“Science and Technology Innovation Board Daily”, May 23 (Reporter Li Yu, Intern Reporter Ren Siying) “Facing the slowdown in production expansion in the downstream lithium battery sector, the company continues to launch new products in the lithium battery field, such as ultrasonic dust removal equipment, ultrasonic scanning microscope equipment (C-SAM/SAT), nanomaterial ultrasonic blasting dispersers, etc., and related products are gradually being launched and introduced to the market in an orderly manner.” Zhou Hongjian, chairman and general manager of Jiaocheng Ultrasound, said at the 2023 and first quarter 2024 results briefing held on May 22.

Jiaocheng Ultrasound is a supplier of ultrasonic technology and application solutions. It is mainly engaged in R&D, design, production and sales of ultrasonic welding, cutting and testing equipment and accessories, and provides customers with supporting automation solutions.

Judging from the 2023 annual report and the 2024 quarterly report, Jiaocheng Ultrasound's performance was under pressure due to factors such as the decline in the capital expenditure level of downstream lithium battery manufacturers.

Specifically, in 2023, the company achieved revenue of 525 million yuan, an increase of 0.52% over the previous year, and realized net profit of 67 million yuan, a year-on-year decrease of 39.97%. In the first quarter of 2024, it achieved revenue of 121 million yuan, a year-on-year decrease of 25.75%, and realized net profit of 101 million yuan, a year-on-year decrease of 96.59%.

Jiaocheng Ultrasonics products are mainly used in fields such as new energy power batteries, automobile wiring harnesses, rubber tires, and semiconductors.

Among them, in the field of power batteries, Jiaocheng Ultrasound has maintained cooperative relationships with Ningde Times, BYD, China Airlines, Everweft Lithium Energy, Guoxuan Hi-Tech, Honeycomb Energy, Sunwoda, and Funeng Technology.

In the field of automotive wiring harnesses and semiconductors, according to Zhou Hongjian, chairman and general manager of Jiaocheng Ultrasound, the company's ultrasonic wire harness welding equipment and power semiconductor ultrasonic welding equipment have been supplied in batches, and it is expected that the future development prospects of the company's automotive wiring harness and power semiconductor business will be good.

Also, according to a recent survey by investors, Jiaocheng Ultrasound said that in the field of IGBT power module welding, the company is currently cooperating with CRRC Era, Zhenhua Yongguang, Infineon, Guangdong Xinjun Energy, etc., and is gradually developing other customers in the industry.

Recently, with the rise in copper prices, composite copper foil technology has received market attention.

In response, Zhou Hongjian, chairman and general manager of Jiaocheng Ultrasound, said that by replacing traditional copper foil and aluminum foil with a composite fluid collector, lithium batteries will have an additional pole-ear transfer welding process using ultrasonic high-speed roller welding technology in the early stages of the process. “Composite fluid collector material welding is performed after the surface of the polymer material is coated with metal. The company's roller welding equipment can solve the transfer welding problem between copper and aluminum composite fluid collector materials and pure metal foil.”

According to Zhou Hongjian, the company's self-developed ultrasonic rolling welding equipment for power batteries can solve the pain points of difficult welding and low welding efficiency between lithium battery composite fluid collector and foil. “If this technology is applied on a large scale in the industry in the future, the company's ultrasonic roller welding machine will have huge market space.”

Research by Yongxing Securities shows that in 2023, the composite copper foil industry has made good progress in the sample delivery testing phase. Combined with the project plans of major manufacturers, it is expected that further industrialization will advance in 2024. Since this year, overall copper prices have shown an upward trend, and promoting the industrialization of composite copper foil in the industry will help tap the potential for cost reduction.

The “Science and Technology Innovation Board Daily” reporter noticed that Jiaocheng Ultrasound is continuing to increase investment in research and development in personnel, equipment, etc. According to the annual report, in 2023, Jiaocheng Ultrasound invested 117 million yuan in R&D, an increase of 57.55% over the previous year, accounting for 22.36% of its revenue during the reporting period. In the first quarter of this year, the company invested 35 million yuan in R&D, an increase of 47.33% over the previous year.

Zhou Hongjian, chairman and general manager of Jiaocheng Ultrasound, further stated that in the next 1-2 years, the company will continue to expand its market share in the field of wire beam connectors and semiconductors. “Currently, the company's R&D focus is on the application of ultrasonic technology in the field of advanced semiconductor packaging, and related R&D work is progressing in an orderly manner.”

Up to now, Jiaocheng Ultrasonics' main business is in China, and a small amount of overseas business revenue comes from the field of ultrasonic cutting of automobile tires. Regarding overseas market business plans, Zhou Hongjian said, “The company has set up a subsidiary in Germany and will actively expand overseas business in the fields of new energy and semiconductors. In the future, we will gradually expand the overseas ultrasonic equipment market.”