Recently, Weichuang Electric announced that the company has received research from multiple institutions such as Beijing Kangmande Private Equity Fund Management Co., Ltd. Weichuang Electric stated that the “Suzhou Phase II Inverter and Servo System Automation Production Base Construction Project” is expected to be put into use this year, with an annual design capacity of 450000 units.
Since its establishment, Weichuang Electric has been focusing on the fields of electrical transmission and industrial control, adopting a differentiation strategy of deep cultivation in segmented industries. After years of experience in technological research and development and product promotion, it has deeply laid out in multiple segmented fields such as photovoltaic, machine tools, textiles, high-efficiency energy, lifting, printing and packaging, hydraulic transmission, coal mining, environmental ventilation, petroleum and petrochemical, shipbuilding and marine engineering, and has also expanded its presence in medical equipment, robotics, hydrogen energy The photovoltaic energy storage industry is accelerating technological research and development.
In the first half of 2023, the company’s operating revenue was approximately 625 million yuan, an increase of 41.81% year-on-year. The main reason is that the company continues to optimize its product structure and performance, relying on its quality and service advantages to maintain a strong growth momentum. The performance, quality, and reasonable pricing strategy of the product have been recognized by domestic and foreign customers, and the revenue scale of each product line has achieved growth; From the perspective of sales regions, the company seized market opportunities and achieved a growth of 173.88% in overseas revenue compared to the same period last year.
The overseas market is one of the sectors that Weichuang Electric attaches great importance to. The company actively explores overseas markets and adheres to technological innovation as the driving force, comprehensively improving its technological innovation ability and research and development level. The brand influence in overseas markets has gradually expanded, and the company’s overseas market development ability and market competitiveness have further strengthened. At present, there are many blank areas for overseas market development, At the product level, the company is actively expanding the certification of overseas products, and some products have already completed CE and UL certification. The company will seize opportunities in the overseas market and continue to expand and focus on regional layout.
In terms of product performance, the company’s mainstream product performance is at the forefront in China. The company’s competitive advantage lies in its development strategy of deeply cultivating segmented industries. After years of accumulation, it has deeply laid out in downstream fields such as lifting, mining, photovoltaic pumping, textiles, and has occupied a certain market share and industry position. Compared to foreign high-end products, there is still some room for improvement in terms of control performance and parameter settings. Overall, the company continuously narrows the gap by relying on localized advantages such as fast response, cost, and service. The development concept and process closely follow market demand, making the products more targeted and practical, and clearly adapting to the trend of import substitution. In the future, the company will continue to make efforts in international certification and gradually explore the international market.
The frequency converter is one of the core sectors of Weichuang Electric, which maintains a relatively stable growth rate every year; The company will continue to improve its technical level, strengthen its service system, and launch a full range of products that comply with industry development trends, such as high-voltage frequency converters, multi machine drive frequency converters, and industry integrated specialized machines, in order to enhance its comprehensive competitiveness. Therefore, the company proposes a strategy of “launching a full category attack and covering all fields”, and plans to continue to deepen the industry, expand the frequency converter category, and enter the project oriented market.
The core competitiveness of servo systems is cost. With the launch of the new generation of motors and the gradual replacement of self-made encoders, a series of cost reduction and efficiency enhancement measures will enhance the comprehensive competitiveness of servo system products, while also benefiting the layout of industries such as 3C, photovoltaic, lithium-ion, and logistics. As a growth oriented business of the company, servo system products have significantly increased their market share in recent years.
With the introduction of PLC products, the company has improved the frequency converter, servo system, and control system products, forming a complete industrial control product system. It can provide customers with overall system solutions, create a system integration service provider, and provide customers with reliable products and better services.
Weichuang Electric relies on its existing photovoltaic water pumping products and collaborates with major customer ODM to develop photovoltaic inverters, improving the layout of the photovoltaic industry. At present, the product is in the trial production stage. In the future, with the completion of domestic market validation of photovoltaic inverter products and relying on overseas sales and marketing networks, the company will also expand the overseas photovoltaic power generation market.
The research and development department of lithium-ion battery conversion and capacity separation equipment utilizes existing technological reserves to expand products in new fields, and has a promoting effect on interoperability with industrial control products. As one of the main development directions of clean energy, hydrogen energy has been developed by the company. The company has developed products related to hydrogen production power sources, hydrogen compressor drivers, and hydrogen fuel cell power generation systems, providing assistance for dual carbon. The company’s early layout of high visibility industries is conducive to the rapid industrialization of new product technology in the future, enhancing comprehensive competitiveness, introducing high-quality main business resources for the company, and exploring new profit growth points.
In the first half of 2023, Weichuang Electric maintained a strong growth momentum, and its products continued to gain recognition from more domestic and foreign customers. The revenue scale of each product line achieved growth. In the future, the industrial automation sector, including frequency converters, servo and control system products, will continue to constitute the main source of revenue and profit. The optimization of the layout of the new energy field is expected to become the second growth curve. The strategic layout of robots is to comply with the trend of automation and intelligent upgrading. The company will customize and extend products according to market and customer needs, striving to quickly industrialize new products and enhance comprehensive competitiveness, Introduce high-quality main business resources to the company and explore new profit growth points.
The “Suzhou Phase II Inverter and Servo System Automation Production Base Construction Project” is expected to be put into use this year, with an annual design capacity of 450000 units. The total designed production capacity of the first and second phases of the company is 914600 units. At the same time, the company is applying for stock financing to specific targets and plans to implement a “digital production base construction project” to enhance its strategic reserve of production capacity. It is expected that after the completion of the third phase, the annual production can reach 1.9459 million units.
The current production scale and capacity of the company have reached saturation, with a capacity utilization rate exceeding 104.10% in 2022. Driven by policies such as “Made in China 2025”, dual carbon strategy, and import substitution, the company expects to have a lot of market expansion space, and production capacity planning and reserves meet the needs of the company’s long-term development strategy.
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