New Stock News | Jinlong Electric Motors submits application to Hong Kong Stock Exchange, focusing on permanent magnet synchronous motors and three-phase induction motors.

According to the disclosure by the Hong Kong Stock Exchange on May 25th, Zhejiang Jinlong Electric Motor Co., Ltd. (referred to as Jinlong Electric Motor) has submitted its application for listing on the main board of the Hong Kong Stock Exchange, with Dayin Capital as the sole sponsor. Company Profile The prospectus shows that Jinlong Electric Motor is primarily engaged in the design, development, manufacturing, and sales of medium and small-sized high-efficiency industrial electric motors and related control systems. With nearly 40 years of experience in motor manufacturing, the company can trace its roots back to the former Huangyan City Electric Motor Factory. With the tightening requirements for energy efficiency and the increasing popularity of Industry 4.0 and smart manufacturing, the company focuses on high-efficiency, variable frequency, and precision performance industrial electric motors, mainly permanent magnet synchronous motors (PMSM) and three-phase induction motors (3-PHIM). The company's products have a wide range of applications, including fluid machinery, ventilation systems, compressors, HVAC systems, and machine tools, which are essential components in industrial and manufacturing operations. The company's flagship motor brand "Jinlong" was recognized as a "China Famous Brand Product" by the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China in September 2006 and January 2024, and was also recognized as a "Zhejiang Export Famous Brand" by the Zhejiang Provincial Department of Commerce. The company is expected to benefit from major macro trends, including electrification, stricter energy efficiency requirements, and the decarbonization of heavy industries. According to Zhaoshi Consultancy report, global electricity demand is expected to more than double by 2050, with electrification playing a key role in emissions reduction, especially in the industrial sector, which accounts for about 25% of global greenhouse gas emissions. China's "dual carbon" goal has led to stricter energy efficiency policies and industrial upgrades, resulting in high-efficiency motors replacing old models. It is also projected that the global industrial installation volume of Siasun Robot&Automation will reach approximately 550,000 units by 2025, with China contributing over half of the installation volume. As each Siasun Robot&Automation uses multiple precision motors, the growth in deployment will lead to a doubling of demand for high-performance motor solutions. Motors convert electrical energy into mechanical motion and are widely used in the industrial sector, where motor drive systems account for a significant portion of power consumption. In China, market demand continues to grow due to industrial upgrades, smart manufacturing, and energy-saving policies. According to the Zhaoshi Consultancy report, China's industrial AC motor market is expected to increase from approximately RMB 258.2 billion in 2025 to about RMB 457.3 billion in 2030, with a compound annual growth rate of about 12.1% during the period. Driven by the increasing adoption of smart manufacturing and Siasun Robot&Automation, which drives demand for higher efficiency and torque density, the growth of permanent magnet synchronous motor products is expected to surpass that of the Chinese industrial AC motor market. It is projected to increase from about RMB 71.1 billion in 2025 to about RMB 147 billion in 2030, with a compound annual growth rate of about 15.6% during the same period. According to the Zhaoshi Consultancy report, China is also the world's largest exporter of motors, with exports of industrial AC motors expected to increase from about RMB 56.1 billion in 2025 to about RMB 86.4 billion in 2030, with a compound annual growth rate of about 9%. Financial Information Revenue: In the fiscal years of 2023, 2024, and 2025, the company achieved revenues of approximately RMB 685 million, RMB 717 million, and RMB 734 million, respectively. The increase in revenue is mainly attributed to the growth in PMSM sales. Profit: In the fiscal years of 2023, 2024, and 2025, the company's attributable comprehensive income to shareholders were RMB 37.049 million, RMB 30.4 million, and RMB 38.803 million, respectively. Gross Margin: In the years 2023, 2024, and 2025, the company's gross margins were 14.9%, 14.3%, and 13.2%, respectively. Industry Overview Driven by global trends and the transformation and upgrading