Wanxiang Technology Chairman Huang Jun: Deepen and Expand Existing Core Technologies, While Paving the Way in the Miniature Lithium-Ion Battery Sector

On November 16, shares of Wanxiang Technology Co., Ltd. (referred to as "Wanxiang Technology") will be listed on the ChiNext Board of the Shenzhen Stock Exchange. The stock will be abbreviated as "Wanxiang Technology," with the stock code "301180." On November 4, Wanxiang Technology held its first public offering and online roadshow for listing on the ChiNext Board, hosted by China Securities Journal·CNSINFO. During the event, Huang Jun, Chairman of Wanxiang Technology, accepted an exclusive interview with a reporter from China Securities Journal. Huang Jun emphasized that the company continues to drive technological innovation in the precision component manufacturing sector for consumer electronics, steadily building up expertise while gradually expanding its manufacturing capabilities. Today, Wanxiang Technology has mastered core technologies across various production stages—including mold development, stamping, welding, and die-cutting—and leverages its deep understanding of integrated processes to independently develop automated production solutions.

Customer coverage of mainstream manufacturers

Wanxiang Technology's core business focuses on the research, development, manufacturing, and sales of precision components for consumer electronics. Its main products include thermal protection components, digital-electronic control integration modules, precision structural parts, and flexible functional components—various types of structural, functional, and auxiliary precision parts. These products are widely used in mainstream consumer electronics such as laptops, tablets, smartphones, and smart wearable devices. Meanwhile, the company is actively expanding its industrial chain; its independently developed miniature lithium-ion battery products have already entered mass production and can be applied to small- and micro-sized smart terminals like smart wearables.

Huang Jun stated that the company's core direct customers include well-known lithium-ion battery module manufacturers such as Xinpu Technology, Huizhou Desai, Ningde New Energy, and Xinwangda. Its end-market applications span across leading consumer electronics brands like Apple, HP, Dell, Huawei, Microsoft, Samsung, Lenovo, and ASUS. In specific market segments, the company is a major supplier of digital power transmission control integration components for Apple laptops, while its thermal protection component products hold a significant market share, positioning it as one of the strong competitors in this niche segment.

Huang Jun believes that, backed by a strong reputation and solid customer base, the company can participate in the validation of component designs and conduct production process evaluations during the product design and R&D phases conducted by terminal brand manufacturers. This allows the company to directly engage in the conceptualization of component solutions, helping it swiftly prepare for mass production. Furthermore, by collaborating closely with mold-making, automation teams, and various production departments, the company can simultaneously advance mold development, refine production process designs, and formulate comprehensive automation strategies—ultimately enabling the company to seize market opportunities and enhance the competitive edge of its products.

In Huang Jun's view, the company has managed to maintain and even expand its market share amid rising industry concentration and intensifying competition among suppliers at all levels. By deeply cultivating existing customers, actively pursuing industrial chain expansion, and broadening product applications both horizontally and vertically, the company has strengthened its competitive edge in the fiercely contested market—particularly through bolstering its overall technological capabilities.

Master the Three Core Technologies

As Wanxiang Technology continuously expands its business and extends its industrial chain, it remains steadfastly technology-driven, always aiming to enhance product quality. The company has meticulously refined its processes and equipment, ultimately establishing a comprehensive manufacturing process. Moreover, while constantly improving its own technological capabilities, Wanxiang Technology has also cultivated robust in-house R&D expertise. Leveraging customers' detailed drawings, the company can swiftly design molds and meticulously craft production process flows—ensuring both high-quality output and timely delivery to meet customer order demands. Beyond this, in terms of pioneering new technologies, the company has successfully diversified its product portfolio, ranging from precision components to fully integrated, cutting-edge products, thereby strengthening its core competitiveness.

Huang Jun stated that, depending on the specific application scope and functional capabilities of the core technologies, the company's core technologies fall into three main categories: precision mold design and development technology, precision component machining and manufacturing technology, and automated process development technology.

According to him, in terms of precision mold design and development technology, precision molds serve as the foundation for manufacturing high-precision components. The company has assembled a wealth of specialized talent in mold design, machining, assembly, and debugging, enabling it to accumulate extensive experience in design and development. Huang Jun told reporters that the company has been fully focused on enhancing its mold development techniques by aligning closely with industry-specific production characteristics and customer needs. As a result, the precision of mold component machining now reaches ±0.003mm, while the thickness tolerance for rapid stamping materials has been refined to 0.05mm. Additionally, product dimensional accuracy has improved to ±0.015mm, and both continuous stamping molds and quick-stamping molds achieve an impressive punching speed of up to 200 strokes per minute. By transforming cutting-edge mold technology into enhanced production efficiency, the company has forged a comprehensive competitive advantage.

Huang Jun further stated that, in the early stages of its thermal protection component and digital-electronic transmission control integration component processing and manufacturing business, the company fully leveraged its advantages in mold technology. Building on this foundation, it expanded into key production processes such as precision stamping, high-efficiency welding, and precision die-cutting. As a result, the company has mastered the complete process chain for manufacturing precision components, enabling it to rapidly achieve stable mass production and significantly enhance overall productivity.

To reduce the reliance on manual labor in production, optimize manufacturing processes and production models, the company has leveraged its automation department's R&D team to independently develop core software and control technologies. These innovations provide comprehensive automation and信息化 (information technology) solutions to all of the company's production divisions. Additionally, the company has vigorously integrated automated production lines into its operations, continuously enhancing its automated manufacturing capabilities. This has led to the establishment of a fully streamlined, assembly-line-based production model, replacing the previous segmented, single-station approach. As a result, costs have been reduced while significantly boosting both production efficiency and product quality.

Implementing a industrial chain expansion strategy

As the industry continues to grow rapidly, the company recognizes the need for ongoing innovation to support its sustained long-term development. Leveraging its extensive experience in providing precision components for lithium battery modules, coupled with a strong reputation within the industry, the company established a micro-lithium-ion battery R&D team in 2018. In June 2018, it also founded Changzhou Weizhou, which serves as the implementation platform for the company’s micro-lithium-ion battery business.

According to Huang Jun, the company's wholly-owned subsidiary, Changzhou Weizhou, has mastered several core technologies in areas such as micro lithium-ion battery casing structures, electrochemical formulations, and production manufacturing. Currently, the company's first-generation micro lithium-ion battery products have undergone comprehensive testing, with performance metrics already meeting mainstream market standards. Changzhou Weizhou now boasts mass-production capabilities and has established substantial collaborations with well-known domestic consumer electronics brands. As of the date the prospectus intention was signed, Changzhou Weizhou has already begun mass production and product delivery of its micro lithium-ion batteries.

According to IDC data, driven by the rapid surge in sales of ear-worn devices, global shipments of wearable devices reached 337 million units in 2019, representing an 89% increase from the previous year. Among these, TWS earphones contributed the most to this growth, and the sharp rise in TWS earphone sales has also fueled a substantial demand for miniature lithium-ion batteries.

To accelerate the overall project and ensure readiness for large-scale production in the next phase, the company is leveraging its already-invested factory facilities while simultaneously increasing investment to acquire advanced production equipment and complementary software systems. This initiative aims to establish a comprehensive manufacturing facility for micro lithium-ion batteries and precision components. Huang Jun stated that, within the next three years, the company aspires to become a strong competitor in the micro lithium-ion battery industry, further expanding its reach to serve high-end, premium customers downstream.