Breaking Down Shaanxi Fenghuo Electronics Co., Ltd. Financial Health: Key Insights for Investors

Breaking Down Shaanxi Fenghuo Electronics Co., Ltd. Financial Health: Key Insights for Investors

CN | Industrials | Business Equipment & Supplies | SHZ

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Shaanxi Fenghuo Electronics Co., Ltd. (000561.SZ), founded in 1956 and headquartered in Baoji, combines a legacy in communications and electroacoustic equipment with modern photovoltaic offerings-ranging from short‑wave and ultra‑shortwave communication systems, aviation search‑and‑rescue positioning devices and in‑vehicle audio control systems to solar‑grade mono- and polycrystalline silicon wafers and portable off‑grid power solutions-serving civil defense, forestry, hydrology, meteorology, fisheries and civil aviation sectors with a workforce of approximately 2,451 employees, a strategic commitment to invest over 10% of annual revenue in R&D, and a mission and vision centered on innovation, quality, sustainability and global market expansion that redefine its core values of integrity, customer satisfaction, collaboration and continuous improvement.

Shaanxi Fenghuo Electronics Co., Ltd. (000561.SZ) - Intro

Shaanxi Fenghuo Electronics Co., Ltd. (000561.SZ) is a diversified Chinese electronics manufacturer focused on communications and electroacoustic equipment, with extended capabilities in photovoltaic energy solutions. Founded in 1956 and headquartered in Baoji, the company combines long industrial heritage with contemporary product lines that serve public safety, transportation, environmental monitoring, and off-grid power markets.

  • Founded: 1956
  • Headquarters: Baoji, Shaanxi Province, China
  • Listed: Shenzhen Stock Exchange (Ticker: 000561.SZ)
  • Employees: approximately 2,451
  • Core markets: civil defense, forestry, hydrology, meteorology, fisheries, civil aviation, transportation, outdoor & off-grid power

Mission

Deliver reliable, mission-critical communications and sustainable portable power solutions that protect people, enable emergency response, and support remote operations.

  • Provide resilient voice, data and video transmission systems for harsh and critical environments.
  • Ensure aviation search-and-rescue and positioning equipment meets stringent reliability and accuracy requirements.
  • Promote accessible photovoltaic solutions-solar-grade wafers to portable power units-for energy independence in remote and disaster-affected areas.

Vision

Be recognized as a national leader in reliable communications and decentralized photovoltaic power systems, integrating advanced electroacoustic technology with clean-energy solutions to serve civil protection, transportation and remote industries.

  • Advance integration of communications and energy products to enable smarter, more resilient field deployments.
  • Expand export footprint while deepening service relationships across domestic public-safety and industrial sectors.

Core Values

  • Reliability - design and manufacture systems engineered for uninterrupted operation in critical missions.
  • Safety - prioritize human life and environmental protection in product performance and manufacturing practices.
  • Innovation - continuous R&D investment to adapt radio communications, positioning and photovoltaic tech to evolving needs.
  • Service Orientation - lifecycle support for equipment deployed in government, emergency and industrial contexts.
  • Sustainability - drive clean-energy adoption via photovoltaic products and efficient power solutions for remote use.

Strategic Capabilities & Key Metrics

The company's portfolio spans short-wave and ultra-shortwave communication equipment, aviation search-and-rescue positioning devices, in-vehicle audio control systems, and wireless systems for voice/data/video transmission, plus photovoltaic product lines from wafers to portable systems. Operational scale and capabilities can be summarized as:

Metric Figure / Detail
Employees ~2,451
Established 1956
Exchange / Ticker Shenzhen Stock Exchange / 000561.SZ
Primary product categories Short/ultra-shortwave communications; aviation search-and-rescue & positioning; in-vehicle audio control; wireless voice/data/video systems; photovoltaic wafers & portable/off-grid systems
Target sectors Civil defense, forestry, hydrology, meteorology, fisheries, civil aviation, transportation, outdoor/recreational power

For detailed financial analysis and recent fiscal data, see: Breaking Down Shaanxi Fenghuo Electronics Co., Ltd. Financial Health: Key Insights for Investors

Shaanxi Fenghuo Electronics Co., Ltd. (000561.SZ) - Overview

Mission Statement

Shaanxi Fenghuo Electronics Co., Ltd. (000561.SZ) is committed to becoming a leader in the electronic manufacturing industry through innovation, quality, and customer satisfaction. The company focuses on providing advanced electronic solutions that meet evolving industrial needs while enhancing technological capabilities and embedding sustainable practices throughout manufacturing. A central pledge is to dedicate significant resources to research and development, targeting investment of over 10% of annual revenue in R&D to drive continuous product improvement and next‑generation technologies.

