We are the world’s largest manufacturer of refrigeration and air-conditioning control components and a global leader in automotive thermal management system components in terms of revenue in 2024, according to Frost & Sullivan. Our market share in the global refrigeration and air-conditioning control component market was approximately 45.5% in terms of revenue in 2024, according to Frost & Sullivan. In the global automotive thermal management system component market, we held a market share of approximately 4.1% in terms of revenue in 2024, ranking fifth globally, according to Frost & Sullivan. We have been dedicated to the R&D, promotion and adoption of thermal management technology, providing customers across the globe with energy-efficient solutions through our industry-leading products of high quality. With a global perspective, we have established a business that spans two major sectors: refrigeration and air-conditioning product components and automotive components. Leveraging our extensive technological expertise and innovation in R&D, we are actively broadening our business boundaries into emerging fields, such as bionic robot electromechanical actuators.
Following our development strategy of prioritizing excellence and innovation, we are committed to refining our existing product offerings while actively cultivating new drivers for sustained growth. From the early days, we placed great importance on establishing a global network. Our extensive global R&D layout, combined with our localized production and sales network, allows us to respond swiftly to customer needs while gaining stronger insights into diverse markets. This facilitates our development of tailored products and delivery high-quality services. Our emphasis on advanced management techniques, technology and talent is evident in our daily operations and strategic planning. These principles have become integral to our corporate management philosophy and encapsulated in our “SANHUA” brand, symbolizing the blossoming of management, technology and talent.
OUR JOURNEY
Our journey traces back to Xinchang Refrigeration Components Factory established in 1984. In 1994, our predecessor, Sanhua-Fujikoki Co., Ltd., a Sino-Japanese joint venture, was established. Following the conversion of Sanhua-Fujikoki Co., Ltd. into a joint stock company in 2001, we became a public company listed on the Shenzhen Stock Exchange in 2005 (stock code: 002050.SZ).
Insisting on the idea of “small products, vast market, advanced technology and specialized expertise” at the beginning stage of our business, we established our market presence through production of valves used in refrigeration and air-conditioning systems.
Over the years, we have expanded our product offerings from singular valve products to a broader array of refrigeration and air-conditioning product components and automotive components. We recognize the importance of environmental sustainability, and are committed to providing solutions that help our customers create environmentally-friendly products. Such awareness has led us to recognize the transformative impact and substantial market potential of New Energy Vehicles (“NEVs”) for a sustainable future from the early stages of the NEV development. Our in-depth understanding of air-conditioning thermal management and heat pump technologies promoted our decisive move in pursuing strategic opportunities arising from the increasing demands for NEV thermal management systems, allowing us to replicate the profound expertise and technology advantages in this fast-growing sector. Capitalizing on the market insight and industry resources accumulated from the mass production of a variety of parts and components, we have recently entered into the bionic robot sector with a focus on electromechanical actuator, paving our route to become a global industrial group encompassing multiple industries and product categories.
OUR BUSINESS AND PRODUCT
We primarily engage in the R&D, manufacturing and sales of refrigeration and air-conditioning product components and automotive components. Focusing on the R&D and application of heat pump technology and thermal management systems, we prioritize creating environmental thermal management solutions that enable efficient heat exchange and intelligent temperature control. In addition, we have devoted ourselves to the R&D of bionic robot electromechanical actuator products to pursue growth potential in this promising area.
Under the refrigeration and air-conditioning product component business, we mainly engage in the development and application of control components, subsystems and technology solutions which empower energy-efficient buildings, heating, ventilation and air-conditioning (“HVAC”) systems and household appliances thermal management systems. We are a key supplier of refrigeration and air-conditioning control components, which span valves, heat exchangers, pumps and controllers, among others, serving the global market for residential and commercial air-conditioning, commercial and industrial refrigeration and small household appliances, among others. Our key products in this business sector comprise a variety of valve products, including electronic expansion valves, four-way reversing valves, service valves, solenoid valves and ball valves. We also offer heat exchanger products, specifically micro-channel heat exchangers, pump products such as Omega pumps, and controller products, including inverter controllers and pressure sensors. Such products are widely utilized in fields including air conditioners, refrigerators, industrial refrigeration, cold-chain transport, heat pump heating and washing machines. With strong product integration capabilities and a commitment to long-term R&D investment, we harness economies of scale and lean management to enhance product performance and reduce costs, thereby delivering added value to our customers.
Automotive Components
As an early entrant with strategic deployment in the NEV thermal management market, we were among the first to set the stage for the creation of novel application scenarios and industry development trends, which establishes us as a key supplier of automotive thermal management system components in the global market. We are committed to offering essential and comprehensive thermal management and control solutions for NEVs and providing high-performance products that enhance energy efficiency and reduce emissions for traditional internal combustion engine vehicles (“ICEVs”). We are actively involved in the R&D of valves, pumps, heat exchangers and integrated modules, especially under cabinet thermal management, battery thermal management and electrical/control system thermal management, designed to achieve effective thermal management in automotive operations. Our efforts have successfully integrated a substantial range of critical products into the supply chains of leading NEV manufacturers, including automotive valve products, such as automotive electronic expansion valves, automotive pump products, such as automotive electronic water pumps, automotive heat exchanger products, such as battery coolers, and various types of integrated modules, among others. Our manufacturing and innovation technology stand at a leading place of the industry. In recent years, we have been dedicating more resources to iterating our refrigeration and air-conditioning product components and automotive components.
Strategic Emerging Business
As an early entrant that leads the development of thermal management technologies, we have accumulated abundant experiences and expertise in developing and manufacturing a considerable number of electric motors. By leveraging our motor manufacturing expertise, scalability and cost-control capabilities, we have successfully ventured into the production of bionic robot electromechanical actuators. We strive to provide lighter, smaller and more precise electromechanical actuators through independent R&D. As of the Latest Practicable Date, we were in the R&D phase, refining prototypes before scalable commercialization, and we are actively deploying overseas factories for their production to secure early advantages in the emerging bionic robot electromechanical actuators market.
Source: Sanhua (02050) Prospectus (IPO Date : 2025/06/13) |