of the domestic manufacturing industry, the overall Chinese industrial AC motor market has maintained a good growth momentum, increasing from about RMB 193.9 billion in 2021 to about RMB 258.2 billion in 2025, with a compound annual growth rate of 7.4% during the period. Induction motors, due to their stability and versatility, dominate the majority of the market, while synchronous motors represented by permanent magnet synchronous motors are experiencing rapid development under the policy guidance of low-carbon efficiency improvement. In the future, with the expansion of downstream emerging industries, the Chinese industrial AC motor market is expected to accelerate its growth at a compound annual growth rate of about 12.1% from 2025 to 2030, reaching a market size of about RMB 457.3 billion in 2030. At the same time, China is one of the world's largest exporters of industrial AC motors. Driven by global demand, the overall export market is steadily growing, expected to increase from about RMB 56.1 billion in 2025 to about RMB 86.4 billion in 2030. European countries are one of the primary markets, accounting for 30.4% of the export market, and expected to increase to about RMB 26.3 billion by 2030, with a compound annual growth rate of about 9.1%. The industrial three-phase induction motor is the largest segment in the Chinese industrial motor market. By 2025, the market size of industrial three-phase induction motors will increase to about RMB 177.6 billion, and it is expected to maintain a stable growth rate of about 10.8% from 2025 to 2030. From the perspective of downstream applications, industrial automation is an important part of the industrial three-phase induction motor market. By 2025, the market size of industrial three-phase induction motors in the industrial automation sector will be about RMB 148.8 billion, expected to increase to about RMB 242.3 billion by 2030. In this segment, the market size for motors used in pumps is about RMB 30.5 billion in 2025, expected to increase to about RMB 47.8 billion by 2030, with a compound annual growth rate of about 9.4% from 2025 to 2030. Meanwhile, the market for motors used in HVAC systems is about RMB 16.4 billion in 2025, expected to increase to about RMB 28.3 billion by 2030, with a compound annual growth rate of about 11.5% during the period. With significant growth driven by high efficiency and high energy density, the Chinese industrial permanent magnet synchronous motor market has increased from about RMB 46.6 billion in 2021 to about RMB 71.1 billion in 2025. Precision manufacturing, represented by CNC machine tools, is the largest segment in the industrial permanent magnet synchronous motor market, accounting for approximately 59.8% of the market share. The rapid growth of companies like Siasun Robot&Automation is expected to further accelerate the growth of the industrial permanent magnet synchronous motor market, reaching about RMB 147 billion by 2030, with a compound annual growth rate of about 15.6% from 2025 to 2030, with the compound annual growth rate of companies like Siasun Robot&Automation expected to reach about 64.6% from 2025 to 2030. Board of Directors Information The board of directors currently consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors. Ownership Structure According to a unanimous action agreement dated January 5, 2020, and due to Jinlong Zhichuang Limited Partnership's subscription of shares through a private placement, Mr. Ye Jinwu, Ms. Li Chunlian, Mr. Ye Ye, Mr. Wang Xiaoyue, Ms. Ye Huiqin, and Jinlong Zhichuang Limited Partnership are all acting in concert when exercising their respective voting rights in the company. Other shareholders include Ms. Pan Linghui, Ms. Guo Ping, Mr. Mao Qingzhong, Mr. Wu Xiaofu, Mr. Liang Wenhui, Mr. Luo Yibo, and Ms. Chen Jinjiao, all of whom are directors, senior management, or former supervisors of the company. Intermediary Team Exclusive Sponsor: Dayin Capital Limited Company Legal Counsel: Regarding Hong Kong law: King & Woods Mallesons (Hong Kong) law firm and Stevens & Ochanomizu law firm jointly operate; Stevens & Ochanomizu law firm operates jointly with King & Woods Mallesons (Hong Kong) law firm; Regarding Chinese law: King & Woods Mallesons law firm in Shanghai; Regarding U.S. export control and sanctions laws: Katten Muchin Rosenman LLP Exclusive Sponsor Legal Counsel: Regarding Hong Kong law: Richards Butler; Regarding Chinese law: Zhejiang Tianze Law Firm Reporting Accountant and Auditor: Guowei Certified Public Accountants Co., Ltd. Industry Consultant: Zhaoshi Industry Consulting Co., Ltd.