Recently, A-share industrial automation giant Huachangda (300278) held the first heart-to-heart meeting of the group in 2026. The company’s core management directly disclosed the company’s operating status, industry trends and development plans to all employees, stabilizing the morale of the company in the critical period of transformation and upgrading, and also releasing a clear signal to the market that the company will break through.
As a core enterprise in the field of Industry 4.0 automation, Huachangda is deeply involved in the intelligent manufacturing track. Its core business covers new energy automation, robot integration, intelligent warehousing, intelligent transportation systems, digital factories and other diversified solutions, which are widely used in core fields such as automobile manufacturing.
According to the company’s financial report data, corporate operations in 2025 will show a trend of “increasing revenue without increasing profits”. The annual operating income will be 2.891 billion yuan, a year-on-year increase of 11.18%, and the business scale will be steadily expanding.
However, affected by multiple factors such as intensified competition in the industry, product price reductions, credit and asset impairment provisions, the company suffered a loss of 60.3543 million yuan in 2025, and profits fell sharply year-on-year. In the first quarter of 2026, revenue continued to grow, but net profit was only 1.5907 million yuan, and the overall profit was under obvious pressure.
In response to the current operating difficulties, Chen Ze, vice chairman and president of Huachangda, said frankly that the industrial automation industry has entered a deep adjustment cycle, the market involution has intensified, and no company in the industry can survive alone.
Chen Ze holds a doctoral degree from City University of Hong Kong. Since assuming the role of president of the company in 2019, Chen Ze has been deeply involved in corporate operations for a long time. He currently holds 5.9216 million shares of the company and is deeply tied to corporate development.
He emphasized that short-term industry fluctuations will not eliminate the long-term value of the track, and smart manufacturing is still the core need for manufacturing upgrades.
From the perspective of industry fundamentals, there is sufficient room for long-term development of the track.
According to company estimates, from 2025 to 2028, the average annual market size of domestic industrial automation-related tracks will reach 44 billion yuan. Adding the North American and European markets, the total global market size will stabilize at 110 billion to 120 billion yuan.
The essence of the current industry reshuffle is survival of the fittest. Small and medium-sized manufacturers with loose management and lack of core competitiveness will gradually be eliminated. Leading companies with system, delivery, and brand advantages will continue to benefit.
A solid order base is the core confidence for Huachangda to go through the cycle.
The company’s wholly-owned subsidiary Demeco focuses on automotive intelligent manufacturing equipment and system integration and is the company’s core business carrier.
At present, the orders on hand for Demeco alone exceed 1.4 billion yuan. The solid performance foundation provides strong support for the company’s continued operations and performance recovery, effectively hedging the short-term operating pressure of the industry.
In terms of internal governance, Huachangda simultaneously promotes reform and optimization.
The company will establish a regular mechanism for all-employee heart-to-heart talks to break down communication barriers between senior executives, functional departments, subsidiaries and front-line employees.
At the same time, we will strengthen the management’s responsibility, require core backbones to proactively perform their duties, break through rigid mechanisms, provide bottom-line support for front-line business, and consolidate internal management capabilities in an all-round way.
Overall, Huachangda is currently in the throes and critical stage of transformation and upgrading.
Relying on the anti-risk advantages of a 100-billion-level industry track, sufficient orders on hand and a listing platform, coupled with the continuous optimization of internal management, the company is making efforts to break through the constraints of the industry cycle and is expected to usher in a new stage of high-quality development after the industry is cleared.
