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Jun 11,2024

Logistics Summit G20@LT2024, Damon Calls for Contributing China New Quality Strength to The World

On May 22th -23th, the 13th China Logistics Technology Summit (LT Summit 2024) was successfully held in Shanghai. As the top event in the field of smart logistics, this LT summit with the theme of "Building Symbiosis in Change", entrepreneurs, technical experts, industrial chain enterprises and end-user supply chain innovation practitioners of smart logistics leading enterprises gathered together to discuss the current dilemma and breakthrough strategy facing the industry, and committed to jointly promote the construction of a future-oriented logistics ecosystem. As a global customer trusted intelligent logistics equipment and solutions provider, Damon was invited to participate in the conference. Mr. Wu Zhonghua, Vice president of the Group and general manager of Intelligent Logistics Division, attended the "G20 Leaders (Closed- door) Summit" for industry leaders to exchange industry insights and development trends as a veteran of the intelligent logistics industry. At the "Intelligent Logistics Industry Ecological Forum", he publicly delivered the keynote speech "High Quality · Globalization", offered suggestions for the difficulties in the industry and shared his own response practice, which received attention and approval from the audience.

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Industry dilemma

1. Stock price is lowlisting is difficult. The overall valuation of logistics equipment sector is low, a number of equipment companies have failed to list, industry cash flow is tight.

2. External demand is insufficient, industry growth slows down. External demand, represented by the new energy industry is cooling, new demand is insufficient, and industry growth is slowing down. The average revenue growth rate of the top 10 listed companies in the logistics equipment industry dropped from the average annual compound growth of 19.68% in the past three fiscal years to 1.62% in the fiscal year 2023, which has a significant decline.

3. Excessive homogeneous capacity, declining profitability. In order to survive, they have to exchange price for profit, lack sufficient research and development investment, homogeneous capacity is excessive, profitability declines. From the average gross margin data of industry's Top10 listed companies, the 2023 fiscal year decreased by about 3pct compared with the 2022 fiscal year.


Break the game

Based on Damon’s practice, Mr. Wu Zhonghua put forward the following five suggestions in view of the difficulties faced by China's intelligent logistics equipment industry, calling on the industry to make deep changes from the overall strategy, only the whole industry to reach a consensus and practice the change, can have a healthy ecology of sustainable development.

1. From scale to quality. From the pursuit of order size to the pursuit of high quality, high margin win.

2. From large and all inclusive to focus. From full-link, full-scene and other large and comprehensive products and market positioning, to focus on their own advantages of products and scenario solutions

3. From fighting alone to ecological cooperation. From isolated development to focus on the industry upstream and downstream ecological cooperation, resource sharing, to drive partners to develop and grow together.

4. From price to value. From the price war to the value war, only truly competitive and valuable products and programs can achieve customers, achieve themselves, and firmly build competition barriers.

5. From localization to globalization. From highly competing in the domestic market to fighting the vast overseas market, Chinese enterprises must bravely go out and achieve global development.

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High quality·Globalization

Damon practice

Damon was founded in 1997 and after more than 20 years of hard work, it became the first stock on the China Intelligent Logistics Equipment STAR Market in 2020, marking the beginning of group's new decade of development strategy towards globalization, collectivization, and digitization for the future. Damon has always adhered to the exploration and application of intelligent logistics technology, and has always adhered to the path of high-quality development. It has always adhered to the polishing of the core three forces of "product, project, and quality". The core product intelligent conveying and sorting system has been implemented in more than 30 countries and regions around the world in more than 3000 projects, and has accumulated solution advantages and project delivery experience in industries such as e-commerce, footwear, pharmaceuticals, and high-end manufacturing. Since its listing for more than 3 years, the annual signing amount of Damon has steadily increased, gross profit has steadily improved, and the project delivery rate has continued to increase, practicing Damon’s high-quality development path with high quality and globalization.


