Son Zhengyi invests 300 million, card-saving robot sprints for the Science and Technology Innovation Board IPO

Masayoshi Son loves robots. He was a fan of Astro Boy when he was a boy. When he grew up and became powerful, Masayoshi Son has dabbled in the robot industry globally through his investment fund SoftBank. In 2017, he will also launch a star robot. The company Boston Dynamics is in the bag.

In recent years, Masayoshi Son has successively invested in companies such as Youai Zhihe, Siling Robot, Qinglang Intelligent and Card-Saving Robot in China. Currently, a Chinese robotics company invested by SoftBank is challenging the capital market, hoping to win the title of "the first collaborative robot stock" on the Science and Technology Innovation Board.

On May 9, according to information on the official website of the Shanghai Stock Exchange, Jieka Robot’s IPO application for the Science and Technology Innovation Board was accepted, and the sponsor was Guotai Junan.

Source: Shanghai Stock Exchange official website

It is reported that Jieka Robot is mainly engaged in the research and development, production and sales of collaborative robot products, and is engaged in robot system integration business including integrated equipment and automated production lines. This time it will hit the Science and Technology Innovation Board IPO and plans to raise funds. 750 million yuan will be used to expand production capacity and build R&D centers.

Collaborative manipulator is one of the branches of industrial robots in specific application fields, also known as collaborative robots. The global sales volume of collaborative robots in 2021 is 39,000 units, of which the sales volume of card-saving robots is 2,267 units, accounting for about 6% of the global market.

At present, in the field of collaborative robots, the main domestic and foreign companies include Universal Robots from Denmark, Aubo Robotics from Beijing, E-Deodar from Suzhou, Jaka Robotics ) is from Shanghai. Yuejiang Technology has launched a listing guidance plan in February this year, and Aobo Company is expected to land on the Science and Technology Innovation Board market in the third quarter of this year. It remains to be seen whether the Card-Saving Robot, which has submitted its listing application, can successfully become the “first collaborative robot stock”

6 rounds of financing in 7 years, SoftBank, SAIF and Temasek are shareholders

Due to the weak technical capabilities of Chinese industrial robot manufacturers, most participants in the market are mainly integrated, and the core technologies of key components are all in the hands of foreign companies. Therefore, in the past, more than 60% of the Chinese industrial robot market was occupied by foreign brands of industrial robots such as ABB, KUKA, FANUC, and Yaskawa.

It wasn’t until Li Mingyang discovered the huge potential of collaborative robots that he broke his original belief that Chinese industrial robots would have little chance of breaking through. At that time, foreign industrial robot giants did not pay enough attention to collaborative robots, and the market was not developed. Therefore, in the field of collaborative robots, China could start on the same starting line as traditional industrial giant robot manufacturers, and could even change lanes and overtake.

In July 2014, Li Mingyang formed a team to establish the Card-Saving Robot Company. As an alumnus of Shanghai Jiao Tong University, Li Mingyang first found the Robotics Research Institute of Shanghai Jiao Tong University. The two parties joined forces with the Intelligent Equipment Research Center to conduct cutting-edge research and development of the core technology of the robot body. Professor Zhu Xiangyang was selected as the chief scientist of the scientific advisory team hired for the festival.

In this way, teachers from Shanghai Jiao Tong University developed prototypes, and Jieka engineers were responsible for product and application development. Jieka robot was born in the hands of a group of professors and engineers.

After the establishment of Jieka Robot, the first design drawing of the intelligent system was quickly unveiled. In October of that year, the design of the intelligent system prototype of the card-saving robot was completed.

Before Li Mingyang established the Card-Saving Robot, he worked as an engineer at a beverage industry company and a sales manager at Tetra Pak Packaging Company. Therefore, the Card-Saving Robot set its primary goal at the beginning of its establishment, which was to solve the secondary problems in the back section of the industrial assembly line. Regarding the backwardness of packaging, the most groundbreaking one is the creation of an intelligent gift box milk packaging system for the dairy industry.

