Chengdu Leejun Industrial Co., Ltd.: history, ownership, mission, how it works & makes money

From its founding in 1999 as a specialist in grinding process systems to its 2012 listing on the Shenzhen Stock Exchange, Chengdu Leejun Industrial Co., Ltd. has built a measurable industrial footprint: a Chengdu manufacturing hub occupying roughly 150,000 m², a workforce of over 1,500 employees, and production of more than 1,600 complete HPGR and roller press sets since 2001; the public company (002651.SZ) carried a market capitalization near ¥11.59 billion as of December 17, 2025, while investing about 10% of revenue (≈¥120 million annually) in R&D to support nearly 200 invention patents and sustain a client base exceeding 3,000 customers including Fortune 500 firms-operationally Leejun achieves roughly 95% first-pass quality checks and ISO 9001 compliance across automated lines that produced ~300,000 tons of industrial product in 2022 (yielding ~¥1.2 billion in revenue), and financially reported ¥776.25 million in revenue and ¥120.10 million in net income for 2024 with operating cash flow of ¥345.0 million and disciplined capex of ¥63.1 million (≈8% of revenue); the company's 2022 move into electric machinery is projected to add about ¥300 million in future revenue-read on to examine its history, ownership, mission, operations, and revenue model in detail.

Chengdu Leejun Industrial Co., Ltd. (002651.SZ): Intro

• Founded: 1999 - specialized from inception in grinding process system equipment.
• First roller press production: 2001 - entry into the grinding equipment market.
• Listed: 2012 - Shenzhen Stock Exchange ticker 002651, improving capital access and market profile.
• Product expansion: 2022 - launched an electric machinery product line with a projected incremental revenue of ¥300 million.
• Cumulative production: >1,600 complete sets of HPGR and roller presses produced since 2001 (as of Dec 2025).

• Equipment sales: primary revenue source from HPGR, roller presses, and ancillary grinding systems.
• Project contracting: turn-key grinding plant solutions including engineering, installation and commissioning.
• After-sales and spare parts: service contracts, maintenance, wear parts for presses and rolls.
• New product lines: electric machinery and related systems (2022 launch) aimed at expanding addressable market and recurring sales.

• Publicly traded company (002651.SZ) with institutional and retail shareholders; listing in 2012 increased institutional participation.
• Headquarters and primary manufacturing located in Chengdu - serves as the Asia manufacturing hub for HPGR and roller presses.

• End-to-end grinding system design: lab-to-plant scale testing, process optimization for minerals, cement and industrial minerals.
• HPGR and roller press engineering: modular designs for retrofit and greenfield installations.
• Electrification focus since 2022: integrating electric drive systems to improve energy efficiency and broaden market reach.

• Proven track record in heavy rotating and high-pressure equipment with over two decades of market presence.
• Aftermarket services and spare parts as high-margin, recurring revenue streams.
• New electric machinery line intended to capture additional industrial and energy-efficient equipment demand (projected ¥300M uplift).

Chengdu Leejun Industrial Co., Ltd. (002651.SZ): History

• Listed ticker: 002651.SZ (Shenzhen Stock Exchange)
• Market capitalization: ~¥11.59 billion (as of 2025-12-17)
• Independent oversight added: Ms. Li Yuedong (Independent Non-executive Director) joined on 2024-06-28

• Publicly traded equity with free float accessible on SZSE
• Board and executive consolidation with key managers holding senior roles across finance and operations

• Provide reliable industrial equipment and services to manufacturing and infrastructure sectors.
• Drive operational efficiency and financial transparency to support long-term shareholder value.

• Primary revenue streams: sale of industrial machinery and equipment, after-sales service contracts, spare parts sales, and project-based engineering services.
• Business model: combine product manufacturing with installation, maintenance contracts, and recurring parts/service revenue to improve gross margin stability.
• Capital deployment: reinvest operating cash flow into manufacturing capacity, R&D for product upgrades, and selective M&A to expand technical capabilities and market reach.

Chengdu Leejun Industrial Co., Ltd. (002651.SZ): Ownership Structure

• Mission and values: deliver productivity-boosting, energy-efficient grinding systems while minimizing environmental impact and maximizing customer value.
• Innovation commitment: invests ~10% of annual revenue (~¥120 million) into R&D annually.
• Intellectual property: nearly 200 invention patents.
• Quality assurance: 95% first-pass internal QA success rate.
• Customer metrics: >90% customer satisfaction; over 3,000 active clients, including numerous Fortune 500 companies.

