As a leading enterprise in the domestic industrial control field, Inovance Technology held its annual general meeting of shareholders on May 23rd, during which investors actively raised questions. Company executives introduced that, relying on its leading position in core components and rich accumulation of industrial scenarios, Inovance Technology is actively laying out the humanoid robot field and is currently incubating a batch of “seed” businesses, collaborating with ecosystem partners to enhance the level of domestic process industries.
Humanoid robot: The opportunity has come
In the bustling humanoid robot race, industrial control giant Inovance Technology was previously rather “low-key”, but now it has become more optimistic and proactive. Some institutional investors asked him about the reasons for the change in his attitude. Zhu Xingming, the chairman of Inovance Technology, revealed two important reference standards – the open source of large models and the improvement of customer recognition.
Humanoid robots were our previous pre-research project, and we have found that the opportunity has come now. Zhu Xingming pointed out that on the one hand, the open source of large models marks a crucial step towards commercialization for humanoid robots and is expected to achieve lower-cost intelligent operations in more complex scenarios in the future. On the other hand, humanoid robots have been continuously launched both at home and abroad around the Spring Festival, and their recognition has gradually increased. Based on the understanding of industrial laws, the company believes that 2025 will be an appropriate time for Inovance Technology to enter the humanoid robot market. However, it is expected that significant results will not be seen until 2030. In the short term, do not have overly high expectations for the revenue and profits of this part of the business.
Inovance Technology is implementing AI technology in multiple dimensions and laying out solutions ranging from core components to embodied intelligence.
It is reported that last year, the company established a humanoid robot business team and has developed a prototype of high-performance joint components required for humanoid robots. It is expected that products will be launched this year. In addition, through its previous acquisitions of companies such as Shanghai Lane, Inovance Technology has already mastered mature design and manufacturing capabilities for high-precision ball screws. It has accumulated nearly a decade of experience in technology and equipment and is currently developing lead screw products in the field of humanoid robots.
“Hardware costs restrict the practical application of humanoid robots,” said Song Jun ‘en, the company’s secretary of the board. Inovance Technology can achieve autonomy in the vast majority of key technologies and products such as motors, drivers, guide rails, and lead screws. Moreover, the company has a rich array of industrial application scenarios, refining the integration of software and hardware to enhance the accuracy, stability, and reliability of humanoid robot movements.
Facing the layout and competition from automotive parts manufacturers and 3C ODM manufacturers in humanoid robots, Song Jun ‘en pointed out that the application scenarios of humanoid robots are not limited to automobiles but also include a large number of other industrial scenarios. Based on the demands and operational requirements of different industrial scenarios, it will test how the parts cooperate and control.
Song Jun ‘en said that according to incomplete statistics, there are at least a dozen types of humanoid robots in the current industrial scenarios that cannot meet the demands. In addition, 3C is an important application field for the company’s products, involving many scenarios and industries. Inovance Technology will not achieve full coverage of all scenarios but focus on providing components and solutions to form an ecological cooperative relationship with customers.
Strengthen the process industry
He who masters the craftsmanship rules the world
As the core business of Inovance Technology, the General Automation business achieved a revenue of 15.2 billion yuan in 2024, with a revenue of 4.1 billion yuan in the first quarter of this year. According to third-party statistics, Inovance Technology’s servo systems, frequency converters, and small PLCS (Programmable Logic Controllers) products maintain a leading position in the Chinese market.
The company’s senior executives introduced that with the future launch of the company’s large-scale PLCS, the company will lay out and enter the fields of metallurgy, papermaking, water affairs, etc. This will not only drive the sales of other products, but also is expected to strengthen the domestic process industry.
The domestic process industry lags behind the international one by at least ten years. The key gap does not lie in hardware but in process software. “He who masters craftsmanship rules the world.” Zhu Xingming introduced that the company has established dedicated solution centers in Beijing and Suzhou, recruiting industry process experts to help customers improve product yield and energy efficiency.
Intron Technology is still incubating a number of emerging pillar industries, including products such as guide rails and sensors, which are expected to generate considerable revenue in the future.
The revenue of Inovance Technology’s new energy vehicle business increased by nearly 70% year-on-year last year. It is reported that the company’s business has benefited from the rapid growth of electronic control, motors and assemblies, as well as the accelerated expansion of power supplies, and 46 new project designations for passenger vehicles have been added. By focusing on high-quality customers and projects and providing some customized solutions for electric drive systems, we have achieved relatively good growth.
In addition, Inovance Technology is promoting the listing of its new energy vehicle power system supplier, United Power. Zhu Xingming said that the subsequent growth of United Power will come from the increase in domestic penetration rate and the expansion of overseas markets such as Europe, but the greater growth will come from the evolution of automobiles themselves. With the advancement of automotive chassis technology towards electrification and intelligence, United Power will enjoy greater development space.
In the field of energy storage, Inovance Technology made a comeback. Last year, it made strategic moves in the power generation and grid sides, commercial and industrial energy storage, and household energy storage. The company’s PCS energy storage inverter shipments exceeded 7GW.
Although the shipment volume of energy storage was considerable last year, neither the scale nor the profit level has met the company’s expectations. Zhu Xingming said that the return to energy storage after three years is mainly due to the optimism that the future energy supply structure will shift from fossil fuels to multi-energy supply, and the power grid will also shift from the past focus on distribution and transmission to a development direction mainly based on control and regulation. This provides space for Inovance Technology to exert its capabilities, and the company is optimistic about the opportunities of networked energy storage management.
In addition, as the global manufacturing industry tends to become shorter and more decentralized, the demand for power supply at home and abroad is growing rapidly, and the demand for energy storage is also expected to increase.
Borrow a boat to go to sea
Continue to increase the proportion of overseas business
Inovance Technology has been promoting the “borrowing a boat to go global” and “industry line going global” strategies. Last year, its total overseas business revenue reached 2.039 billion yuan, an increase of 17.22% year-on-year, contributing approximately 5.51% to the revenue.
The company adheres to long-termism in its international expansion. Zhu Xingming introduced that objectively speaking, industrial automation products are a to B business, which has a different decision-making process from the to C business. Moreover, it also faces the long-term monopoly of brands from Europe, Japan, etc., as well as the long-term accumulation of customer trust. It takes a process for a Chinese brand to go from testing to reaching a large volume. Inovance Technology will enhance its technology and implement the “local for local” strategy. Through the next 3 to 5 years, it will grow into an international company, and the proportion of overseas business will continue to increase.
In terms of acquisition arrangements, Inovance Technology will also continue to pay attention to high-quality overseas assets and look for suitable acquisition targets.
Mergers and acquisitions are the second curve of a company and an important layout for expanding overseas markets. Song Jun ‘en stated that the company will still focus on major areas such as industrialization, automation, and digitalization for its layout.
