Dear Leadshine colleagues, channel partners, and friends from all parties:
Time flies, and the new year begins again. China Smart Manufacturing 2025 has finally arrived! On this occasion of bidding farewell to the old and welcoming the new, full of hope, on behalf of the Leadshine Board of Directors, I would like to express my sincere gratitude to global customers, partners, investors, and people from all walks of life for their support and trust and extend my sincere greetings and New Year's blessings to everyone!
How did Leadshine do in the past 2024?
2024 was a year of economic downturn and extreme involution. It was also a year of unity and struggle for the Leadshine people, and the reforms began to bear fruit. It was also the first year of the third entrepreneurial journey against the market.
In 2024, Leadshine's sales scale and counter-trend hit a new record high! Faced with the downturn in the real economy and the sharp decline in the photovoltaic lithium battery industry, Leadshine achieved rapid growth in total sales and high growth in net profit with new products, projects, and synergies.
In 2024, Leadshine's new products and technologies will achieve another round of breakthroughs! The AC servo product line successfully built a "multi-level, all-in-one, multi-bus, multi-certification" four-multi product architecture; the PLC category successfully upgraded the three major series of large, medium and small, and sales exceeded 100 million yuan; in terms of humanoid robots, it successfully developed the world's leading FM2 ultra-high density frameless torque motor, the second-generation hollow servo drive, and the dexterous hand hollow cup motor drive control series, and won more and more batch orders.
In 2024, the high-quality channel network will gradually exert its huge potential! Through market planning and layout, more than 100 high-quality channel partners will be introduced in an orderly manner, work together to expand market coverage, so that our boutique explosive product series and solutions can reach customers more efficiently and win customer satisfaction together, the sales ratio of the channel network has increased from 20% three years ago to more than 50%, and will be further improved in the future.
In 2024, the customer-centric process management system has made substantial progress! Focusing on the three goals of "more satisfied customers, more efficient operations, and more efficient labor", we have initially built an efficient process architecture of L1-L6 classification and stratification, started the first phase of process reengineering, and achieved initial results.
Looking back at 2024, we are deeply proud and gratified because Leadshine people have implemented the business philosophy of "achieving customers and creating win-win situations" with actual achievements. The hardships experienced during the journey, the hard work shed in the struggle, and the achievements gained after hard work will all be transformed into the forging ahead of fearless difficulties and pursuing dreams, inspiring us to create greater miracles in 2025. Here, I would like to express my most sincere thanks to 1,500 outstanding Leadshine people, thank you for walking with the company through thick and thin and writing a wonderful chapter last year together!
What external situation opportunities and challenges will Leadshine face in 2025?
Looking forward to 2025, the domestic and international environment is complex and changeable, the industry's internal volume continues to intensify, and a new round of technological revolution with AI as the core is accelerating. Although opportunities and challenges coexist, Leadshine's share of the domestic motion control market is less than 5% and less than 2% globally, so there is huge room for growth, and there are at least five major opportunities:
1. Opportunities to top imported brands: Imported brands as a whole still have more than half of the market share, and there are huge growth opportunities and profit space for our high-end servos, large, medium, and small PLCs, and high-end steppers.
2. Opportunities to sink into the mid- and low-end markets: Traditional industry upgrades and reshuffles will bring market share increases for our mid- and low-end products, as well as opportunities for large-scale cost reduction and efficiency improvement.
3. Opportunities to deepen strategic industry development: Focusing on downstream industries such as electronic semiconductors, 3C, packaging, machine tools, logistics, and robots, we will carry out industry marketing and solution marketing of "process + industrial control" to enable customers to upgrade TVO and reduce TCO.
4. Channel network expansion opportunities: Adhere to the ecological and platform strategy of "channel-based, direct sales-assisted", jointly deepen downstream strategic industries, and extend to more market segments.
5. Humanoid Robots Explosion Opportunities: Our frameless motor and component solutions for joint modules, and hollow cup motor and component solutions for dexterous hands, have huge growth potential.
What should Leadshine do and how should it do it in 2025?
In the new year, we will be guided by "commit to the main course of motion control, digging deep and building low", and forge ahead towards the goal of high-speed growth in sales scale and profits. At the same time, we must accelerate the construction of a process-based system, work hard on internal skills, stimulate vitality, empower front-line teams and partners, and achieve "more, faster, better, and cheaper" for our customers.
We define 2025 as Leadshine's "system construction year".
What is "Commit to the main course"?
Leadshine's main course is "providing core components and solutions for the intelligent equipment industry": the trillion-scale equipment manufacturing industry includes two strategic markets: general automation and mobile robots (especially humanoid robots). Leadshine resolutely does not compete with downstream customers for market interests, and never enters the equipment manufacturing and robot manufacturing fields in the downstream of the industrial chain; all Leadshine people must withstand the short-term temptation of lucrative business opportunities and the long-term loneliness of hard work, and gradually grow into a "world-class leader in the motion control industry" through bit by bit, unremitting collective struggle.
What is "dig deeply, build low weirs "?
"dig deeply": It means constantly tapping internal and external potential, doing everything possible to reduce operating costs, using all resources to bring value to customers, and providing customers with more valuable products and services; at the same time, ensure investment in enhancing core competitiveness and investment in the future.
"build low weirs": It means to restrain the greed for short-term profits, only make reasonable money, not sacrifice long-term goals for short-term goals, give customers more benefits, treat strivers well, and treat strategic partners well.
"Although the dream is far away, it can be achieved if you pursue it; although the wish is difficult, it can be fulfilled if you persist." In the great journey of Leadshine's third entrepreneurship, every Leadshine person is the protagonist, every contribution is precious, and every achievement is shining. Hit the hearts of users with explosive products and warm the hearts of customers with services. Let us be full of fighting spirit and work together to meet the beautiful opportunities and difficult challenges in 2025.
I wish you all the wishes in 2025, happiness for your family, and all the best!
Best Wishes!
Dr. Warren Li
