In the face of adversity, companies often find themselves at a crossroads: should they succumb to challenges or rise to meet them? Wang Yanqing, the founder of XianDao Intelligent, has decisively chosen the latter path, believing in the power of resilience and innovation.

As XianDao Intelligent steps into 2024, it does so under clouds of significant financial strainThe company has forecasted a staggering decline in net profit, more than 82% from the previous yearThis sobering news comes amid a backdrop of declining stock prices, marking three years of consecutive losses from 2022 to 2024.

However, rather than retreating in the face of these challenges, Wang has chosen to push forwardIn his New Year address for 2025, he emphasized the importance of staying focused and committing to their core business practices to navigate through these stormsHis leadership team is actively steering the company towards global markets, seeking new avenues for revenue growth.

The story of Wang Yanqing is one of perseverance and tenacityHailing from a modest farming family in Wuxi, Wang's journey is marked by hardshipsDuring his early years, he faced the reality of poverty—he struggled to afford a wedding ring and reportedly borrowed money when his wife was expecting their first childDespite these early struggles, Wang's tenacity has allowed him to amass a fortune estimated at 14 billion yuan, according to the 2024 Hurun Report.

Wang's ascent can primarily be attributed to his relentless work ethic and technical expertiseStarting his entrepreneurial journey in 1999, he left a secure job to dive into the unknown, borrowing 80,000 yuan to start his own companyInitially, he worked from a dilapidated warehouse with just two retired engineers as employeesDespite these humble beginnings, he remained hands-on, often taking on the role of the chief engineer.

Central to Wang's philosophy is the belief that to carve out a name in the global market, consistent innovation is critical

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XianDao Intelligent has transformed into a leader in the new energy equipment sector, driven by one key principle: a commitment to innovationThe company's website reveals that it has maintained a research and development investment of over 10% of its revenue for several years, resulting in more than 2,400 authorized patents and a top market share in the new energy equipment domain.

Moreover, Wang has exhibited remarkable foresight in identifying industry trendsWhen he noticed that competitors were shifting towards lithium battery equipment, he directed XianDao to enter this flourishing market, effectively positioning the company to benefit from the burgeoning new energy sector.

The journey from founding XianDao in 1999 to its listing on the Growth Enterprise Market in 2015 marks a significant progressionToday, XianDao operates in sectors such as intelligent lithium battery equipment and smart logistics systems, establishing itself as a leading provider of intelligent manufacturing solutions on a global scale.

As of mid-2024, the intelligent lithium battery equipment and smart logistics systems generated significant revenue for XianDao, comprising 67.88% and 22.55% of total revenue, respectivelyThus, nearly 90% of the company's income is derived from these segments.

However, the company has experienced a significant downturnIn 2021, XianDao's valuation peaked at a staggering 130 billion yuan, but as of February 7, 2025, it plummeted to only 32.01 billion yuanThis drastic depreciation can be attributed to various factors, including shifting market dynamics and operational challenges.

In January 2024, XianDao announced its projected earnings for the year, estimating a net profit in the range of 210 million to 310 million yuan—a decrease of between 82.53% and 88.17% compared to the prior yearThe company attributed this downturn to a slowdown in demand in the Chinese downstream market and delays in equipment acceptance by customers

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Additionally, they have acknowledged the necessity of provisioning for asset impairments under accounting regulations.

In the wake of these challenges, XianDao made headlines with its announcement on January 28 regarding plans to issue shares overseas (H-shares) and apply for a listing on the Hong Kong Stock ExchangeThis strategic move aims to bolster the company's global expansion in the new energy intelligent equipment sector while establishing an international platform for capital operations.

Wang has been vocal about the importance of targeting international marketsIn a media interview last December, he expressed a commitment to championing high-quality Chinese manufacturing of new energy equipment globallyHis inspirational message during the 2025 New Year address urged his team to strive toward becoming a world-class enterprise.

As per the 2024 performance forecast, XianDao has reiterated its intention to deepen its global strategy and continue expanding its international market footprintBut what will the tangible effects of their overseas expansions be?

XianDao has laid the groundwork for global outreach, establishing 18 subsidiaries and over 50 service points worldwide, with products now reaching markets in the United States, Germany, France, Japan, South Korea, and Sweden, among othersAnalysts from Dongwu Securities expressed optimism about XianDao's international prospects, mentioning notable clients in Europe such as Volkswagen, ACC, Porsche, and BMW, as well as potential collaborations with battery manufacturers in Japan and South Korea through solid-state battery technology.

Export revenues speak volumes of XianDao's efforts, with 2.242 billion yuan in exports recorded in 2023, contributing to 13.48% of total revenuesBy the first half of 2024, export revenue had surged to 1.095 billion yuan, representing 19.03% of revenue during that period.

Beyond ramping up its international sales, XianDao has also pledged to enhance its investment in research and development, introducing new technologies, products, and processes

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