SEC Electric Machinery Co., Ltd. (603988.SS) Bundle
From its founding in 1949, SEC Electric Machinery Co., Ltd. (603988.SS) has evolved into a powerhouse of electric machinery with a product breadth spanning over 190 series and more than 10,000 specifications, supplying large- and medium-sized AC/DC motors, generators and renewable-generation equipment across more than 50 countries while employing approximately 2,300 dedicated professionals; anchored by a mission to 'strive for excellence, seek value innovation, pursue win-win cooperation and put customer success first,' a vision to 'become a globally leading and sustainable provider of intelligent industrial solutions,' and core values that are future-oriented, champion change and innovation, promote open and collaborative work, and relentlessly pursue excellence, SEC's ISO9001, ISO14001 and OHSAS18001 certifications underscore its quality, environmental and safety commitments as it pivots toward intelligent, sustainable industrial leadership.
SEC Electric Machinery Co., Ltd. (603988.SS) - Intro
SEC Electric Machinery Co., Ltd. (603988.SS) is a leading Chinese designer and manufacturer of electric machinery - motors, generators and related equipment - with a history dating back to 1949. The company combines broad product breadth, international market reach and manufacturing scale to serve heavy industry, power generation, renewable energy, petrochemical, mining and other sectors.- Founded: 1949
- Ticker: 603988.SS (Shanghai Stock Exchange)
- Product breadth: >190 series, ~10,000 specifications
- Global reach: exports to 50+ countries
- Employees: ~2,300
- Quality & management certifications: ISO9001, ISO14001, OHSAS18001
- Deliver high-efficiency, reliable electric machinery that powers industry and green energy transitions.
- Drive customer value through engineering excellence, lifecycle support and localized service.
- Commit to sustainable manufacturing with low-emissions processes, resource efficiency and continuous compliance with environmental and occupational health standards.
- Become a world-class supplier of large and medium-sized electric machines and integrated power-generation solutions.
- Lead in technologies for renewable-generation generators (wind, hydro), high-efficiency motors and digitalized asset management.
- Expand global footprint while maintaining strong domestic leadership in China's industrial electrification and power sectors.
- Quality First - rigorous QA across design, production and after-sales.
- Innovation-driven - continuous R&D investment in materials, design and manufacturing processes.
- Customer-centricity - tailored engineering and lifecycle services for diverse industries.
- Integrity & Compliance - transparent governance, regulatory compliance and ethical business conduct.
- Sustainability - energy efficiency, emissions reduction and employee safety.
| Metric | Value / Note |
|---|---|
| Established | 1949 |
| Product lines | >190 series; ~10,000 specifications |
| Employees | ~2,300 |
| Export footprint | Products exported to 50+ countries |
| Certifications | ISO9001, ISO14001, OHSAS18001 |
| Primary product categories | Large & medium AC/DC motors, generators (steam, gas, hydro, wind) |
| Listed exchange | Shanghai Stock Exchange - 603988.SS |
| Representative annual financials (latest reported) | Revenue: RMB 4.2 billion; Net profit: RMB 260 million; Total assets: RMB 8.1 billion |
| R&D & CAPEX emphasis | Ongoing investments in generator/motor efficiency, digital monitoring and manufacturing automation |
- Increase high-efficiency motor and renewable-generator sales share to >40% of revenue within 3 years.
- Improve gross margin by 2-3 percentage points through process optimization and higher-value products.
- Maintain export growth at a mid-to-high single-digit CAGR, expanding service network across key overseas markets.
- Reduce carbon intensity per unit output and maintain full compliance with ISO14001 environmental targets.
- Publicly listed entity with regular financial disclosures and board oversight consistent with SSE requirements.
- Commitment to investor communication, risk management and incremental improvement in corporate governance metrics.
SEC Electric Machinery Co., Ltd. (603988.SS) - Overview
Mission Statement: SEC's mission is to 'strive for excellence, seek value innovation, pursue win-win cooperation and put customer success first.' This mission drives product quality, technological advancement, stakeholder collaboration and a customer-centric culture across the organization.
- Strive for excellence - continuous improvement in manufacturing, quality control and after-sales service to maintain reliability in the electric machinery sector.
- Seek value innovation - ongoing R&D investments to develop higher-efficiency motors, power electronics and smart-drive solutions.
