Our reporter, Song Weidong

　　Recently, the 2025 Beijing Stock Exchange “Ten-Thousand-Li Tour” research initiative, jointly organized by China Securities Journal and the Beijing Stock Exchange, visited Hongyuan Shares. In an exclusive interview with China Securities Journal, Yang Xiqing, Chairman of Hongyuan Shares, stated that the company has been deeply engaged in the electromagnetic wire sector for many years, boasting a solid industrial foundation, outstanding innovation capabilities, broad growth prospects, and an increasingly prominent market position. In the face of emerging industry trends, the company will remain true to its original mission, continue to focus intently on the power industry, stay firmly on course, proceed steadily and systematically, and strive for excellence in its core business of electromagnetic wires. At the same time, it will continuously strengthen its competitive edge in the ultra-high-voltage transmission and transformation sector, comprehensively expand into the new-energy vehicle field to cultivate new drivers of profitability, build a more competitive industrial structure, and set a new benchmark for the development of the power equipment industry.

Significant competitive advantage

　　Shenyang is known as the “Equipment Ministry of the People’s Republic.” With a robust industrial foundation, it holds a pivotal position in equipment manufacturing and other key sectors. In recent years, Shenyang has vigorously promoted industrial transformation and upgrading, fostering a cohort of enterprises that deliver solid results and drive innovation. These companies have steadily advanced in their respective niche markets, leveraging years of industry expertise and R&D capabilities to grow and thrive. As a result, their influence in the domestic market continues to expand, while they have also earned widespread acclaim and respect on the global stage. Their role as benchmarks and catalysts for broader industry development is particularly pronounced, making them a new hallmark of “Made in Shenyang” today.

　　Hongyuan Co., Ltd. is a prime example of such a company. Located in the Shenyang Economic and Technological Development Zone, this manufacturing firm has been deeply engaged in the ultra-high-voltage power transmission and transformation sector for several decades, achieving remarkable results in the electromagnetic wire sub-market and enjoying a prominent position in the industry.

　　“We have consistently focused on the R&D and manufacturing of electromagnetic wires for high-voltage, large-capacity transformers, benchmarking against international standards and cutting-edge technologies both at home and abroad. As a result, we have developed a wide range of electromagnetic wire products, including stepped-combination transposed conductors, internally shielded combination transposed conductors, multi-strand transposed conductors, fiber-optic winding wires, and high-temperature self-bonding enamelled transposed conductors,” said Yang Xiqing. “These flagship products effectively meet the technical requirements and market demands for the upgrading and retrofitting of China’s high-voltage, large-capacity transformers.”

　　In his view, Hongyuan Shares’ achievements to date can be attributed primarily to its unwavering focus on aligning with the direction and trends of industrial upgrading and sectoral advancement, its dedicated commitment to in-depth research in the niche segment of electromagnetic wire, and its sustained drive for innovative R&D.

　　Behind Hongyuan Shares’ electromagnetic wire products reaching markets worldwide lies China’s globally integrated, intelligent ultra-high-voltage power transmission network. Stretching from the sparsely populated western deserts to the densely populated, electricity-intensive provinces of the east, these ultra-high-voltage transmission lines have established green-energy “highways,” fostering a complete UHV industrial chain that spans technology and construction and setting a global benchmark for green power transmission.

　　“This is precisely the industrial backdrop that has underpinned Hongyuan Shares’ steady growth and serves as a key competitive advantage for the company,” said Yang Xiqing. “The gradual development of China’s ultra-high-voltage power grid has continuously presented new challenges for upgrading the quality and performance of critical equipment—transformers—and, in turn, has placed increasingly stringent demands on transformer windings. This has driven us to relentlessly strengthen our technological innovation, pushing forward toward more advanced technologies and superior performance.”

