Operating Revenue and Net Profit Attributable to Parent Company of China’s Leading Automation Players: 2024 & Q1 2025  

Source: MIR Databank. Inovance’s general automation product portfolio includes general variable frequency drives (VFDs), servo systems, electro-hydraulic servo systems,  PLC & HMI, industrial robots, CNC (machine tool control systems), high-performance motors, precision mechanical components (ball screws, linear guides), pneumatic products and solutions.  

1. Overall Performance  

Revenue growth generally slowed in 2024, with significant profit divergence: Most companies reported year-on-year operating revenue increases below 15%, while only a few companies including Inovance (21.8%), Megmeet (21.00%), BOCHU (23.3%), and Veichi (25.7%) maintained relatively high growth rates. In terms of profitability, net profit attributable to parent companies ranged from HCFA’s -408% to Leadshine’s 44.7% and WEIHONG’s 141.4%, reflecting  how technological barriers and cost control capabilities became critical to profitability amid intensifying industry competition.

 The divergence became more pronounced in Q1 2025: Some companies continued to struggle, with INVT’s operating revenue declining 22.8% and net  profit falling 26.4% year-on-year (YoY). Meanwhile, companies like V&T achieved explosive growth through business restructuring, posting 87% operating  revenue growth and 273.8% net profit growth YoY.  

2. Top Performers  

Inovance: Market Leader Demonstrates Resilience  

In 2024, Inovance achieved operating revenue of CNY 37.04 billion (+21.8% YoY), with Q1 2025 revenue reaching CNY 8.978 billion (+38.3% YoY),  significantly outpacing industry averages. The company expanded market share in lithium battery and PV equipment automation, while its new energy vehicle  (NEV) motor control systems delivered incremental growth. Although 2024 net profit declined 9.6% (due to R&D investments consuming 12.3% of operating  revenue and rising NEV costs), Q1 2025 saw a 63.1% profit rebound, demonstrating effective cost controls and higher-margin product mix (e.g., industrial robots).  

Inovance’s General Automation business saw a marked slowdown in growth in 2024, with annual operating revenue reaching CNY 15.242 billion, representing  a 1.4% YoY increase compared to 24% growth in 2023. The segment rebounded strongly in Q1 2025, posting CNY 4.100 billion revenue at 29.0% YoY growth. 

BOCHU: High-Power Thick-Plate Cutting Drives Growth  

In both 2024 and Q1 2025, BOCHU maintained strong growth in operating revenue and net profit attributable to parent company. This performance was primarily fueled by continuous product mix optimization, aggressive expansion in Chinese and overseas markets and surging demand for high-power thick-plate cutting solutions. 

Leadshine: Niche Market Strategy Yields High-Margin Growth  

In 2024, Leadshine achieved a 44.7% YoY growth in net profit, demonstrating unparalleled motion control expertise. By strategically focusing on high-end manufacturing applications such as semiconductor and 3C electronics while avoiding the price wars in the new energy field, Leadshine secured higher profit margins. Although both operating revenue and net profit growth moderated in Q1 2025, the company maintained stable growth momentum. 

3. Underperformers  

INVT: New Energy Business Drags Down Performance  

INVT’s net profit attributable to parent company fell 22.8% YoY in 2024, with the decline accelerating to 26.4% in Q1 2025. The company’s photovoltaic energy storage and NEV businesses were hit by deteriorating Chinese supply-demand dynamics, severe industry-wide overcapacity and resulting margin compression. 

HCFA: Overcapacity and Transition Challenges  

The servo systems specialist reported a staggering 408% plunge in 2024 net profit attributable to parent company, recording a CNY 165 million net loss. Hechuan Technology (HCFA) faced sharp declines in product sales due to overcapacity and collapsing demand in its core downstream markets (lithium battery and photovoltaic equipment industries). 

4. Outlook  

Transition Pathways Amid Policy Tailwinds and Globalization Opportunities: 

Policy-Driven Internal Demand Recovery in China: China’s capital equipment upgrades policy prioritizes industries like electric power and chemical industries, mandating over 50% domestic replacement rates. This creates incremental market opportunities for technologically-advanced Chinese players. 

 Accelerated Global Expansion: The Belt & Road markets (notably Southeast Asia, Middle East) are attracting automation investments through tax incentives such as Thailand’s corporate income tax exemptions and Indonesia’s tariff reductions, making high-margin overseas operations a new growth engine.

Accelerated Technological Evolution: The integration of industrial AI with product offerings and rising demand for smart equipment are creating strategic advantages for R&D-capable companies to establish early-mover dominance.  

2024-2025 marks an inflection point for China’s automation industry. Leaders with unassailable technology advantages and global footprints — such as Inovance and BOCHU — are demonstrating resilient performance, while small and mid-sized enterprises (SMEs) overly reliant on single market segments and weak cost controls face survival challenges. Industry consolidation is expected to further intensify moving forward. 

Source：MIR DATABANK

Published by：AHTE Content Marketing Team