From November 14, 2023 to November 23, 2023, Shenzhen Huichuan Technology Co., LTD., in the form of online and offline specific object research, road show activities, telephone conference, brokerage strategy meeting, a total of 195 people participated in investor relations activities, investor relations Director Mr. Wang Xing Ran, investor relations manager Ms. Zhang Jianming received. From the activity record table, the meter network combs out the following six key points.

First, the industry downturn, weak demand Automation business still maintained growth

Huichuan Technology said that although the macroeconomic situation is sluggish this year and the industry demand is weak, it has brought certain challenges to the business operation, but the company’s general automation business still maintains good growth.

The main reasons are: ① The company has a forward-looking strategic deployment, starting from inverter products, to PLC+ servo, and then to high-efficiency motors, industrial robots, precision machinery products and pneumatic products, the company can provide more and more products. At the same time, for different industries, the company can quickly identify the process characteristics of the industry, and form different levels of packaging solutions with different products to meet the needs of different industries and different customers. From meeting the needs of customer solutions, the company has a good competitive advantage.

② Seize the structural opportunities of emerging industries: the company’s products and solutions are wide, with efficient and high-precision multi-product solutions, seize the opportunities in photovoltaic, semiconductor, construction machinery and other industries to achieve rapid growth.

The trend of localization has been further improved, and the company continues to benefit from the “east wind” of localization, which is more and more favored by customers.

Second, develop digital business with the advantage of “automation + digitalization”

Huichuan Technology said that many projects of automation, if there is no digital solution, it is difficult to solve the problem of automation. The future of industrial automation must be the combination of automation and digitalization. Huichuan Technology began to engage in industrial Internet business in 2012, and digital business is carried out on the basis of the original industrial Internet business.

From the perspective of application scenarios, on the client side, Huichuan Technology has a large number of manufacturing customers, and the realization of digital management of manufacturing customer workshops is inseparable from the automation equipment of the production line; In the post-service market, Huichuan technology combines the typical process and performance parameters of elevators, air compressors and lifting equipment with digitalization.

From a technical point of view, digitalization should be supported by AI technology, and the first landing is predictive maintenance and predictive diagnosis. In applications where key equipment (compressors, motors, etc.) cannot be shut down, Huichuan Technology uses electrical indicators to diagnose the health of equipment, and combines electrical and mechanical technologies to launch AI solutions through mechanical diagnosis (vibration, noise, temperature rise).

From the scene, to AI technology, and then to the integration of solutions, this is the direction of Huichuan Technology into digital business.

Third, the real estate industry pressure elevator business performance is stable

Smart elevator business is closely related to real estate development; In recent years, the situation of the real estate industry has affected the demand for the elevator industry. The solid performance of Huichuan Technology’s elevator business is mainly driven by:

(1) The increase of the share of multinational enterprises: the company’s elevator frequency converter and integrated products are imported to reachable customers in multinational enterprises, so as to gradually increase the share of the company’s products in multinational large customers.

(2) Growth of overseas markets: The company’s elevator business has achieved good expansion in Europe, India and other markets. With the promotion of the company’s internationalization strategy, the elevator Division will increase the expansion of elevator products and solutions in overseas markets.

(3) Further penetration of elevator electrical overall solutions: The company provides a full set of solutions including control system, elevator frequency converter, human-machine interface, door machine and cable for the whole elevator factory customers, and the overall supporting program has grown rapidly in the past two years in domestic and multinational enterprises and other customers.

Huichuan Technology said that although the external environment of the smart elevator business has a certain pressure, the implementation of the above strategy will serve as a strong guarantee for the continued steady growth of the company’s elevator business.

Fourth, promote the industry line to go to sea strategy in the future overseas revenue is expected to grow faster

From January to September this year, the company’s overseas revenue achieved rapid growth, among which, the rapid growth of new energy vehicles, general automation achieved 100% growth, and smart elevators increased by more than 30%.

At present, Huichuan Technology is actively expanding the regional layout, promoting the industry line to the sea strategy, and sending domestic industry line personnel to Europe and Southeast Asia and other markets to promote excellent solutions. Huichuan Technology said that the future overseas revenue is expected to grow faster, and the company’s overall revenue has formed a better support.

In the process of international business promotion, in order to better respond to the needs of customers’ localization of supply and service, Huichuan Technology has built an overseas factory in Hungary, and the Hungarian base of Huichuan Technology has started some production, which will gradually realize the localization production and delivery of products.

Five, the new energy vehicle business fixed-point project OI has good support

The growth of Huichuan Technology’s new energy vehicle business mainly relies on the OI(expected order size) generated by past fixed points and the actual order situation converted in the current period. In the past two years, Huichuan Technology has harvested dozens of fixed-point projects, and the fixed-point project OI has a good support, and has also laid a solid foundation for the growth of the company’s new energy vehicle business. Huichuan Technology said that on the basis of fixed points, it will continue to do a good job of delivery protection and strive to increase the conversion rate of orders.

Sixth, increase investment in two directions to speed up the ability to supplement software

In the past 20 years of development, the products of Huichuan technology are a combination of hardware and software products, and the hardware genes are more. In recent years, Huichuan technology has accelerated the ability to supplement software, and has developed strategically from a hardware-biased to a software-biased direction. There are two main investment directions:

① Products based on the control layer, including PLC, CNC, FA software platform, etc., complement the shortcomings of soft products. The company in Shenzhen, Suzhou, Xi ‘an, Stuttgart, Germany and other domestic and foreign research and development centers, a large number of software talents, accelerate the construction of software capabilities.

② Digital strategic business: enterprise-oriented production management, with digital means, superimposed automation and energy management, to help enterprises improve the operation efficiency, energy efficiency and product quality of the workshop.