The principle of turbocharging technology is to use the high-temperature gas discharged

from the combustion cylinder to drive the impeller of the turbine cylinder to rotate, and then

drive the impeller of the compressor end to rotate through the bearing of the middle shell,

so as to press the fresh air into the cylinder, so as to ensure the optimal ratio of burning air

and fuel 14.7 As of November 2020, turbochargers can increase engine thermal efficiency

by 10% to 40%, but with the continuous innovation of existing turbocharger technology,

turbochargers may be able to boost engine thermal efficiency by 45% or more.

Turbo shells and intermediate shell supplier belongs to second-tier suppliers in auto parts

industry As a result of the auto parts supplier selection process time-consuming (3 years),

and high quality production management technology innovation standard cost, between all

suppliers so easy to keep relatively long and stable relations of cooperation Due to the turbine

shell and shell products manufacturing is difficult in the middle Casting process involves energy

consumption safety and environmental protection requirements of high project interruption will

cause customer loss, automobile and machine equipment manufacturers prefer to cooperate

with enterprises with strong research and development capacity, strong production technology

and better quality control system.

In 2025, the number of new cars in China is expected to reach 30.573 million, of which 27.128

million new cars with potential turbocharger demand, accounting for more than 88.7%. The

Turbocharger industry has huge growth potential. According to the sales volume of turbocharger

market size from 2015 to 2019, the compound annual growth rate is 1.8%. The compound annual

growth rate is expected to reach 11.9%. The turbocharger demand for hybrid electric vehicles and

hybrid plug-in hybrid electric vehicles will grow strongly in the future.

In terms of sales volume, the market size of Turbine casing in China is expected to reach 26.704

million units in 2025, and the cagR is expected to reach 12.5% in 2020-2025. The ratio of

intermediate shell and turbine shell is mostly 1:1, so the market size of Chinese intermediate shell

and its compound annual growth rate from 2020 to 2025 will remain at the same level as that of

turbine shell. Influenced by turbochargers at the demand end, it is expected that the market size

of turbine shell and intermediate shell will continue to grow in the future.