper prices have risen by more than 30% over the year.More importantly, this rally is not driven by short-term market sentiment, but represents a “platform-style price uplift” formed against the backdrop of a tight supply–demand balance For the connector industry, where copper is one of the core base materials, fluctuations in copper prices are never merely a raw material issue.Instead, they represent a systemic variable that directly affects cost pass-through, product pricing, material selection strategies, and ultimately the survival and competitiveness of enterprises. Against the backdrop of copper prices
Connector Giant Announces Price Increase for 2026 — Is a “Cost Storm” About to Hit the Electronics Supply Chain?
The global connector industry has just taken a heavy hit. On December 4, TE Connectivity (TE), the world’s leading connector manufacturer, issued a price adjustment notice to its global channel partners, announcing that starting January 5, 2026, prices across all product lines and all regions will be increased. The announcement quickly sent ripples through the entire supply chain, highlighting the widespread pressure and challenges manufacturers are facing amid today’s inflationary environment. A Unified Global Price Adjustment: Covering All Product Lines and All Regions According to TE’s latest notice to its channel partners, this price adjustment is far from a regional trial—it is a globally synchronized and fully comprehensive move. The announcement specifies that the change applies to all authorized distributors, underscoring the company’s unified strategic approach to the global market. The price hikes span an exceptionally broad range—from automotive-grade connectors to high-speed backplane solutions, and from spring-pin terminals to various categories of industrial connectors—covering virtually the entire TE product portfolio. Distributor feedback indicates that the increases for certain categories fall between 5% and 12%, marking a moderately strong, structurally driven adjustment. As a leading force in the connector sector, TE Connectivity supplies products that are deeply embedded across key industries
Revenue Gap Hits $200 Billion! Q3 2025 Deep Dive into JONHON, Aerospace Electrical Equipment, and Luxshare Precision
The fastest growth rates differ by nearly 16 percentage points, and net profit performance varies dramatically, reflecting a new phase of strategic differentiation in the connector industry. With the Q3 2025 financial reports now disclosed, the three leading connector companies — Luxshare Precision, JONHON, and Aerospace Electrical Equipment — exhibit markedly different development trajectories. This divergence highlights how the connector industry is making varied strategic choices under multiple driving forces, including AI computing infrastructure, the transition to new energy, and upgrades in communication technology. The three companies are pursuing differentiated competition along three distinct paths: high-end breakthroughs, scale expansion, and ecosystem integration. 01 Q3 Key Financials Comparison: Three Distinct Business Paths Emerge In the third quarter of 2025, the three leading companies in the connector industry delivered markedly different results. A multi-dimensional comparison of their financial data clearly reveals the distinct strategic orientations and development paths of each company. FY2025 Q1–Q3 Operating Performance Comparison Category of Indicators Key Metrics Luxshare Precision JONHON Aerospace Electrical Equipment Revenue Scale Revenue Amount(Unit: Billion USD) 310.6 22.3 6.1 Year-on-Year (YoY) 24.69% 12.36% 8.87% Profit Performance Net Profit Amount(Unit: Billion USD) 115.18 17.01 0.21 Year-on-Year (YoY) 26.92% -30.89% -64.53% Cash Flow Situation Operating Cash Flow Amount(Unit:
What are the main features of TE high voltage connectors？
TE high – voltage connectors have the following main features: • High – voltage and high – current handling capacity: They can handle high voltage and large – current transmission. For example, the PowerTube connector series can reach a voltage level of up to 1000V and a current – carrying capacity of up to 580A. The AMP+ HVP 800 high – voltage connector system can use a current of up to 250A in a 50mm² wire. • Good electromagnetic compatibility: Many products are equipped with 360° shielding, such as the PowerTube connector series, which has a circular 360° shielding layer, and the shielding current can reach 30% of the main current, which helps ensure high EMC performance. • High – safety design: They adopt touch – safe technology to prevent users from touching the current – carrying elements with their fingers. They are also equipped with a high – voltage interlock loop (HVIL) function. For example, the AMP+ HVA 1200 high – voltage interconnection system has an integrated HVIL, which meets the IP2XB of IEC 60529 and the UL finger – protection standard. • Strong environmental adaptability: The connectors have a wide operating temperature range, generally from – 40 °C
Unveiling the Profit Secrets: Gross Margins of 30 Chinese Connector Companies
Under the drive of 5G communication, new energy vehicles, and AI computing power, the connector industry is experiencing a shift from “quantity” to “quality.” According to SkyQuest data, the global connector market size is expected to surpass $90 billion (USD) in 2024, with China holding a 31% share, making it the largest single market. How will domestic connector companies perform in 2024? What is the current state of downstream markets such as consumer electronics, automotive, communications, energy storage, and industrial control? What new growth drivers will emerge in the industry’s future? To address these questions, International Cable and Connector has conducted a comprehensive analysis of the annual reports from 30 listed connector companies in China. The goal is to decode the trends of the industry’s high-end development and the key opportunities for domestic substitution from the financial data and business strategies. P1 16 out of the 30 companies saw both revenue and profit growth:The connector industry is on an upward trajectory, with the Matthew Effect intensifying. In 2024, driven by demand in sectors such as new energy, communications, and consumer electronics, the connector industry is showing a typical structural characteristic of “stable growth for leading players, polarization among small and medium-sized enterprises, and
