Under the wave of domestic substitution of industrial automation, Inovance Technology (300124.SZ) has broken the monopoly of international giants with two decades of hard work. It not only has an absolute advantage in China’s general servo system market, but has also accelerated its breakthrough in emerging tracks such as industrial robots and humanoid robots, depicting the wonderful trajectory of domestic industrial control companies from following to leading.
Inovance Technology was founded in 2003, focusing on automation, digitization, and intelligence in the industrial field, focusing on core technologies of “information layer, control layer, drive layer, execution layer, and sensing layer”. It has now become a leading enterprise in China’s industrial control, elevator, and new energy automobile industries.
Its core products include frequency converters, servo systems, PLC (programmable logic controllers), etc. These seemingly professional and obscure electrical components are the key to modern production lines.
If a production line lacks these core components, no matter how many mechanical structures it has, it will just be “scrap copper” that cannot operate.
They enable machines to move accurately, work collaboratively, and even have “logical judgment” capabilities, making them the “intelligent core” of industrial production.
Huichuan Technology is not limited to the research and development of single electrical components, but also actively promotes the construction of a comprehensive solution platform integrating “optical, mechanical, electrical, liquid, and gas”.
Through diversified layout, it can cover the needs of multiple aspects of industrial production. It can not only provide customized services for different industries, but also effectively reduce the impact of cyclical fluctuations in a single industry on corporate development, further consolidating the company’s comprehensive competitiveness in the field of industrial automation.
In the wave of “domestic substitution” of industrial automation, Inovance Technology is one of the most representative companies.
In the past, the core control components of domestic high-end manufacturing industries were highly dependent on imports, which not only increased corporate procurement costs but also posed potential supply chain security risks.
Against this background, Inovance Technology is deeply involved in the field of domestic industrial control, continues to increase investment in research and development, and continues to break through technical barriers.
Industry data in 2024 shows that Inovance Technology’s market share in the field of general servo systems has reached 28%, while the market share of Siemens, which once led for a long time, has been compressed to 11%. Inovance Technology has surpassed the international leader with its excellent product strength.
According to Frost & Sullivan data, in terms of revenue in 2025, Inovance Technology’s general servo system will have a share of approximately 31% in the Chinese market, ranking first; low-voltage inverter products (including elevator-specific inverters) will have a share of approximately 20% in the Chinese market.
Ranking first; medium and high voltage inverter products have a share of approximately 14% in the Chinese market, also ranking first; while PLC products (excluding I/O systems) have a share of approximately 5.7% in the Chinese market, temporarily ranking fourth, which shows that the company still has considerable room for improvement in this field.
From the perspective of operating performance, the industrial automation market demand will show a structural recovery in 2025, and Inovance Technology will seize industry opportunities to achieve steady growth.
The annual operating income was 45.105 billion yuan, a year-on-year increase of 21.77%; the net profit attributable to the parent company was 5.05 billion yuan, a year-on-year increase of 17.84%.
Among them, industrial automation and digitalization business revenue increased by approximately 19% year-on-year, showing good growth momentum.
On the basis of consolidating its traditional advantages, Huichuan Technology has continued to develop emerging businesses such as intelligent robots in recent years.
Relying on its technical advantages in the field of industrial control, it actively promotes the implementation of pan-humanoid robot solutions in industrial scenarios and has achieved outstanding results.
In the field of industrial robots, Inovance Technology continues to expand the market, adheres to the TOP customer strategy, and deeply serves industry leaders.
Its SCARA robot continues to increase in volume in 3C, lithium battery, automotive electronics and other fields; its six-joint robot has achieved large-volume applications in the fields of lithium battery, general industry, and auto parts. At the same time, it has established a model point in the automotive field and has become a new growth pillar.
Inovance Technology also relied on its solution advantages in the field of consumer electronics to break through the top customers in Vietnam, South Korea and other markets, and achieve rapid growth in overseas markets.
In 2025, the company’s overseas revenue will reach 2.649 billion yuan, a year-on-year increase of 29.89%.
Continuous innovation of products and technologies is the core confidence for Inovance Technology to seize the robot market.
As industry demand escalates, the company has successively launched a number of new products adapted to high-end scenarios.
For example, large-load SCARA robots such as S35, S60, and GS60 have greatly extended their service life by optimizing the design of the reducer, adapting to the large load requirements of lithium batteries; the first collaborative robot U8 series, with ultra-low collision offset and ultra-high trajectory accuracy, can meet the needs of high-end scenarios such as precision gluing and laser cutting; the R220 large six-joint die-casting machine is suitable for auto parts die-casting pick-up and spray working scenarios.
In addition, Inovance Technology also released the S2.0 protocol small area array camera, which introduces automotive-grade protocols into industrial scenarios and is suitable for lithium battery, 3C and other industries.
In addition to industrial robots, Inovance Technology has also achieved breakthroughs in the field of humanoid robots from product pre-research to commercialization.
It has completed the development and delivery of first-generation component products such as frameless torque motors, low-voltage high-power servo drives, joint modules, planetary roller screws, and encoders. At the same time, it has promoted sample delivery and cooperation with various customers such as humanoid robot OEMs and scientific research institutions.
Specifically, Inovance Technology’s rotating joint module achieves long-term stable output by optimizing temperature rise control, heat dissipation structure and reliability design, and its continuous working ability is at the leading level in the industry; it optimizes the electromagnetic scheme and winding process of the motor to increase the torque density to more than 38Nm/kg.
On the market, the torque and current response are linearly excellent; the linear module has achieved full-stack self-research of core components; the planetary roller screw has been upgraded through equipment customization, manufacturing process improvement and production technology; the development of a seven-axis bionic arm for the upper limb has been completed, and the product has the capabilities of high load-to-weight ratio, smooth and precise force control, and safe human-machine collaboration.
Inovance Technology stated that humanoid robots are an important carrier for AI to implement the fourth industrial revolution and will gradually change manufacturing methods and lifestyles in the next ten years.
In 2025, the sales of industrial robots in the Chinese market will exceed 300,000 units for the first time. Humanoid robots will enter the “first year of mass production”. Global shipments will grow rapidly, and the industry will shift from technical verification to the early stages of large-scale commercial use.
In the face of industry opportunities, Inovance Technology focuses on high-prosperity downstream industries, deepens cooperation with leading customers, strengthens technological innovation and global expansion, and achieves rapid revenue growth.
In 2025, the company’s emerging industries will achieve revenue of 1.795 billion yuan, a year-on-year increase of 15.80%.
Zheshang Securities pointed out in the research report that Inovance Technology’s emerging business is advancing steadily and is expected to occupy a favorable position in the field of humanoid robots and data centers with its advantages, maintaining a “buy” rating.
In addition, Dongguan Securities, China International Finance Securities, Soochow Securities and other institutions also gave the company a “buy” rating, reflecting the institutions’ optimism for the future development of Innovative Technology.
