CRRC Shangchi Market Situation Analysis and Professional Technical Team Overview

With the increase in the penetration rate of new energy passenger cars, the industry has a large space, a fast growth rate, and the pattern has not yet been fixed. According to GGI1, the total installed capacity of major new energy drive motor manufacturers increased from 1.41 million units in 2020 to 3.43 million units in 2021 (+143%), and the market is in a stage of rapid growth. The market expects that by 2025, the market size of new energy passenger car drive motors in my country will be 38.5 billion yuan. The penetration rate of electrification in the commercial vehicle and construction machinery sectors has increased rapidly, and the market space is expected to exceed 10 billion. In terms of commercial vehicles, Roland Berger predicts that by 2030, the pure electric penetration rate of medium and heavy trucks will reach more than 25%，and that of light trucks will reach more than 30%. In terms of construction machinery, BCG predicts that China’s pure electric construction machinery market will reach an explosion point in 2025-26, and by 2035, the penetration rate of pure electric construction machinery may reach 30%. The market size of both is growing rapidly and will exceed 10 billion. Zhejiang Shangchi currently occupies a leading position in the market for commercial vehicle and engineering machinery drive motor products. Permanent magnet synchronous motors occupy an absolute mainstream position in the domestic new energy vehicle drive motor market. According to GGI1, permanent magnet synchronous motors accounted for 94% of the domestic new energy vehicle drive motor market in 2021. Third-party motor assemblies are on the right side of the smile curve of the new energy vehicle drive motor industry chain, with high profit margins. According to the Global Wind Energy Council, the global cumulative installed capacity of wind power reached 837GW in 2021, a year-on-year increase of12.80%; it is expected that the global new installed capacity of wind power will reach 119.4GW in 2025. Zhejiang Shangchi wind turbine products are mainly sold to leading wind turbine manufacturers in the industry such as Envision.

It is expected that the net profit will reach more than 160 million yuan per year in 2027, and the cumulative net profit will reach more than 330 million yuan in the next five years.

(1) Inheriting the century-old accumulation of China’s rail transit equipment manufacturing industry, continuing the high reliability quality of rail transit motors, and having long-term, wide-range, and multi-scenario working conditions accumulation. (2) Strong design simulation (electromagnetic, fluid, mechanical structure, etc.) capabilities and application research capabilities. Long-term positive R&D accumulation, mature R&D system effectively shortens the R&D cycle and meets customer needs. (3) 17 years of experience in permanent magnet motor R&D, products have higher quality levels, continuous efficiency and anti-demagnetization capabilities; more than 50 years of motor drive technology accumulation, 16 years of new energy vehicle motor R&D experience. (4) According to customer needs, provide more than 100 types of drive motors, covering all models of new energy vehicles on the market, especially to solve the electrification difficulties faced by engineering machinery “multi-variety small batch”.