Industry News | Inovance Technology’s Q1-Q3 Performance Grows by 20%-30% Year-on-Year

Inovance Technology Q3 Performance Report

Inovance Technology recently released its performance forecast for the first three quarters of 2024. The company expects to achieve revenue of between 24.145 billion and 26.158 billion yuan, representing a year-on-year growth of 20%-30%. Net profit attributable to shareholders is projected to be between 3.187 billion and 3.519 billion yuan, reflecting a year-on-year change ranging from a 4% decline to a 6% increase. The net profit, excluding non-recurring gains and losses, is estimated to be between 3.046 billion and 3.198 billion yuan, showing a year-on-year growth of 0%-5%.

Reasons for Performance Changes

1. Revenue Growth: The main driver of revenue growth is the rapid development of the new energy vehicle (NEV) business, while the general automation business saw slight growth.
2. Gross Margin Decline: The company’s overall gross margin declined year-on-year, primarily due to changes in the product revenue structure and intensified market competition.
3. Expense Control: Despite increased investment in internationalization, energy management, and digitalization, Inovance effectively controlled expenses related to R&D, sales, and management, with expense growth slower than revenue growth.
4. Investment Income Reduction: Fair value changes and investment income decreased year-on-year due to lower returns from equity investments.
5. Reduced Credit Impairment Losses: Credit impairment losses decreased, mainly due to a reduction in the provision for bad debts on accounts receivable.
6. Increased Asset Disposal Gains: Gains from asset disposals increased, largely driven by income from property disposal after the relocation of subsidiaries.
7. Higher Income Tax Expenses: Income tax expenses rose year-on-year as certain subsidiaries benefited from preferential tax policies last year, resulting in lower tax expenses for the previous period.

Shanghai Electric Acquires Shanghai FANUC, Expands into the Specialty Robotics Market

On October 18, Shanghai Electric (601727.SH) announced plans to acquire 100% equity of Shanghai Ningcheng Industrial Co., Ltd., a holding platform for industrial robotics-related businesses, from its parent company, Shanghai Electric Holding Group Co., Ltd. The acquisition, valued at 3.08 billion yuan, will make Shanghai FANUC Robot Co., Ltd. return to Shanghai Electric’s portfolio.

Acquisition Background

Founded in 1972, Japan’s FANUC, along with ABB, KUKA, and Yaskawa, is one of the world’s top four industrial robot manufacturers. In 1997, Shanghai Electric and FANUC formed a joint venture, Shanghai FANUC, with each holding 50% equity. Upon completion of this transaction, Shanghai FANUC will once again be indirectly controlled by Shanghai Electric.

According to GGII Robotics Research Institute director Lu Hancheng, this acquisition is likely aimed at positioning Shanghai Electric in the specialty robotics market, focusing on applications in specific scenarios using embodied intelligence technology. The deal is expected to enhance the company’s automation capabilities and accelerate overall development.

Midea Group Develops Core Components for Humanoid Robots

At Midea Group’s recent “Visionary Conference,” the company announced its plans to increase shipments of products equipped with AI models and to further integrate industrial robotics with AI. Although Midea has not yet introduced humanoid robots, the company is actively developing core components for humanoid robots, which are currently in the exploratory phase.

Midea’s Strategic Projects

Midea Group’s Vice President and CDO Zhang Xiaoyi revealed that by November, tens of thousands of products equipped with Midea’s large language model, Meiyan, are expected to be launched. Vice President and CTO Wei Chang also noted that Midea’s central research institute has a research team focused on embodied intelligence, although humanoid robots remain in the early stages of exploration.