The development of Shanghai's electrical industry in the early Republic of China period was closely related to repair work. In 1914, Qian Yongsen, a skilled worker who had been the head of the repair department at the German-owned Rihai Company, hired an apprentice and set up Qian Yongsen Electrical Appliance Store (now Shanghai Nanyang Electric Motor Factory) in Huangjiazhai, Zhabei. The main business was to purchase old DC motors from outside, repair them, and sell them. Although he did not understand theoretical calculations and design, his craftsmanship was high, and he had rich experience. He could adjust product design by weighing copper wire and silicon steel sheets. He imitated 25 Siemens 10 kW enclosed electric motors, which were sold to Shenxin Textile Factory and received praise.

  In 1916, Yang Jichuan, Ye Youcai, and Yuan Zongyao, employees of the company, jointly raised funds and hired seven workers to set up Huasheng Electrical Appliance Manufacturing Factory (now Shanghai Revolutionary Electric Motor Factory and Huasheng Electrical Appliance General Factory) in Hongkou. They began imitating electric current limiting tables.

  In 1917, they produced the first domestically made DC generator. In 1922, their products, including an 8 kW DC generator and a 60 ampere electroplating generator, won top prizes at the Shanghai Chamber of Commerce exhibition. That same year, Huang Yizhu, a Nanyang Overseas Chinese, Yang Jingshi, Liu Xiqi, and Zhou Qi jointly invested 150,000 silver dollars to set up Shanghai Yi Zhong Machinery Co., Ltd. (now Shanghai Vanguard Electric Motor Factory) in Pudong.

  In 1924, the company produced the first domestically made AC induction motor, which was sold to Yong'an Textile Factory. In 1925, Cai Shutou (formerly known as Cai Shaodun), who had studied in Japan, set up Shao Dun Electric Motor Company and manufactured high-frequency spark discharge machines.

  Zhou Jishui, the original owner of a hardware store in Hankou, had visited electric motor manufacturing factories in Japan in 1926. After returning to China, he produced small electric motors. In 1930, at the invitation of Ye Youcai, the manager of Huasheng Electrical Appliance Factory, Zhou set up Huacheng Electrical Appliance Manufacturing Factory (now Shanghai Vanguard Electric Motor Factory) in Nanshao Town. At that time, there were eight machine tools and more than 50 workers.

  In 1932, they began mass-producing 1-10 horsepower AC induction motors, becoming the first factory in China to do so. The factory adopted a business strategy of "testing before use, guaranteeing repair and replacement, and only paying after satisfaction." At the same time, they could supply products according to the actual voltage used in Chinese rural areas, with good quality and low prices. Sales were very good, and by 1935, daily production had reached 27 units.

  At that time, five foreign companies from Japan, Britain, the United States, Germany, and Switzerland joined forces to cut prices and dump products on the market, but they failed to suppress Huacheng Factory.