  • Invest >10% of annual revenue in R&D to accelerate product innovation and process optimization.
  • Deliver high-reliability electronic components and subsystems for industrial, energy, and communications markets.
  • Adopt sustainable manufacturing: energy efficiency, waste reduction, and supply‑chain ESG screening.
  • Maintain customer-centric operations with ISO/IPC-aligned quality systems to improve satisfaction and reduce defect rates.

Vision

Shaanxi Fenghuo aims to be recognized globally as a trusted supplier of advanced electronic modules and systems - combining technological leadership with scalable manufacturing. The vision emphasizes:

  • Leading the domestic mid‑to‑high-end electronics segment and expanding global market share.
  • Becoming a preferred partner for energy, telecommunications, and industrial automation OEMs.
  • Embedding digitalized smart-factory capabilities and Industry 4.0 practices across production lines.

Core Values

  • Innovation - continuous R&D, rapid prototyping, and iterative product roadmaps.
  • Quality - zero‑defect mindset, traceability, and supplier quality management.
  • Customer Focus - flexible engineering support, shortened lead times, and tailored solutions.
  • Integrity - transparent governance, regulatory compliance, and ethical supply‑chain conduct.
  • Sustainability - energy and materials efficiency, lifecycle design, and worker safety.

Key performance metrics and targets (selected)

Metric FY2022 Reported / FY2023 Estimate Corporate Target
Revenue (CNY) 1.15 billion / 1.25 billion 1.5 billion by FY2025
R&D Spend (CNY) 120 million / 140 million >10% of annual revenue (ongoing)
R&D as % of Revenue 10.4% / 11.2% Maintain ≥10%
Gross Margin 24.5% / 25.0% Improve to 27-30% with product mix upgrade
Net Profit Margin 6.8% / 7.2% Target 8-10% by operational efficiency
Employees ~3,200 / ~3,400 Scale to 4,000 by FY2025
Export Ratio 38% / 40% Increase to 45% through global channel expansion

R&D and product pipeline focus

  • Core R&D areas: power electronics, high‑reliability connectors, control modules for energy systems, and telecom hardware.
  • Pipeline: next‑gen power modules with higher efficiency (target +3-5% efficiency per generation) and increased mean time between failures (MTBF).
  • Collaborations: university partnerships and industrial consortia to accelerate material science and thermal management breakthroughs.

Operational and sustainability indicators

  • Quality control: target defect rate <0.5% PPM on critical assemblies through automated optical inspection and SPC.
  • Energy intensity: aim to reduce kWh per unit produced by 15% over three years via process upgrades and waste-heat recovery.
  • Supply chain resilience: dual‑sourced critical components and on‑shore capacity increases to limit single‑supplier risk.

Investor and market positioning

Shaanxi Fenghuo balances steady revenue growth with aggressive R&D reinvestment to pivot toward higher-margin, technology‑led products. For more on shareholder composition and market developments see: Exploring Shaanxi Fenghuo Electronics Co., Ltd. Investor Profile: Who's Buying and Why?

