On February 16, Haier Group announced a significant partnership with Shanghai Xinshi Technology Co., Ltd., marking a notable shift in the Chinese industrial landscape. This collaboration involves Haier acquiring 10% of Xinshi’s shares and gaining 19.24% of its voting rights. Following the completion of this transfer, Haier will effectively establish itself as the actual controller of Xinshi, thereby extending its influence in the industrial automation market. In addition, Haier plans to subscribe to newly issued shares, potentially raising its total stake to an impressive 26.83% of the company’s total equity post-issuance.

This acquisition is not merely a strategic investment; it symbolizes Haier’s unwavering commitment to the real economy and further underscores its user-centered approach. For decades, Haier has focused on originality and innovation, leading to its expansion in three major sectors: smart home ecosystems, health industries, and the digital economy. The digital economy segment is particularly noteworthy as it leverages 40 years of manufacturing experience to create the Caos industrial internet platform. This platform emphasizes mass customization and enhances user involvement throughout the entire process, thereby redefining collaboration across industries, regions, and fields. To date, Haier has empowered the digital transformation and upgrading of 15 industries, including home appliances, automotive, electronics, and chemicals, servicing over 160,000 enterprises and consistently ranking at the top of national “cross-industry industrial internet platform” listings for six consecutive years.

Founded in 1995, Xinshi is a frontrunner in the field of industrial automation, with its core competencies rooted in algorithms and software. The company specializes in control technology, which has birthed three major business divisions focused on control and drive products, robotic products, and elevator control systems. According to Xinshi’s interim 2024 report, the company ranks as the second globally in elevator controller shipments, while its SCARA robots hold the second spot domestically and fourth internationally. It has pioneered the development of fully autonomous control technologies among China's leading robotics manufacturers.

In the current climate of accelerated digital and intelligent transformation within global manufacturing, industrial automation has emerged as a critical industry under the umbrella of the industrial internet. It plays an essential role not only in enhancing production efficiency and reducing costs but also in propelling the manufacturing sector towards higher sophistication and intelligence.

The transaction between Haier and Xinshi thus garners considerable attention. Following its completion, the collaboration is poised to yield numerous profound benefits. Haier, renowned for its extensive global supply chain, presents an opportunity for Xinshi to optimize its procurement channels and reduce costs. This partnership will enable Xinshi to enhance the stability and continuity of its production processes significantly. Haier's expertise in digital marketing also stands to benefit Xinshi, offering the latter insights on leveraging big data to accurately identify target demographics, craft tailored marketing strategies, and ultimately improve its market share. Xinshi could adopt Haier's digital marketing methodologies to amplify its brand visibility and accelerate its market penetration in the industrial automation landscape.

Lean management is another cornerstone of Haier's competitive edge. This approach focuses on maximizing value while minimizing resource consumption across human capital, equipment, funds, materials, time, and space. By integrating Haier's lean management principles, Xinshi can conduct a comprehensive overhaul of its production workflows, which will bolster efficiency, decrease costs, and enhance product quality. Additionally, sharing brand resources will significantly advance Xinshi’s image and reputation, broadening its appeal to potential clients and partners.

The Caos industrial internet platform represents a significant achievement for Haier, embodying capabilities in big data, connectivity, and modeling. Its big data capabilities allow for the collection, storage, analysis, and extraction of vast industrial datasets, providing critical insights for decision-making. Meanwhile, the platform’s connectivity fosters seamless interaction among devices, systems, and personnel, thus dissolving information silos and enhancing productivity collaboration. Furthermore, the modeling capabilities provide indispensable support for industrial intelligence, enabling intelligent forecasting, control, and optimization of production workflows.

Xinshi's robust portfolio in industrial automation, which extends across robotics, motion control, and smart equipment, positions it well for a synergistic integration with the Caos platform. When the technological strengths of Xinshi unite with the capabilities of the Caos platform, the result is a formidable collaborative potential. This partnership may lead to the innovation of smarter, more efficient, and reliable industrial automation solutions. For instance, big data analytical applications could optimize robotic movement trajectories, resulting in heightened operational efficiency and precision. The connection of intelligent equipment could foster enhanced interconnectivity and cooperation among various devices, boosting overall system flexibility and adaptability.

Through their joint efforts, Haier and Xinshi can offer comprehensive smart manufacturing solutions across diverse industries, from automotive to electronics and machinery. Such innovations will facilitate the digitization and intelligent evolution of production processes, leading to enhanced productivity, cost reduction, and superior product quality that fortify competitive advantages. The partnership stands to position itself as a leader in the era of Industry 4.0, pushing the global manufacturing sector to unprecedented heights and making substantial contributions to achieving smart manufacturing objectives.

Currently, industrial internet development in China has entered a phase characterized by high-quality growth and large-scale deployments. Projections suggest that the added value of core industries within the Chinese industrial internet will reach 1.53 trillion yuan by 2024, reflecting a growth of 10.65% from 2023. The strategic acquisition of Xinshi marks a significant milestone in reinforcing the leadership of the Caos platform within the industrial internet ecosystem.