Newrui Electronics to Pursue A-Share IPO, Capitalizing on Expanding Industrial Robot Market

Industrial robots have significant potential, and the control system company, Xunrui Electronics, is set to undergo a review for its IPO. According to information from the Beijing Stock Exchange, Xunrui Electronics Technology Co., Ltd. (hereinafter referred to as “Xunrui Electronics”) will be reviewed on April 3. Public records indicate that the company focuses on the research, development, production, and sales of industrial robot control systems and components, servo systems, and parts, establishing itself as a leading innovative enterprise in the domestic industrial robot core components sector.

With a strong technical foundation, Xunrui Electronics specializes in control systems and servo systems, which are regarded as the “brain” and “muscle” of industrial robots. These are two of the three core components of industrial robots, directly influencing the robots’ reaction speed, deployment efficiency, and operational stability—key indicators of their performance. Founded in 2008, Xunrui Electronics is among the early entrants in the development of industrial robot control systems in China, boasting a wealth of technical expertise. The actual controller and chairman, Zhang Jizhou, is a senior engineer in information technology with over twenty years of experience in the robot control field. Core technical personnel, Long Xiaozhou and Guo Hongji, also have over ten years of experience in control and servo systems, with Long Xiaozhou recognized as a high-level professional talent in Shenzhen.

Relying on a high-caliber professional team, Xunrui Electronics has developed four core product systems: complete control systems for industrial robots, integrated drive-control systems, standalone control systems, and servo systems. These can adapt to three-axis to multi-axis industrial robots and are compatible with mainstream industrial bus protocols such as EtherCAT, CANopen, and RS-485, effectively meeting the customized needs of downstream automation equipment.

The integrated drive-control system is a key product that achieved mass production in 2022. This product integrates the controller and driver, effectively addressing industry pain points such as the difficulty of debugging traditional split solutions, subpar performance, high costs, and large sizes, aligning with the trends of miniaturization, modularization, and integration in industrial robots. Two of the company’s core integrated drive-control products have been recognized by experts from the Zhejiang Provincial Economic and Information Technology Department as reaching an internationally advanced level.

Moreover, the company has developed proprietary discrete asymmetric S-curve acceleration and deceleration control algorithms that allow smooth transitions in robotic movements, reducing mechanical vibrations and wear, thus extending the lifespan of equipment. Technologies such as EtherCAT multi-axis integrated drive and internal high-speed bus control enable precise synchronous control of multi-axis devices, achieving communication accuracy at the nanosecond level, suiting high-precision control requirements for advanced equipment.

As of now, Xunrui Electronics holds 58 patents (including 27 invention patents) and 140 computer software copyrights, actively participating in drafting two national standards. The company masters eight core independent technologies, including internal high-speed bus control for integrated drive-control systems and real-time synchronization for EtherCAT masters, achieving self-research and production across the entire technological chain. With its remarkable innovation capabilities and market position, the company has been recognized as a national-level specialized and innovative “little giant,” a national high-tech enterprise, and a technology-oriented small and medium-sized enterprise in Zhejiang Province, aligning perfectly with the Beijing Stock Exchange’s mission to serve innovative small and medium enterprises.

Focusing on its niche, Xunrui Electronics continues to see positive performance growth. Industrial robots can be categorized by mechanical structure into several types, including articulated robots, SCARA robots, parallel robots, Cartesian robots, cylindrical robots, and collaborative robots. Xunrui Electronics’ products are primarily applied in the Cartesian robot sector, focusing on two core application scenarios: mechanical arms for injection molding machines and truss robots for CNC machine tools. Notably, the application of Cartesian industrial robots in injection molding machines has become one of the most mature and successful scenarios for industrial robots.

The combination of these technologies can efficiently handle the loading and unloading of injection-molded products, increasing operational efficiency by more than three times compared to manual labor. According to the China Plastics Machinery Industry Association, the global injection molding machine market is expected to reach 73 billion yuan by 2025. In 2022, Haitian International topped the global rankings with revenue of 12.31 billion yuan, becoming the largest injection molding machine supplier worldwide. Xunrui Electronics successfully entered the Haitian International supply chain through Haimaike. Publicly disclosed information indicates that Haimaike and Haitian International share the same actual controller, and Haimaike procures the company’s robot control systems, combining them with other components for complete machine sales, primarily used in scenarios such as injection molding parts handling and trimming.

