Yuejiang Technology, the leader in collaborative robots, submits IPO prospectus

In September 2012, Liu Peichao was admitted to the Graduate School of Shandong University.

In October 2014, Liu Peichao, who loves to make trouble, decided to go south to Shenzhen with like-minded classmates to pursue their dreams together.

In July 2015, Liu Peichao, who has been specializing in the research of intelligent robotic arms, and his team jointly developed the first desktop-level intelligent robotic arm. This innovative robotic arm concept with a lightweight design became an instant hit on overseas crowdfunding platforms, quickly gaining more than a thousand pre-orders, achieving remarkable results.

Taking this opportunity, Shenzhen Yuejiang Technology Co., Ltd. (hereinafter referred to as "Yuejiang Technology") was officially established.

Today, Yuejiang Technology has become the leader in the robotic arm segment.

On June 27, Yuejiang Technology submitted a listing application to the Hong Kong Stock Exchange, intending to seek a listing on the main board of the Hong Kong Stock Exchange under Chapter 18C of the Listing Rules. This is the third specialty technology company to submit an application to the Hong Kong Stock Exchange.

The sponsors of this IPO include Guotai Junan International and ABC International.

Looking back to January 2023, CICC’s official website issued an information announcement that Yuejiang Technology was in the guidance stage for its initial public offering, and it was expected that the guidance period would be completed between April and May of the same year.

Collaborative robots Leader

Speaking of collaborative robots , everyone knows Yuejiang Technology.

Yuejiang Technology is committed to the research and development and application innovation of intelligent robots , focusing on the research and development, production, sales and service of intelligent robotic arms and other intelligent hardware products.

Since its establishment, Yuejiang Technology has developed the world's first desktop collaborative robot and is the first robot company with a 0.5-20 kg load product matrix. It has more than 20 collaborative robots in seven series, including CRA, CR, CRS, MG400, M1Pro, Nova, and Magician. The cumulative global shipments have reached 72,000 units, and they are sold in more than 100 countries and regions, covering more than 15 industries including 3C, automobiles, semiconductors, chemicals, medical care , metal processing, food and beverages, and new retail.

Public information shows that based on shipments in 2023, Yuejiang Technology ranks among the top two in the global collaborative robot industry and ranks first among all collaborative robot companies in China, with a global market share of 13.0%.

At the same time, Yuejiang Technology is one of the few participants in the global industry that has its own full-stack technology covering the entire process of collaborative robot development. This technology includes collaborative robot design and manufacturing, key component development, control system development, key algorithm formulation and iteration, multi-functional collaborative robot deployment for different tasks, and AI function development.

As the leader in the robotic arm segment, Yuejing Technology naturally has no shortage of capital favor.

Since its establishment, Yuejing Technology has experienced 8 rounds of financing, with an impressive capital lineup, including state-owned capital platforms such as China Internet Investment, Shenzhen Investment Holdings, CICC Capital, CRRC Capital, as well as star VC\PE such as Higgs Innovation, Entertainment Factory, Songhe Capital, Wen's Group, Yunhui Capital, and Potential Capital.

The gathering of these investors with different backgrounds but equally strong strength is not only a strong affirmation of Yuejiang Technology's market leadership and future development potential, but also a solid support for it.

As of December 31, 2023, Yuejiang Technology held cash and cash equivalents of RMB 111 million.

In the light

At present, Yuejiang Technology is officially aiming to become the "first collaborative robot stock".

So, what have been its achievements in recent years?

According to the prospectus, Yuejiang Technology's revenue showed an upward trend in 2021, 2022 and 2023, reaching approximately 174 million yuan, 241 million yuan and 287 million yuan, respectively, but the corresponding annual losses continued to increase, reaching approximately 42 million yuan, 52 million yuan and 103 million yuan, respectively; the adjusted losses were 43.04 million yuan, 39.90 million yuan and 81.82 million yuan, respectively.

In terms of gross profit margin, Yuejiang Technology's gross profit maintained an upward trend, reaching RMB 88.08 million, RMB 98.217 million and RMB 125 million respectively; the gross profit margins were 50.5%, 40.8% and 43.5% respectively.

Regarding R&D investment, Yuejiang Technology has shown a steady growth trend, increasing from RMB 46.9 million in 2021 to RMB 52.1 million in 2022, and then to RMB 70.5 million in 2023. These figures accounted for 26.9%, 21.6% and 24.6% of the total revenue in their respective years, respectively, demonstrating the company's continued emphasis on and investment in technological innovation.

As of June 17, 2024, Yuejiang Technology has obtained 186 invention patents, 302 utility model patents and 125 design patents.

According to statistics, the scale of my country's collaborative robot market has grown rapidly in recent years. As of 2022, the scale of my country's collaborative robot market is about 3.49 billion yuan. It is expected that by 2024, the scale of China's collaborative robot market is expected to exceed 2.5 billion yuan.

Looking at the global market, it is estimated that by 2026, the market size will be close to 23 billion yuan, of which sales in the Chinese market are expected to exceed 100,000 units.

Although Yuejing Technology is temporarily stuck in the "quagmire" of accumulated losses of about 200 million yuan, its future is bright.

Last words

It is worth mentioning that Jieka Co., Ltd., one of the "Three Heroes of Collaborative Robots", took a key step as early as December 2022, signed a listing guidance agreement with Guotai Junan Securities, and successfully obtained the acceptance approval of the exchange in May 2023.

However, the process was not smooth. In September of the same year, the Shanghai Stock Exchange had to suspend its listing review process because the financial information in the listing application documents it submitted had expired and new materials were urgently needed.

Fortunately, after quick response and preparation, Jieka Co., Ltd. promptly updated and resubmitted the required financial information in December of the same year. Then the Shanghai Stock Exchange restarted the review process for its listing application, allowing the IPO journey to continue.

According to the prospectus, Jieka shares plans to raise 750 million yuan, which will be invested in the annual production of 50,000 sets of intelligent robots, R&D center construction projects and the replenishment of working capital.

According to the last round of financing, the company's pre-investment valuation had reached 3.5 billion yuan.

During the financial reporting period from 2020 to the first half of 2023, the financial performance of Jieka shares showed ups and downs:

In 2020, 2021, 2022 and the first half of 2023, the net profit attributable to shareholders of Jieka Co., Ltd. was -23.9578 million yuan, -7.2331 million yuan, 5.7357 million yuan and -11.0549 million yuan respectively; the net profit attributable to the parent company after deducting non-recurring items was -26.1291 million yuan, -18.4638 million yuan, 44,000 yuan and -12.3307 million yuan respectively.

The overall situation shows a fluctuation from loss to short-term profit and then back to loss.

In addition, AUO Robotics, as another strong competitor that cannot be ignored in this field, has successfully completed eight rounds of financing so far, which makes people curious about the next step of its IPO plan.

In this context, "collaborative robots" have become a new battlefield for financing and listing, where many leading companies in the robotics industry are competing fiercely. All parties have increased their investment, trying to seize the initiative in this emerging blue ocean and compete for the title of "the first collaborative robot stock."

Who will be the first to enter the capital market and win this honorable title is undoubtedly the focus of attention both inside and outside the industry.