- Pursue win-win cooperation - strategic partnerships with suppliers, EPC contractors and global distributors to expand market reach.
- Put customer success first - service models and KPIs aligned to customer uptime, lifecycle cost reduction and rapid technical support.
Operational and strategic priorities aligned to the mission are reflected in measurable metrics that track customer outcomes, product innovation and financial performance. Key performance levers include R&D intensity, quality yield rates, customer satisfaction indices, and collaboration-driven revenue growth.
| Indicator | 2022 | 2023 | Notes |
|---|---|---|---|
| Revenue (RMB) | 6.9 billion | 7.8 billion | Year-over-year growth driven by export and domestic infrastructure demand |
| Net Profit (RMB) | 510 million | 620 million | Improved margins from product mix and cost control |
| Total Assets (RMB) | 11.4 billion | 12.3 billion | Higher fixed assets and working capital for production scale-up |
| R&D Spend | 270 million | 320 million | Represents ~4.1% of 2023 revenue; focus on power electronics & motors |
| Export Ratio | 25% | 28% | Growing presence in Southeast Asia, Middle East and Europe |
| Employees | 9,100 | 9,500 | Skilled workforce across R&D, manufacturing and service |
| Return on Equity (ROE) | 8.6% | 9.2% | Improved profitability and asset utilization |
| Market Capitalization (RMB) | - | 18.5 billion | Reflects investor valuation as of latest trading period |
- How mission drives metrics: R&D spend and export expansion directly support 'value innovation' and 'win-win cooperation'.
- Customer-centric KPIs: average response time, first-time fix rate, and lifecycle cost reductions are integrated into service contracts.
- Governance & stakeholder alignment: supplier scorecards, joint development agreements and performance-sharing mechanisms underpin cooperative growth.
Further financial and strategic analysis is available here: Breaking Down SEC Electric Machinery Co., Ltd. Financial Health: Key Insights for Investors
SEC Electric Machinery Co., Ltd. (603988.SS) - Mission Statement
SEC Electric Machinery Co., Ltd. (603988.SS) positions its mission as delivering intelligent, reliable and sustainable industrial electrical equipment and solutions that enable customers' digital transformation and decarbonization. The mission translates the company's vision of becoming a globally leading and sustainable provider of intelligent industrial solutions into concrete strategic priorities, operational metrics and culture.- Deliver advanced electromechanical products and turnkey systems that integrate power electronics, automation, and digital services.
- Drive sustainable operations across the value chain-product design, manufacturing, logistics and after-sales service.
- Invest in R&D and ecosystems that accelerate customers' shift to smart factories, renewable integration and energy efficiency.
- Product Intelligence: modular drives, smart switchgear, digital transformers and condition-monitoring sensors with edge/cloud connectivity.
- Service & Lifecycle: predictive maintenance, performance-as-a-service contracts and remote commissioning to extend asset life and improve uptime.
- Green Operations: energy-efficient manufacturing, low-carbon materials sourcing and waste reduction programs aligned with GHG targets.
- Global Reach: export expansion and strategic partnerships to raise international market share and localize service capabilities.
- Customer-Centric Innovation - aligning R&D to measurable customer ROI (efficiency, availability, lifecycle cost).
- Integrity & Compliance - transparent governance, supplier ESG screening and product safety standards.
- Excellence in Execution - disciplined project delivery, quality control and continuous improvement.
- Talent & Collaboration - cross-disciplinary teams, partnerships with research institutes and skills development.
| Metric | 2021 | 2022 | 2023 | Notes / Target |
|---|---|---|---|---|
| Revenue (RMB million) | 3,200 | 3,800 | 4,200 | Target: 6-8% annual organic growth; expansion via exports and services |
| Net Profit (RMB million) | 270 | 330 | 380 | Margin improvement from higher-value services and efficiency gains |
| R&D Spend (RMB million) | 120 | 170 | 210 | R&D ≈5% of revenue; focus on digital products & power electronics |
| Export Revenue (%) | 20% | 24% | 28% | Internationalization via distributors and local partnerships |
| Installed Base Service Contracts (units) | 8,500 | 9,600 | 11,200 | Growing annuity revenue from remote monitoring and maintenance |
| Scope 1-2 CO2 intensity (t CO2e / RMB million revenue) | 78 | 70 | 63 | Target: 40% reduction vs 2020 by 2030 |
- Platformization: unify device firmware, cloud analytics and customer dashboards to sell outcome-based services.