The robotic arm of the Card-Saving Robot has been gradually used by several domestic dairy manufacturers, and batch supply has begun. In the process of becoming famous, the card-saving robot began to attract the attention of capital. According to the news, Hejun Capital raised 15 million yuan in Series A financing from Jieka Robot at the end of 2015.

With the growth of business and increase in market share, Card Saving Robot has established relationships with more investment institutions. It is reported that in the seven years from 2015 to 2022, the card-saving robot has completed 6 rounds of financing, with a cumulative financing amount of 1.4 billion yuan. External equity investors include Panxin Investment, SAIF Fund, Shanghai Jiaogrui, Fangguang Investment, SoftBank, Temasek, Saudi Aramco and other institutions.

The prospectus shows that in the last round of financing before the IPO, Jieka Robot introduced shareholders such as Temasek, SoftBank, Saudi Aramco, and Xingyu Shares through capital increase and equity transfer. Among them, Temasek invested a total of 300 million yuan through SPRINGLEAF and TRUE LIGHT; SoftBank Vision Fund Phase II invested 125 million yuan, and 175 million yuan was transferred to some shares of the original shareholders; Saudi Aramco invested a total of 40 million yuan.

According to the last round of capital increase, the pre-IPO valuation of the card-saving robot is about 3.65 billion yuan.

As of the IPO, in the equity structure of Jieka Robot, Panxin Shanghai holds 11.29%, Shanghai Jiaogrui holds 10.53%, Fangguang Investment holds 9%, and SoftBank Vision Fund holds 7.97%. Temasek holds 7.97% of the shares, Advanced Manufacturing Fund holds 7.53%, Shenzhen Astor holds 4.84%, Nanjing Saifu and Huangshan Saifu collectively hold 3.66%, Saudi Aramco holds 1.06%, and Xingyu Shares The holding is 0.53%.

Source: Prospectus

Since the equity of Jieka Robot is relatively fragmented, no one shareholder holds more than 20% of the shares, so there is no controlling shareholder. However, Li Mingyang is still the actual controller of the company. According to the equity structure of Jieka Robot, Li Mingyang directly holds 5.98% of the shares and indirectly holds 8.88% of the shares through Jieka Industrial. The total shareholding ratio is approximately 14.86%. Li Mingyang has formed a concerted action relationship with shareholders such as Jieka Industrial and Jieka Juli, and holds a total of 41.63% of the voting rights of Jieka Robot.

Return to loss in 2022, with annual income of 280 million, and net profit after deduction of non-profit is only 40,000

The prospectus shows that in 2020, 2021, and 2022, the card-saving robot achieved revenue of 48.2786 million yuan, 176 million yuan, and 281 million yuan respectively; net profits were -23.9578 million yuan, -7.233 million yuan, and 5.7357 million yuan respectively. ; Net profits after deducting non-profit items were -26.129 million yuan, -18.4638 million yuan, and 44,000 yuan respectively.

In 2022, the revenue of card-saving robots will increase by approximately 59% year-on-year, and the net profit will turn into a loss year-on-year, but the net profit after excluding non-recurring gains and losses is only 44,000 yuan. The prospectus shows that the net non-recurring profits and losses of the card-saving robot attributable to the owners of the parent company are 5.6918 million yuan, and in 2022, the exchange income of the card-saving robot will reach 35.25 million yuan.

In addition, as of December 31, 2022, the undistributed profit based on the consolidated statement of Jieka Robot was -35.7147 million yuan, and there are still accumulated uncompensated losses.

Source: Prospectus

Jieka Robot mainly provides complete collaborative robot products and robot system integration services. In 2020, 2021, and 2022, the card-saving robot's revenue from the complete robot machine will be 39.2575 million yuan, 141 million yuan, and 216 million yuan respectively, accounting for 81.37%, 80.28%, and 77.24% of the revenue respectively; from robot system integration The incomes were 7.0133 million yuan, 31.4281 million yuan, and 59.2334 million yuan respectively, and the income proportions were 14.54%, 17.91%, and 21.14% respectively.

