On November 9, Xinling Electric Co., Ltd. (hereinafter referred to as Xinling Electric), a leading domestic low-voltage electrical appliance company, officially landed on the A-share market. The company’s stock is referred to as Xinling Electric and the stock code is 301388. In this IPO, Xinling Electric publicly issued 25.6119 million RMB ordinary shares (A shares) at an issue price of 25.88 yuan/share, and Guotai Junan served as its lead underwriter.
According to reports, Xinling Electric was born out of the Xinling Relay Factory established in 1991. The company is mainly engaged in the research and development, production and sales of low-voltage electrical products. At present, the company's core products cover tens of thousands of varieties and specifications in six categories including relays, power distribution control, electrical transmission and control, instrumentation, sensors, and switches. They are mainly used for industrial control and have applications in machinery manufacturing. , new energy, home appliances, fire protection, electric power, communications and other industries. It is worth mentioning that Xinling Electric currently has three main brands: Xinling, Xinda and Leighton. Among them, the Xinling trademark is a well-known trademark in China and has been highly recognized in the industry.
After the funds raised from this IPO are in place, Xinling Electric will invest approximately 392 million yuan in industrial automation control electrical component intelligent manufacturing factory construction projects, electromagnetic relay, micro switch production line construction projects and intelligent distribution projects. Electrical appliance production line construction project. Through the implementation of fundraising projects, the company will continue to increase investment in research and development, improve the company's overall research and development capabilities, enhance brand value, enhance the company's core competitiveness, and realize the transformation of product positioning from mid- to low-end to mid-to-high-end; from component production to The transformation of equal emphasis on component production and solutions, and the company is committed to becoming a first-class domestic electrical component supplier and automation solution integrator.
The low-voltage electrical appliance industry is stable and improving, and the company's products have great room for growth
Low-voltage electrical appliances are basic components in the fields of electrical equipment and industrial automation, and are widely used in daily life and production. in all aspects. As residents' income continues to grow, traditional downstream markets such as automobiles, household appliances, and industrial controls have grown steadily; at the same time, the rapid development of emerging industries such as new energy, artificial intelligence, and smart manufacturing has also opened up new downstream markets for the low-voltage electrical appliance industry.
According to the "Analysis Report" of the General Low-Voltage Electrical Appliances Branch of the China Electrical Equipment Industry Association, from 2015 to 2020, the main business income and total profits of my country's low-voltage electrical appliances industry continued to grow, with an average annual compound growth rate of At 7.53 and 6.69, the market size and industry demand are rising steadily, and the industry has broad room for growth.
Xinling Electric's low-voltage electrical products are mainly relays, dual-power automatic transfer switches, control and protection switches. During the reporting period, the sales revenue of these products accounted for approximately 65% ??of the company's main business revenue; At the same time, the company has also expanded into the fields of industrial automation products such as servo drives and sensors, and its product layout is relatively comprehensive.
In the relay market, the company’s market share is 0.67, which means it has great room for improvement. Data shows that from 2019 to 2021 and the first half of 2022, the company's relay product revenue was 179 million yuan, 196 million yuan, 238 million yuan and 128 million yuan respectively, and the revenue scale showed a good upward trend.
On the one hand, the company plans to continue to strengthen the innovative research and development of existing relay products, seize market opportunities in the wave of local products replacing imported products, seize and gradually penetrate into the mid-to-high-end market share in the field of industrial control relays and increase the market share share and increase market penetration; on the other hand, we will expand the application fields of relay products, continue to develop new types of relay products such as high-current industrial control relays, high-load small relays, and accelerate the entry of application fields into emerging industries such as new energy vehicles. Expand the field and achieve rapid growth in the revenue scale of relay products.
In the market of dual power automatic transfer switches, control and protection switches, the company's market shares are 6.05 and 9.36 respectively, and it has a certain degree of popularity and competitiveness. During the reporting period, the sales revenue of these products were 64.6171 million yuan, 89.6485 million yuan, 108.7129 million yuan and 50.1041 million yuan respectively, which also showed an upward trend.
At present, there is no obvious leading company in this market. By strengthening technology research and development and product upgrades, the company is expected to strive for a higher market share.