From 2023 to 2025, the company’s sales to Haimaike are projected to reach 16.56 million yuan, 24.36 million yuan, and 32.10 million yuan, respectively, reflecting a steadily expanding partnership. Furthermore, the company’s customer base is diverse and high-quality, with 90% of the top 100 customers expected to continue collaboration through 2025. The top five customers account for only around 20% of sales, indicating no significant dependence on any single client, which enhances customer loyalty and risk resilience, placing it at the forefront of the industry.

In terms of market share, based on the analysis from the China Plastics Machinery Industry Association, it is estimated that the domestic injection molding machine output will reach 300,700 units in 2024, while the company’s sales of specialized industrial robot control systems for injection molding machines are expected to reach 64,000 sets, translating to one in every four injection molding machines being equipped with Xunrui Electronics’ control systems, highlighting significant market penetration.

With robust technical strength and stable downstream partnerships, Xunrui Electronics has achieved consistent and steady growth in revenue and performance. According to the prospectus, the company’s operating income is projected to be 204 million yuan, 301 million yuan, and 318 million yuan from 2023 to 2025, with net profits excluding non-recurring items expected to be 30.26 million yuan, 54.26 million yuan, and 57.79 million yuan, respectively, demonstrating a steady upward trend in both revenue and profits over three consecutive years. In terms of profitability metrics, the company’s overall gross margin remains stable at around 36%, with a weighted average return on net assets exceeding 25%, significantly above the industry average. Additionally, the company has maintained positive net cash flow from operating activities over the past three years, reaching 26.93 million yuan in 2025, reflecting strong profit realization capabilities.

The market is expanding, facilitating the release of new productive forces in the industry. In recent years, domestic labor costs have continued to rise, and the proportion of the working-age population has declined, making the automation transformation of the manufacturing industry an inevitable trend. Moreover, the application boundaries for industrial robot controllers are continuously expanding, gradually entering non-traditional sectors such as construction, agriculture, healthcare, and services, thereby enlarging market opportunities.

Control systems are critical components determining robot performance, and as the manufacturing industry moves towards higher automation and intelligent transformation, the demand for industrial robot controllers is surging. From a policy perspective, robot control systems and servo systems are encouraged under the “Industrial Structure Adjustment Guidance Catalog” as part of the “intelligent manufacturing” industry, which is a core component of new productive forces. Currently, industrial robots are evolving towards integration, miniaturization, and intelligence, with integrated drive-control systems, high-precision servo control, and high-speed bus communication becoming industry standards. The government has also introduced several policies to support breakthroughs in key components such as integrated drive-control systems.

In this context, domestic robots and control systems are rapidly emerging. According to the national economic and social development statistical bulletin, the output of industrial robots manufactured by enterprises above designated size is expected to be 429,500 units, 556,000 units, and 773,100 units from 2023 to 2025, maintaining high-speed growth overall. As a leading supplier of industrial robot control systems and servo systems in China, Xunrui Electronics is expected to see its sales of industrial robot control systems reach 38,700 units, 67,800 units, and 84,400 units during the same period, growing in sync with the national industrial robot output.

In an international comparison, China’s current industrial robot density stands at 470 units per 10,000 people, ranking second globally but still lagging behind South Korea, which has 1,012 units per 10,000 people. The “14th Five-Year Plan” for robot industry development clearly states that by 2025, the density of manufacturing robots in China is expected to double from 246 units per 10,000 people in 2020 to 500 units per 10,000 people. Given the vast manufacturing base in China, the future growth prospects for the domestic industrial robot market are extremely promising.

To break through development bottlenecks and seize industry opportunities, Xunrui Electronics plans to raise 139.6944 million yuan through its IPO. The funds will primarily be allocated to upgrading production centers, constructing research and development centers, and supplementing working capital. The production center upgrade project focuses on expanding capacity; currently, the company’s core products have a production and sales rate nearing 100%, and capacity is approaching saturation. This project will upgrade production equipment and optimize processes to effectively overcome capacity constraints and meet the increasing order demands from core downstream clients. The research and development center construction project will focus on cutting-edge technology such as version 2 of the integrated drive-control system, high-precision magnetic encoders, and ROS robot controllers, further solidifying the company’s technological leadership while expanding into new application scenarios like joint robots and general-purpose servos.

Once these projects are implemented, they will help the company maintain its leading position in existing niche markets while gradually transitioning from a niche champion to a core supplier of industrial robot components across various scenarios, providing solid support for revenue and profit growth over the next 3 to 5 years.

In summary, Xunrui Electronics represents a highly innovative enterprise in the core components sector of industrial robots. This upcoming review is a critical milestone in the company’s development journey. If successful in entering the capital market, the company will leverage capital to fully capitalize on industry growth opportunities, further enhancing its prospects for future growth.