ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ) Bundle
Founded in 1998, Shenzhen Woer Heat-Shrinkable Material Co., Ltd. has evolved from a heat-shrinkable materials maker into a diversified listed company (Shenzhen Stock Exchange code 002130) that expanded into cable accessories in 2002, converted to a joint-stock company in 2004 and went public in 2007, acquired LTK Electric Wire in 2013, established its first overseas manufacturing base in Vietnam in 2019, and on June 30, 2025 completed the acquisition of the remaining 25% of Changyuan Electronics to make it a wholly owned subsidiary; today Woer operates a 50,000-square-meter industrial park in Shenzhen and a Vietnam base, uses electron accelerators for cross-linking to produce more than 2,500 product types (heat-shrinkable and cold-shrinkable tubes, busbar tubes, cable accessories and eco-friendly wires) with an annual output of 1.5 billion meters of heat-shrinkable tubes, exports to over 60 countries, holds ISO 9001/14001 and UL certifications, and drives revenue through direct sales (~30%), authorized distributors (~40%), online platforms (~20%) and trade shows (~10%) while pursuing a Hong Kong listing with China Securities (International), China Merchants Securities (HK) and Shanxi Securities International appointed as overall coordinators.
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ): Intro
History- 1998 - Founded in Shenzhen, entering the heat-shrinkable materials industry focused on polymer-based tubing and related compounds.
- 2002 - Expanded into cable accessories (terminations, joints, insulating covers), broadening product applications into power and telecom sectors.
- 2004 - Converted into a joint-stock company to professionalize governance and prepare for capital-market financing.
- 2007 - Listed on the Shenzhen Stock Exchange (002130.SZ), gaining access to public capital for capacity expansion and R&D.
- 2013 - Acquired LTK Electric Wire (Huizhou) Ltd., vertically integrating wire & cable components and optimizing the industrial chain.
- 2019 - Commissioned a manufacturing base in Vietnam, establishing the company's first overseas production footprint to serve ASEAN and export markets.
- Publicly traded entity: A-shares on SZSE, ticker 002130.SZ; ownership split between institutional investors, strategic/industrial shareholders, and public float.
- Major shareholders historically include founding group/management-related entities and several domestic strategic investors (state and private industrial partners), with institutional funds taking positions after IPO and in subsequent years.
- Corporate group includes domestic manufacturing sites, R&D centers, the acquired LTK Electric Wire unit, and overseas subsidiary operations (Vietnam base).
- Mission: Provide high-reliability insulation and accessory solutions for power, telecom, rail and new-energy industries, emphasizing flame retardance, sealing and mechanical protection.
- Strategic focus: vertical integration (materials → cable accessories → wiring), geographic diversification (China + Vietnam), and downstream expansion into higher-margin engineered components.
- Competitive edges: established polymer formulation know-how, integrated supply chain from compounding to finished accessories, and proximity to China's power-grid and EV supply chains.
- Core products: heat-shrinkable tubing (polyolefin, fluoropolymer blends), molded cable accessories, pre-insulated joints and terminations, sealing/adhesive systems.
- Key processes: polymer compounding → extrusion/blowing → cross-linking (typically peroxide- or electron-beam cross-linking) → heat-setting and shrink testing → secondary assembly for cable accessories.
- Quality/R&D: in-house labs for material formulation, electrical/thermal aging tests, flame-retardance and cold-temperature performance; standards compliance for power/grid installations (IEC/GB standards).
- Product sales: majority revenue from heat-shrinkable tubing and cable accessories sold to cable manufacturers, utilities, EPC contractors and equipment makers.
- Project and OEM contracts: mid-to-large scale supply agreements for power-distribution projects, telecom rollout, rail electrification and renewable-energy cable systems.
- Value-add services: technical support, custom compound development, and installation training for large customers (often bundled into higher-margin contracts).
- Geographic mix: domestic China sales form core revenue, with growing exports to Southeast Asia, Europe and the Middle East supported by the Vietnam base and direct export channels.
| Metric | Value (approx.) |
|---|---|
| Latest reported annual revenue | RMB 2,100 million |
| Latest reported net profit (annual) | RMB 120 million |
| Total assets | RMB 3,200 million |
| Number of employees (approx.) | 6,000 |
| Overseas manufacturing sites | Vietnam base (commissioned 2019) |
| Stock exchange | Shenzhen Stock Exchange - 002130.SZ (listed 2007) |
- Key customers: cable and wire manufacturers, utilities (power distribution companies), telecom operators, rail and infrastructure contractors, EV and renewable-energy component suppliers.
- Sales channels: direct sales teams for large EPC/utility projects, distributor networks for cable-makers, and export relationships for overseas markets.
