The average capacity utilization rate in the past three years is 99.43%

From the perspective of the industry situation, with the joint drive of industrial upgrading, energy conservation and environmental protection policies and import substitution trends, since 2018, the proportion of European, American and Japanese brands in the domestic inverter market has been declining, and the share of domestic brands has been increasing from 33.0% in 2018 to 38.4% in 2022. With rapid response, cost, service and other local advantages, is constantly narrowing the gap with foreign brands.

The industry believes that domestic brands are cost-effective, quality service, high customization efficiency, and will occupy more market share with the strengthening of domestic substitution trend. From the relevant market space, according to the data of China Industrial control network, since 2020, China’s low-voltage inverter market size has increased from 23.6 billion yuan to 29 billion yuan in 2022, with the economic improvement and downstream demand picking up, will further drive the demand for low-voltage inverter products, the market size is expected to reach 33.481 billion yuan in 2025, The future market space is vast. At the same time, with the advancement of intelligent manufacturing in China, the high-end manufacturing industry continues to improve the processing accuracy, response speed, stability and other requirements of industrial equipment, the application scenario of servo system will continue to expand, and the market demand will grow rapidly; The market size is expected to reach 23.5 billion yuan in 2025.

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From the perspective of production capacity, from 2020 to 2022, the annual average output of the company’s inverter excluding outsourcing is 452,900 units, the annual average output including outsourcing is 643,500 units, and the annual average sales are 640,800 units. The average annual production of servo systems is 9,159 units, and the average annual sales volume is 9,348 units.

In fact, the company’s average capacity utilization rate of 99.43% in the past three years, in the face of a broad market space, IPO expansion is the right time. After the investment project of the raised funds reaches the annual production capacity of 720,000 new inverters, 37,000 servo systems, and 8,000 elevators and construction lift systems.

According to the plan, the new capacity raising projects will be completed in the fourth quarter of 2023, of which Shanghai Songjiang Base will start in 2021 and is expected to be completed in October 2023, and Anhui Wuhu Base will start in 2022 and is expected to be completed in December 2023. In the future, with the gradual implementation of the company’s fundraising projects, the company’s product market share is expected to further increase.

Looking forward to the future, Zhongchen Technology said that after the company’s listing, it will improve product performance, enrich product categories, expand product production capacity, enhance research and development strength, improve the automation and information level of manufacturing links, strengthen marketing network construction, and improve brand awareness, so as to comprehensively enhance the company’s comprehensive competitiveness. Continuously expand the company’s market share in the industry. At the same time, the company will continue to uphold the entrepreneurial spirit of continuous progress and hard work, continue to carry out the research and development of new industrial automation technologies such as frequency converter and servo system, and continue to work intensively in the industry, develop the industry market with technology and customized solutions, build the core competitiveness of the market, and strive to become a domestic first-class and internationally renowned industrial automation equipment supplier.