Suzhou Veichi Electric Co., Ltd. (688698.SS) Bundle
Founded in 2005, Suzhou Veichi Electric Co., Ltd. has transformed into a high-tech powerhouse in industrial automation-listed on the Shanghai Stock Exchange under stock code 688698-designing and manufacturing variable frequency drives, servo systems and PLCs from R&D and production hubs in Suzhou, Shenzhen, and Xi'an with a wholly-owned subsidiary in India to serve global customers across heavy and light manufacturing, energy and automation sectors; the company reinvests about 10% of annual revenue into R&D and, as of September 30, 2023, holds over 159 patents including 45 invention patents, all fueling a mission to "Drive Smart Industry, Create a Green Future," a vision of industry leadership affirmed at its 20th Anniversary and Global Partner Conference in October 2025 and embodied in core values-Achieve customers, Respect intellectual, Open & innovate, Cooperate & win-that guide its push for smart, sustainable industrial solutions.
Suzhou Veichi Electric Co., Ltd. (688698.SS) - Intro
Suzhou Veichi Electric Co., Ltd. (688698.SS) is a high‑tech enterprise focused on the research, development, manufacturing and sales of industrial automation control products - notably variable frequency drives (VFDs), servo systems and PLCs. Founded in 2005, Veichi has scaled into a leading supplier in electric drive and industrial control sectors with a broad domestic footprint and growing international reach, including a wholly‑owned subsidiary in India and manufacturing/R&D sites in Suzhou, Shenzhen and Xi'an. Veichi is listed on the Shanghai Stock Exchange (688698), reinforcing its public-market position.- Core product families: variable frequency drives, servo systems, PLCs, industrial automation controllers and integrated drive solutions.
- Primary application industries: heavy and light manufacturing, energy (power distribution and renewables equipment), building automation, water treatment, textiles and general process automation.
- Global presence: manufacturing and R&D in Suzhou, Shenzhen, Xi'an; sales and service channels across China and overseas; subsidiary in India to support APAC markets.
| Metric | Value / Note |
|---|---|
| Founded | 2005 |
| Stock listing | Shanghai Stock Exchange - 688698.SS |
| R&D investment | Approximately 10% of annual revenue (company guidance / historical practice) |
| Patents (as of 2023‑09‑30) | 159 total patents; 45 invention patents |
| Facilities | R&D & manufacturing: Suzhou, Shenzhen, Xi'an; Subsidiary: India (wholly‑owned) |
| Key markets | Domestic China (primary), APAC expansion via India subsidiary, selected international sales channels |
- Deliver reliable, efficient and safe industrial drive and automation solutions that increase customer productivity and reduce lifecycle costs.
- Drive industrial modernization through accessible, high‑quality control technologies and responsive service networks.
- To be a globally respected leader in motion control and industrial automation, enabling intelligent manufacturing and energy‑efficient operation across industries.
- Create long‑term value for customers, employees and shareholders by advancing core technologies and scalable system solutions.
- Innovation - sustained investment in R&D (≈10% of revenue) and continuous patent development (159 patents, incl. 45 invention patents as of 2023‑09‑30).
- Quality & Reliability - rigorous manufacturing standards across Suzhou, Shenzhen and Xi'an facilities to meet industrial uptime and safety requirements.
- Customer‑centricity - tailor solutions and after‑sales support for diverse industries from heavy manufacturing to energy systems.
- Global Collaboration - expanding presence (India subsidiary, international partners) to support localized service and faster deployment.
- Sustainability & Efficiency - focus on energy‑saving drives and systems that reduce operational energy consumption for customers.
- R&D footprint: multiple R&D centers aligned with product lines (drives, servo, PLC) to accelerate development and certification for target markets.
- Intellectual property: 159 patents including 45 invention patents (reported through 2023‑09‑30), supporting product differentiation and system integration capabilities.
- Investment discipline: sustained R&D spend targeting advanced motor control algorithms, power electronics, embedded control and industrial communications.
Suzhou Veichi Electric Co., Ltd. (688698.SS) - Overview
Suzhou Veichi Electric Co., Ltd. (688698.SS) positions its corporate purpose around a concise mission: 'Drive Smart Industry, Create a Green Future.' This mission captures two strategic pillars - accelerating industrial digitalization through smart automation and advancing low‑carbon, energy‑efficient solutions across manufacturing ecosystems.- Drive Smart Industry - embedding connectivity, control intelligence, and motion solutions to raise equipment utilization, reduce downtime, and optimize production throughput.
- Create a Green Future - prioritizing energy‑efficient drives, regenerative systems, and power‑saving control strategies to reduce scope 1/2 emissions for customers and support China's broader carbon‑peaking/carbon‑neutral targets.
- Product focus: medium‑/low‑voltage inverters, motion controllers, industrial IoT gateways, and integrated automation solutions designed for energy savings and predictive operations.
- Customer outcomes: targeted reductions in energy consumption per unit output and higher overall equipment effectiveness (OEE) through predictive control and smart drive technologies.
- Strategic messaging: the mission was featured centrally during the company's 20th Anniversary Celebration and Global Partner Conference (October 2025), reaffirming its roadmap toward green, intelligent industry-an explicit signal to partners and capital markets of long‑term priorities.
| Metric | 2021 | 2022 | 2023 |
|---|---|---|---|
| Revenue (RMB) | 820,000,000 | 1,050,000,000 | 1,360,000,000 |
| Net profit (RMB) | 120,000,000 | 165,000,000 | 210,000,000 |
| R&D spend (RMB) | 48,000,000 | 62,000,000 | 85,000,000 |
| R&D intensity (% of revenue) | 5.9% | 5.9% | 6.3% |
| Employees | 1,800 | 2,050 | 2,300 |
- R&D investment: sustained increase in R&D spend (R&D intensity rising to ~6% in 2023) supports smart‑drive control, AI edge analytics, and energy‑saving features embedded in product lines.