The $572 million USD acquisition of Leoni is finalized! Looking back at Luxshare Precision’s ambitious “acquisition history”
The $572 million USD acquisition of German wiring harness giant Leoni was not a coincidence for Luxshare Precision. From consumer electronics to the automotive industry, from components to system integration, it outlines the transition path of Luxshare Precision from a foundry giant to a global industry chain player. When Luxshare Precision completes the transaction with Germany’s Leoni AG in 2024, the capital market will have long been accustomed to the company’s “acquisition-style expansion”. Since its establishment in 2004, Luxshare Precision’s growth history is almost equivalent to a history of mergers and acquisitions, and the 4.1 billion acquisition of Leoni is just the latest step in its huge chess game. P1 The $572 million USD purchase is not only a wiring harness factory, but also an “entry ticket” to the European automotive industry. This highly anticipated cross-border merger and acquisition, with a total transaction price of $572 million, covers 50.1% of the shares of Leoni Group and 100% of the shares of Leoni Kabel GmbH, a core wiring harness subsidiary. For Luxshare Precision, this is not only a business expansion, but also a precise positioning of the voice in the global automotive supply chain.Founded in 1917, as a representative of German
BMW finalizes its intelligent driving partner, Momenta becomes the “common choice” of top 3 giants(Mercedes, Audi, BMW)
BMW finalizes its intelligent driving partner, Momenta becomes the “common choice” of top 3 giants On July 15, BMW China officially announced a partnership with domestic autonomous driving company Momenta. The two parties will develop a China-specific intelligent driving assistance solution based on the flywheel model. This solution will cover highway and urban road scenarios and will be first installed on BMW’s domestically produced new generation models. BMW is not the first German luxury brand to embrace Momenta. Mercedes-Benz made a strategic investment in Momenta as early as 2017, and its new CLA model will be equipped with Momenta solutions for the first time in the fourth quarter of this year; Audi announced at this year’s Shanghai Auto Show that it will cooperate with Momenta to develop intelligent driving functions for its pure electric brand AUDI. Now that BMW has entered the game, Momenta has officially become the “greatest common denominator” of BBA in the intelligent driving track in China. Why Momenta? Among local suppliers such as Huawei and Horizon Robotics, Momenta stands out due to three major advantages: Safety verification endorsement: It has passed mass production project verification of joint venture brands such as GAC Toyota and SAIC Volkswagen;
BYD’s megawatt flash charging: 400 km range in 5 minutes. What’s the point of battery swapping now?
The issue of energy replenishment for new energy vehicles (NEVs) has always been one of the obstacles hindering their development. After all, the charging time for many NEVs often takes 30 minutes or more. During emergencies or holidays, queuing for charging remains a common sight. The reasons for these queues are twofold: insufficient charging infrastructure and excessively slow charging speeds! Recently, BYD unveiled its ultra e-Platform technology, achieving a charging power of 1 megawatt (1,000 kW)—the highest peak charging speed in mass-produced vehicles worldwide at 2 km per second. This sets a global benchmark for mass-produced EVs: a 5-minute flash charge delivers 400 km of range. Achieving “charging at gas-pump speed” requires simultaneous ultra-high voltage and ultra-high current charging. The newly unveiled ultra e-Platform represents the world’s first mass-produced passenger vehicle “Full-Domain 1000V High-Voltage Architecture,” upgrading battery, motor, power electronics, and air conditioning systems to 1000V – truly ushering EVs into the kilovolt era. BYD has also officially launched its “Flash Charging Battery,” establishing ultra-high-speed ion channels from cathode to anode. This innovation: Powered by ultra-high 1000V voltage and ultra-high 1000A current, the “Flash Charging Battery” achieves a world-leading 1 megawatt (1000kW) charging power for mass-produced vehicles, officially ushering in
Cost breakdown analysis of automotive wiring harness
Cost breakdown analysis of automotive wiring harness in China The highest cost in terms of proportion is the material cost, followed by labor cost. Chart 1: Direct material expenses have the highest proportion in total costs. (Zhejiang Commercial Securities Research Institute) From the perspective of the automotive industry, the main production materials for wire harness industry are wire, terminals, sheaths, sealing components, etc., involving materials such as copper, rubber, plastic, etc. The price is mainly determined by the market price of commodities such as copper, stone oil, natural rubber, and other chemical materials. According to the 2021 annual report of HuGuang Group, the direct material cost accounts for the highest proportion of the cost, reaching 76.64%. The automotive wiring harness industry is a typical labor-intensive industry, requiring a large number of workers to engage in operations such as inserting, wiring, wrapping, and rolling during the harness manufacturing process. Therefore, labor costs are relatively high in the wiring harness industry. According to HuGuang Group’s 2021 annual report, direct labor costs account for 13.43%. Figure 2: Automotive wiring harness assembly line (Zhejiang Commercial Securities Research Institute) The cable cost is the highest, with the core material