Shenyang Hongyuan Electromagnetic Wire Co., Ltd. (Hongyuan Shares) is primarily engaged in the research and development, production, and sales of electromagnetic wires. Its products mainly include transposed conductors, paper-wrapped wires, enameled wires, enameled paper-wrapped wires, composite conductors, and other varieties, currently used primarily in high-voltage, large-capacity power transformers, converter transformers, reactors, and other large transmission and distribution equipment. On August 20th, the company successfully listed on the Beijing Stock Exchange.
**Manufacturing Single Champion Enterprise with Focus on Technical R&D**
High-voltage grade transformers represent "customized products" for each batch to meet different circuit, site design, and environmental requirements. Hongyuan Shares has deeply cultivated the electromagnetic wire industry for high-voltage grade transformers for many years, accumulating rich R&D and production experience. Through continuous optimization of production technology and process flows in R&D and production practice, the company has formed and mastered a series of mature and advanced production experiences and process flows.
The company can customize R&D and production of electromagnetic wires for customers based on their requirements for specifications, various performance indicators, and specific usage conditions of electromagnetic wires.
As of December 31, 2024, the company owns 80 patents, including 16 invention patents, 62 utility model patents, and 2 design patents. The patents cover product structures, tooling fixtures, testing devices, and other aspects, forming a relatively complete patent protection system for the company in R&D, production, testing, and other aspects of electromagnetic wire products for high-voltage grade transformers.
In April 2022, during new product and technology appraisal organized by China Machinery Industry Federation, an appraisal committee composed of Chinese Academy of Sciences academicians and industry experts determined that the company's independently developed and produced "ultra-thin transposed conductor" filled a domestic gap, with comprehensive performance indicators reaching international leading levels among similar products; "high-temperature resistant self-adhesive enameled transposed conductor" achieved international advanced levels in comprehensive performance indicators; and "corona-resistant high PDIV enameled copper flat wire for new energy vehicle 800V drive motors" reached international leading levels in comprehensive performance indicators.
After more than twenty years of development, the company has become a manufacturer of electromagnetic wire products for high-voltage, extra-high-voltage, and ultra-high-voltage transformers with mature R&D and production capabilities. It is a national-level "Manufacturing Single Champion Enterprise," a Liaoning Province "Specialized and New" small and medium enterprise, a national-level "Green Factory," and a high-tech enterprise. In 2023, it received the Third Prize of Liaoning Province Science and Technology Progress Award.
**Leading Position in Ultra-High-Voltage Transformer Electromagnetic Wire Field**
Electromagnetic wire is a core component of power transformers. The quality and reliability of electromagnetic wire are crucial for the stable and safe operation of transmission and distribution projects, especially important in ultra/extra-high-voltage transmission and distribution projects.
During more than twenty years of development, Hongyuan Shares, as a pioneer in domestic ultra/extra-high-voltage transformer electromagnetic wires, took the lead in completing three major breakthroughs in the application of China's power transformer electromagnetic wire products in ultra/extra-high-voltage fields of ±500kV, ±800kV, and ±1100kV, occupying a leading market position in the ultra-high-voltage transformer electromagnetic wire field.
As a domestic high-voltage grade transformer electromagnetic wire manufacturer, relying on excellent product quality and technical R&D capabilities, after years of market development and maintenance, the company has gained high reputation among domestic high-voltage grade transformer manufacturers and established stable and continuous cooperative relationships with multiple well-known domestic transmission and distribution equipment manufacturers. Customers include major large transmission and distribution equipment manufacturers such as Tbea Co.,Ltd., China Xd Electric Co.,Ltd., Shandong Electric Power Equipment, Shandong Power Transmission and Transformation, Baoding Tianwei Baobian Electric Co.,Ltd., and Hitachi Energy.
Meanwhile, the company's products are exported to Turkey, North America, Egypt, Indonesia, Vietnam, South Korea, and other countries and regions. Major overseas customers include power transformer manufacturers such as Turkey's ASTOR, America's VTC, Egypt's ELSEWEDY, and Indonesia's B&D.
The company's products are widely used in multiple major ultra/extra-high-voltage transmission projects with industry-leading levels in China, including the world's highest voltage level ±1100kV Changji-Guquan ultra-high-voltage DC transmission project, multiple ±800kV ultra-high-voltage DC transmission projects including Ximeng-Taizhou, Zhalute-Qingzhou, Baihetan-Zhejiang/Jiangsu, Hami-Chongqing, and Jinshang-Hubei, the world's first flexible DC grid project (key supporting project for Beijing Winter Olympics) ±500kV Zhangbei flexible DC transmission project, and multiple 1000kV, 1000MVA ultra-high-voltage AC projects including Dongwu ultra-high-voltage substation expansion project, Wuhu ultra-high-voltage main transformer expansion project, Shijiazhuang ultra-high-voltage substation main transformer expansion project, Nanchang-Changsha, Zhangbei-Shengli, and Sichuan-Chongqing ring network ultra-high-voltage AC projects.