In terms of R&D investment, the total R&D investment of Card-Saving Robot in the three years from 2020 to 2022 is 92.3761 million yuan, and the cumulative R&D investment accounts for 18.30% of the cumulative operating income in the past three years.

The card-saving robot is still in the stage of continuous investment. In 2020, 2021 and 2022, the net cash flows generated by the company's operating activities were -42.3878 million yuan, -35.5942 million yuan and -105 million yuan respectively, showing a continuous trend. Net outflow status. The company's funding needs rely on capital market financing.

Expand production capacity 10 times, sprint to become the “first share of collaborative robots”

The prospectus shows that the IPO of the card borrowing robot plan will raise 750 million yuan, which will be used for the annual output of 50,000 sets of intelligent robot projects, R&D center construction projects, and supplementary working capital. The planned investment amount is 420 million yuan. yuan, 306 million yuan and 24 million yuan.

Source: Prospectus

The collaborative robot track where Jieka Robot is located is still in the early development stage of the market. According to IFR data, global collaborative robot sales have continued to maintain rapid growth in recent years. Global sales will reach 39,000 units in 2021, a year-on-year increase of approximately 50%, and the compound annual growth rate from 2017 to 2021 is approximately 37%. According to the prediction of the Advanced Industrial Research Institute (GGII), global collaborative robot sales will reach 80,000 units in 2023, and the market size will be close to 12 billion yuan. The collaborative robot market is expected to continue its rapid growth trend in the next few years.

The key investment project of Jieka Robot IPO is to expand production capacity. The prospectus shows that in 2022, Card-Saving Robot's collaborative robot production capacity will be 5,000 units. If the investment project is successfully put into production, Card-Saving Robot's production capacity will increase 10 times.

Source: Prospectus

The prospectus shows that in 2020, 2021, and 2022, the output of card-saving robots' collaborative robots will be 1,084 units, 2,871 units, and 4,563 units respectively, with capacity utilization rates of 72.27%, 87.00%, and 91.26% respectively. Capacity is about to be exhausted. During the same period, the sales volume of the card-saving robot's robotic arms were 599 units, 2267 units, and 3579 units respectively, with the production and sales rates of 55.26%, 78.96%, and 78.44% respectively.

The production capacity utilization rate is higher than the production and sales rate, which increases the inventory risk of the card-saving robot. It is reported that in 2020, 2021, and 2022, the book value of the card-saving robot inventory is 72.955 million yuan, 109 million yuan, and 145 million yuan respectively, accounting for 19.68%, 25.03%, and 16.79% of current assets respectively. Inventory price decline provisions The balances were 12.7809 million yuan, 21.2367 million yuan and 30.7143 million yuan respectively, accounting for 14.91%, 16.28% and 17.48% of the book balance of inventory at the end of each period respectively.

At this stage, collaborative robots are still a developing field, and market participants are constantly exploring their application fields. It is understood that card-saving robots have been widely used in intelligent manufacturing fields such as auto parts, 3C electronics, semiconductors, precision manufacturing, new energy, etc. Customers served include Toyota, Dongshan Precision, CRRC, Xingyu Co., Ltd., and Luxshare Precision , Schneider, Flextronics and other well-known domestic and foreign companies. However, the market penetration rate of collaborative robots is still at a low level.

In the current market environment, card-saving robots need to continue to cultivate customers, constantly optimize products and technologies, and at the same time increase the localization rate of the market in order to develop incremental markets.

Among the collaborative robot manufacturers preparing for an IPO in the near future, the listing application of the card-saving robot was the first to be accepted by the Science and Technology Innovation Board, but there is still some way to go before going public. Can the card-saving robot, which has been in the market for nine years, successfully become the “number one collaborative robot”?

Source: Direct IPO

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