On November 16, Suzhou Wanxiang Technology Co., Ltd. (“Wanxiang Technology” for short) will be listed on the Growth Enterprise Market of the Shenzhen Stock Exchange. The stock is referred to as “Wanxiang Technology” and the stock code is “301180”. On November 4, Wanxiang Technology's initial public offering of shares and listing on GEM was held on China Securities Journal·China Securities Network. Wanxiang Technology Chairman Huang Jun accepted an exclusive interview with a reporter from China Securities Journal. Huang Jun said that the company continues to innovate in the field of consumer electronics precision parts processing and manufacturing, accumulates experience, and gradually extends the manufacturing chain. It has mastered the core technology of mold development, stamping, welding, die cutting and other production links, and is based on the overall A deep understanding of the process and independent development of production process automation.

Customers cover mainstream manufacturers

The main business of Wanxiang Technology is the research and development, production and sales of consumer electronics precision components. The main products include various structural, functional and auxiliary precision components such as thermal protection components, digital and electronic transmission control integrated components, precision structural components and flexible functional components. The products are widely used in notebook computers, tablet computers, mobile phones and Mainstream consumer electronics products such as smart wearable devices. At the same time, the company is actively extending the industrial chain, and the self-developed micro-lithium-ion battery products have mass production capacity, which can be applied to small and micro smart terminals such as smart wearable devices.

Huang Jun said that the company’s core direct customers include well-known lithium-ion battery module manufacturers such as Simpu Technology, Huizhou Desai, Ningde New Energy, Xinwangda, etc. The terminal applications cover Apple, HP, Dell, Huawei, Microsoft, Samsung, Leading consumer electronics brands such as Lenovo and Asustek. In terms of market segmentation, the company is the main supplier of Apple's notebook computer digital telex control integrated components. Thermal protection component products occupy a large market share and are one of the strong competitors in the market segment.

Huang Jun believes that based on a good reputation and customer base, the company can participate in the demonstration of component design and production process evaluation during the process of product design and research and development of the terminal brand, and directly participate in the component design and help the company. Quickly prepare for mass production, coordinate mold development, automation and various production departments to complete mold development, production process design and form an automation plan to help the company seize market opportunities and enhance the market competitiveness of products.

In Huang Jun’s view, the company has maintained and increased its market share in the context of increased industry concentration and increased competition from suppliers at all levels, deepened customer development, actively extended the industrial chain, and expanded horizontal and vertical product application areas. , To maintain its own advantages in the fierce market competition by enhancing comprehensive technical strength.

Master the three core technologies

In the process of continuous business development and continuous extension of the industrial chain, Wanxiang Technology has always been guided by process technology, with the goal of improving product quality, refined its own process and equipment, and formed a complete processing technology. In addition, the company has mastered strong independent development capabilities while continuously improving its own technology. The company can quickly complete the mold development and production process design based on the customer's drawing design, and then meet the customer's order requirements with quality and quantity. Not only that, in terms of new technology development, from precision components to complete new products, the company has enriched its product line and strengthened its core competitiveness.

Huang Jun said that according to the specific application scope and realization function of the core technology, the company's core technology includes three categories: precision mold design and development technology, precision component processing and manufacturing technology, and automated process development technology.

According to him, in terms of precision mold design and development technology, precision molds are the basis for the production of precision components. The company has gathered a large number of mold design, processing, assembly, debugging and other professionals in mold development, and has accumulated rich experience in design and development. . Huang Jun told reporters that the company fully focused on the industry's production characteristics and needs to improve mold development technology, mold parts processing accuracy reached ±0.003mm, rapid stamping material thickness reached 0.05mm, product size accuracy reached ±0.015mm, continuous stamping die and rapid stamping The stamping speed of the die reaches 200 strokes per minute, which transforms the advancement of die technology into production efficiency and forms a comprehensive advantage.

Huang Jun further stated that in the early stage of the processing and manufacturing business of thermal protection components and digital-to-electronic transmission control integrated components, the company gave full play to the advantages of mold technology and used it as a basis for precision stamping, high-efficiency welding, precision die-cutting and other major production processes. Expansion, mastering the complete process chain of precision component processing and manufacturing, can quickly realize batch and stable production, and effectively improve production efficiency.

In order to reduce the dependence of production on manpower and optimize the production process and production mode, the company relies on the technology research and development team of the automation department to independently develop core software and control technology, and provides complete automation and information solutions for the company’s production divisions. In the production process Vigorously introduce automated production lines, continuously improve automated manufacturing capabilities, and form a fully assembly line production mode, which replaces the single-station production mode of staged operation, which effectively improves production efficiency and product quality while reducing costs.

Implement industry chain expansion strategy

In the process of sustained and rapid development of the industry, the company realized that continuous innovation is needed to support the company's rapid development. Based on the company’s long-term experience in providing precision components for lithium battery modules and a good reputation in the industry, the company established a micro-lithium-ion battery research and development team in 2018, and established Changzhou Weizhou in June 2018 as the company’s micro-lithium Implementation platform for ion battery business.

According to Huang Jun, Changzhou Weizhou, a wholly-owned subsidiary of the company, has mastered a number of core technologies in the shell structure, electrochemical formulation, and manufacturing of miniature lithium-ion batteries. At this stage, the company's first-generation micro-lithium-ion battery products have been fully tested, and the product performance has reached the mainstream market level. Changzhou Weizhou now has mass production capacity and has reached substantial cooperation with well-known domestic consumer electronics brands. As of the signing date of the prospectus, Changzhou Weizhou has begun mass production and product delivery of micro lithium-ion batteries.

According to IDC data, benefiting from the rapid increase in the sales of ear-worn devices, global wearable device shipments reached 337 million units in 2019, an increase of 89% over the previous year. Among them, the largest contribution to growth is TWS headset products. The surge in sales of TWS headsets has also brought huge demand for miniature lithium-ion batteries.

In order to accelerate the progress of the overall project and prepare for the next stage of mass production, the company uses the plant and facilities it has invested in and increases investment in the purchase of related production equipment and supporting software systems to construct and improve the production of micro-lithium-ion batteries and precision parts. Huang Jun said that in the next three years, the company will strive to become a strong competitor in the micro-lithium-ion battery industry and further cover the downstream mid-to-high-end quality customers.