　　Hongyuan Shares’ competitive advantages are evident across multiple dimensions. From a supply-chain perspective, Shenyang boasts a robust industrial foundation, with a well-established value chain and deep technological expertise. “Currently, Shenyang is witnessing rapid development of a power transmission and transformation industry cluster led by TBEA, characterized by strong industrial synergy and a comprehensive supply chain that provides solid support for the company’s growth. The concentrated clustering of upstream and downstream enterprises has reduced procurement and logistics costs, while the integration of intelligent production lines has enabled the company to maintain a high level of cost control,” said Yang Xiqing.

　　From a product-performance perspective, Hongyuan Shares’ electromagnetic wire products are primarily used in high-voltage transformers. “The critical role of transformers in power-grid transmission networks dictates that the electromagnetic wire employed must deliver superior performance and meet even more stringent technical requirements,” said Yang Xiqing. “Having cultivated the power-equipment sector for many years, our company has a deep understanding of transformer electromagnetic-wire products. This fuels our drive and provides clear direction to continuously enhance our manufacturing processes and quality standards, thereby laying a solid foundation for expanding into both domestic and international markets.”

　　From a market deployment perspective, Hongyuan Shares’ electromagnetic wire products serve all major UHV equipment manufacturers in China and are marketed across the Middle East, North America, East Asia, Southeast Asia, and other regions, thereby establishing a dual-market structure that combines key domestic projects with emerging overseas markets.

　　“At present, the process of globalization is accelerating, and both domestic and international demand for electricity continues to grow, driving continuous expansion of power-generation capacity and further acceleration of transmission and distribution infrastructure development. As a result, the electromagnetic wire industry is now in a period of rapid growth,” said Yang Xuqing. “The company must fully leverage its comprehensive competitive advantages, continuously optimize its product mix, and build a product portfolio with even stronger market competitiveness.”

Innovation Fuels Quality Improvement and Upgrading

　　Leveraging robust R&D capabilities and product innovation, China’s electromagnetic wire products for power transformers have achieved three major breakthroughs in the ultra- and extra-high voltage domains, including ±500 kV, ±800 kV, and ±1100 kV applications. In recent years, Hongyuan Shares’ products have been extensively deployed in numerous industry-leading ultra- and extra-high voltage AC/DC projects across the country, among which is the Changji–Guquan ±1100 kV UHV DC transmission project—the world’s highest-voltage, largest-capacity, longest-distance, and most technologically advanced UHV DC transmission project.

　　“This is a vivid embodiment of the company’s product technology and overall corporate strength,” said Yang Xiqing. “Hongyuan Shares has been deeply involved in every major breakthrough in China’s power transformer winding wire sector, serving as a witness to the development of China’s power equipment industry—and, more importantly, as an active participant and beneficiary.”

　　As is well known, transformers are critical equipment in power transmission and transformation projects, and the transformer windings are the “heart” of the transformer. The quality and reliability of the enameled wire used for winding the coils are essential to the safe and stable operation of such projects, particularly in ultra- and extra-high-voltage transmission and transformation systems. In the ultra-high-voltage domain, where transformers feature larger capacities and higher voltages, the requirements for enameled wire are even more stringent: it must reduce winding load losses, minimize winding volume, enhance short-circuit withstand capability, and improve breakdown voltage resistance. This, in turn, necessitates that enameled-wire manufacturers maintain a high level of technological R&D.

　　“Corporate R&D and innovation must meet new market demands, be market-oriented, customer-centric, driven by technological breakthroughs, aligned with industry standards, and focused on the development and production of high-tech, high-value-added products, thereby achieving a precise match between technology-driven innovation and market needs,” said Yang Xiqing. “We must continuously concentrate on driving value creation through our core products, fully leverage our brand and technological strengths, and build a premium product portfolio that is more closely aligned with market needs, offers greater differentiation and competitive advantage, and is highly competitive.”

　　Yang Xiqing stated that innovation is not about achieving breakthroughs at a single point, but rather about building systematic capabilities. To this end, Hongyuan Co., Ltd. has made concerted efforts to cultivate a stable R&D team and an innovative technology system, initiated the establishment of an electromagnetic wire R&D center, and focused on tackling cutting-edge, forward-looking technologies. At the same time, the company has deepened industry–university–research collaboration, partnering with universities and other research institutions to vigorously overcome bottlenecks in product performance under extreme operating conditions, while continuously strengthening its intellectual property portfolio.

