Guangdong Lingxiao Pump Industry Co., Ltd.
凌霄泵业
002884
Shenzhen Stock Exchange
Company Profile
(I) Advantages of Technology R&D With over 4 decades of efforts in R&D, the Company has garnered significant technological advantages. Currently, the Company holds 29 patents, including 19 invention patents, 9 utility model patents, and 1 design patent. The Company has participated in the formulation, compilation, and revision of 5 national and industry standards, established a provincial-level electric pump engineering technology R&D center, a provincial-level enterprise technology center, a CNAS-accredited laboratory, and TUV, UL, CE, and US ENERGY STAR WTDP (Witness Test Data Program) laboratories. Recognized by the CNAS for its “Energy Star” testing capabilities, the Company is the drafting unit for the following three group standards: General Technical Requirements for Electric Pumps, Electric Pumps for Jetted Tubs, and Electric Pumps for Swimming Pools. It has formed a comprehensive design-production-service system integrating product development, compatibility design, inspection, and testing, which makes the Company an expert in solving practical issues related to performance, temperature rise, noise, energy efficiency, etc. It is dedicated to developing and providing safe, reliable, energy-efficient, and durable pump products that meet customer needs and equipment requirements. With the increasing diversification of customer needs, the Company leverages its strong capabilities of design and R&D and standardization expertise to optimize products to meet the compatibility demands of customers, reduce material waste, and lower the procurement costs for clients, thereby earning recognition from both new and existing customers. The Company continuously focuses on the changes of needs of leading technology-driven customers and technological advancements in upstream and downstream industries, adheres to tracking the design, R&D, testing, optimization, and market response of new products, and promptly adjusts product performance to ensure their marketability and competitiveness. Ongoing standardization of key components significantly reduces production identification difficulties, enhances detection reliability and accuracy in critical processes, and improves product quality, thereby realizing production efficiency increase and cost savings. With decades of experience in motor design and manufacturing, the Company excels in design and production, process stability, and cost control. Tailored to customer requirements, the Company optimizes the design of different electric pumps and produces compatible motors, enhancing pump performance and material usage, lowering operational energy consumption, and lowering prices through reducing production costs. It has achieved integrated production of motor pumps, significantly facilitating product competitiveness and strengthening the Company’s comprehensive strength. Looking ahead, the Company will keep the demand-driven principle, enhance R&D capabilities, and leverage advanced technology to maintain continuous development and sustainable growth. (II) Advantages of Brand Through years of efforts, the Company has leveraged high-quality products, robust technical support, and design capabilities to significantly enhance the Lingxiao brand’s influence, popularity, diversity in the industry, and diversity pump model in the market. It has accumulated a portfolio of representative and renowned domestic and international enterprise clients, establishing a reputation for stable quality, high-cost performance, and a strong presence among direct sales, distribution, and consumer customer groups. Currently, the brand enjoys high recognition and reputation in the market. To date, the Lingxiao pumps have been awarded “China Well-known Trademark” by the Trademark Office of State Administration for Industry and Commerce. It has been recognized as the “Guangdong Famous Brand” by the Guangdong Provincial Bureau of Quality and Technical Supervision and Guangdong Top Brand Evaluation Center multiple times and has gained the “Guangdong Famous Trademark” certificate by the Guangdong Provincial Administration for Industry and Commerce. Its stainless steel pumps have received the “Guangdong Key New Product” and “National Key New Product” certificates. Additionally, the Company was honored as the “2017 Guangdong Export Famous Brand Enterprise” by the Guangdong Excellent Quality Brand Research Institute. The Lingxiao brand has emerged with a high reputation in the industry, renowned for its honesty, reliability, professionalism, cost-effectiveness, and efficiency. For customers, the brand symbolizes great quality, fine products, high cost performance, compatible design, and exceptional services, establishing good brand effects and distinct advantages. (III) Advantages of Scale and Standardization Capabilities The Company stands as a prominent large-scale manufacturer of domestic electric pumps for civil use and industrial use, as well as one of the largest domestic suppliers of