Suzhou Veichi Electric Co., Ltd. (688698.SS) Bundle
From its founding in 2005 to a December 2020 debut on the Sci-Tech Innovation Board (688698.SS), Suzhou Veichi Electric has grown into a powerhouse in industrial automation-reporting 1.64 billion CNY in revenue for 2024, a 25.70% year‑over‑year rise, employing 1,742 people (up 22.59%), and achieving a market capitalization of 17.84 billion CNY (a 177.64% jump) as it scales R&D and manufacturing across Suzhou, Shenzhen and Xi'an with a wholly owned India subsidiary; with 148 authorized patents (36 invention patents) and core technologies in motor drive, power electronics and motion control, Veichi sells drives, servo systems, PLCs, HMIs, medium‑voltage and multi‑motor drives, inverters and robot components into sectors from green energy and machine tools to petroleum, mining and packaging-backed by 212.95 million shares outstanding (Nov 2025), a stock price of 81.44 CNY, and an enterprise value of 17.06 billion CNY that together frame its current ownership structure, operational model and revenue engine, inviting a closer look at how these facts translate into competitive advantage.
Suzhou Veichi Electric Co., Ltd. (688698.SS): Intro
History Suzhou Veichi Electric Co., Ltd. (688698.SS) was established in 2005, concentrating on the development, manufacturing and marketing of industrial automation control products. Key milestones:- 2005 - Company founded in Suzhou, focused on industrial automation control solutions.
- Expansion of R&D and manufacturing facilities to Shenzhen and Xi'an; establishment of a wholly-owned subsidiary in India.
- December 2020 - Listed on the Sci‑Tech Innovation Board of the Shanghai Stock Exchange (stock code 688698).
- Publicly listed company on SSE STAR Market (688698.SS); ownership split between institutional investors, retail shareholders and management/insiders per typical A-share structure.
- Operational footprint: headquarters and major R&D/manufacturing in Suzhou, additional facilities in Shenzhen and Xi'an, and an overseas subsidiary in India to support APAC/localized service and sales.
- Mission: provide reliable, high-performance industrial automation control products to manufacturing, infrastructure and energy sectors.
- Strategic pillars: product R&D, manufacturing scale, global market expansion (notably India), and after‑sales service ecosystem.
- Products: frequency converters (inverters), servo systems, PLCs, industrial drives, and integrated automation solutions.
- R&D-driven model: in-house engineering teams in Suzhou, Shenzhen and Xi'an develop control algorithms, embedded firmware and system integration capabilities.
- Manufacturing: vertically integrated production lines at domestic facilities to control quality and margins; scale enables cost competitiveness.
- Sales & service: direct sales, channel partners and localized service teams (including India subsidiary) for installation, commissioning and aftermarket support.
- Product sales - core revenue from drives, PLCs, servo products and integrated automation systems sold to industrial customers.
- Project & systems integration - turnkey automation projects for manufacturing plants and infrastructure clients.
- After-sales services & spare parts - maintenance contracts, upgrades and consumables.
- Software & value-added services - firmware/algorithm upgrades, control software licensing and technical service agreements.
| Metric | Value (2024) | YoY Change |
|---|---|---|
| Revenue | 1.64 billion CNY | +25.70% |
| Number of Employees | 1,742 | +22.59% |
| Market Capitalization | 17.84 billion CNY | +177.64% |
| Listing | Dec 2020, SSE Sci‑Tech Innovation Board (688698) | - |
| Global Facilities | Suzhou, Shenzhen, Xi'an; wholly-owned subsidiary in India | - |
- R&D intensity and product breadth enable penetration across multiple industrial verticals.
- Manufacturing footprint and scale lower unit costs and improve margins compared with small OEMs.
- International expansion (India subsidiary) supports revenue diversification and service localization.
- Listing on the STAR Market provides access to growth capital for R&D and capacity expansion.
Suzhou Veichi Electric Co., Ltd. (688698.SS): History
Suzhou Veichi Electric Co., Ltd. was founded in Suzhou to serve industrial automation and power electronics markets, growing from a regional drives and inverter maker into a publicly traded technology company. The firm expanded through product diversification-industrial drives, motion control, power conversion and renewable-energy inverters-and by investing in R&D and overseas sales channels, culminating in a Shanghai Stock Exchange listing that marked its transition to a broader capital-market presence. Early manufacturing roots gave way to platformized product families and systems integration capabilities that now support manufacturing, infrastructure and new-energy customers.- Public listing: Shanghai Stock Exchange, stock code 688698.SS
- Core businesses: industrial drives, motion control, power electronics, renewable-energy inverters
- R&D focus: embedded control systems, energy efficiency and digital service platforms
| Metric | Value (Nov 2025) |
|---|---|
| Shares outstanding | 212.95 million |
| Year-over-year change in shares | +0.41% |
| Market capitalization | 17.84 billion CNY |
| Enterprise value | 17.06 billion CNY |
| Share price | 81.44 CNY |
| Institutional ownership | ≈11.76% |
| Insider ownership | Not publicly disclosed |
- Ownership structure highlights: publicly traded with modest institutional stake (~11.76%), limited change in share count (0.41% YoY) suggesting controlled capital actions.
