Analysis of Globalization Strategy Challenges for Changjiang Energy Technology: Development Dilemmas Behind 46.46% Overseas Revenue Share

Based on the information obtained, the analysis of globalization strategy challenges for Changjiang Energy Technology (Changjiang Sanxing Energy Technology Co., Ltd., stock code 920158) with 46.46% overseas order share is as follows:

According to prospectus data [1], Changjiang Energy Technology’s overseas project revenue shows rapid growth:

• 2022
  : Overseas project revenue was 26.7413 million yuan, accounting for ~12.21% of operating revenue
• 2023
  : Overseas project revenue was 69.9279 million yuan [1]
• 2024
  : Overseas project revenue reached 145.8912 million yuan, accounting for
  46.46%
  of operating revenue [1]

The company’s products have been sold to over 20 countries and regions including Singapore, Indonesia, Algeria, Niger, Iraq, Brazil, Chad, and Kazakhstan. It has also obtained qualified supplier status from international renowned enterprises such as Abu Dhabi National Oil Company (UAE), Kuwait Oil Company, QatarEnergy, Petrobras (Brazil), and Pemex (Mexico) [1].

The company clearly states: “The company’s overseas business is mainly conducted through China’s three major oil companies, with limited direct cooperation with foreign customers” [1]. This over-reliance on central enterprise channels poses significant risks—any adjustment in central enterprises’ overseas strategies could severely impact the company’s overseas business.

• Weak direct cooperation capacity
  : Lack of direct business links with overseas customers, relying heavily on intermediate channels
• Limited brand awareness
  : International market brand influence and customer trust need improvement
• Incomplete sales network
  : Lagging construction of overseas marketing networks and after-sales service systems

While the company plans to complete the establishment of its Hong Kong subsidiary by March 2025 and intends to set up a grandson company in Dubai to focus on the Middle East [1], challenges remain:

• Complex and volatile political situation in the Middle East
• High geopolitical risks
• Large differences in regional market access standards

The prospectus discloses: “Compared with peers, the company has smaller scale and production capacity. With the trend of large-scale and integrated energy chemical equipment and increasing product types, production capacity has become one of the main constraints on development” [1].

“Business expansion relies on forward-looking technology research, product R&D upgrades, and project delivery capabilities—all dependent on high-quality employees” [1]. Overseas expansion requires a large number of professionals with international vision and cross-cultural communication skills.

“Currently, capital needs are mainly met through bank loans or shareholder investments, which restricts business development, R&D investment, and further growth to some extent” [1]. Global expansion requires significant capital input, and funding constraints may hinder overseas strategy execution.

The global energy chemical equipment market is highly competitive. The company faces fierce competition from established enterprises in developed countries, with gaps in technology, brand, and service networks.

To address the above challenges, the following suggestions are proposed:

1. Build an overseas direct sales team
   to reduce reliance on central enterprise channels
2. Improve overseas service networks
   to enhance customer service response capabilities
3. Strengthen international talent training
   to establish cross-cultural management teams
4. Increase R&D investment
   to boost core technical competitiveness
5. Diversify market layout
   to reduce single-region risks

The company is in a critical period of rapid overseas business expansion. Effectively managing risks while maintaining growth will be key to the success of its globalization strategy.

[1] Prospectus of Changjiang Sanxing Energy Technology Co., Ltd. (http://pdf.dfcfw.com/pdf/H2_AN202509221748525856_1.pdf)