Shenzhen Inovance Technology Co., Ltd. Business Report FY ended Dec. 2022
Financial overview |
(CNY millions) |
FY ended Dec. 31, 2022 | FY ended Dec. 31, 2021 | Rate of change(%) | |
Company-wide | |||
Sales | 23,008.31 | 17,943.3 | 28.23 |
Operating income | 4,469.63 | 3,821.8 | 16.95 |
Ordinary income | 4,476.62 | 3,819.2 | 17.21 |
Net income | 4,324.49 | 3,680.9 | 17.48 |
Sales by business segment | |||
Industrial automation business | 11,464.53 | 8,981.6 | 27.64 |
Elevator system business | 5,161.94 | 4,967.2 | 3.92 |
New Energy Vehicle / Railway transportation business | 5,551.55 | 3,518.2 | 57.80 |
Industrial robot business | 560.86 | 361.9 | 54.98 |
Factors
1) Company-wide
-Improved business performance by maintaining supply and delivery times, increasing local procurement of parts manufactured in China, and providing solutions that combine a number of products.
2) Electric drive and power supply business for NEVs
-In the fiscal year ended December 2022, the Company's total New Energy Vehicle business sales reached CNY 5.09 billion, a year-over-year (y/y) increase of about 70.02% (22.11% of total sales by business segment).
-Received more than 40 orders for products used on new-energy passenger cars such as BEVs, REVs, and PHEVs.
-Orders from OEMs significantly increased.
-Optimized product line.
-Significant increase in the proportion of assembled products.
-Launched mass-production of motors and power supplies.
Business strategy
-In 2022, the New Energy Vehicle-related business is operated by its subsidiary, Inovance Automotive. The company aims to become a global supplier of electric drive systems (e-Axles) and power supply systems for New Energy Vehicles.
1) Market strategy
- After building a foundation for Chinese OEMs, expand business globally
- In the Chinese domestic market, development of motor/ECU integrated electric drive unit (e-Axle), power distribution unit, etc. will be promoted in parallel, and the customer/product mix will be optimized.
- Continuing to cultivate the market for products for hybrid vehicles, planning to expand market share
- In overseas markets, promote sales expansion of power distribution modules, motor ECUs, motors, etc.
2) Product strategy
- Strengthen product competitiveness
Strengthen product competitiveness through research and development aimed at improving e-Axle efficiency and platform sharing, high-safety ECU, high-output and high-reliability power distribution system, and motor NVH and reliability improvement. By optimizing product design and deepening cooperation with suppliers, the Company has created a platform with dramatically improved cost competitiveness. - Strengthening technology research and development
Promote development focusing on e-Axle system integration technology, SiC power module technology for high voltage batteries, oil cooling technology for high voltage motors, multiple function integration technology, etc.
Spin off subsidiary for listing on domestiSc stock exchange
announced that its board of directors has authorized the company's management to start preparations for the spin-off of Suzhou Inovance Automotive Co., Ltd. (Inovance Automotive), a wholly-owned subsidiary of Inovance Technology, for its listing on a domestic stock exchange. Through the spin-off and separate listing, Inovance Technology aims to consolidate and improve the market position, competitive advantage, and brand influence of Inovance Automotive, as well as expand its financing channels. The listing of Inovance Automotive is still in the early planning phase. It has to go through the review procedures by the board of directors, shareholders' meetings, the stock exchange, and the China Securities Regulatory Commission. (From a press release dated August 23, 2022)
Business alliance
Year | Partners | Details |
Jun. 2022 | SKF |
With ceramic ball bearings the basis of cooperation between the two parties, they will strengthen R&D on and applications of standard ball bearings and tapered bearings. In addition they will search for information and share data under the “double carbon” goal to put their products in the leading position in terms of carbon reduction. |
Jun. 2022 | Shaanxi Fast | Building a common foundation for electric powertrain system technology development |
Feb. 2022 | SKF | Study high-speed ceramic ball bearings for Inovance Automotive applications |
Production plants
Plant | Zone | Area (square meters) | Details |
Suzhou Plant | Zone B | 130,000 | PCBA (printed circuit board assembly) production line on the 4th floor of the B1 area. Production capacity: 1 million pieces/year DC/DC converters, on-board chargers (OBC) production line on the 4th floor of the B1 area. Production capacity: 120,000 pieces/year Inverter production line on the 3rd floor of the B1 area. Production capacity: 300,000 units/year |
Zone C | 40,000 | Drive motor (e-motor) production lines on the 1st and 3rd floors of the C3 area. Production capacity: 400,000 pieces/year e-Axle production lines on the 1st and 3rd floors of the C3 area. Production capacity: 100,000 pieces/year |
|
Changzhou Plant | - | Under construction |
Phase one reached the point to where mass production was started in 2022. In addition, phase two of the construction project has begun. |
R&D Expenditure |
FY ended Dec. 31, 2022 | FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | |
R&D expenditure (CNY millions) | 2,229.27 | 1,685.46 | 1,023.23 |
Ratio to sales (%) | 9.69 | 9.39 | 8.89 |
R&D personnel (persons) | 4,793 | 3,560 | 2,513 |
Percentage of employees in R&D (%) | 23.66 | 21.02 | 14.84 |
-At the end of 2022, the company had a total of 4,793 R&D engineering personnel. Among them, 40.8% have either a doctorate or a master's degree.
R&D Activities
New Energy Passenger Vehicle Division
-Integrated electric-drive assembly products, making them higher voltage, more efficient, and lighter in weight.
-Built a highly secure SIC electronic control platform and the company's first SIC electronic control system to increase production efficiency.
-Completed research and development of a high-speed motor, multi-layer flat wire, and asynchronous machine platform.
-Increased the high power density and reliability of power supply products. Launched the fourth generation of high-voltage electric drive assemblies and asynchronous mechanical assembly products.
New Energy Commercial Vehicle Division
-Started providing solutions for heavy-duty commercial vehicles and launched mass production, which resulted in a significant increase in shipments and deliveries.
-Launched a new generation of LS32 series powertrain products. Integrated motors and electronic control systems, achieving significant improvements in terms of weight, volume, performance, and efficiency. Responded to high-priority needs in the ultra-compact vehicle segment.
R&D system
-The R&D center conducts work in technologies such as inverter module design, NVH design, EMC simulation, and IGBT online junction temperature estimation, and has applied for 286 patents.
-Investment for the test center CNY 250 million. The center covers an area of more than 10,000 square meters, has 179 engineers and 136 functional, performance, durability, environmental, NVH, EMC, physical and chemical analysis test benches. Obtained CNAS certification and information security management system certification, as well as CAERI, UL, and Acertifications.
-The company has obtained ISO 9001, OHSAS18001, ISO14001, TS16949, ESD S20.20, ISO26262, ISO17025, IATF16949, CL1124, DA2920 certification.
-Passed VW Formel-Q audit in December 2017 and VW Software and Logistics audit in 2018. In 2019, passed NSA audit for VDA6.3 (SGS third party certification) and PSA. Passed Nissan's quality system audit in 2020. Passed Volvo and FCA quality system audits.
-A subsidiary of Shenzhen Inovance Technology Co., Ltd. (Inovance Technology), announced that it has passed the ISO/SAE 21434 network security management system certification. The company had previously passed the ISO27001 (Information Security Management System) certification and the TISAX (a general information security assessment of the German automobile industry) certification. (From an Inovance Automotive official WeChat account press release dated October 14, 2022)
Patents
New in 2022 | Total | |
Invention patents | 86 | 464 |
Practical models | 481 | 1,662 |
Appearance design | 156 | 446 |
Software copyright | 25 | 351 |