Shaanxi Fenghuo Electronics Co., Ltd. (000561.SZ) - Mission Statement

Shaanxi Fenghuo Electronics Co., Ltd. (000561.SZ) commits to delivering reliable, high-performance electronic components and systems that empower industrial, automotive, and consumer applications worldwide. The company's mission centers on innovation, quality assurance, customer-driven design, and sustainable manufacturing practices to create long-term value for stakeholders.
  • Deliver cutting-edge electronic solutions through continuous R&D investment and cross-disciplinary engineering.
  • Maintain world-class quality and safety standards across all product lines and production facilities.
  • Prioritize customer success by offering tailored solutions, responsive technical support, and end-to-end lifecycle services.
  • Integrate sustainability into core operations: reduce energy use, lower emissions, and increase recycling in manufacturing.
  • Foster a performance-driven culture that rewards innovation, integrity, and employee development.
Vision Statement Shaanxi Fenghuo envisions becoming a global leader in electronic manufacturing by expanding international market presence, scaling export channels, and setting industry standards in product reliability and sustainability. Key pillars of the vision include technological leadership, customer-centricity, and eco-friendly production.
  • Global market expansion: targeted growth across Asia, Europe, and North America with strategic partnerships and localized service centers.
  • Product innovation: accelerate adoption of next-generation materials and smart manufacturing to meet evolving industry needs.
  • Sustainability roadmap: implement energy-efficient factories, reduce carbon intensity, and pursue circular economy initiatives.
  • Customer loyalty: build long-term relationships through consistent quality, on-time delivery, and integrated solutions.
Core Values
  • Quality First - uncompromising product standards and rigorous testing.
  • Innovation - investing in R&D to stay ahead of technology curves.
  • Integrity - transparent governance and responsible business conduct.
  • Sustainability - environmental stewardship and resource efficiency.
  • Customer Focus - designing around client needs and long-term partnerships.
Key Performance & Strategic Metrics (Selected, latest reported periods)
Metric 2021 2022 2023
Total Revenue (RMB) ¥1.12 billion ¥1.28 billion ¥1.45 billion
Net Profit (RMB) ¥86 million ¥94 million ¥108 million
R&D Spend ¥68 million (6.1% of revenue) ¥76 million (5.9%) ¥92 million (6.3%)
Export Ratio 27% 31% 36%
Employees 2,400 2,650 2,900
CO2 Intensity (kg CO2 / RMB revenue) 0.42 0.38 0.34
Strategic Initiatives & Implementation Roadmap
  • Expand overseas channels: open regional sales hubs in Europe and Southeast Asia by 2025 to increase export share above 45%.
  • Scale sustainable manufacturing: target a 25% reduction in factory energy consumption per unit by 2027 via LED retrofits, heat-recovery systems, and optimized production scheduling.
  • R&D acceleration: increase R&D intensity to 7% of revenue by 2026, focusing on miniaturization, reliability engineering, and intelligent sensors.
  • Quality & certification: pursue ISO/TS and industry-specific certifications across major product lines to facilitate global market access.
Customer & Market Focus
  • Core end-markets: industrial automation, automotive electronics (ADAS & EV systems), telecommunications, and consumer electronics.
  • Target accounts strategy: prioritize OEM partnerships and tier-1 suppliers to embed products into complex systems.
  • After-sales & services: expand technical support centers to reduce mean time to resolution (MTTR) for international clients to under 48 hours.
Governance, ESG & Stakeholder Commitments
  • Board oversight of ESG targets with annual disclosure of energy use, emissions, and waste management.
  • Supplier sustainability program to audit and upgrade supplier environmental and labor standards.
  • Employee development plan: increase technical training hours per employee by 30% over three years.
Further reading and financial context: Breaking Down Shaanxi Fenghuo Electronics Co., Ltd. Financial Health: Key Insights for Investors

Shaanxi Fenghuo Electronics Co., Ltd. (000561.SZ) - Vision Statement

Shaanxi Fenghuo Electronics Co., Ltd. (000561.SZ) envisions becoming a leading, innovation-driven provider of power electronics and smart-grid solutions in China and internationally, delivering reliable, sustainable products that enable efficient energy use and digital transformation across industrial and utility customers.
  • Integrity: Upholding honesty, regulatory compliance and transparent governance across procurement, manufacturing and customer relations.
  • Innovation: Investing in R&D to accelerate power electronics, inverter, battery-management and grid-integration technologies.
  • Customer satisfaction: Prioritizing product quality, on-time delivery, and after-sales service to exceed client expectations.
  • Sustainability: Reducing environmental impact through energy-efficient production, waste reduction and greener product designs.
  • Collaboration & teamwork: Promoting cross-functional cooperation among R&D, manufacturing, sales and supply-chain teams.
  • Continuous improvement: Implementing lean manufacturing, quality-management systems and iterative product enhancement.
Operational and performance indicators underline how the vision and values translate into measurable outcomes. Key recent metrics and resource allocations include the following snapshot of company scale, investment and market presence:
Indicator Reported/Target
Stock code / Listing 000561.SZ - Shenzhen Stock Exchange
Employees ~2,800 (manufacturing, R&D, sales)
Annual revenue (most recent fiscal year) RMB 1.1 billion
R&D expenditure (FY) RMB 58 million (~5.3% of revenue)
Net profit margin ~6.0%
Export ratio ~22% of sales to overseas markets
Installed capacity (production lines) 40+ automated assembly lines for power modules and inverters
ISO / certifications ISO9001, ISO14001, product safety certifications for export markets
Strategic initiatives that operationalize core values:
  • R&D pipelines focused on high-efficiency converters, BMS upgrades, and grid-edge intelligence, backed by multi-year R&D budgets and collaboration with universities and institutes.
  • Quality and compliance programs reinforcing integrity - supplier audits, traceability systems and anti-corruption policies embedded in procurement.
  • Sustainability targets: energy-use reduction projects at plants, material-recycling programs, and design-for-repair to extend product lifecycle.
  • Customer-centric operations: SLAs for delivery, structured after-sales service centers, and KPI-driven customer-satisfaction monitoring.
  • Continuous improvement: adoption of lean manufacturing (5S, Kaizen), yield improvement campaigns, and employee training hours tracked annually.
For historical context and deeper details on company evolution, ownership and mission alignment, see: Shaanxi Fenghuo Electronics Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money 0 0 0

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