Continuous R&D and innovation, intelligent transformation and efficiency improvement, and enhancement of the company's core competitiveness
In the field of technology research and development, Xinling Electric's strength is widely recognized. The company takes the industrial control electrical field as its core development direction, actively promotes technological innovation, and has established an excellent technical team and a high-standard corporate technology R&D center and experimental center. After years of accumulation and development, it has established advanced technological innovation and product R&D The system has strong capabilities in product research and development, reliability experiments, and proprietary equipment research and development.
Xinling Electric has been continuously rated as a national high-tech enterprise since 2009. In 2020, the company's laboratory obtained China CNAS certification. In terms of technical achievements, as of June 30, 2022, the company has 417 valid authorized patents, including 14 invention patents and 88 software copyrights. Among them, 10 new technologies including the company's S705 intelligent water pump controller and high-performance servo controller (BSDA series) are registered as scientific and technological achievements of Zhejiang Province.
It is worth mentioning that Xinling Electric is also a member of the Zhejiang Low-Voltage Electrical Standards Technical Committee. It has participated in the preparation of a number of technical specifications and participated as the main drafting unit in the China Quality Certification Center Certification Technical Specification CQC1127 -Compilation of the 2017 certification technical specifications for electronic controllers for automatic transfer switch appliances and a number of Zhejiang manufacturing group standards.
At the same time, Xinling Electric responded to the national manufacturing power strategy, combined with the current situation of the company and future development needs, and carried out comprehensive optimization and upgrading by building a digital workshop, with the Internet of Things as the core, combining ERP, procurement, and sales The platform creates an information and IoT collaboration platform, builds an information integrated industrial Internet platform for intelligent manufacturing, develops corporate big data analysis capabilities and business application APPs, and realizes docking with equipment OEE, MES, and ERP; establishes automated/intelligent processing, Assembly, inspection and other systems realize the automation and intelligence of key processing equipment; the application of CCD image inspection system, ESOP visual system, mobile phone real-time monitoring and counter-control and other technologies realizes production control from desktop to intelligent terminal, from wired An extension to wireless.
In 2014, Xinda Electric, a subsidiary of Xinling Electric, was recognized as a machine substitution demonstration enterprise in Wenzhou City by the Wenzhou Municipal Economic and Information Technology Commission. In 2018 and 2020, the company's technological transformation projects were respectively recognized as Yueqing City's Enterprise Digital Manufacturing, Industry Platform Service Pilot Demonstration Project, and Yueqing City's Intelligent Technology Transformation Project.
Innovative marketing, customized services, strengthening brand moat
In order to adapt to the rapid and multi-level changes in the market and products, Xinling Electric has continuously summarized and innovated in many years of marketing practice, and gradually A unique marketing system for the regional industry has been established, using a combination of distribution and direct sales in practice.
Under the distribution model, the company divides the domestic market into 8 large areas to set up business and technical service teams, and uses this as a node to combine 131 contracted dealers across the country to create off-site after-sales services within the service area. network.
Under the direct sales model, the company directly expands customers through sales personnel, exhibitions, online flagship stores or sales departments, and at the same time drives direct sales revenue to continue to grow through the ODM model.
At the same time, Xinling Electric also pays special attention to the integration of online and offline marketing systems, and has formed an all-round promotion of official websites, public accounts, small programs, e-commerce and other platforms, which can realize online Convenient inquiries, technical consultation, quotations, orders, good offline customer experience, installation, after-sales and other services.
Under the two-way driven operation of its own brand ODM, Xinling Electric’s operating capabilities have continued to improve and established its competitive position in the industry. During the reporting period, the company established stable cooperative relationships with well-known companies in the industry such as Chint Group, Tianzheng Electric, and Siemens, which promoted the sales and revenue scale of the company's products.
In fact, as the market environment changes, customer needs have become diversified and personalized. Xinling Electric has actively grasped this trend and formed a comprehensive system from early customer demand research to on-time, high-quality delivery of products. Process customized product delivery capabilities. Through personalized customized services for some leading manufacturers in the industry, we have solved user problems, obtained supporting purchase orders from machinery manufacturers, and achieved sustainable development of the company's overall business. At the same time, this approach has greatly strengthened the stickiness of cooperation between the company and its customers and laid the foundation for long-term cooperation in the future.
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