- Financial position indicators: market cap 17.84B CNY and enterprise value 17.06B CNY reflect comparably low net debt or balanced capital structure as of Nov 2025.
Suzhou Veichi Electric Co., Ltd. (688698.SS): Ownership Structure
Suzhou Veichi Electric Co., Ltd. (688698.SS) is a Shanghai STAR Market-listed designer and manufacturer of electric drive and industrial control solutions. Its business and governance reflect a mix of corporate shareholders, institutional investors accessing the STAR Market, and management/employee holdings aligned with long-term innovation-focused incentives.- Mission: To be a leading company in the field of electric drive and industrial control, guided by market demand and driven by technological innovation.
- Core technologies: motor drive, power electronics, motion control.
- Core values: openness and innovation, cooperation and mutual benefit; emphasis on customer achievement and respect for intellectual property.
- Recognitions: designated as a 'High-Tech Enterprise' and home to the 'Jiangsu Provincial Engineering Technology Research Center.'
- Intellectual property (as of December 2022): 148 authorized patents, including 36 invention patents.
| Ownership Category | Role/Characteristics | Implication for Governance |
|---|---|---|
| Corporate/Strategic Shareholders | Industry partners and corporate investors holding blocks of shares and strategic influence | Long-term industrial alignment, potential board representation |
| Institutional Investors | Mutual funds, pension funds, QFII/managed accounts participating via STAR Market | Market-discipline, focus on financial performance and disclosure |
| Retail/Public Float | Individual investors trading on SSE (688698.SS) | Liquidity provider; can amplify share-price volatility around earnings and product milestones |
| Management & Employees | Share-based incentives and internal holdings to align interests with innovation targets | Encourages R&D investment and IP protection |
- Primary revenue streams: sales of motor drives, power electronic converters, motion control systems, integrated automation solutions, and after-sales/maintenance services.
- How it makes money: product sales (industrial OEMs, infrastructure projects), systems integration contracts, software/firmware licenses, and recurring service contracts.
- R&D reinvestment: high patent count (148 authorized patents by Dec 2022) supports higher-margin differentiated products and licensing potential.
Suzhou Veichi Electric Co., Ltd. (688698.SS): Mission and Values
Suzhou Veichi Electric Co., Ltd. (688698.SS) develops, manufactures and sells industrial automation control products and systems used across discrete and process industries. The company's integrated model covers R&D, procurement, production and after-sales, enabling end-to-end delivery from core components to system-level automation solutions. Veichi emphasizes owning independent intellectual property and combines localized manufacturing with overseas market presence.- Core activities: research & development, procurement, production, sales, and service of industrial drives, servo systems, PLCs, HMIs, and robot core components.
- Manufacturing & R&D footprint: facilities and R&D centers in Suzhou, Shenzhen and Xi'an; wholly‑owned subsidiary in India supporting sales, local assembly and service.
- Intellectual property: maintains a product pipeline with proprietary algorithms, control platforms and firmware across variable frequency drives (VFDs) and motion-control products.
- Product families:
- Low-voltage and long-voltage drives (general-purpose and high-performance VFDs)
- Medium-voltage drives and multi-motor / multi-pump drives
- Servo systems and motion controllers
- PLCs and HMIs for machine and plant automation
- Four-quadrant inverters and VFD accessories (filters, reactors, braking units)
- Robot core components (controllers, drives and I/O modules)
- Value chain integration: in-house R&D designs control algorithms and hardware; procurement sources key power electronics components; manufacturing produces enclosures, PCBs and final assemblies; distribution through direct sales, system integrators and channel partners.
- R&D strength: multidisciplinary teams for power electronics, control theory, embedded software and industrial communications; investment prioritized to maintain competitive features (torque control, energy-saving algorithms, motor-adaptive tuning).
| Product/Capability | Primary Industries / Uses |
|---|---|
| Low-voltage VFDs | Pumps, fans, HVAC, textile, printing & packaging, plastics |
| Medium-voltage drives | Mining, metallurgy, petrochemical, power generation, water treatment |
| Servo systems & motion control | Machine tools, robotics, precision packaging, automated production lines |
| PLCs & HMIs | Process control, municipal infrastructure, building automation |
| Multi-motor & multi-pump solutions | Water distribution, district heating/cooling, multi-drive conveyor systems |
| Location | Primary Role | Notes |
|---|---|---|
| Suzhou | Corporate HQ, R&D, high‑mix manufacturing | Center for product development and key assembly lines |
| Shenzhen | R&D, electronics assembly | Focus on control electronics and rapid prototyping |
| Xi'an | Manufacturing and testing | Power-electronics assembly and environmental testing facilities |
| India (wholly‑owned subsidiary) | Sales, local assembly, service | Local market adaptation, after-sales and spare parts |
- Hardware sales: main revenue from drives, servo systems, PLCs and HMIs sold to OEMs and end-users.
