"Specialized, Refined, Unique, and Innovative" Policy Dividends Continue to Be Released, Precision Gear Enterprises Welcome New Development Opportunities

From Jiangsu to Guangxi, from Shandong to Zhejiang, a policy wave promoting the development of small and medium-sized enterprises towards "specialization, refinement, uniqueness, and innovation" is sweeping across the nation. The precision gear industry is ushering in unprecedented development opportunities.

In the recently issued "Several Policy Measures for Further Supporting the High-Quality Development of Specialized, Refined, Unique, and Innovative SMEs" in Jiangsu Province, 14 precise and powerful measures outline the blueprint for supporting the high-quality development of small and medium-sized enterprises. This set of combined policy measures, focusing on enhancing innovation capacity, facilitating financing, digital transformation, and green and international development, has injected strong momentum into manufacturing enterprises represented by precision gears.

01 Policy Dividends, Precise Nurturing of Segmented Fields

Since the beginning of this year, a series of policies and measures supporting the development of "Specialized, Refined, Unique, and Innovative" enterprises have been intensively introduced nationwide, forming a cultivation system characterized by multiple levels, broad coverage, and high efficiency.

Jiangsu's policies explicitly support Specialized, Refined, Unique, and Innovative SMEs in establishing various enterprise R&D carriers such as enterprise technology centers, industrial design centers, and pilot test platforms, and actively creating national-level R&D carriers.

Furthermore, the policies support enterprises in implementing major technical难题 collaborative research projects around the province's "1650" industrial system, taking the lead or participating in national research tasks.

Regarding qualification recognition, the policies clearly state that national-level Specialized, Refined, Unique, and Innovative "Little Giant" enterprises will enjoy "Receive Benefits Without Application", greatly simplifying the process for enterprises to apply for support policies.

The "Implementation Plan for Cultivating, Strengthening, Improving Quality, and Advancing Specialized, Refined, Unique, and Innovative SMEs in Guangxi" proposes that from 2025 to 2027, the core direction will be "Three New and One Strong", creating a gradient cultivation "Wild Goose Formation".

The intensive implementation of this series of policies is bringing unprecedented development opportunities to the segmented field of precision gears.

02 Financing Breakthrough, Solving the Funding Bottleneck Problem

Financing difficulties and high costs have always been one of the main bottlenecks restricting the development of small and medium-sized enterprises. Policies in various regions have proposed specific solutions to this issue.

Jiangsu Province has opened a "Direct Reporting Window" for the financing needs of Specialized, Refined, Unique, and Innovative SMEs on the provincial SME public service platform, organizing relevant financial institutions to conduct point-to-point connections within 3 working days.

Simultaneously, it guides banks to open "green channels" for fast approval and processing for Specialized, Refined, Unique, and Innovative SMEs. In principle, eligible new customers should complete review and approval within 10 working days from acceptance, and existing customers should complete loan renewals within 3 working days after loan maturity.

Jiangsu has also expanded the scope of support for the manufacturing loan fiscal discount policy to include all Specialized, Refined, Unique, and Innovative SMEs, not limited to manufacturing.

It also makes full use of the provincial inclusive financial development risk compensation fund product "Specialized, Refined, Unique, and Innovative Loan", adding 10 billion RMB in loan scale to provide low-threshold, low-cost, medium- and long-term funds for eligible enterprises.

Establishing a reserve resource pool for the listing of Specialized, Refined, Unique, and Innovative SMEs, strengthening hierarchical and classified management, and intensifying listing cultivation services have paved the way for enterprises to access the capital market.

03 Gear Industry, Continuous Emergence of Innovation Achievements

Nourished by policy dividends, enterprises in the precision gear industry have achieved breakthroughs in multiple fields through continuous innovation.

In the field of wind power gears, Deli Jia, as a leading enterprise in high-speed and heavy-duty precision gear transmission products, holds a global market share of over 10% and a Chinese market share of over 15% in 2024. In 2024, the company achieved revenue of 3.715 billion RMB and a net profit attributable to the parent company of 534 million RMB.

In the field of automotive gears, Jingduan Technology has been deeply involved in precision gears for over thirty years and has become a hidden champion in the bevel gear track. In 2024, the company's operating revenue reached 2.025 billion RMB, and its market share of differential bevel gears ranks first in the country.

In the field of micro transmission, with the development of new-generation information technologies such as IoT technology and high-end electronic technology, the application of micro transmission systems in service robots, smart cars, and other industries is becoming increasingly widespread.