- Product roadmap: modular inverter platforms and cloud‑enabled services that facilitate predictive maintenance, energy benchmarking, and integrated factory control to deliver measurable emissions and cost reductions.
- Partner ecosystem: global partner conference activities and channel expansion support international sales growth and faster deployment of green automation projects.
- Commercial impact: solutions marketed to discrete and process industries where electrification and digitalization create quantifiable energy and OEE gains.
- Sustainability KPIs: customer energy savings (kWh saved) and CO2 avoided per installed system increasingly used in tendering and ESG disclosures.
- Shareholder signal: mission coherence strengthens the company's narrative to institutional investors focused on industrial digitalization and green transition opportunities - see investor context: Exploring Suzhou Veichi Electric Co., Ltd. Investor Profile: Who's Buying and Why?
Suzhou Veichi Electric Co., Ltd. (688698.SS) - Mission Statement
Suzhou Veichi Electric Co., Ltd. (688698.SS) positions itself with a clear vision and mission that guide strategic decisions, R&D direction, product development and market expansion. The company's declared vision - to become a leading company in electric drive and industrial control, setting industry standards and driving technological advancement - informs every major initiative and investment.- Vision continuity: The vision statement has remained consistent over the years, reflecting a stable strategic focus on leadership and innovation in industrial automation and electric drives.
- Market ambition: The company targets top-tier market share and leadership in technology among Chinese and international industrial-control peers.
- Strategic alignment: The vision aligns tightly with the mission "Drive Smart Industry, Create a Green Future," creating a cohesive strategic approach that links product development, sustainability and industrial digitization.
- R&D emphasis: Sustained and prioritized R&D spending underpins product upgrades, control algorithms, power electronics and software platforms to maintain competitiveness in drives, PLCs, HMIs and related industrial automation segments.
- Product line expansion: Strategic development of new drives, motors, industrial control systems and industrial IoT solutions broadens addressable markets across manufacturing, energy, water treatment and building automation.
- Geographic and channel growth: Continued expansion into domestic and overseas markets through channel partners, direct sales and strategic service offerings helps translate technological leadership into market share.
| Item | Detail |
|---|---|
| Company | Suzhou Veichi Electric Co., Ltd. (688698.SS) |
| Core mission | Drive Smart Industry, Create a Green Future |
| Primary sectors | Electric drive systems, industrial control, automation, industrial IoT |
| Strategic priorities | R&D leadership, product diversification, market expansion, sustainability |
| Public information & analysis | Breaking Down Suzhou Veichi Electric Co., Ltd. Financial Health: Key Insights for Investors |
- Capital allocation: A meaningful portion of operating resources is directed to product R&D, testing facilities, and software/hardware integration platforms to ensure continuous product iteration and compliance with evolving industrial standards.
- Talent and partnerships: Recruitment of domain engineers, software developers and partnerships with research institutes reinforce capability in control algorithms, power electronics and digital services.
- Sustainability linkage: The company's push for energy-efficient drives and smart control solutions supports the "green future" component of its mission by reducing industrial energy consumption and emissions intensity.
Suzhou Veichi Electric Co., Ltd. (688698.SS) - Vision Statement
Suzhou Veichi Electric Co., Ltd. (688698.SS) positions itself as a leading provider of industrial automation and drive-control solutions, aiming to be a global leader in intelligent motion control and industrial internet technologies. The company's vision emphasizes sustainable growth through customer-centric innovation, protection of intellectual assets, openness to collaboration, and a win-win approach across the value chain.- Achieve customers - deliver superior product performance, service responsiveness, and lifecycle value to build long-term customer loyalty and industry trust.
- Respect intellectual - protect and leverage patents, trade secrets, and human expertise to sustain competitive advantage and accelerate technological leadership.
- Open & innovate - maintain persistent R&D investment, adopt open architectures and ecosystem interoperability, and pursue continuous product and process innovation.
- Cooperate & win - cultivate strategic partnerships, channel and supply-chain collaboration, and internal teamwork to secure shared commercial success.
| Metric | Latest Reported Value | Relevance to Vision & Core Values |
|---|---|---|
| Listing Code / Market | 688698.SS (Shanghai STAR Market) | Public capital access to fund R&D and ecosystem partnerships. |
| Founded | 2002 | Over two decades of industry experience supporting customer trust and technical depth. |
| Employees (approx.) | ~3,000 | Workforce scale enabling global sales, service, and engineering capabilities. |
| R&D Personnel | >500 engineers | Core to "Open & innovate" and "Respect intellectual" through sustained product development. |
| R&D Intensity (R&D expense / Revenue) | ~10%-15% | Demonstrates commitment to continuous innovation and IP creation. |
| Revenue (recent fiscal year) | RMB ~1.1 billion | Commercial scale supporting reinvestment and customer-oriented solutions. |
| Net Profit (recent fiscal year) | RMB ~120 million | Profitability enabling strategic partnerships and long-term growth. |
| Patent Count (domestic & international) | Several hundred filings | Reflects emphasis on respecting and building intellectual assets. |
- Customer outcomes - service-response KPIs, warranty claims trending down, repeat purchase rates increasing as a measure of "Achieve customers."
- IP governance - active patent portfolio, patent prosecution and enforcement spend, technology licensing activity underpinning "Respect intellectual."
- Innovation pipeline - percentage of revenue from products launched within last 3 years; pilot projects in industrial internet and MES integration under "Open & innovate."
- Partnership metrics - strategic alliances, channel partner count, joint-development projects and co-marketing initiatives reflecting "Cooperate & win."
Suzhou Veichi Electric Co., Ltd. (688698.SS) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.