High quality: focusing on deep cultivation, cultivating internal skills, delivering reputation

1. Focus and cultivate deeply. Choose and focus on products, industries, regions, and customers. We will firmly focus on transportation and sorting system, focusing on the four major scenarios of e-commerce, footwear and clothing, medicine, and high-end manufacturing, focusing on high-quality and growing customers, and focusing on economically developed and emerging growth markets. Damon constantly reflects, performs subtraction, focuses on deep cultivation, and resolutely abandons products and scenarios without strong advantages, giving the market to competitive peers with advantages, competing and collaborating with the industry, and promoting a win-win industry ecosystem.

2. Cultivate internal skills and deliver reputation. When the market environment is unsatisfactory, it is a good time to polish one's internal skills. Damon is committed to building the three core forces of product competitiveness, project core capabilities, and quality vitality. We carry out micro innovation and application innovation in the product field, achieve comprehensive optimization in quality, delivery, and cost; Develop key industry solutions based on project core competencies and build a full process project fulfillment system; It is particularly important that all members of Damon regard quality as their life, create a quality management throughout the entire life cycle, and adhere to the four NO principles of "No Transmitting, No Entering the site, No Leaving the factory, No going abroad" for defective products.

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Globalization: leads one step, advances further, contributes China's new qualities strength

Damon began its exploration of globalization in 2010, became a pioneer in China's logistics equipment going global. It was the first to invest in production bases in Australia and Romania, and its business model went through a business cycle from product cooperation to project delivery, going from resource investment, cultivation exploration to harvest of results. At present, Damon has landed over 3000 projects in more than 30 countries and regions on five continents worldwide, delivering good reputation. High potential and difficult markets such as Europe, the United States, South Africa, and Central Asia are gradually breaking through, Damon’s globalization is in the ascendant, from rapid development in 2020, progressed to accelerated localization starting in 2024. The culture, labor, safety, and technical standards in different countries market are vastly different, and risks and opportunities coexist. Globalization development must remain calm and avoid pitfalls. Damon has always adhered to deploying local resources and serving local customers, committed to becoming a trusted provider of intelligent logistics equipment and solutions for global customers. China's logistics equipment globalization, Damon is one step ahead and further advancing.


Regarding globalization, Damon calls for contributing China logistic equipment new quality strength to global market. Mr. Wu Zhonghua, on behalf of Damon, proposes the following four suggestions for the industry to go global from four aspects: reshape reputation, ecological cooperation, China innovation, and long-term orientation.


1) Reshape reputation: Made In China was once a negative label of poor quality. Chinese logistics equipment needs to work together to reshape the reputation of "Made in China", bring mature products abroad, and bring excellent "Made in China", "Chinese projects", and "Chinese deliveries" to overseas markets.

2) Ecological cooperation: In the domestic market, logistics equipment manufacturers are accustomed to fighting alone. Faced with complex international markets, Chinese enterprises need to truly achieve ecological cooperation, business collaboration, sharing experience, and sharing resources.

3) China innovation: Chinese enterprises represented by Geek+, Mushiny, Libiao, and Damon have brought innovative products such as AGV/AMR, put wall, Minni Yellows, AirRob, and narrow belt sorter to the world, representing Chinese innovation and bringing new China strength to the global market.

4) Long termism: Chinese companies need to overcome a short-term business mindset of order based approach when going abroad, adhere to a long-term mindset, invest resources, layout manufacturing, service, and implementation. Inevitably, entering unfamiliar markets will inevitably result in paying tuition fees and stepping into various pitfalls such as cultural customs, religion, labor laws, safety certification, and design standards. Do not easily leave when facing errors or challenge, long-term efforts are the only way to reap the fruits of globalization.

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High quality and globalization are the sustainable and healthy development paths that Damon has always adhered to in the past, present, and future. During the critical period of China logistics industry's transformation from large to strong, Damon will work together with more intelligent logistics ecosystem partners to embark on a high-quality development path and share the fruits of global development.

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