Is the company invested by the National Manufacturing Fund competing with Hikvision for the first spin-off IPO?

Humanoid Robot The special high-speed train is leaving!

In November 2023, the Ministry of Industry and Information Technology issued the "Guiding Opinions on the Innovation and Development of Humanoid Robots", proposing that by 2025, core technologies will have achieved breakthroughs, complete products will have reached the international advanced level, and mass production will have been achieved; it is planned that by 2027, the technological innovation capabilities of humanoid robots will have been significantly improved, a safe and reliable industrial chain and supply chain system will have been formed, and the comprehensive strength will have reached the world's advanced level.

On the same day, Xiaomi Robotics, UBTECH Robotics and Beijing Industrial Investment jointly established Beijing Humanoid Robot Innovation Center Co., Ltd. with a registered capital of 300 million yuan. This will be the first provincial humanoid robot innovation center in the country. It plans to build the world's first "hardware mother platform" for general humanoid robots and the first "software mother platform" for large models + open source operation and control systems.

In the field of core components, the spin-off and listing of Shuanghuan Transmission's holding subsidiary Huandong Technology has made new progress. According to information disclosed on the website of the China Securities Regulatory Commission, Huandong Technology has signed a listing guidance agreement with GF Securities and is expected to complete its IPO application in the first half of next year.

Development Line of Huandong Technology

Zhejiang Huandong Robot Joint Technology Co., Ltd. (referred to as "Huandong Technology") is a wholly-owned subsidiary of Shuanghuan Transmission. As the leader in gear transmission, the company's main products are passenger car gears, commercial vehicle gears, construction machinery gears, RV reducers, harmonic reducers, etc. According to the financial report, the total revenue in 2022 was 6.8 billion and the net profit attributable to the parent was 785 million yuan.

Since 2013, Shuanghuan Transmission has started to develop RV reducers and has gradually become a leading supplier of robot reducers in China; in 2018, the company began to develop harmonic reducers and has shipped them in batches in 2022. Years of industry accumulation have enabled Shuanghuan Transmission to form a full-chain industrialization capability for high-precision reducers.

Since 2020, Shuanghuan Transmission has separated out the robot reducer business and established Huandong Technology. According to the 2022 financial report, Huandong Technology's revenue reached 176 million yuan.

In January 2023, Shuanghuan Transmission, a listed company on the A-share market, issued an announcement, agreeing that its holding subsidiary Huandong Technology would introduce seven investors including the National Manufacturing Fund, Advanced Manufacturing Fund, Temasek, Yuhuan Guotou, Chun'an Zhejiang Huan, and Jiaxing Huansu to increase capital and expand shares, and signed the "Capital Increase Agreement" and "Shareholder Agreement" and other relevant documents.

This strategic investment has raised a total of RMB 290 million in capital increase. After the capital increase is completed, the registered capital of Huandong Technology will increase from RMB 28.50 million to RMB 32.6325 million, and the company's equity ratio in Huandong Technology will change from 70.18% to 61.29%. Huandong Technology will remain a wholly-owned subsidiary of the company and will continue to be included in the company's consolidated financial statements.

On September 25, 2023, Shuanghuan Transmission held a board of directors meeting and a board of supervisors meeting, and respectively reviewed and approved the "Proposal on Planning the Spin-off and Listing of Controlling Subsidiaries". The board of directors agreed to the planning of the spin-off and listing of the controlling subsidiary Huandong Technology. On the same day, Shuanghuan Transmission issued the "Reminder Announcement of Zhejiang Shuanghuan Transmission Machinery Co., Ltd. on Planning the Spin-off and Listing of Controlling Subsidiaries", and Huandong Technology officially embarked on the road of spin-off and listing.

Hikvision Robotics and Huandong Technology, who will be the first to IPO?

In the robotics industry, spin-off listing is not a new idea. At the end of 2022, security giant Hikvision successfully spun off its smart home subsidiary EZVIZ Network and listed it. Then in March 2023, Hikvision followed suit and spun off its subsidiary HikRobot. On March 7, the Shenzhen Stock Exchange accepted its IPO application and received the first round of inquiry letters on March 30.

According to the "Plan for the Spin-off of Subsidiary Hangzhou Hikvision Robotics Co., Ltd. (hereinafter referred to as "Hikvision Robotics") on the Shenzhen Stock Exchange's Growth Enterprise Market", Hikvision directly holds 60% of Hikvision Robotics' shares and is its controlling shareholder. After the spin-off is completed, Hikvision's equity structure will not change and it will still maintain its controlling stake in Hikvision Robotics.

Hikvision Robotics encountered some minor setbacks on its road to listing. On June 30, Hangzhou Hikvision Robotics Co., Ltd. needed to submit additional financial information because the financial information recorded in its IPO application documents had expired. According to the relevant provisions of the Shenzhen Stock Exchange Stock Issuance and Listing Review Rules, the Shenzhen Stock Exchange suspended its issuance and listing review.

This unpleasant episode ended on July 24. According to the relevant provisions of Article 61 of the "Shenzhen Stock Exchange Stock Issuance and Listing Review Rules", Hikvision Robotics has completed the update of its financial information and the Shenzhen Stock Exchange has resumed its issuance and listing review.

Hikvision Robotics signed a coaching agreement with CITIC Securities on September 9, 2022 and started coaching work. More than a year has passed since then. On October 10 this year, Hikvision mentioned in its Q3 report that it is steadily advancing the listing of Hikvision Robotics, and the industry estimates that it is expected to successfully IPO next year.

One is a parts supplier that has taken the humanoid robot express train, and the other is a traditionally popular mobile robot manufacturer. Which of the two split-off companies will successfully go public first? Let us wait and see.