By Jin Lu
2024 marks the 25th anniversary of Junhe Pumps Holding Co., Ltd., coinciding with the rollout of the company's latest three-year strategic plan.
Recently, Junhe Pumps issued an encouraging financial update, projecting a net profit attributable to shareholders of 56 to 62 million yuan for the first three quarters of the year—a year-on-year rise of 35.56% to 50.09%. Excluding non-recurring items, the adjusted net profit is anticipated to reach 52 to 56 million yuan, representing a striking increase of 139.34% to 157.75%. These results follow the company's robust performance detailed in its mid-year financial report.
A New Growth Model
In June, during an interview, General Manager Zhang Junbo revealed the company's strategic shift, "Our business model has transitioned from OEM (Original Equipment Manufacturing) to OBM (Own Brand Manufacturing)."
A closer look at Junhe's progress over the past year underscores its dedication to strengthening its domestic market presence. In January, the company launched its first urban flagship store in Ningbo, signaling a significant shift from its reliance on e-commerce platforms like JD.com, Tmall, and Douyin to a stronger focus on physical retail. Since then, Junhe has opened stores in cities such as Changchun, Zhengzhou, Wuxi, Foshan, Tangshan, and Kunming, with projected sales of 50-80 million yuan this year. Over the next three years, the company plans to expand its offline presence to 37 cities nationwide.
Alongside its widening retail network, Junhe has broadened its product portfolio to include solutions beyond household pumps, focusing on sectors such as construction, interior design, and automotive repair. A standout success this year has been its high-power lithium battery floor cleaner, which sold over 60,000 units in the first half of 2024, generating more than 15 million yuan in sales. Demand for the product continues to grow.
The company's "Junhe Hardware and Electromechanical One-Stop Procurement Platform" is also rapidly scaling. The newly inaugurated Junhe Industrial Park in Jishigang, Haishu, serves as a hub for research, production, and marketing of commercial pumps and cleaning equipment, enhancing collaboration across the supply chain.
Speaking at the park's launch, Zhang highlighted the central role of innovation in the company's strategy, stating, "Innovation is the primary driver of our development."
This commitment was evident at the 136th Canton Fair, where Junhe introduced a new series of garden pumps designed to meet customer demand for smarter and more lightweight solutions. With app-based controls, the series delivers a 50% improvement in water efficiency and a 33.9% reduction in energy use, setting a new industry standard.
Digitalization and Automation Drive Efficiency
Inside Junhe's 5G smart production base, you can hear the hum of machines busily at work. The headquarters building has a digital screen displaying real-time production data, while automated equipment runs efficiently on the factory floors. The 34-meter-high intelligent logistics warehouse, lined with towering shelves, ensures streamlined storage and retrieval processes.
In 2018, Junhe began planning its digital factory, which became operational in 2021. By leveraging technologies such as 5G, edge computing, big data, and IoT, the company has seamlessly integrated real-time data analysis and control across product design, manufacturing, quality control, and shipping.
"Previously, production data had to be manually collected, and diagnosing issues on the production line was time-consuming. Now, the digital system automatically displays metrics like employee attendance, product pass rates, and order progress. Equipment malfunctions are reported instantly, enabling quick resolution," explained Du Lifeng, the company's IT Director.
On the factory floor, robotic arms work alongside employees. On the stator ring production line, processes such as terminal punching, heat shrink tubing application, and insulation tube fitting are fully automated. "Previously, winding a stator coil took several minutes. Now, it's completed in seconds," said Chen Feibo, Head of Automation at Junhe.
The number of workers required on the line has dropped from three to one, resulting in enhanced productivity and reduced labor intensity.
Expanding Overseas Partnerships
"Junhe's 25 years is the story of an ever-expanding global 'circle of friends'," said Chairman Zhang Ahua.
Over the years, Junhe has established a strong network of international partners across dozens of countries and regions. On the company's anniversary, many overseas clients joined in the celebration.
German cleaning equipment giant Kärcher, Junhe's exclusive pump partner for nearly two decades, announced plans to deepen their collaboration. This year, Junhe began constructing a new production base in Thailand, slated to begin operations in August 2025.
Since the fourth quarter of 2023, overseas demand in the pump industry has rebounded, with orders returning to historical levels.
Despite challenges, Chairman Zhang Ahua expressed optimism, "Crises often bring opportunities. We are confident in the future." Over the next five years, Junhe will focus on its two core sectors—pumps and cleaning tools—leveraging its integrated ecosystem to implement a "Five-in-One Action Plan" and become a globally influential intelligent manufacturing brand.
From its modest beginnings to going public on China's A-share market, Junhe has steadily built an ecosystem that spans both domestic and international markets. With a new roadmap in place, the company is now embarking on an exciting phase of growth.