plastic bathroom pump series products. Over the years, the Company has developed a unique and tailored business model which suits its growth. (1) With automated and semi-automated equipment, our production facilities and processes have undergone continuous upgrades, achieving intelligent automation and specialization of production. Such a model has facilitated lean production, increasing efficiency and further expanding its production scale. (2) As customer diversity increases and individualization enhances, the Company could adapt product designs to meet clients’ specific requirements, striving to satisfy their needs with optimal costs. (3) The Company actively promotes standardization of products, components, processes, and inspections. For customized products with high market demand or market potential, we conduct technical summarization and mold forming for standardization, transforming components into standardized parts to realize large-scale production. (4) The production has gradually modularized from the traditional model-based process, with the labor division also modularized in the production flow. This transformation significantly improves efficiency and reduces costs. Expansion of production scale and promotion of product standardization have equipped the Company with greater pricing power in raw material procurement, reducing manufacturing costs per unit and enhancing market competitiveness. (IV) Advantage of High-Quality Customer Resources Adhering to the principle of “outstanding in quality for better brand image”, the Company’s products exhibit high-quality stability and strict standards for raw materials. The Company’s pumps are renowned for quality, safety, and durability, with minimal quality-related disputes. As a renowned global supplier of pumps for bathrooms and aquatic & recreation facilities, the Company has gained a number of long-term technology-oriented plastic pump for bathroom and stainless steel horizontal pump buyers that are taking the lead across industries and regions. The Company designs differentiated products exclusively for these customers, which, in the meantime, helps to develop more customers with similar demands or in the same region, thereby increasing market share. The products are sold nationwide and exported to over 80 countries and regions, including the US, Europe, the Middle East, and Southeast Asia. The Company has established long-term and stable cooperative relationships with renowned international brand distributors and manufacturers.
Full description
(I) Overview of Industry Development The Company’s primary products are centrifugal pumps for civil use. According to the Guidelines on Industry Classification of Listed Companies issued by the China Securities Regulatory Commission, the Company belongs to the pump industry within the General Equipment Manufacturing Sector, which is a vital component of infrastructure and is closely related to national economic and industrial development policies. According to statistics from the 2023 China General Mechanical Pump Industry Yearbook, the industrial enterprises above the designated size achieved nearly RMB 214.5 billion in main business revenue, a year-on-year increase of 7.49%, and completed the production of over 270 million units of main products, a year-on-year increase of 9.50%. Pumps convert the mechanical energy of electric motors into kinetic and potential energy of fluid media, enabling fluid media transportation by supplying energy to fluids to overcome resistance during flow, and maintaining flow rates in equipment or pipelines. Against the backdrop of economic globalization, rising living standards both domestically and internationally, accelerating urbanization, and rural modernization, being one of the most widely used general machinery in the national economy, pumps have seen immense demand from investments and constructions in sectors including bathroom facilities, aquatic & recreation facilities, commerce, industries, new energy, municipal engineering, water conservancy facilities, and agricultural irrigation. China has emerged as a significant production base for pump products globally, with a considerable scale of production and technological expertise. However, influenced by multiple factors, the global economy exhibits uncertainty and instability, which leads to a slowdown in growth and a decrease in demand. (II) Industry Position The Company has undertaken the projects of the Torch Programme and participated in the formulation and revision of one national standard, four industrial standards, and five group standards, including “Test Procedures for Single-phase Induction Motor”, “Barrier-free Jetted Tub with Opening Door”, and “Intelligent Constant Temperature Leisure Pool”. It possesses a provincial-level enterprise technology center, a provincial-level electric pump engineering technology R&D center, and a testing center accredited by the China National Accreditation Service for Conformity Assessment (CNAS). With robust research capabilities, the Company can independently