Inovance(SZ:300124) Sou Hu Cai Jing·2025-12-07 05:19Core Insights - In 2025, the market value of Huichuan Technology is projected to reach 160 billion, with its motors being utilized in vehicles from companies like Xiaomi and Li Auto, despite its origins as a project discarded by Huawei [1] Group 1: Company Background - Huichuan Technology was founded by Zhu Xingming and a team of 19 former employees of Ansheng Electric, which was sold by Huawei in 2001 [1][3] - After being acquired by Emerson, Zhu received compensation and started his own venture, focusing on reducing the cost of variable frequency drives and servo motors, which were predominantly supplied by foreign companies [3] Group 2: Key Developments - The company faced significant challenges after going public in 2010, investing heavily in servo systems but experiencing a 70% product return rate, leading to near dissolution of the technical team [4] - Zhu invested all company profits to learn from Siemens in Germany, ultimately integrating European algorithms with Chinese production lines, making Huichuan the leader in the domestic servo market [4] Group 3: Strategic Decisions - In 2016, Huichuan made a risky bet on the new energy vehicle market, incurring a loss of 300 million when competitors like WM Motor failed, but remained steadfast, leading to success with the V6S motor used in one out of every three domestic new energy vehicles [4] - The company missed an opportunity in the photovoltaic inverter market, which later became a trillion-dollar industry, a decision Zhu later regretted [6] - Despite Huawei's divestment of a $750 million business, it inadvertently led to the emergence of over ten listed companies, highlighting the irony of the situation as the former power division supports a significant part of China's industrial landscape [6]