In July 2024, with the successful completion of the final step of the business organization change process, the acquisition of the high-precision processing factory by Matorly was officially settled. From then on, a Chinese manufacturing enterprise with strong independent research and development, production and sales capabilities successfully completed its industrial chain, and Matorly's comprehensive strength took a significant step forward.

▲ Matorly's Acquisition of the High-Precision Processing Factory

In recent years, in response to the national policy of transforming from a "manufacturing giant" to a "manufacturing power", Matorly has continuously strengthened its investment in product research and development and technological consolidation, making unremitting efforts to achieve the domestic substitution of high-pressure fluid control equipment and components, especially in the determination to overcome key technological bottlenecks. Since the outbreak of the epidemic, the global economy has continued to decline. Even more than a year after the end of the epidemic, the long-tail effect brought by the epidemic is still very obvious. Against the backdrop of a complex international situation, customers are increasingly emphasizing cost control in projects and the stability and reliability of their partners' supply chains, which is particularly evident in the manufacturing industry. With the growth of global energy extraction projects, Chinese-made equipment and components have faced new challenges in going global. The increasing number of orders and the demand for timeliness, as well as the increasingly strict production standards for precision processing, all indicate that the acquisition is a move in line with the trend.

Matorly has nearly a decade of product research and development capabilities, and the high-precision organization specializing in precision processing also has the favorable background of technical experts from Kefeng, a leading domestic processing enterprise. In fact, before the acquisition, Matorly and the high-precision team had already established a very close production cooperation relationship. Eventually, based on its global strategic layout, Matorly acquired the high-precision organization. The strong combination of the two productive forces is greater than the sum of their parts, marking the complete establishment of Matorly's independent supply chain system for high-pressure fluid components.

CICC Capital: "We are optimistic about the integration of the two parties!"

The capital dynamics in the energy sector remain vigorous even after the pandemic. The active capital flow indicates that the industry demand is still on the rise. Domestic profitable enterprises are continuously investing to expand their scale and capture the market. Amidst the tense Sino-US relations, all industries are promoting domestic production to break free from constraints. Against the backdrop of an economic downturn, the clients not only pay attention to the attributes and qualifications of the enterprises but also attach great importance to the cost control of the projects and the stability of the supply chain. As a purely Chinese-funded enterprise, the acquisition by Matorly has strengthened its strong supply chain integration, enabling it to better meet the urgent demands of the current market.

After the completion of the merger and acquisition, Matorly has seen an all-round enhancement in its comprehensive strength. In the future, the sustainable development of Matorly will be deeply rooted in the market along three major dimensions:

01 Value-centered: Firmly rooted in technology, we continuously strive to lead the industry.

From past business interactions, it is not hard to notice that before the pandemic, domestic customers did not fully trust domestic components and long relied on imported products. During the pandemic, it was found that this approach greatly hindered the normal operation of projects. If this situation persists, it will affect the operation of enterprises and may even bring them down.

Matorly has been deeply involved in the energy industry for nearly a decade, witnessing the origin and application process of domestic substitution. Similar to the well-known semiconductor and chip industries, it is an inevitable path to completely break free from foreign constraints and develop its own technological capabilities. With this acquisition, Vitel has integrated nearly a hundred modern precision processing equipment and over 40 senior technicians on top of its existing R&D, manufacturing, and assembly capabilities. At the signing ceremony, Mr. Peng Qidong, the representative of Matorly, expressed his expectations:

“The acquisition is just the beginning. In the future, we will continue to increase our investment in the precision processing sector. With the Chinese Dream in mind, one day, we will be able to reach or even surpass the leading precision processing capabilities of Germany in the global arena. “

02 Customer-Centric: Striving for Perfection to Build a One-Stop Supply + Service Full Chain Link

The business philosophy of Matorly is: always customer-centered and constantly pursuing excellence.

In its early days, Matorly focused on the energy extraction sector. Currently, its product line has expanded from oil and gas, hydrogen energy to military, aerospace, laboratory equipment homogenizers and other general sub-sectors. The main battlefield in the energy industry has always been centered on cost reduction, quality improvement, safety, efficiency enhancement, and on-time delivery. With years of project service experience and successful cases in multiple major projects of CNOOC, Matorly has continuously optimized its products and service systems, established service standards for the main industry, and led the industry towards standardization and professionalization.

▲ Matorly Product Line (Part)

Compared with enterprises of the same scale, Matorly relying on its solid digital infrastructure, continuously builds advanced industry productivity from the procurement end to the sales end, from the talent end to the financial end, from product production to customer service, meeting customers' demands for different delivery times and higher quality products.

03 Centered on culture: Promoting both localization and globalization, emphasizing multi-level development of enterprises.

When it comes to the integrated corporate culture and values, Matorly is firmly committed to promoting the mission of making energy development and utilization safer and smarter. It also coincides with the high-precision processing organization in proposing the vision of advancing both domestic production and globalization simultaneously, and driving new growth through globalization.

The integration of the two companies not only represents the consolidation of their technical capabilities but also a deep fusion of their corporate cultures. While the acquisition was being completed, the vision of globalization was already deeply engraved in the sights of Matorly people.

As an energy service enterprise committed to sustainable development, we focus on both corporate culture and talent training. We persist in deepening cooperation between schools and enterprises, and establish specialized talent cultivation systems by linking core positions with corresponding universities. We fully integrate people and tasks to maximize the operational efficiency of the enterprise!

The acquisition is just the beginning. The future is here. The Matorly team is ready to accelerate and run forward. On the journey ahead, we invite you to witness the mission and glory of Matorly together!