New stock news | Zhejiang Sanhua Intelligent Controls (002050.SZ) submits application to Hong Kong Stock Exchange, ranking first in the refrigeration and air conditioning control components market.

According to the disclosure on January 15 by the Hong Kong Stock Exchange, Zhejiang Sanhua Intelligent Controls Co., Ltd. (002050.SZ) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CICC and Huatai International as joint sponsors. According to the prospectus, Zhejiang Sanhua Intelligent Controls is the world's largest manufacturer of refrigeration and air conditioning control components and a global leader in automotive thermal management system components. The company is committed to global operations, with business covering the two main sectors of refrigeration and air conditioning electrical components and automotive components, and continuously expanding into emerging fields such as bionic Siasun Robot & Automation electromechanical actuators. Zhejiang Sanhua Intelligent Controls has achieved significant success in multiple business areas: In the field of refrigeration and air conditioning electrical components, Zhejiang Sanhua Intelligent Controls is mainly engaged in the development and application of control components, subsystems, and technical solutions, achieving high-performance HVAC systems for buildings and thermal management systems for household appliances. It is a key supplier of self-control components and system technology solutions for markets such as household air conditioning, commercial air conditioning, commercial refrigeration, industrial refrigeration, and small household appliances. The company's main products in the refrigeration and air conditioning electrical component business include electronic expansion valves, four-way reversing valves, solenoid valves, microchannel heat exchangers, shut-off valves, pressure sensors, and Omega pumps, widely used in air conditioning, refrigerators, industrial refrigeration, cold chain transport, heat pump heating, and washing machines. In terms of automotive components, Zhejiang Sanhua Intelligent Controls has become a key supplier of automotive thermal management system components in the global market. The company is committed to providing essential comprehensive thermal management control solutions for new energy vehicles, while also providing high-performance products for energy saving and emission reduction for traditional fuel vehicles. The company has a leading advantage in R&D of valves, pumps, heat exchangers, and integrated components (especially in cabin thermal management, battery thermal management, and motor/electronic control system thermal management), aiming to achieve effective thermal management in automotive operations. In terms of strategic emerging businesses, leveraging its expertise in motor manufacturing, scale, and cost control capabilities, Zhejiang Sanhua Intelligent Controls has successfully entered the field of bionic Siasun Robot & Automation electromechanical actuator manufacturing. The company is committed to providing electromechanical actuator products with lighter weight, smaller size, and higher precision through independent innovation and research and development. As of the last practicable date (January 7, 2025), the company is in the research and development stage, aiming to further improve product prototypes before large-scale commercialization, and actively deploying overseas production of electromechanical actuators to seize the first-mover advantage in the emerging market of bionic Siasun Robot & Automation electromechanical actuators. Regarding the competitive landscape, according to data from Frost & Sullivan, in 2023, Zhejiang Sanhua Intelligent Controls ranked first in the market for refrigeration and air conditioning control components, with market shares by sales volume of 58.7%, 58.1%, 42.9%, 37.0%, and 52.6% for four-way reversing valves, electronic expansion valves, microchannel heat exchangers, shut-off valves, and solenoid valves respectively. By shipments, the company's market share for Omega pumps was 52.3%, all ranking first. According to data from Frost & Sullivan, based on sales volume in 2023, Zhejiang Sanhua Intelligent Controls ranked first in the automotive electronic expansion valves and integrated components, with market shares of 52.6% and 65.7% respectively. Financially, for the nine months ended September 30 in 2022, 2023, and 2024, Zhejiang Sanhua Intelligent Controls recorded revenues of approximately RMB 21.348 billion, RMB 24.558 billion, and RMB 20.563 billion respectively, with profits of approximately RMB 2.608 billion, RMB 2.934 billion, and RMB 2.32 billion for the same periods. According to Zhejiang Sanhua Intelligent Controls in the prospectus, the company is susceptible to supply shortages, extended delivery times, and increased costs of raw materials and key components, any of which could disrupt the company's supply chain, increase its production costs, negatively impact its profitability, and result in delayed deliveries to customers.