conduct environmental simulation tests and witness tests, and its products have obtained certifications from TÜV in Germany, CB in the EU, UL in the USA, and the ENERGY STAR program in the USA. Some of the Company’s centrifugal pumps for civil use have reached internationally advanced levels in terms of quality and performance, with multiple products obtaining high-tech product certifications and 15 invention patents. In terms of industry-university-research cooperation, the Company has established a long-term and stable partnership with the Guangdong University of Technology, continuously enhancing its technological innovation capabilities and added value of products. The Company has developed a comprehensive service system that integrates design, production, sales, and after-sales service of centrifugal pumps for civil use, accumulating a mass of high-quality customers, and maintaining its position within the industry. It has become a major supplier of pumps for aquatic & recreation and bathroom facilities domestically and internationally, taking the lead in the industry of plastic bathroom pumps domestically, and ranking among the top for stainless steel pump series products domestically. The Company will continue to expand production capacity, speed up R&D and innovation, and optimize product line structures based on market demands to reach new heights. (III) Overview of Main Businesses The Company’s main businesses include R&D, design, production, and sales of centrifugal pumps for civil use. Its main products include bathtub pumps, SPA pumps, swimming pool pumps, chemical pumps, seawater pumps, stainless steel horizontal single-stage and multi-stage pumps, stainless steel vertical multi-stage pumps, clean water pumps, submersible pumps, sewage submersible pumps, pipeline pumps, fire pumps, deep-water sewage submersible pumps, etc. These products are primarily applied in sectors such as aquatic & recreation and bathrooms, commerce, industries, sewage treatment, agricultural water conservancy, aquaculture, crop farming, building HVAC (heating, ventilation, and air conditioning), water supply and drainage engineering, rural and urban drinking water safety projects, flood control and drainage, and other municipal engineering projects. (IV) Major Business Models (1)Procurement Models The Company’s procurement mainly comprises two forms: routine procurement and reserve procurement. Raw materials and components procured by the Company include enameled wire, silicon steel sheets, cast iron parts, aluminum ingots, stainless steel, plastic granules, etc. The procurement of enameled wire, silicon steel sheets, and stainless steel is primarily for reserve, with routine procurement as a supplement. The procurement of cast iron parts and aluminum ingots features “small batches”, which is the reason why the Company mainly arranges them in routine procurement. Both reserve and routine procurement are applied for plastic granules, depending on the circumstances. (2)Production Models The Company’s clients span various sectors, including aquatic & recreation and bathrooms, solar power, wind power, machine tools, water purification, food processing, sewage treatment, agricultural irrigation and drainage, water conservancy construction, commercial cleaning, construction, pipeline network construction, HVAC, etc. The Company provides customized products based on customer requirements. Each customer’s standardized products are significantly different in design parameters and external features. Therefore, the Company primarily adopts an “order-based production” model. Additionally, the Company promptly summarizes the technical requirements of popular products and standardizes product and component production processes and workflows. With standard products, supplemented by the “safe stock” production model, the Company is able to pre-stock part of the products within planned orders to shorten delivery time and increase supply efficiency, building a favorable market reputation. (3)Sales Models During the reporting period, the Company’s primary business sales models were categorized as follows: 1) Sales Model for the Domestic Market The Company’s domestic sales operations are handled by the Sales Department, and the two models of direct sales model and distribution model are applied. Direct sales are utilized for products such as bathroom pumps and stainless steel multi-stage pumps, where products are sold or delivered directly to customers, facilitating customized services. For standardized products, including clean water pumps, submersible pumps, and stainless steel pumps, which have a broader market reach, the Company generally adopts the distribution model due to their widespread applicability. 2) Sales Model for the International Market During the reporting period, the Company’s major products sold abroad are plastic bathroom pumps and stainless steel pumps. Through continuous expansion in recent years, the Company has gradually established a combined model of direct sales and distribution in foreign markets.