A large ship built by Wuhu Shipyard Co, a business partner of HGTECH. [Photo/WeChat account of Optics Valley of China]

An automated production line project, a collaboration between HGTECH and Wuhu Shipyard Co, has officially commenced. Both companies will subsequently focus on cooperation in production line automation and intelligent logistics.

HGTECH is based in the East Lake High-tech Development Zone (also known as Optics Valley of China, or OVC).

Wuhu Shipyard Co is a well-known shipbuilding enterprise in China. In recent years, with the substantial growth in China's automobile exports and the booming international automotive transport market, Wuhu Shipyard Co plans to establish a manufacturing base in Weihai, with a total investment of 3 billion yuan ($423 million). This project is estimated to reach annual output value of 5 billion yuan once it is in full production.

HGTECH will utilize its innovative research and development in shipbuilding industrial process information analysis, inkjet marking, bevel cutting, chamfering, and semi-finished product automated logistics, to construct this project.

This is not HGTECH's first foray into the shipbuilding market. In October last year, HGTECH signed a strategic cooperation agreement with Shanghai Waigaoqiao Shipbuilding Co, focusing on cooperation in ship intelligent manufacturing planning, intelligent transformation of workshops, laser technology process research, and industrial interconnection.

According to HGTECH's 2023 annual report, the company achieved a total operating income of 10.21 billion yuan last year. The proportion of R&D expenses to its operating income was 7.67 percent.