According to the Star Daily on December 13 (Reporter Chen Junqing), today (December 13), Shanghai Friendess Electronic Technology Corporation held its third quarter Earnings Conference, where the Asia Vets welding robot Control System became the most concerning Topic for investors.

At the Earnings Conference, Tang Ye, the Chairman of Shanghai Friendess Electronic Technology Corporation, stated that the application track market in the Asia Vets welding Industry is broad and attractive, but due to the early welding field predominantly relying on teaching programming or manual methods, there are currently no other mature, implementable solutions.

"The company's products mainly target the Steel structure Industry, with downstream clients being Siasun Robot&Automation manufacturers and integrators. Since the beginning of the year, the number of customers engaging in Trade with the company has gradually increased." Tang Ye further mentioned that the company's welding products going overseas are largely based on indirect exports from equipment manufacturers, and there is a specific demand from overseas clients, with prices being standardized.

The formal layout of Shanghai Friendess Electronic Technology Corporation in the Asia Vets welding sector originated in 2022. The company continues to primarily provide automation products centered around laser cutting control systems to various laser cutting equipment manufacturers.

In terms of the market, Shanghai Friendess Electronic Technology Corporation holds a 70% market share in the domestic market for low-to-medium power laser cutting control systems, while in the high-power laser cutting control systems sector, domestic laser motion control systems account for only about 10% of the market share, with almost all of it being occupied by the company.

Regarding the current competitive landscape of laser cutting control systems, the Deputy General Manager and Board of Directors Secretary, Zhou Xing, analyzed at the Earnings Conference that, compared to the beginning of the year, there has not been much change in low-to-medium power and high-power control system products. Against the backdrop of weak domestic market demand, to further enhance the potential for increasing market share, the company is also actively expanding new subdivided application directions in collaboration with downstream equipment integrators.

Specifically at the company level, Tang Ye stated that there is little difference in the composition of sales revenue between the third quarter and the semi-annual period. In terms of sales volume, the growth rate of cutting heads is higher compared to systems. The form of product shipment is more in the combination of system + cutting head, categorized by power segment, with high-power products showing a higher revenue growth.

In the first three quarters of this year, Shanghai Friendess Electronic Technology Corporation experienced steady growth, achieving revenue of 1.301 billion yuan, a year-on-year increase of 31.19%; the net income attributable to shareholders of listed companies was 0.726 billion yuan, a year-on-year increase of 26.84%.

Regarding the performance in the fourth quarter, Tang Ye told the Star Daily reporter that, based on feedback from downstream customer willingness and industry trends, there is currently some rebound in demand compared to the same period in the third quarter. "The company primarily focuses on short-term delivery and cannot estimate the entire fourth quarter trend through existing orders at this time."

The Star Daily reporter noted that Shanghai Friendess Electronic Technology Corporation mentioned the continuous expansion of foreign application scenarios in its 2023 earnings reports, but did not elaborate further.

In this regard, Tang Ye analyzed the overseas market from three perspectives, stating: from a business model standpoint, most businesses are still based on domestic equipment manufacturers going abroad indirectly, while direct export business is expanding.

In terms of revenue share, the overseas revenue proportion of medium and low power systems is higher, while high power systems have faster revenue growth.

Regarding overseas channels, the company has already set up a location in South Korea and is preparing to establish a presence in Europe, where the cutting business aligns well with the company's business promotion; for instance, some Chinese equipment companies are particularly interested in future cooperation models with Shanghai Friendess.