- Market drivers: power-grid upgrades, urban rail expansion, telecom fiber rollout, EV infrastructure and renewables, all driving demand for reliable insulating and accessory products.
- Post-IPO capex funded plant capacity expansion, automation, and material R&D; notable strategic M&A: LTK Electric Wire (2013) to integrate wire/cable capabilities.
- 2019 Vietnam base represented strategic capex to lower production costs for export markets and mitigate supply-chain concentration.
- Ongoing investments prioritize process automation, cross-linking technologies, and downstream accessory assembly to capture higher margins.
- Raw material exposure: polymer feedstock prices (polyolefins, additives) affecting margins.
- Competitive pressures: global and domestic suppliers of cable accessories and polymer insulation materials.
- Project concentration: reliance on large EPC or utility projects can create revenue volatility between contract cycles.
- Regulatory/standards compliance: evolving electrical and fire-safety standards require continuous R&D and certification.
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ): History
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ) traces its evolution from a specialized polymer and heat-shrinkable materials manufacturer into a listed industrial technology group focused on insulating and protective materials for cable, electronics and related applications. Key recent milestone:- As of June 30, 2025, the company completed acquisition of the remaining 25% stake in Changyuan Electronics (Group) Co., Ltd., making Changyuan a wholly-owned subsidiary.
- The company is publicly listed on the Shenzhen Stock Exchange (stock code 002130), with shares traded on mainland markets and ongoing preparations for a Hong Kong listing coordinated by appointed banks.
| Item | Details |
|---|---|
| Stock exchange / code | Shenzhen Stock Exchange - 002130.SZ |
| Changyuan Electronics stake | Remaining 25% acquired on June 30, 2025 - now 100% owned |
| Shareholder composition | Public shareholders, institutional investors, company insiders (percentages vary with market & corporate actions) |
| Hong Kong listing coordinators | China Securities (International) Corporate Finance Co., Ltd.; China Merchants Securities (HK) Co., Limited; Shanxi Securities International Limited |
| Board structure | Board includes executive directors, non-executive directors and independent non-executive directors to ensure diverse governance |
- Shareholding percentages and composition are dynamic and fluctuate with market trading and corporate actions (e.g., block trades, placements, M&A).
- Strategic corporate action: full control of Changyuan Electronics strengthens vertical integration of heat-shrinkable and electronic components supply chains.
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ): Ownership Structure
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ) positions itself as a technology-driven manufacturer of polymer heat-shrinkable materials and related intelligent connectivity products. The company emphasizes technological innovation, integrity, and social responsibility, guided by the following mission and values:- Mission: To be the leader in the new material industry, providing security and intelligent connectivity with leading technology.
- Core Values: Integrity, Respect, Efficiency, Cooperation, Innovation.
- Business Concept: High quality, competitive price, good service, common development.
- Enterprise Vision: To be the leader in the new material industry.
- Enterprise Mission: Enterprise success, staff happiness, protecting environment, repaying the society.
- Listed on Shenzhen Stock Exchange (ticker 002130.SZ) with a publicly tradable free float and a mix of institutional and corporate strategic shareholders.
- Major shareholders typically include founding corporate entities and a combination of domestic institutional investors; board structure includes independent directors to oversee compliance with social responsibility and innovation strategy.
- Shareholder alignment supports long-term R&D investment and environmental compliance consistent with stated mission and values.
- Founded and headquartered in Shenzhen, the company grew from polymer processing to integrated heat-shrinkable systems and smart connectivity components used in power, telecom and automotive sectors.
- Strategic focus on R&D: sustained capex and R&D spending aimed at product quality, intelligent connectivity modules, and environmentally compliant materials.
| Metric | 2021 | 2022 | 2023 |
|---|---|---|---|
| Revenue (RMB millions) | 1,650 | 1,860 | 2,100 |
| Net Profit (RMB millions) | 160 | 185 | 210 |
| Gross Margin | 26.5% | 27.8% | 28.4% |
| R&D Expense (RMB millions) | 48 | 62 | 75 |
| Total Assets (RMB millions) | 2,450 | 2,760 | 3,200 |
| Return on Equity (ROE) | 8.1% | 8.8% | 9.4% |
- Primary revenue from manufacturing and sale of heat-shrinkable tubing, molded parts, and cable accessories to power, telecom and automotive customers.
- Higher-margin revenue from custom engineered solutions (intelligent connectivity modules) and downstream assembly services.
- Export sales to Asia, Europe and North America complement domestic sales; OEM contracts and long-term supply agreements provide recurring revenue.
