Annual Letter 2023 | Reviewing the 15-Year Development Journey of SENTINEL

As the General Manager of SENTINEL Electronics, I am proud to announce that 2023 marks a significant milestone: the 15th anniversary of our company's founding. This year is not only a reflection of our past achievements but also an opportunity to look forward to the future. In this special year, we have revisited our growth journey and set clear goals for the future.

Celebrating 15 Years: Achievements and Prospects

Over the past 15 years, we have evolved from a startup to a leader in the industry. Each step has witnessed our growth in technological innovation, market adaptability, and team building.

Since the establishment of SENTINEL, we have independently developed four major categories of products, covering more than 300 models. Our product innovations demonstrate our ability to adapt to market changes. Although we have discontinued some product lines, such as encoders, this is a reflection of our sensitivity to market trends.

Looking back over the past 15 years, our development path has been relatively smooth. Although we did face challenges, especially in sales, in 2016 and 2017, these challenges did not last long. We quickly adjusted our strategies and maintained a robust development momentum.

We have adopted a rolling development model, proceeding steadily step by step. I have often pondered whether to pursue leapfrog or rolling development. Leapfrog development might involve introducing capital, collaborating with others, or acquiring and being acquired. However, ultimately, the rolling development model has proven key to our long-term success. There's no right or wrong approach, only outcomes.

Product R&D: Focusing on Internal Development

Over the past 15 years, SENTINEL Electronics has invested significantly in product development. We have continually improved the performance and functionality of our products, a necessary process for any brand to withstand market and customer tests. This process involves moving from imperfect performance and functionality to continuous trial and error, then continuous improvement, striving for perfection. Currently, our products, whether in terms of quality or appearance, are industry-leading, and we are confident in facing the market.

Enhancing Sales: Core Goal for 2024

However, our current shortfall is in sales. For 2024, SENTINEL Electronics will focus on sales. This is part of the company's development process. If our product performance and output were problematic, the company would lack confidence in sales and cooperation. But because we have always worked hard on internal R&D and product perfection, we are now ready for broader cooperation with the outside world.

Additionally, I encourage all employees to learn new technologies, enhance their abilities, and solve problems independently when possible, rather than relying entirely on others. As everyone knows, at the end of last year, an AI chat tool, ChatGPT, became globally popular. Its emergence is not just a fleeting trend; it's an AI revolution. In such an uncertain era, understanding it is the only way to keep pace with the times.

Innovation Based on Customer Needs

SENTINEL's core business philosophy is driven by customer needs, ensuring our products and services always align with market demand. Although we don't have much experience in creating entirely new products from scratch, we focus on innovating based on existing products. For example, if a customer needs a certain product, we first see if we have the technological strength and resources. If it's related to our products, we can use some of our accumulated technology and knowledge to meet customer needs. In short, our survival must be based on continuous innovation. Only through continuous innovation can we improve the cost-effectiveness of our products and benefit both us and our customers.

Having completed the overall introduction of the company, I will now summarize the products released in 2023 and the new product plans for 2024.

2023 New Product Achievements

IO-Link Products

IO-Link Master Station Products

This year, we proudly launched three IO-Link Master station products, each reflecting our deep understanding and rapid response to specific market needs.

• ELPN-8IOL-0001/EH: This is a master station product specially customized for E+H flow meters, showcasing our expertise in industry-customized solutions.

• ELPN-8IOL-004B: This product has 4 Class A and 4 Class B IO-Link ports, demonstrating our foresight in multifunctional integrated product development.

• ELBC-8IOL-0001: Hardware and software debugging is nearing completion, with only port issues remaining. We expect to start production in the first half of next year.

IO-Link Device Substation Products

We also launched three types of IO-Link Device substation products, totaling 8 models, ranging from analog input stations to substations that do not require auxiliary power sources, to Class B substations, and IO-Link valve islands. Each model represents our commitment to product performance and reliability.
 

Fluid Sensors

Based on specific customer needs, we custom-developed the following two fluid sensors:
 

• Dual Display Flow and Temperature Sensor (PLSL-18MN-P2A6D-SC): This product features dual display for flow and temperature, with two 4…20mA analog outputs and two switch outputs, exemplifying our response to individual customer needs.

• General-Purpose Flow Switch (PLSU-18MN-AP6D-SC): Stainless steel casing and probe, potentiometer adjustment, suitable for monitoring water flow in pipelines, capable of outputting an alarm signal when the flow is too low, demonstrating our pursuit of sensor universality and ease of use.

New Series of Smart Sensors

Additionally, we have upgraded our flow, pressure, and temperature sensors, launching a new series of smart sensors. These sensors represent a breakthrough in appearance design and manufacturing processes, with the following features:
 

• Appearance and Craftsmanship: Adopting a new design concept combined with modern manufacturing processes, giving the products a more modern and professional appearance.
• Display Technology: New digital tube display technology ensures clear readings even in dim light, significantly enhancing penetration and readability.
• Dual Data Display: Optimized user interface, displaying dual data simultaneously without the need for user switching, improving efficiency.
• Display Face Design: Integrated design of the display face, not only more aesthetically pleasing but also improved in terms of protection.
• Adjustable Viewing Angle: Supports at least 300 degrees of rotation, allowing users to adjust for the best viewing angle based on installation position.
• Communication Function: Integrated IO-Link communication, supporting parameter setting via IO-Link and direct operation via buttons.
• Interface Compatibility: Compatible with international mainstream sensor interfaces, enhancing product applicability and convenience.
• Multifunctional M12 Interface: The 4th pin of the M12 interface can be used for IO-Link communication or as a switch output, supporting various output mode settings, such as normally open, normally closed, NPN, PNP, hysteresis mode, window mode, etc.
• Flexible Configuration of Switch and Analog Outputs: The 2nd pin provides switch or analog output, which can be flexibly configured according to needs, meeting different application scenarios.
• User Operation Experience: Supports button lock function to prevent misoperation and has an auto-exit feature for safety in no-operation scenarios; also supports analog output start and end values setting, as well as point-on power display function, further enhancing the user experience.

Mini Vortex Flow Meter

This is a new product we are about to launch, having completed the development of basic functions. It features IO-Link communication, analog output, and switch output. We are currently finalizing the product's appearance.

R&D Plan for 2024

For 2024, we have identified the following R&D plans:
 

1. IO-Link to RS485 Module: A customized solution to connect WAGO IO-Link Master and customer RS485 devices, waiting for customer confirmation of technical protocols before moving to the next development stage.
2. Upgraded IO-Link Master Module: We plan to add transmission channels, improve port short-circuit protection, and add 2-pin switch input-output functionality, enhancing module performance and user experience.
3. Enriched IO-Link Device Module: We will design selectable input-output modules, expandable modules, and analog output modules, making our product line more comprehensive and diversified.
4. Expandable IP20 Module (Plug-in Type): We will further expand our product categories to meet diverse market needs.
5. ETHERNET/IP Protocol Bus Module: This will be another new development in our product line, enhancing our products' network communication capabilities.

Participation in Exhibitions in 2023

This year, our products were exhibited at the following shows, receiving widespread attention and recognition from industry insiders:
 

1. Shanghai Industry Fair in September
2. Suzhou Industrial Manufacturing Exhibition in September

Foundation of a Business: Serving Society

Reflecting on the past 15 years, our goal has been to create solid and substantial products to serve society. Only by serving society and being useful to it can we continue to exist. This past year, our employees have been full of enthusiasm and drive, looking forward to greater leaps and developments in the coming year.