The market size of China's micro transmission industry has increased from 20.3 billion RMB in 2020 to 33.2 billion RMB in 2024, with a compound annual growth rate of about 13.1%.

04 Intelligent Manufacturing Upgrade, Cultivating New Competitive Advantages

Facing fierce market competition, precision gear enterprises are actively cultivating new competitive advantages through intelligent transformation and digital transformation.

Jiangsu's policies clearly guide and support Specialized, Refined, Unique, and Innovative SMEs in building smart manufacturing workshops.

It encourages and supports Specialized, Refined, Unique, and Innovative "Little Giant" enterprises to build smart manufacturing factories, providing financial rewards to those approved as National Excellent and Leading level Smart Factories.

It supports Specialized, Refined, Unique, and Innovative SMEs in building industrial internet platforms, incorporating them into the comprehensive evaluation index system for provincial key industrial internet platforms, and providing financial support to eligible platform enterprises.

Zhejiang Fengli Intelligent Technology Co., Ltd., through a private placement, raised funds to invest in the New Energy Vehicle Precision Power Gear Intelligent Manufacturing Project and the New Generation Precision Transmission Manufacturing Project, continuously improving the level of production intelligence.

In the production workshop of Qingzhou Ruinuote Gear Co., Ltd., automated gear processing production lines are operating at high speed, with various models of gear products continuously rolling off the line.

By introducing several advanced production lines in the industry, such as high-precision gear hobbing machines, precision machining, and component surface treatment, the enterprise has further improved production efficiency and product quality.

05 Innovation-Driven, Breaking Through Key Core Technologies

Innovation capability is the soul of "Specialized, Refined, Unique, and Innovative" enterprises. Precision gear enterprises are enhancing their technological innovation capabilities through various channels.

Jiangsu's policies support Specialized, Refined, Unique, and Innovative SMEs in taking the lead or participating in drafting International Standards and National Standards.

It recommends and supports Specialized, Refined, Unique, and Innovative SMEs to participate in the selection and recognition of the first (set) of major equipment, first (version) of software products, and first (batch) of materials.

For projects that meet the conditions in the recommendation of major national talent projects in the field of industry and information technology, Specialized, Refined, Unique, and Innovative SMEs should be reported as much as possible.

Qingzhou Ruinuote cooperates with well-known universities to build industry-university-research platforms for joint product R&D and production. Currently, product precision levels can reach grade three or four, and higher levels can be achieved in new product samples.

Jingduan Technology is actively laying out the robot reducer track, establishing a joint venture subsidiary Pacific Joint with the well-known industrial robot brand Tianjin Aimaxin to accelerate the layout in robot joints, precision reducers, and other fields.

06 Future Outlook, Opportunities and Challenges Coexist

With the continuous release of policy dividends, precision gear enterprises face broad development prospects but also need to address a series of challenges.

Market demand continues to grow. Global wind power installed capacity shows a ladder-type leap, and offshore wind has become a new engine driving global installed capacity growth.

The rapid development of the downstream wind power industry drives the annual expansion of the market capacity for main gearboxes used in wind power. It is estimated that by 2030, the global and domestic market sizes will reach 8.37 billion USD and 3.903 billion USD respectively.

Emerging fields bring new opportunities. Planetary reducers are the core components of robot joints and share synergies with planetary gears in processes and equipment.

With the rapid development of the robotics industry, precision gear enterprises are expected to open up a second growth curve.

International development welcomes new support. Policies support Specialized, Refined, Unique, and Innovative SMEs to "go global by borrowing ships", "go global in chains", and "go global in groups", participating in international exhibitions such as the China International Small and Medium Enterprises Fair.

This provides convenience for enterprises to explore international markets.

The shortage of professional talent remains an important factor restricting industry development. The R&D of lightweight gears requires interdisciplinary knowledge involving materials science, mechanical engineering, automation control, and other fields. The shortage of professionals is a bottleneck restricting industry development.

Walking into the production workshop of Qingzhou Ruinuote Gear Co., Ltd., automated production lines are operating at high speed, and precision gear products are continuously rolling off the line. These seemingly tiny components are becoming a vivid footnote for Chinese manufacturing moving towards high-quality development.

With the continuous release of the "Specialized, Refined, Unique, and Innovative" policy dividends, the segmented field of precision gears is ushering in a spring of development. Nourished by the sunshine and rain of policies, more and more precision gear enterprises are expected to grow into "hidden champions" in their segmented fields, injecting a continuous stream of power into Chinese manufacturing.