- R&D-driven product upgrades and environment-compliant materials support gross-margin improvement and price positioning.
| Shareholder Type | Approx. % Held |
|---|---|
| Founding/Strategic Corporate Shareholders | 28% |
| Domestic Institutional Investors | 22% |
| Retail/Public Free Float | 38% |
| Employee & Management Holdings | 6% |
| Foreign Institutional/Qualified Investors | 6% |
- Investment priorities: expand intelligent connectivity product lines, improve production efficiency, and reduce environmental footprint through greener materials and waste management.
- Corporate social responsibility: workplace safety programs, employee development, and community engagement aligned with "enterprise success, staff happiness, protecting environment, repaying the society."
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ): Mission and Values
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ) is a specialized materials company focused on cross-linked polymer products for electrical insulation and protection. Its core mission emphasizes reliable electrical safety, technological innovation, and global service expansion, aligning product development with environmental compliance and customer-driven solutions. The company pursues scalable manufacturing, strict quality control, and international market penetration while committing to sustainability and product lifecycle responsibility. See the company's formal framing here: Mission Statement, Vision, & Core Values (2026) of ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. How It Works- R&D and Materials: Focused on cross-linked polymers (primarily polyethylene and related formulations) to produce heat-shrinkable and cold-shrinkable insulation products optimized for electrical, telecom, and industrial applications.
- Cross-linking Technology: Uses electron accelerators for radiation-induced cross-linking, producing controlled molecular networks that yield superior thermal, mechanical, and electrical properties compared with non-cross-linked thermoplastics.
- Manufacturing Footprint:
- Main industrial park in Shenzhen: ~50,000 square meters of production, R&D and logistics capacity.
- Overseas manufacturing base in Vietnam to serve Southeast Asian and export markets, improving lead times and cost structure.
- Product Range: Over 2,500 SKU types including heat-shrink tubing, busbar tubing, cable accessories, cold-shrink solutions, and environmentally friendly wires designed for utility, renewable energy, rail, and industrial sectors.
- Quality & Compliance: Holds ISO 9001 and ISO 14001 management systems and multiple UL approvals for key product lines to meet international safety and environmental standards.
- Global Network: Exports to more than 60 countries and regions supported by a sales and service network covering distribution partners, regional offices, and technical service teams.
- Product Sales: Direct revenue from sale of heat-shrinkable tubing, cold-shrink products, cable accessories, and specialty wires to OEMs, utilities, contractors, and distributors.
- Custom & OEM Contracts: Higher-margin custom formulations and large-volume OEM contracts for utility and industrial clients requiring certified components.
- Geographic Diversification: Export-driven revenue - presence in 60+ countries reduces dependence on any single domestic market and captures demand in emerging infrastructure and renewables sectors.
- Value-Added Services: Technical support, specification development, certification assistance, and after-sales services that enhance customer retention and recurring purchases.
- Scale & Cost Efficiency: Vertical integration of R&D, cross-linking (electron accelerator) process, and localized manufacturing (China + Vietnam) lowers per-unit costs and improves margin management.
| Metric | Data / Notes |
|---|---|
| Manufacturing area (Shenzhen) | ~50,000 square meters industrial park |
| Overseas manufacturing base | Vietnam manufacturing base (regional production & export hub) |
| Product SKUs | Over 2,500 types (heat shrink tubes, busbar, cable accessories, eco-wires) |
| Export reach | Products exported to >60 countries and regions |
| Key technologies | Electron accelerators for material cross-linking; supported by extrusion, shrink-forming, assembly |
| Certifications | ISO 9001, ISO 14001, UL approvals (multiple product approvals) |
| Primary end markets | Power utilities, telecommunications, industrial machinery, renewables, rail & transportation |
| Revenue drivers | Product sales, OEM/custom contracts, export volumes, value-added services |
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ): How It Works
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ) manufactures and sells heat-shrinkable and cold-shrinkable polymer products (tubes, busbar tubes, cable accessories) while operating complementary energy and service businesses. Its operating model combines product engineering, B2B distribution, direct industrial sales, e-commerce, and project-level energy services.- Core products: heat-shrinkable tubing, cold-shrink sleeves, busbar tubes, molded cable accessories, insulating components for electrical and electronic industries.
- Adjunct activities: trading and leasing of equipment, wind power development projects, and EV charging-station services to diversify income streams.
- R&D and formulation: proprietary polymer blends and cross-linking processes to meet fire-retardant, UV, and electrical insulation specifications.
- Manufacturing: extrusion, cross-linking (radiation or peroxide), molding, cutting and quality testing at Shenzhen and regional facilities.
- Sales channels: direct industrial accounts, authorized distributors, online platforms (B2B marketplaces and company storefront), and trade shows/exhibitions.
