Inovance
{{Short description|Chinese automation company}}
{{Use dmy dates|date=May 2024}}
{{Infobox company
| name = Shenzhen Inovance Technology Co., Ltd
| native_name = 深圳市汇川技术股份有限公司
| logo = Shenzhen Inovance Technology.svg
| trading_name = Inovance
| type = Public
| traded_as = {{Szse|300124}}
CSI A50
| foundation = {{start date and age|2003|04}}
| location = Shenzhen, Guangdong, China
| founder = Zhu Xingming
| key_people = Zhu Xingming (Chairman & CEO)
| revenue = {{Increase}} {{CNY|link=yes|30.42 billion}} (2023)
| net_income = {{Increase}} {{CNY|link=yes|4.78 billion}} (2023)
| assets = {{Increase}} {{CNY|link=yes|48.96 billion}} (2023)
| equity = {{Increase}} {{CNY|link=yes|25.00 billion}} (2023)
| num_employees = 23,685 (2023)
| industry = Electrical equipment
| homepage = {{URL|www.inovance.com}}
}}
Inovance ({{Zh|c=|p=Huìchuān Jìshù|s=汇川技术}}) is a publicly listed Chinese company that engages in the manufacture and sale of electrical equipment that includes industrial automation control products and robotics.
It is currently the largest industrial automation company in China as well as its second largest domestic producer of industrial robots. Founded by a group of former Huawei engineers, the company has been dubbed "Little Huawei" in the industry.{{Cite web |last=Langley |first=William |date=4 April 2023 |title=Chinese robot maker says protectionism will not stop its march |url=https://www.ft.com/content/0cdf78f9-e2cc-48ff-ba65-027f1cf83334 |access-date=5 May 2024 |website=www.ft.com |archive-date=5 May 2024 |archive-url=https://web.archive.org/web/20240505145341/https://www.ft.com/content/0cdf78f9-e2cc-48ff-ba65-027f1cf83334 |url-status=live }}
Background
Inovance was founded in April 2003 by Zhu Xingming and several other engineers from Huawei. When the company was founded, it aimed to compete in the high-end market with foreign companies and never to fall into a price war with domestic companies.{{Cite web |last= |date=16 March 2017 |title=中国制造业更迭样本： 汇川技术的"缝隙"成长术 |url=http://finance.sina.com.cn/roll/2017-03-16/doc-ifycnpvh4579641.shtml |access-date=5 May 2024 |website=finance.sina.com.cn |archive-date=22 March 2017 |archive-url=https://web.archive.org/web/20170322203615/http://finance.sina.com.cn/roll/2017-03-16/doc-ifycnpvh4579641.shtml |url-status=live }}
On 28 September 2010, Inovance held its initial public offering and became a listed company on the Shenzhen Stock Exchange. Afterwards it expanded its product range from single frequency changers to other industrial control products such as programmable logic controllers and servomechanisms.
Originally servicing the lower end market, the company gradually moved to take market share in the higher end market from European and Japanese incumbents.{{Cite web |last=Zhang |first=Qian |date=September 2023 |title=Conversations with Shanghai: opportunities in the A-share market |url=https://www.bailliegifford.com/en/uk/individual-investors/insights/ic-article/2023-q3-finding-china-s-a-share-jewels-10036082/ |access-date=5 May 2024 |website=www.bailliegifford.com |language=en |archive-date=5 May 2024 |archive-url=https://web.archive.org/web/20240505144753/https://www.bailliegifford.com/en/uk/individual-investors/insights/ic-article/2023-q3-finding-china-s-a-share-jewels-10036082/ |url-status=live }}
According to a report by Deutsche Bank in 2017, Inovance stood to benefit heavily from the Made in China 2025 policy that would increased domestic industrial automation demand. At the time foreign companies still controlled 65% of China's industrial automation market.{{Cite web |last=Hong |first=Sky |date=7 November 2017 |title=Thinking bigger, thinking longer |url=https://pdf.dfcfw.com/pdf/H3_AP201711131034490966_1.PDF |website=East Money |access-date=5 May 2024 |archive-date=5 May 2024 |archive-url=https://web.archive.org/web/20240505142603/https://pdf.dfcfw.com/pdf/H3_AP201711131034490966_1.PDF |url-status=live }}
In June 2021, Inovance announced it had secured a CNY2.1 billion private placement from twelve investors that included Hillhouse Investment, CITIC Securities, JPMorgan Chase, Morgan Stanley, UBS and AIA Group. The company planned to use the proceeds from it to acquire the remaining 49 percent stake in subsidiary Inovance Control Technology as well as expanding its output of automation control equipment, and developing smart software. Its stock price rose 7.9% after the announcement.{{Cite web |last=Tang |first=Shihua |date=30 June 2021 |title=China's Inovance Leaps After Hillhouse Joins USD330 Million Private Placement |url=https://www.yicaiglobal.com/news/china-inovance-leaps-after-hillhouse-joins-usd330-million-private-placement |access-date=5 May 2024 |website=www.yicaiglobal.com |language=en |archive-date=5 May 2024 |archive-url=https://web.archive.org/web/20240505144749/https://www.yicaiglobal.com/news/china-inovance-leaps-after-hillhouse-joins-usd330-million-private-placement |url-status=live }}
In January 2024, Shenzhen Institute of Information Technology announced it teamed up with Inovance to launch a program to train senior engineers and a technology research institute for robotics.{{Cite web |last=Yang |first=Yunfei |date=5 January 2024 |title=SZIIT teams up with Shenzhen Inovance to launch training program |url=http://www.szdaily.com/content/2024-01/05/content_30684248.htm |access-date=5 May 2024 |website=www.szdaily.com |archive-date=4 January 2024 |archive-url=https://web.archive.org/web/20240104230926/http://www.szdaily.com/content/2024-01/05/content_30684248.htm |url-status=live }}
In April 2024, Zhu stated the company hopes it would be able to challenge larger incumbents such as ABB and Siemens for a place in the top three largest companies in the sector globally within five years. He also stated he believe Chinese automation companies will keep global supply chains running and insulate them from protectionism as they try to expand overseas.
References
{{Reflist}}
External links
- {{Official website|http://www.inovance.com}}
{{Electronics industry in China}}
{{SZSE 100 Index}}
Category:2003 establishments in China
Category:2010 initial public offerings
Category:Companies based in Shenzhen
Category:Companies listed on the Shenzhen Stock Exchange
Category:Electronics companies established in 2003