- Project & systems integration: turnkey automation projects and multi-drive solutions for industrial customers (higher margin than standalone hardware).
- After-sales & services: spare parts, maintenance contracts, software upgrades and technical support.
- Export & localization: growing overseas sales supported by local subsidiary and channel partners to capture regional project opportunities.
- Recognitions: titled as a 'High‑Tech Enterprise' and home to a 'Jiangsu Provincial Engineering Technology Research Center.'
- R&D investment: sustained allocation to R&D programs to protect and expand IP and to support firmware and control-platform differentiation.
- Product certifications: compliance with industrial safety and electromagnetic compatibility standards required for domestic and export markets.
| Metric | Typical Range / Role |
|---|---|
| R&D headcount | Hundreds of engineers across power electronics, controls and software |
| Manufacturing capacity | High‑mix assembly lines supporting thousands of drive units annually |
| Customer segments | OEMs, system integrators, industrial end-users in energy, manufacturing and infrastructure |
Suzhou Veichi Electric Co., Ltd. (688698.SS): How It Works
Suzhou Veichi Electric Co., Ltd. (688698.SS) designs, manufactures and sells industrial automation control products and solutions. Its revenue model centers on product sales, integrated system solutions, after-sales service, and project engineering for industrial customers across multiple sectors.- Primary revenue streams: sale of drives (AC/DC), servo systems, programmable logic controllers (PLCs), human‑machine interfaces (HMIs), and robot components.
- Value-added services: system integration, on-site commissioning, maintenance contracts, and spare parts.
- Channel mix: direct-to-industrial customers, OEM partnerships, distribution channels, and international exports.
- 2024 performance highlight: revenue increased by 25.70% year-over-year (2024 vs. 2023).
- Market valuation momentum: market capitalization rose by 177.64% over one year, reflecting investor confidence and business expansion.
- Innovation and IP: 148 authorized patents as of December 2022, including 36 invention patents.
| Metric | Value / Detail |
|---|---|
| Revenue growth (2024 vs 2023) | +25.70% |
| Market capitalization change (1 year) | +177.64% |
| Authorized patents (Dec 2022) | 148 total; 36 invention patents |
| Recognitions | High‑Tech Enterprise; Jiangsu Provincial Engineering Technology Research Center |
- End markets served (representative):
- Lifting, machine tools, green energy, motion control, petroleum, chemical, ceramics, metal products
- Wire & cable, plastics, mining, metallurgy, printing & packaging, textile & chemical fiber, coal, municipal, power
- Product sales: standardized and customized drives, servos, PLCs and HMI units sold per unit or as bundled systems.
- Project contracts: turnkey automation projects with milestone billing and longer sales cycles.
- After-sales & service revenue: maintenance contracts, software updates, spare parts and retrofits.
- Intellectual property leverage: patented technologies used to differentiate products and command pricing premium.
Suzhou Veichi Electric Co., Ltd. (688698.SS): How It Makes Money
Suzhou Veichi Electric Co., Ltd. (688698.SS) generates revenue by designing, manufacturing and selling industrial automation and electric drive products, then providing system integration, after-sales service and software solutions across multiple industries. The company leverages in-house R&D, intellectual property and scale manufacturing to capture both domestic and international demand.
- Primary product lines: AC/DC drives, motion controllers, industrial inverters, PLCs, and industrial communication modules.
- Revenue streams: product sales, system integration projects, maintenance & services, and software licensing.
- Customer segments: OEMs, infrastructure projects, energy & utilities, heavy industry and manufacturing plants.
Market position & future outlook
- Leading domestic manufacturer of industrial automation control products with growing international footprint.
- Market capitalization rose by 177.64% over one year, reflecting investor confidence and financial momentum.
- Recognitions: designated a 'High‑Tech Enterprise' and home to the 'Jiangsu Provincial Engineering Technology Research Center.'
- R&D strength: 148 authorized patents (including 36 invention patents) as of December 2022, underpinning product differentiation.
| Metric | Value / Note |
|---|---|
| Market cap 1‑year change | +177.64% |
| Authorized patents (Dec 2022) | 148 total; 36 invention patents |
| Key recognitions | High‑Tech Enterprise; Jiangsu Provincial Engineering Technology Research Center |
| Industries served | Lift, machine tools, green energy, motion control, petroleum, chemical, ceramics, metal products, wire & cable, plastics, mining, metallurgy, printing & packaging, textile & chemical fiber, coal, municipal, power |
| Primary income sources | Product sales, system integration, services, software |
How it scales and sustains margins
- Vertical integration of manufacturing reduces COGS and improves gross margins on core hardware.
- Recurring revenue from long‑term service contracts and software/firmware upgrades increases lifetime customer value.
- Patent portfolio (148 patents) enables higher ASPs for differentiated products and protects market share.
- Sector diversification (dozens of heavy and light industries) mitigates single‑industry cyclicality risk.
For company background and additional context see: Suzhou Veichi Electric Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money
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