HG Laser and Synova Forge Joint Venture to Advance Water-guided Laser Technology

On April 22, HGLASER (a key subsidiary of Huagong Technology) and Synova (a Swiss leader in laser technology) officially announced the formation of a joint venture in Beijing. 

The partnership aims to drive the widespread application of water-guided laser (LMJ) technology, a field where Synova has been a pioneer since 1997.

(Source: HG Laser)

Combining Expertise for Technological Advancement

Synova has established itself as a leader in high-precision, low-damage laser processing. Its water-guided laser technology has revolutionized industries such as semiconductors, medical devices, and consumer electronics. 

The newly formed joint venture will leverage Synova’s decades of expertise in laser technology alongside HGLASER’s robust industrialization capabilities and global market presence. Together, they aim to accelerate the domestic application of LMJ technology, enhancing the competitiveness of Chinese manufacturers in critical sectors.

This collaboration aligns strategically with HGTECH’s broader goals of innovation and global expansion. 

The joint venture represents a key milestone in the company’s ongoing commitment to advancing cutting-edge technologies in high-demand industries.

Strong Financial Performance and Strategic Growth

HGTECH’s commitment to innovation is reflected in its impressive 2024 financial performance. 

The company reported a revenue of 11.709 billion yuan, a 13.57% increase year-on-year. Net profits attributable to shareholders surged by 21.17%, reaching 1.221 billion yuan. Furthermore, HGTECH’s net profit after excluding non-recurring items grew by 9.55%, totaling 897 million yuan. 

These results underscore the company’s solid growth trajectory and its ability to deliver on its strategic objectives.

HGTECH’s 2024 annual report highlights its focus on three core areas: "sensing, connectivity, and intelligent manufacturing." 

By targeting key sectors such as new energy vehicles and digital transformation, HGTECH has effectively captured both domestic and international market share, reinforcing its position as an industry leader.

Expanding Innovation Across Industries and Markets

One of the standout achievements of HGTECH has been the significant progress made in its intelligent manufacturing division, which saw a 9.45% revenue increase to 3.492 billion yuan. 

The company has also made strides in smart equipment development, particularly in AI-driven technologies and intelligent software for material nesting. 

Notably, HGTECH’s fifth-generation 3D five-axis laser cutting equipment was recognized as a "Hubei Fine Product" and awarded the "National Single Champion of Manufacturing Industry" title. This recognition further underscores the company’s role as a trailblazer in laser technology.

HGLASER’s innovative solutions extend beyond the domestic market. The company has developed laser bevel cutting equipment and intelligent material nesting methods, which are now being implemented in shipbuilding, rail transportation, and mechanical manufacturing sectors. 

Internationally, HGTECH has made significant strides by exporting fully automated aluminum alloy battery tray production lines to the EU and expanding its presence in global markets with products like 3D five-axis laser equipment and tire mold laser cleaning systems.

Looking Ahead: Strengthening Global Competitiveness

As HGTECH looks toward the future, the company is poised to continue its strong momentum. 

The company recently issued a performance forecast for Q1 2025, projecting a net profit of 390 million to 440 million yuan, marking a year-on-year increase of 34.54% to 51.79%. This growth is primarily driven by demand in key sectors such as intelligent manufacturing, where digital upgrades and equipment updates in the shipbuilding industry are fueling development. 

Additionally, the company’s data communications business has benefited from increased demand for AI applications and high-speed optical modules in data centers.

Strategically, HGLASER is expanding its international footprint. Prior to the joint venture announcement, the company opened a new engineering and technical service center in Beining, Vietnam, further strengthening its presence in Southeast Asia. 

On April 21, HGLASER showcased its flagship industrial equipment at the China International Machine Tool Show, including the complex surface six-axis laser micro-hole processing system and the fifth-generation intelligent 3D five-axis laser cutting system.

A New Chapter for HGLASER and Synova

With the addition of Synova’s water-guided laser technology to its portfolio, HGLASER is now well-positioned to gain a competitive edge in the manufacturing of critical components for industries like aerospace, semiconductors, and medical devices. 

This joint venture promises to enhance HGLASER’s position as a global player in the laser technology market, opening up new growth opportunities and technological advancements in the coming years.

This collaboration marks a significant step forward for both companies, creating a platform for continued innovation and market leadership in the laser technology sector.