Cubic Invests in LOPE and Jingding Electric to Create a Comprehensive Supply Chain for Premixed Gas Condensing Boilers

Move Towards a One-Stop Solution for High-Efficiency, Low-Emission Gas Heating Industry

WUHAN, China, June 13, 2024 /PRNewswire/ -- Recently, Cubic Sensor and Instrument Co.,Ltd. (hereinafter referred to as "Cubic") announced its strategic investment in Zhongshan LOPE Thermal Technology Ltd. (hereinafter referred to as "LOPE"), and Guangzhou Jingding Electric Technology Co., Ltd. (hereinafter referred to as "Jingding Electric") at the signing ceremony at Cubic R&D center. Cubic will acquire a 57.14% equity stake in LOPE and a 51% stake in Jingding Electric through a combination of capital transfer and capital increase. This strategic move marks a significant expansion in Cubic's portfolio and deepened cooperation within the industry.

Mr. Qi Wang, director of the Utilization Committee and Gas Heating Committee of China Gas Society of China Civil Engineering Society, states,

"Currently, 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 is worth looking forward to its collaboration with LOPE and Jingding Electric, which will contribute significantly to the development of the industry."

According to the data released at the annual Chinese gas heating industry conference, it reveals that 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 7% 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 has established a strong R&D team in 2022 and initiated the development of low-carbon gas combustion technologies, aiming 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.

Dr. Youhui Xiong, Chairman of Cubic, has high expectations for this strategic investment in LOPE and Jingding Electric. He thinks that 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. Jingding Electric, with nearly two decades of experience in the gas proportional valve field, is an important standard drafting or participating member in the China gas appliance industry. Cubic possesses significant technological and industrial advantages in gas sensors, gas metering, and intelligent gas controllers. 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.

Zhongshan LOPE Thermal Technology Ltd.

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.

LOPE's products boast an impressive coverage rate of over 80% in the market for Chinese branded full premixed condensing wall-mounted gas boilers, and also exported in large quantities to European markets.  These products have received widespread acclaim from both domestic customers in China and international clients. LOPE has achieved factory quality management system certification and operates its own testing center and thermal laboratory. Furthermore, the company has established a cooperative research and development center in Europe, secured multiple patents, and has become a highly specialized manufacturer in the field of full premixed condensing wall-mounted gas boilers.

Guangzhou Jingding Electric Technology Co., Ltd.

Jingding Electric has accumulated nearly two decades of experience in the field of gas proportional valves, with a commitment to "Elaborate quality, Innovative technology." It is a significant standard drafting or participating member in the China gas appliance industry. The general manager of Jingding Electric serves as an ISO registered expert and has participated in numerous international ISO/TC161 technical committee working meetings. With over 30 patents, including its gas proportional valve product being recognized as a "Famous Brand of Guangdong," Jingding Electric has also been honored as " the Best 10 Gas-Appliances Components Company" and "Excellent Enterprise in China's Gas Appliance Industry."

About Cubic Sensor and Instrument Co.,Ltd.

Cubic Sensor and Instrument Co., Ltd. is a publicly listed company on the Shanghai Stock Exchange (stock code:688665), specializing in smart gas sensors and superior gas analyzers. Set up in 2003, situated in "Optics Valley" of Wuhan, China, Cubic has established gas sensing technology platforms including optical technologies (NDIR, Ultraviolet, Light Scattering, Laser Raman), ultrasonic technology, MEMS metal oxide semiconductor (MOX) technology, electrochemical technology, ceramic thick-film technology based on high temperature solid electrolyte technology and so on. At present, Cubic has obtained more than 100 patents and manufactures abundant products widely used in various fields of air quality, environmental monitoring, industrial processes, industrial safety monitoring, healthcare, smart metering and so on.

With decade-long dedications to technical innovations, strict quality control and global business strategies, Cubic, as a leading manufacturer of high-quality gas sensors and instrument solutions, has obtained the recognition of domestic and overseas leading companies in different fields. Cubic products have been exported to more than 80 countries and regions, besides, Cubic is moving towards a higher target to be the international brand in the field of gas sensors and instruments.

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Belinda Tong

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