Analysis of Low Compensation for R&D Personnel at ATK Automotive Electronics

Based on the public information I collected, I have conducted the following comprehensive analysis on the issue of whether the compensation for R&D personnel at

is below market level:

According to data from the public prospectus, ATK’s R&D investment is significantly lower than that of its peers [1]:

Company	2022	2023	2024
ATK	5.83%	5.07%	5.19%
Desay SV	10.80%	9.05%	8.17%
Foryou Group	8.35%	8.49%	7.52%
HiRain Technologies	16.30%	20.70%	18.78%
Peer Average	9.94%	10.70%	9.78%

ATK’s R&D expense ratio is only around 5%, nearly half lower than the industry average. Even excluding HiRain Technologies, which has a high R&D investment, ATK is still significantly lower than Desay SV and Foryou Group [1].

:

• As of June 30, 2025, ATK has 874 R&D personnel, accounting for 46.29% of the total number of employees
• Increased from 491 people at the end of 2022 to 874 people, a growth rate of approximately 78%
• More than 80% of R&D personnel hold a bachelor’s degree or above [2]

:

• Desay SV: 4,324 R&D personnel, accounting for 45.98%
• Foryou Group: 2,643 R&D personnel, accounting for 33.52%

According to data from the prospectus, the compensation of the company’s senior executives is as follows [1]:

Position	Name	2024 Annual Compensation
Chairman, General Manager	CHEN ZEJIAN (Chen Zejian)	RMB 3.455 million
Deputy General Manager, Technical Director	Chen Yong	RMB 1.48 million
Deputy General Manager	Zhou Xiaoyun	RMB 1.187 million
Director, Deputy General Manager	Hu Hailong	RMB 1.114 million

In contrast, the

is only [3]:

• 2024: RMB 104,500 per person
• 2023: RMB 106,800 per person
• 2022: RMB 98,900 per person

Although ATK has not separately disclosed the average compensation for R&D personnel, reference can be made to industry data:

According to 2024-2025 industry compensation data [4][5]:

Job Category	Monthly Salary in First-Tier Cities	Monthly Salary in Second-Tier Cities
Director of Electronic Engineering/Chief Engineer	RMB 50,000-120,000	RMB 45,000-80,000
Algorithm Engineer	RMB 45,000-120,000	RMB 40,000-100,000
In-Vehicle Software Architect	RMB 150,000-180,000	RMB 65,000-100,000
Automotive Design/Manufacturing Engineer	RMB 10,000-35,000	RMB 10,000-25,000

According to 2023 financial report data of automakers [6]:

• The average annual compensation for R&D personnel at new power automakers is approximately RMB 880,000
• The average annual compensation for R&D personnel at traditional automakers is approximately RMB 320,000-400,000
• Equity incentives account for 17%-30% of R&D personnel’s compensation

Assuming ATK’s R&D personnel compensation refers to the industry’s second-tier level (approximately RMB 150,000-250,000 per year), compared to:

• New power automakers: a gap of about 3-5 times
• Traditional automakers: a gap of about 1-2 times

ATK has established employee stock ownership platforms for equity incentives [7]:

• Shuntai Investment
  : ATK’s employee stock ownership platform
• Botai Enterprise Management
  : Employee stock ownership platform

According to the prospectus, core R&D personnel hold a certain share in the employee stock ownership platforms:

• Pan Congcong: 2.40%
• Si Te: 2.40%
• Tao Guoxian: 2.20%
• Chen Faren: 1.00%
• Li Xiang: 1.00%
• Sheng Wanwan: 0.92%
• Song Caiwang: 0.48%
• Liu Dawei: 0.48%

This makes up for the shortage of cash compensation to a certain extent, but the value of equity incentives depends on the company’s stock price performance after listing.

The compensation for ATK’s R&D personnel is

, mainly due to the following reasons:

1. Insufficient R&D Investment
   : The R&D expense ratio is only about 5%, significantly lower than the industry level of 6-10%
2. Low Cash Compensation
   : Based on industry standards and peer comparisons, the cash compensation for ATK’s R&D personnel is expected to be lower than the industry average
3. Imbalanced Compensation Structure
   : There is a huge gap between executive compensation (up to RMB 3.455 million) and the compensation of ordinary R&D personnel, which may affect the stability of the R&D team
4. Reliance on Equity Incentives
   : The company mainly relies on employee stock ownership platforms for incentives, but the value of equity is uncertain

• Whether the company plans to increase the proportion of R&D investment after listing
• Whether it will adjust the compensation structure for R&D personnel to enhance competitiveness
• Whether the employee stock ownership plan can effectively retain core technical talents

---

[1] Sina Finance - “ATK’s Actual Controllers and Shareholders Cashed Out Nearly RMB 800 Million; R&D Investment and Gross Profit Margin Are Both Lower Than Peers” (https://finance.sina.com.cn/stock/zqgd/2025-08-08/doc-infkfuwc3755576.shtml)
[2] Shanghai Stock Exchange - “ATK Listing Sponsor Letter” (http://static.sse.com.cn/stock/disclosure/announcement/c/202601/002079_20260113_0RMB.pdf)
[3] Shanghai Stock Exchange - “ATK Prospectus” (https://static.sse.com.cn/stock/disclosure/announcement/c/202506/002079_20250620_NS00.pdf)
[4] Eastmoney - “2025 Market Outlook and Compensation Guide” (https://pdf.dfcfw.com/pdf/H3_AP202412301641466651_1.pdf)
[5] Xinchou.com - “Interpretation of 2024 New Energy Vehicle Industry Talent Development Report” (http://www.xinchou.cn/xingyezixun/9098.html)
[6] Huxiu - “R&D Personnel’s Average Annual Salary Reaches RMB 880,000; What Secrets Are There in the Automotive Industry’s Compensation?” (https://m.huxiu.com/article/3338776.html)
[7] Shanghai Stock Exchange - “ATK Supplementary Legal Opinion” (http://static.sse.com.cn/stock/disclosure/announcement/c/202601/002079_20260113_P4UK.pdf)