　　As of the end of 2024, Hongyuan Co., Ltd. has obtained 80 patents and has also participated in the drafting and formulation of numerous national and industry standards, thereby laying a solid foundation for innovative development.

　　“The company’s core competitive advantage lies in establishing a closed-loop ecosystem that integrates ‘R&D—standard-setting—scale production—global delivery,’” said Yang Xiqing.

　　He stated that the electromagnetic wire industry is currently undergoing a major trend of digital and intelligent transformation. Enterprises must accelerate innovation, increase investment, actively promote digital upgrading, build digitally and informationally advanced smart factories, continuously improve product quality, and further strengthen communication and collaboration with customers.

Empowering the Capital Market

　　In August of this year, Hongyuan Shares was listed on the Beijing Stock Exchange, becoming the first company from Shenyang to do so and ushering in a new phase of corporate development.
 
　　“Being a publicly listed company is a tremendous honor, enabling Hongyuan Shares to stand out in fierce competition,” said Yang Xiqing. “Going public is not the end—it is a new beginning. The company will fully leverage the support of the capital markets to continuously strengthen and refine its core business, expand its scale of operations, optimize its industrial-chain layout, and create new drivers of profit growth.”

　　Currently, Hongyuan Shares is building on its traditional strengths in ultra-high-voltage transmission and transformation electromagnetic wires while actively expanding into the new-energy vehicle sector. The remarkable achievements of China’s new-energy vehicle industry are evident to all. In October of this year, sales of new-energy vehicles accounted for 51.6% of total new-vehicle sales in China, surpassing the 50% mark and marking a significant milestone in the development of the new-energy vehicle industry.

　　“With the rapid development of the new-energy vehicle industry, manufacturers are increasingly demanding higher performance, quality, and cost-effectiveness from drive motors. As a critical material in drive motors, electromagnetic wire faces ever-stricter requirements as motor voltage levels continue to rise,” said Yang Xiqing. “Electromagnetic wire used in new-energy vehicle drive motors must exhibit superior corona resistance, high-temperature tolerance, excellent thermal dissipation, and resistance to softening and dielectric breakdown. Meanwhile, flat-wire motors, owing to their high conversion efficiency, high power density, superior heat dissipation, low noise, and lighter weight, are progressively replacing conventional enameled round copper-wire drive motors.”

　　Notably, one of the investment projects funded by Hongyuan Shares’ IPO is the production base for specialty enameled wires used in new-energy-vehicle motors. “This project precisely captures the trend toward higher voltage in drive motors for new-energy vehicles. The company’s corona-resistant enameled copper flat wire effectively addresses this key challenge, providing crucial support for the company’s full-scale entry into the new-energy-vehicle industry,” said Yang Xiqing.

　　This fundraising and investment project will leverage Hongyuan Shares’ technological expertise and manufacturing experience in enameled copper flat wire products to focus on the R&D and production of electromagnetic wires for 800V flat-wire drive motors used in new-energy vehicles, thereby further diversifying the company’s product portfolio and establishing a “second growth curve.”

　　“Successfully listing on the Beijing Stock Exchange and becoming a publicly traded company has empowered us to turn our aspirations into reality, while steadily scaling up our operations and opening up even greater avenues for growth,” said Yang Xiqing. “Through our fundraising and investment projects, Hongyuan Shares has successfully entered the core supply chain for new-energy vehicles, establishing a dual-core business model driven by ultra-high-voltage power transmission and transformation and new-energy vehicles. This has effectively increased the proportion of high-end products, accumulated deeper expertise in high-end manufacturing, and laid a solid foundation for expanding into areas such as energy storage and rail transit. It has also fostered synergistic development across upstream and downstream industries, helping to form a more competitive industrial cluster and paving the way for the company’s long-term, sustainable growth.”