On September 7, 2023, Huazhong Numerical Control issued an evening announcement. The announcement said that Changzhou Wasu Jinmingneng Equipment Technology Research Institute Co., LTD. (hereinafter referred to as “Changzhou Wasu Jinming”), a subsidiary of Huazhong Numerical Control Holdings, and a customer and associated entities signed the “Equipment Supply and technical Service Contract” (hereinafter referred to as “Contract”). Changzhou Wasu Jinming intends to sell softpack battery module assembly lines to overseas customers. The contract value is RMB 416.97 million.

The announcement shows that the object of the contract is six soft-pack battery module assembly lines. Pay in installments according to the progress of the contract, that is, 30% advance payment, 30% factory acceptance payment, 30% site acceptance payment; Final acceptance payment 10%.

The total transaction price is RMB 416.97 million (including tax), accounting for 25.07% of the audited operating income of Huazhong Numerical Control in 2022. The announcement shows that if the project is successfully implemented, it will have a positive impact on the future business performance and market development of Huazhong Numerical Control.

On the one hand, the implementation of the above projects further reflects the determination of the company to increase the development of the European and American markets, which is an important performance of the implementation of the global layout of the company and the strategy of paying equal attention to domestic and foreign markets;

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On the other hand, it is helpful for Huazhong Numerical Control to further deepen the field of new energy power batteries, which is conducive to consolidating and enhancing the competitiveness of Huazhong Numerical Control at home and abroad, promoting Huazhong Numerical Control to seize the market opportunities of the rapid development of new energy power batteries, improving the income scale and profit level of Huazhong Numerical Control, and then enhancing the international brand influence of Huazhong Numerical Control.

In addition, the announcement shows that from March 2022 to the date of disclosure of this announcement, Changzhou Huasu Jinming has signed a total contract amount of 214,526,200 yuan (including tax, excluding this contract) with the customer and its subordinate entities.

Public information shows that Changzhou Wasu Jinming is mainly engaged in industrial robot research and development and system integration manufacturing. According to the “2023 semi-annual Report” data show that in the first half of 2023, Changzhou Wasu Jinming’s operating income was 341 million yuan; The net profit attributable to the shareholders of the listed company was 17.231,500 yuan.

Gaogong Robot observed that in the first half of 2023, Changzhou Huasu Jinming’s operating income and net profit increased significantly over the same period last year, increasing 78.41% and 90.50% respectively. Central CNC said that the main reason is that during the reporting period (January to June 2023), the company cooperated with a number of head enterprises in the field of new energy, and sales revenue increased significantly from the previous year.

At present, industrial robots and intelligent production lines have become one of the main businesses of Huazhong Numerical Control. From January to June 2023, Huazhong CNC achieved revenue of 484 million yuan in the field of industrial robots and intelligent production lines, an increase of 54.64% over the same period last year.

In addition, the “2023 semi-annual report” shows that in the field of new energy power batteries, the wide application of intelligent equipment has changed the traditional assembly method and achieved flexible production and personalized customization. In the first half of the year, the company continued to implement the global layout, increased market development efforts in Europe and the United States, and is entering the field of energy storage batteries. In addition, a wholly-owned subsidiary in Hungary was officially put into operation.