Celebrating 40 Years of Innovation and Growth: The Sanhua Journey

08 Jul. 2024

This year marks the 40th anniversary of Sanhua Holding Group, a journey built on determination, hard work, and decisive moments. Let’s take a walk through our rich history.

Large, global companies often have roots that trace back to the efforts of a few dedicated individuals working locally, and Sanhua Holding Group is no exception. Our story begins in September 1967 with the establishment of the "Xinchang West People's Commune Agricultural Machinery Repair & Assembly Factory."

Originally, the factory was set up to repair simple farming tools, equipped with just one iron furnace and staffed by only seven workers. The early years, up until 1979, were challenging. The factory struggled with limited product offerings, inadequate management, and insufficient production facilities, making success elusive. Despite these initial hurdles, the foundation was laid for what would eventually become Sanhua Holding Group.

A turning point

The trajectory of the business began to change when Mr. Zhang Daocai joined the factory, bringing his expertise and vision. Initially serving as Deputy Director and Manager of Purchasing and Sales, Mr. Zhang was responsible for marketing and business development. His contributions laid the groundwork for substantial change. In August 1984, Mr. Zhang assumed full management of the factory, which was subsequently renamed "Xinchang Refrigeration Components Factory." This crucial moment marked the foundation of what would become Sanhua. Therefore, we consider this year as the true beginning of our company.

1984–1993: Grand inauguration and setting a course

Our timeline is dotted with numerous milestones, especially during the formative years from 1984 to 1993, when we laid the essential groundwork for our future. During this period, we conducted extensive marketing research and strategic product development. We successfully introduced more than ten solutions, including filters, driers, and thermal expansion valves, initially targeting the roadside restaurant refrigerator market and subsequently the domestic refrigerator market.

These years were particularly fruitful in identifying three key strategic solutions for their respective markets:

1. Two-position and three-way solenoid valves for the household refrigerator market.

2. Four-way reversing valves for the HVAC&R market.

3. Thermal expansion valves for the automotive air conditioning systems market.

The development and implementation of the first of these solutions contributed to an annual profit exceeding 10 million yuan, marking a significant achievement in our early history.

1994–2003: Blossoming of three unique flowers

The next chapter in Sanhua's history can be described as a period of significant growth, during which the company's strategy was solidified. Management processes and staff training were strengthened and operations were enhanced. Our production achieved certification in several quality management, safety, and compliance standards, including ISO9000, ISO10012, QS9000, ISO9001, ISO/TS16949, ISO14001, UL, TUV, and VDE. A notable event during this period was the development of electronic expansion valves, solenoid valves, and other products, which expanded our market share in the HVAC&R industry. The "Three Flowers of Management, Technology, and Talent" began to develop as the company's core values, shaping our direction and success.

2004–2013: Sanhua's expansion

During this period, the company grew year by year and started to be more visible globally. Zhejiang Sanhua Intelligent Controls Co Ltd (002050.SZ) was listed on the Shenzhen Stock Exchange and Sanhua became the world's largest manufacturer of four-way reversing valves and a leading manufacturer of electronic expansion valves for inverter air conditioners. The company also developed a range of innovative products, including microchannel heat exchangers, frequency converters, and other energy-saving and intelligent control devices. These developments were part of numerous projects completed during this time.

In 2008, Sanhua Europe was established with headquarters in Madrid and a warehouse in Lędziny, Poland. HVACR experts from various European countries successfully launched a campaign to promote Sanhua solutions, securing customers among producers and wholesalers from Turkey, the United Kingdom, and other countries. Sanhua Europe also formed business partnerships in the Middle East. Establishing a presence on the Old Continent was crucial for the development of our global business strategy.

2014–present: Continually building a sustainable future

Years of numerous achievements have positioned Sanhua as an iconic company. We hold the No. 1 position worldwide in market share for four-way reversing valves, electronic expansion valves, microchannel heat exchangers, and shut-off valves. At present, the company has 6 R&D centers, 9 main production bases, more than 20 factories and many sales and service centers across China, the United States, Mexico, Germany, Austria, Poland, Turkey, Japan, Korea, Singapore, Vietnam, and India, offering localized products and responsive services.

Thanks to its competence, Sanhua Intelligent Controls has become a trusted strategic partner to leading automobile and air conditioner/refrigerator manufacturers worldwide. By the end of 2023, our market value had soared by more than 40%, solidifying our position as one of the top companies in Zhejiang Province. According to the Environmental, Social, and Governance (ESG) report, our R&D team achieved remarkable results in 2023, securing 3,792 intellectual property rights, including 1,879 invention patents. These innovations directly contribute to a greener future by developing energy-efficient technologies.

Sanhua's team continues to work on putting the company's goals and principles into action, particularly those related to sustainability. Let's create a better future!

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