Cubic Sensor and Instruments Ltd (Cubic) has invested in Zhongshan LOPE Thermal Technology Ltd (LOPE) and Guangzhou Jingding Electric Technology Ltd (Jingding Electric) significantly expanding its business and product portfolio.
Cubic will acquire a 57.14 per cent equity stake in LOPE and a 51 per cent stake in Jingding Electric through a combination of capital transfer and capital increase.
Qi Wang, director of the Utilization Committee and Gas Heating Committee of the China Gas Society and China Civil Engineering Society, said 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 will contribute significantly to the development of the industry,” Wang said.
According to the data released at the annual Chinese gas heating industry conference, China's market inventory for wall-mounted gas boilers exceeds 34 million units.
Notably, over 10 million of these units are more than eight years old, and around 5 million are aged between 10 and 15 years, highlighting a substantial potential market for replacements.
Currently, the majority of these boilers are direct gas-fired types, which are notably inefficient in terms of combustion and produce high emissions.
Meanwhile, condensing wall-mounted gas boilers, which are more efficient and environmentally friendly, make up only about 2.3 million units, or seven per cent of the total inventory. This situation underscores a critical need for China to shift towards developing smart 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 established a strong R&D team to develop low-carbon gas combustion technologies in 2022.
The goal was to build an industrial ecosystem for residential, commercial, and industrial gas fired 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 brushless direct current (BLDC) fans and intelligent gas combustion controllers, earning recognition from 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 has 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 BLDC 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.
Cubic chair, Dr. Youhui Xiong said he has high expectations for this strategic investment in LOPE and Jingding Electric.
He said LOPE has become one of the few enterprises globally capable of mass-production of stainless-steel condensing heat exchangers after seven years of innovation, leveraging international scientific and technological resources.
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.
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.
Established in 2003, Cubic Sensor and Instrument Co., Ltd. is a publicly listed company on the Shanghai Stock Exchange.
Cubic products have been exported to more than 80 countries around the globe.