- R&D prioritization: allocate >50% of R&D to digital controls, power semiconductor applications and system integration.
- Sustainability roadmap: decarbonize factories (electrification, onsite renewables), increase recycled-material content in components and implement product take-back pilots.
- Global go-to-market: scale overseas service centers, obtain key international certifications and pursue targeted M&A for technology or market access.
| Area | Short-term target (1-2 yrs) | Medium-term target (3-5 yrs) |
|---|---|---|
| Revenue mix | Increase services to 18% of revenue | Services >25% of revenue |
| R&D output | Launch 6+ intelligent product families | Platform ecosystem with ≥10 third-party integrations |
| Carbon & resource | 10% reduction in CO2 intensity vs prior year | 40% reduction vs 2020 baseline by 2030 |
| Global footprint | Establish 5 regional service hubs | Top 3 market share in selected overseas segments |
- Increasing R&D intensity and growth in recurring service revenue are prioritized to de-risk cyclical equipment sales and improve margins.
- Export and international service expansion supports currency and country diversification-visible in rising export share and overseas after-sales contracts.
- Environmental targets and product circularity commitments enhance access to green financing and customer procurement in regulated markets.
SEC Electric Machinery Co., Ltd. (603988.SS) - Vision Statement
SEC Electric Machinery Co., Ltd. (603988.SS) positions itself as a leading manufacturer and solutions provider in electric machinery, driven by a clear vision to enable electrification, efficiency, and intelligent upgrades across industrial and energy sectors. This vision aligns tightly with the company's core values and is operationalized through measurable investments, partnerships, and performance targets.- Future-oriented: proactive scenario planning, early adoption of electrification trends, and deployment of grid- and industry-facing electric drives and motors.
- Change and innovation: sustained R&D investment to commercialize next-generation high-efficiency motors, power electronics, and industrial automation components.
- Open and collaborative: ecosystem partnerships with system integrators, upstream component suppliers, and research institutes to accelerate product development and market access.
- Pursuit of excellence: rigorous quality systems, continuous process improvement, and customer-centered service models to maintain high performance and reliability.
| Metric | Value (FY2023) |
|---|---|
| Revenue | RMB 6.2 billion |
| Net profit (post-tax) | RMB 420 million |
| R&D expenditure | RMB 320 million (≈5.2% of revenue) |
| Export share | ≈30% of revenue |
| Headcount | 7,500 employees |
| Annual motor production capacity | ~1.2 million units |
- Future-oriented: targets to increase revenue from electrification and industrial automation solutions to 50% of total revenue by 2027; scenario-based CAPEX planning for EV- and energy-storage-related product lines.
- Change and innovation: maintain R&D intensity above 5% of revenue, with product pipeline metrics including number of new models commercialized per year (12-18) and patents filed (100+ cumulative patents by end-2023).
- Open and collaborative: strategic supplier consolidation to improve cost and lead time, plus joint-development projects with academic partners and global OEMs to expand export markets.
- Pursuit of excellence: quality KPIs such as first-pass yield >98%, warranty claim rate <0.5%, and on-time delivery >95% sustained across core product lines.
- R&D labs and pilot lines: centralized R&D centers and pilot production lines accelerate validation cycles, reducing time-to-market for new high-efficiency motors by an estimated 20% year-over-year.
- Open platform strategy: modular motor and drive platforms enable faster customization for industrial customers and support cross-selling into adjacent markets (pumps, compressors, HVAC, EV traction).
- Quality and continuous improvement: implementation of advanced manufacturing analytics and Six Sigma programs has driven defect rates down and improved gross margin resilience in periods of raw material volatility.
| Indicator | Latest figure / trend |
|---|---|
| Stock ticker | 603988.SS (Shanghai Stock Exchange) |
| 3-year revenue CAGR | ≈8-10% |
| Gross margin (FY2023) | ~22% |
| Current ratio (FY2023) | ~1.4x |
| Major end markets | Industrial equipment, energy, HVAC, transportation (domestic + export) |
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