On April 29, 2024, the strategic investment cooperation agreement signing ceremony between Cubic Sensor and Instrument Co.,Ltd. (hereinafter referred to as “Cubic”), Zhongshan LOPE Thermal Technology Ltd. (hereinafter referred to as “LOPE”), and Guangzhou Jingding Electric Technology Co., Ltd. (hereinafter referred to as “Jingding Electric”) was held at Cubic R&D Center.
Image Credit: Cubic Sensor and Instrument Co. Ltd
Chairman of Cubic, Dr. Youhui Xiong, Chairman of LOPE, Mr. Chengjie Deng, Controlling shareholder of Jingding Electric, Mr. Rixin Lai, along with the management teams of the three companies, attended the event. Mr. Qi Wang, director of the Utilization Committee and Gas Heating Committee of China Gas Society of China Civil Engineering Society, was invited to witness the signing ceremony.
The signing ceremony was hosted by Mr. Zhiqiang Liu, the General Manager of Cubic. Prior to the signing, Mr. Xiangjun Kong, the Vice General Manager of Cubic, provided an insightful background on the strategic investment collaboration. Thereafter, Dr. Youhui Xiong, the Chairman of Cubic respectively signed strategic investment cooperation agreement with Mr. Chengjie Deng, Chairman of LOPE, and Mr. Rixin Lai, Controlling shareholder of Jingding Electric. According to the terms of the agreement, Cubic will acquire 57.14% equity of LOPE and 51% equity of Jingding Electric by both capital transfer and capital increase.
Director Qi Wang witnessed the signing ceremony and delivered a speech,
"Currently, in the wall-mounted gas boiler industry, the trend of leveraging sensor technology for intelligent upgrades and applying full premixed condensing technology to improve thermal efficiency and reduce pollutant emissions is becoming increasingly evident. Cubic will fully utilize its advantages in gas sensor technology to rapidly expand its business landscape in the full premixed condensing wall-mounted gas boiler industry. It is worth looking forward to its collaboration with LOPE and Jingding Electric, which will contribute significantly to development of the industry."
According to data released at the annual conference of the Chinese gas heating industry, the market inventory of wall-mounted gas boilers in China exceeds 34 million units, with over 10 million units aged over 8 years and approximately 5 million units aged between 10 and 15 years. As a result, there is a significant prospective market for replacement. Additionally, the majority of wall-mounted gas boilers in Chinese are of the direct gas-fired type, characterized by low combustion efficiency and high emissions. Condensing wall-mounted gas boilers, with inventory of around 2.3 million units in China, only account for 7% of the total, leading to an urgent need in China to transition to development of new high-end full premixed condensing wall-mounted gas boilers.
Leveraging its gas sensor technology platform and the technical and industrial accumulation of its core management team in the field of combustion science and technology, Cubic has established a post-doctoral R&D team from 2022 and initiated the development of low-carbon thermal technology based on gas, aiming to build an industrial ecosystem for residential, commercial, and industrial gas boilers with sensors, actuators, and controllers as the core supply chain.
Currently, Cubic has made breakthroughs in the R&D of gas sensors for new types of full premixed condensing wall-mounted gas boilers, as well as in direct current brushless fans and intelligent gas combustion controllers, earning recognition from the experts within the industry. Simultaneously, experimental facilities have been established for key components including gas proportional valves, gas burners, and heat exchangers for full premixed condensing wall-mounted gas boilers, and Cubic have initiated business negotiations for cooperation with Chinese core component supply enterprises.
Through the strategic investment, Cubic aims to integrate resources related to stainless steel heat exchangers, burners, gas proportional valves, variable frequency direct current brushless fans, gas sensors, intelligent gas combustion controllers, and other components involved in full premixed condensing wall-mounted gas boilers, establishing a "sensor-actuator-controller" one-stop supply chain solution in this field.
Dr. Youhui Xiong, Chairman of Cubic, stated during the signing ceremony,
“LOPE has become one of the few enterprises globally capable of mass-production of stainless-steel condensing heat exchangers after seven years of hard work, leveraging international scientific and technological resources. Jingding Electric, with nearly two decades of experience in the gas proportional valve field, is an important standard drafting or participating member in the China gas appliance industry. Cubic possesses significant technological and industrial advantages in gas sensors, gas metering, and intelligent gas controllers. By leveraging the significant industrial opportunities and the expansive, cohesive domestic market fostered by the 'low-carbon' goals, their tripartite collaboration and deep cooperation are set to powerfully accelerate the evolution of China's full premixed condensing wall-mounted gas boiler sector towards premium branding.”
Zhongshan LOPE Thermal Technology Ltd.
LOPE is currently the only Chinese stainless steel full premixed condensing heat exchanger manufacturer that has imported international advanced equipment and technology. It is one of the few companies globally that simultaneously possesses condensing heat exchanger and full premixed combustion technology.
LOPE's products boast an impressive coverage rate of over 80% in the market for Chinese branded full premixed condensing wall-mounted gas boilers, and also exported in large quantities to European markets. These products have received widespread acclaim from both domestic customers in China and international clients. LOPE has achieved factory quality management system certification and operates its own testing center and thermal laboratory. Furthermore, the company has established a cooperative research and development center in Europe, secured multiple patents, and has become a highly specialized manufacturer in the field of full premixed condensing wall-mounted gas boilers.
Guangzhou Jingding Electric Technology Co., Ltd.
Jingding Electric has accumulated nearly two decades of experience in the field of gas proportional valves, with a commitment to "Elaborate quality, Innovative technology." It is a significant standard drafting or participating member in the China gas appliance industry. The general manager of Jingding Electric serves as an ISO registered expert and has participated in numerous international ISO/TC161 technical committee working meetings. With over 30 patents, including its gas proportional valve product being recognized as a "Famous Brand of Guangdong," Jingding Electric has also been honored as " the Best 10 Gas-Appliances Components Company " and "Excellent Enterprise in China's Gas Appliance Industry."
Cubic Sensor and Instrument Co.,Ltd.
Cubic Sensor and Instrument Co., Ltd. is a publicly listed company on the Shanghai Stock Exchange (stock code:688665), specializing in smart gas sensors and superior gas analyzers. Set up in 2003, situated in “Optics Valley” of Wuhan, China, Cubic has established gas sensing technology platforms including optical technologies (NDIR, Ultraviolet, Light Scattering, Laser Raman), ultrasonic technology, MEMS metal oxide semiconductor (MOX) technology, electrochemical technology, ceramic thick-film technology based on high temperature solid electrolyte technology and so on. At present, Cubic has obtained more than 100 patents and manufactures abundant products widely used in various fields of air quality, environmental monitoring, industrial processes, industrial safety monitoring, healthcare, smart metering and so on.
With decade-long dedications to technical innovations, strict quality control and global business strategies, Cubic, as a leading manufacturer of high-quality gas sensors and instrument solutions, has obtained the recognition of domestic and overseas leading companies in different fields. Cubic products have been exported to more than 80 countries and regions, besides, Cubic is moving towards a higher target to be the international brand in the field of gas sensors and instruments.