Exploring the Innovations of Jiangsu Leili Motor Co., Ltd.

speaker1

Welcome, everyone, to our podcast! Today, we're diving deep into the world of Jiangsu Leili Motor Co., Ltd., a company that has been at the forefront of innovation in the micro-motor and component industry. I’m your host, and I’m joined by my co-host. Let’s start by exploring the company’s history and background.

speaker2

Hi, I’m really excited to be here! So, could you give us a quick rundown of how Jiangsu Leili Motor Co., Ltd. got started and what they’ve achieved so far?

speaker1

Absolutely! Jiangsu Leili Motor Co., Ltd. was founded in 2006 in Changzhou, China. They started as a small company but quickly grew and diversified their product line. In 2017, they made a significant leap by listing on the Shenzhen Stock Exchange with the stock code 300660. What’s really impressive is their focus on innovation. They were named one of the top 100 innovative private enterprises in Jiangsu in 2021. Their subsidiary, Dingzhi Technology, even went public on the Beijing Stock Exchange in 2023. It’s a testament to their rapid growth and commitment to excellence.

speaker2

Wow, that’s quite a journey! What are some of their core products, and where are they used?

speaker1

Jiangsu Leili Motor Co., Ltd. has a wide range of core products. In the appliance industry, they’re known for their air conditioner sweeping motors and washing machine drainage motors, which have a leading global market share. In the automotive sector, they produce motors for electric vehicle compressors and laser radar systems. Their industrial products include industrial water pumps and automation components. They also have a growing presence in the medical and health sectors with products like bone surgery motors and smart home drive components. Each of these products is designed to meet the specific needs of their respective industries.

speaker2

That’s quite a diverse portfolio! Could you break down their revenue and how it’s grown over the past year?

speaker1

Sure thing! In the first three quarters of 2024, Jiangsu Leili Motor Co., Ltd. reported a total revenue of 24.76 billion yuan, which is a 10.2% increase year-over-year. The largest segment of their revenue comes from air conditioner motors and components, which account for 27.45% of their total revenue. The automotive parts segment, which includes motors for electric vehicles, saw a significant 28.63% growth, contributing 14.26% to the total revenue. The industrial control motors and components segment also saw a 26.01% growth, making up 11.64% of the total revenue. However, the medical and health segment saw a 40.08% decline, contributing only 5.77% to the total revenue. Despite the decline in the medical segment, the overall performance is quite solid.

speaker2

Interesting! What are some of the challenges they’re facing, and what do institutional investors think about the company?

speaker1

Great question. One of the main challenges is the net profit decline, which is down 4.42% year-over-year. This is primarily due to the high costs associated with scaling up their precision aluminum die-casting production lines and the impact of currency fluctuations on their profit margins. In terms of institutional insights, a group of 28 institutions visited the company in late October 2024. They discussed various issues, including the reasons behind the profit decline, the seasonal impact on the appliance sector, and the progress in non-appliance sectors. The industrial control segment saw a 19.8% growth, and the automotive parts segment grew by 25.5%. They also talked about the growth drivers for Dingzhi Technology, which include the recovery of medical and industrial demand and the testing of new products.

speaker2

That’s a lot to digest! Can you tell us more about some of their product innovations and where they’re being applied?

speaker1

Certainly! Jiangsu Leili Motor Co., Ltd. is constantly pushing the boundaries of technology. For example, they’ve developed efficient permanent magnet synchronous motors that are used in a variety of applications, from air conditioner actuators to intelligent dishwashers. In the automotive sector, they’ve created motors for thermal management systems and laser radar, which are crucial for autonomous vehicles. In the industrial sector, their products are used in valve control and security systems. In the medical field, they produce motors for respiratory devices and bone surgery tools. They’re also venturing into robotics, with components like ball screw actuators and hollow-cup motors used in humanoid robots. Each of these innovations is designed to meet the evolving needs of their customers.

speaker2

That’s fascinating! Who are some of their key clients, and where do they stand in the industry?

speaker1

Jiangsu Leili Motor Co., Ltd. works with some of the biggest names in the industry. In the appliance sector, they supply to major brands like Electrolux, Whirlpool, and General Electric. In the automotive sector, while they don’t disclose specific clients due to confidentiality, they collaborate with leading laser radar manufacturers. They also have a diverse client base in the industrial and medical sectors. In terms of their market position, they rank fourth in the industry with a total market value of 200 billion yuan. Their subsidiary, Dingzhi Technology, is ninth with a market value of 74.41 billion yuan. This places them among the top players in the industry, alongside companies like WOLONG Electric, MINGZHIZHI Electric, and ZHAOWEI Electric.

speaker2

Impressive! What are some of the market trends and concepts that Jiangsu Leili Motor Co., Ltd. is involved in?

speaker1

Jiangsu Leili Motor Co., Ltd. is deeply involved in several key market trends and concepts. They are part of the robotics sector, developing components like linear transmission units and frameless torque motors. They’re also a significant player in the electric vehicle market, focusing on thermal management systems and electronic water pumps. They’ve made inroads into the reducer market with their planetary ball screw products. In the home appliance sector, they continue to innovate with motors for air conditioners and washing machines. They’re also exploring the liquid-cooled server market with components for energy storage systems. Each of these areas represents a significant opportunity for growth and innovation.

speaker2

That’s a lot of exciting developments! What are some of the questions that investors frequently ask about the company, and what’s the outlook for the future?

speaker1

Investors are particularly interested in the progress of their robotics products. They want to know about the status of components like ball screws and motors, which are currently in the sample testing phase with clients. There’s also a lot of interest in the growth of their subsidiary, Dingzhi Technology, and how they are measuring investment returns and expanding into the medical sector. Another common question is about client confidentiality. Due to commercial secrecy, they don’t disclose specific client names, but they do provide insights into their collaborations with leading companies in various sectors. Looking ahead, the company is optimistic about the recovery of the medical and industrial markets and the testing of new products. They’re also expanding their global footprint with plans to increase production in Vietnam to serve the North American market and to start production at their factory in Mexico by the end of 2024.

speaker2

That sounds like a promising future! What are their plans for global expansion, and how are they preparing for it?

speaker1

Jiangsu Leili Motor Co., Ltd. is actively expanding its global presence. They have plans to increase production in Vietnam, which will primarily serve the North American market. This strategic move is aimed at reducing logistical costs and improving delivery times. Additionally, they are setting up a factory in Mexico, which is expected to start production by the end of 2024. This will help them better serve the North American market and enhance their global supply chain. They are also exploring opportunities in other regions, ensuring they are well-positioned to meet the growing demand for their products worldwide.

speaker2

Wow, that’s a comprehensive plan! Thanks for sharing all this insightful information with us today. It’s been a fantastic conversation, and I’m sure our listeners have learned a lot about Jiangsu Leili Motor Co., Ltd. and their exciting journey. Thanks for tuning in, everyone, and stay tuned for more episodes!

speaker1

Thank you, and it’s been a pleasure. Until next time, keep exploring and stay curious!