Jiangsu Leili Acquires 59.09% Stake in Wuxi Shike To Expand Thermal Management Business for New Energy Vehicles

Jiangsu Leili Acquires 59.09% Stake in Wuxi Shi Ke to Expand Thermal Management Business for New Energy Vehicles

Recently, Jiangsu Leili acquired 59.09% equity interest in Wuxi Shike Micro Motor Co. This acquisition will enhance the competitive advantage of Jiangsu Leili's thermal management business for new energy vehicles.

Wuxi Shi Ke was founded in 2009, for the world's leading new energy automobile air conditioning compressor motor suppliers, 2022 operating income of nearly 70 million yuan. After years of development, Wuxi Shi Ke has gained a significant competitive advantage in this market segment by virtue of its diversified product structure, leading update and iteration efficiency, and strong cost control capability.

Wuxi Shi Ke has entered the supply chain of domestic and overseas head automobile enterprises, customers include Daimler, India TATA, Yutong Bus, BYD, Chery Automobile, Dongfeng Automobile, Geely Automobile, Zero Run Automobile, Hedong Automobile, SAIC Datsun, Ideal Automobile, Chang'an Automobile, JAC Automobile, Brilliance Xinyuan, etc., the products cover a variety of passenger and commercial models and have been realized in mass production.

Jiangsu Leili through this acquisition into the field of air conditioning compressor motor, short-term is expected to accelerate the new energy vehicle business revenue volume, in the medium and long term will help the group of new energy vehicle thermal management products, technology, market integration of resources, to help Leili platform type enterprise strategic planning steadily realized.

In terms of products, Leili's existing thermal management products for new energy vehicles cover battery pack cooling water pumps, air conditioning compressor controllers and shell covers, air conditioning actuators and so on. Wuxi Shike's electric air conditioning compressor motor is an important part of the thermal management system, and the acquisition will help Leili to further improve its thermal management product line for new energy vehicles. In addition, Wuxi Shike's air conditioning compressor motors are expected to penetrate into the energy storage industry, forming synergy with Leili's energy storage thermal management products.

In the market, brushless compressor motors are expected to replace brushed motors by virtue of their high efficiency and energy-saving advantages, realizing rapid expansion of the market scale. Through this acquisition, Jiangsu Leili and Wuxi Shike will realize the reuse of channel resources of both sides and accelerate the development in related application fields.