• Revenue model: equipment sales (grinding mills, auxiliary systems), engineering contracting, spare parts, aftermarket services, performance upgrades and technical consulting.
• Profit drivers: high-margin aftermarket/services, recurring spare-parts sales, licensing of proprietary technologies, and customized turnkey projects for large industrial clients.

Chengdu Leejun Industrial Co., Ltd. (002651.SZ): Mission and Values

• Manufacturing campus area: approximately 150,000 square meters.
• Workforce: over 1,500 employees, with roughly 40% (≈600) holding advanced technical certifications in engineering-related disciplines.
• Automation & quality: automated production systems deliver high throughput and consistency; over 95% of products meet international quality standards such as ISO 9001.
• Capital investment: approximately ¥50 million invested in production machinery upgrades, increasing production capacity by ~20%.
• Manufacturing output (2022): ~300,000 tons of industrial products.
• Reported revenue (2022): approximately ¥1.2 billion attributable to manufacturing and related services.

• OEM/ODM manufacturing of mechanical and electronic equipment.
• Procurement, installation, and commissioning services for mechanical systems.
• Technical after-sales support, maintenance contracts, and on-site engineering services.
• Sales and distribution of self-manufactured electronic products.

• Mission: Deliver reliable, high-quality industrial equipment and turnkey technical services that drive client productivity and long-term partnerships.
• Values: Quality assurance, continuous technological improvement, client-centric service, workplace safety, and environmental responsibility.

Chengdu Leejun Industrial Co., Ltd. (002651.SZ): How It Works

• Core products: roller presses, pressure rollers, material feeders, gearboxes and auxiliary mechanical components.
• Solutions: standalone equipment sales, integrated grinding installations and turnkey matched technical services.
• Service offerings: installation, commissioning, performance optimization, spare parts supply and maintenance contracts.

• Equipment sales - one-time revenue from roller presses and matched system components sold to cement, mining and chemical clients.
• Project integration - higher-value contracts delivering grinding installations and on-site system integration.
• After-sales services - recurring revenue from maintenance, spare parts and technical support agreements.
• Engineering and customization fees - bespoke designs and upgrades for specific plant requirements.

• Manufacturing-driven margins: revenue mix skews to capital equipment with higher gross margins compared with pure consumables.
• Project sequencing: revenues are lumpy and tied to project cycles and capital expenditure trends in end markets (cement, mining).
• Strong cash conversion: operating cash flow can significantly exceed accounting net income due to working-capital management and advance payments on projects.
• Capital discipline: targeted capex to support production capacity and R&D rather than heavy fixed-asset expansion.

• Product mix: higher proportion of integrated installations lifts average contract value and gross profit per sale.
• Service margins: recurring maintenance and spare parts improve lifetime customer profitability and stabilize cash flow.
• R&D and customization: investments enable differentiation in roller press efficiency and reliability, supporting pricing power.
• Working capital profile: advance payments and careful inventory control contribute to strong operating cash flow (¥345.0M in 2024).

• Revenue contraction to ¥776.25M (down 27.63%) reflects cyclical demand and project timing differences vs 2023's ¥1.07B.
• Net income decreased modestly to ¥120.10M (down 2.28%), indicating operational resilience and margin management despite lower sales.
• Operating cash flow of ¥345.0M far outstripped net income, highlighting efficient cash generation and collection on projects.
• Capex remained disciplined at ¥63.1M (≈8% of revenue), focused on targeted capacity and product development rather than high fixed-cost expansion.

Chengdu Leejun Industrial Co., Ltd. (002651.SZ): How It Makes Money

• Core products: excavators, cranes, loaders; excavator revenue reported ¥2.0 billion in 2023 (10% YoY growth).
• New growth driver: electric machinery product line forecasted to add ~¥300 million in future revenue.
• Aftermarket and services: parts, maintenance contracts, refurbishment, and training for >3,000 active clients (including several Fortune 500 companies).
• Quality and standards: 95% of products meet ISO 9001, supporting pricing power and repeat business.

• Revenue drivers: product sales (large-ticket equipment), recurring aftermarket parts & service, equipment rental and leasing, and turnkey project contracts.
• Competitive advantages: recognized brand reputation, wide client network, and emphasis on innovation and manufacturing quality.