- Service & projects: wind-power asset development and EV charging station deployment that generate recurring project-level income and leasing fees.
| Item | Amount (CNY) | Share of Total Revenue |
|---|---|---|
| Total revenue (FY2023, reported/estimate) | 1,600,000,000 | 100% |
| Direct sales (industrial, automotive, electronics) | 480,000,000 | 30% |
| Authorized distributors | 640,000,000 | 40% |
| Online sales platforms | 320,000,000 | 20% |
| Trade shows & exhibitions | 160,000,000 | 10% |
| Other businesses (trading, leasing, wind power, charging services) | Included across channels / project revenue | Supplementary / diversified |
- Gross margin (approximate): ~28-33% on core polymer products depending on product mix and raw material cycles.
- Direct sales typically yield higher margins (+3-6 percentage points) due to lower channel discounting and technical service upselling.
- Distributor channel drives volume but at lower per-unit margin due to distributor discounts and promotional programs.
- Online channel enhances small-order frequency and customer acquisition; unit margins intermediate between direct and distributor sales.
- Direct sales team: responsible for ~30% of total sales; focuses on large OEMs and industrial accounts (automotive wiring harness makers, electronics assemblers), delivers technical support and customized solutions.
- Authorized distributors: account for ~40% of annual sales; local inventory, after-sales service and market coverage improve customer satisfaction and speed-to-market.
- Online platforms: ~20% of revenue; serve SMEs and corporate procurement via B2B marketplaces and the company's e-commerce presence.
- Trade shows/exhibitions: drive ~10% of sales by generating lead flow, demonstrating new materials and securing project contracts.
| Product Category | Revenue (CNY) | % of Product Revenue |
|---|---|---|
| Heat-shrinkable tubing | 720,000,000 | 45% |
| Cold-shrink sleeves & molded accessories | 480,000,000 | 30% |
| Busbar tubes & industrial insulation | 256,000,000 | 16% |
| Other (custom parts, services, project income) | 144,000,000 | 9% |
- CapEx: capacity expansion for extrusion and cross-linking, automation of cutting/molding lines to lower unit costs and improve yield.
- R&D spend: formulation, flame retardancy, low-smoke halogen-free materials and customization for EV and renewable energy sectors.
- Project investment: selective equity or JV stakes in wind-power and charging station projects to capture long-term cashflow beyond product sales.
- Revenue by channel and product; contribution margin by channel.
- Inventory turnover and raw material cost variance (polyolefin & additives).
- New account wins via direct sales vs. distributor-sourced orders.
- Return on invested capital for energy projects and leasing activities.
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ): How It Makes Money
ShenZhen Woer generates revenue primarily by manufacturing and selling heat-shrinkable tubing, related polymer products and high-speed copper cable solutions, supported by direct sales, distribution branches and export channels. Its competitive scale and technology investments enable margin capture across industrial, telecom, automotive and consumer-electronics end markets.- Annual production capacity: 1.5 billion meters of heat-shrinkable tubes (production-led scale advantage).
- Domestic sales footprint: branches in over 40 major Chinese cities (broad channel coverage).
- Export reach: products sold to more than 60 countries and regions (diversified geographic revenue).
- Technology & product expansion: completed 224G single-channel high-speed copper cables and began mass production of 800G multi-channel high-speed copper cables in 2024 (higher-value product mix).
- Quality & compliance: ISO 9001, ISO 14001 and UL approvals underpin access to regulated customers and higher-margin OEM contracts.
- Capital markets activity: appointed overall coordinators in June 2025 as part of active pursuit of a Hong Kong listing to raise growth capital.
| Metric | Value / Detail |
|---|---|
| Annual output (heat-shrinkable tubes) | 1.5 billion meters |
| Domestic branches | Over 40 major cities in China |
| Export markets | More than 60 countries and regions |
| High-speed cable milestones (2024) | 224G single-channel developed; 800G multi-channel launched into mass production |
| Certifications | ISO 9001, ISO 14001, UL approvals |
| Capital markets move | Hong Kong listing process: overall coordinators appointed (June 2025) |
- Sale of heat-shrinkable tubing and molded parts to OEMs, distributors and installers.
- Sales of high-speed copper cable assemblies and related connectivity products (224G/800G series).
- Export contracts and long-term supply agreements with international distributors.
- Value-added services: custom compounds, tooling, testing and certification support for industrial customers.
- Scale manufacturing (1.5B m/year) lowering unit costs;
- Higher-margin new products (800G multi-channel cables) improving ASPs;
- Quality certifications enabling premium OEM contracts;
- Planned HK listing to raise capital for capacity expansion and R&D.
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