From 2019 to 2023, in State Grid and China Southern Power Grid's ultra-high-voltage project tenders, DC converter transformers and AC transformers equipped with the company's electromagnetic wires had combined winning ratios of 24.43% and 29.63% respectively.
Additionally, in 2021, 2022, and 2023, the company's domestic sales of electromagnetic wires for transformers of 220kV and above voltage levels accounted for 15.38%, 18.87%, and 19.53% respectively of China's newly added online operating transformers of 220kV and above voltage levels in those years.
**Maximizing Shareholder Value**
Ultra-high-voltage lines can achieve economic transmission distances of 3,000 kilometers or even further, featuring large transmission capacity, long distance, high efficiency, and low loss characteristics, effectively solving China's power supply and demand structural problems.
State Grid has proposed building "24 AC and 14 DC" new ultra-high-voltage lines during the "14th Five-Year Plan" period, involving over 30,000 kilometers of lines with total investment of 380 billion yuan. Compared to "14 AC and 12 DC" lines at the end of the "13th Five-Year Plan," the number of lines has increased significantly, showing obvious structural acceleration of ultra-high-voltage lines in power grid construction.
Driven by ultra-high-voltage transmission, China will vigorously promote the construction of inter-provincial transmission channels, main grid frameworks, and distribution networks, absorbing and improving the main grid framework layout, thereby promoting the growth of China's extra-high-voltage and high-voltage grade transformer market demand, bringing huge development space for electromagnetic wires used in high-voltage grade transformers.
In this context, the company's fundraising expansion is expected to better capture industry development opportunities.
Hongyuan Shares' Beijing Stock Exchange listing fundraising projects include: electromagnetic wire production line intelligent digitalization upgrade project, electromagnetic wire production line intelligent digitalization expansion project, electromagnetic wire R&D center construction project, special electromagnetic wire production base for new energy vehicle high-efficiency motors project, and supplementing working capital.
The electromagnetic wire production line intelligent digitalization upgrade project will introduce advanced domestic and international manufacturing production equipment, optimize and upgrade existing electromagnetic wire production lines, and improve existing process technology. The project implementation will further improve production line automation and intelligence levels, enhance product quality, optimize product structure, and further enhance corporate reputation and market share.
The electromagnetic wire production line intelligent digitalization expansion project will improve existing process technology and expand existing capacity. After project construction completion, it will form annual production capacity of 5,000 tons of ultra-high-voltage and extra-high-voltage power transformer electromagnetic wires, achieving annual sales revenue of 354.25 million yuan after reaching full production.
The electromagnetic wire R&D center construction project plans to increase R&D investment based on the company's existing R&D system, add required R&D equipment and testing equipment, introduce high-end technical talents, further improve the company's R&D capabilities and independent innovation capabilities, and provide advanced equipment support and experimental guarantees for the company's technological innovation.
The new energy vehicle high-efficiency motor special electromagnetic wire production base project is an important part of the company's strategic planning. By introducing advanced domestic and international manufacturing production equipment and utilizing the company's accumulated rich technical processes and production experience in enameled copper flat wire products, it will focus on R&D and production of electromagnetic wires for new energy vehicle 800V flat wire drive motors. The project implementation will enrich the company's product structure, add new profit growth points, and improve the enterprise's comprehensive competitiveness. After the project is completed and reaches full production, it will add annual production of 6,000 tons of corona-resistant enameled flat wire, achieving annual sales revenue of 600 million yuan.
For a long time, the company has adhered to the corporate spirit of "green development, shared results, rewarding employees, rewarding shareholders, rewarding society," grasping the industry development direction under the strategic background of "new infrastructure," aiming to become a core cooperation partner for customer value enhancement and a promoter of electromagnetic wire industry transformation and upgrading, achieving maximum shareholder value.
Going forward, the company will take this Beijing Stock Exchange listing as an opportunity, focusing on key aspects such as innovation-driven development, intelligent transformation, strengthening foundations, green development, and talent-based development. With the R&D direction of improving transformer winding mechanical performance, simplifying winding processes, and energy saving and consumption reduction, the company will promote technological iteration and upgrading of electromagnetic wires for high-voltage, large-capacity transformers through technological innovation and product structure innovation in this field. Through R&D of new field products and innovation in production processes, it will establish a leadership position in the industry, increase product added value, and meet downstream customer needs.
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