Yuejiang Technology is planning to list on the Growth Enterprise Market (GEM) in Shenzhen as it shifts from its initial public offering (IPO) in Hong Kong back to the A-share market. The company, which specializes in robotics, recently submitted its prospectus to the Shenzhen Stock Exchange, with Guotai Junan Securities acting as the sponsor. This move marks a notable event as Yuejiang Technology becomes one of the first companies from the Guangdong-Hong Kong-Macau Greater Bay Area to take this step, following the precedent set by other firms.
Founded in 2015, Yuejiang Technology focuses on developing, manufacturing, and selling collaborative robots and intelligent robotic systems. The company experienced a net loss of approximately 280 million yuan over the last three years, reflecting the high costs of research and development in the robotics industry.
As of now, over 80% of the company’s revenue comes from collaborative robots. Their product line includes various models such as the four-axis and six-axis collaborative robots. By the end of 2025, Yuejiang Technology is expected to have more than 30 types of collaborative robots, achieving the highest sales globally in this segment for that year.
The company is also venturing into the field of embodied intelligence, having developed several robot models, including humanoid and quadruped robots, since 2024. Despite increasing sales, Yuejiang Technology has not yet achieved profitability, but they project a return to profit by 2028.
In terms of market dynamics, the global robotics market is anticipated to grow from 231.11 billion yuan in 2020 to 497.22 billion yuan by 2025, with collaborative robots expected to see a compound annual growth rate of 25.6% during this period.
As for financials, Yuejiang Technology reported revenues of approximately 287 million yuan in 2023, which is projected to increase to 493 million yuan in 2025, while continuing to incur losses. The company is heavily investing in R&D, with expenses constituting around 24.57% of their revenue in 2023.
Yuejiang Technology is planning to raise 1.2 billion yuan through this IPO to fund various projects, including the development of multi-legged robots and enhancements in humanoid technology, as well as to improve their marketing capabilities.
Overall, while the company is positioned in a high-growth sector, it faces challenges such as increasing competition and fluctuating customer bases. Observers will be keen to see if Yuejiang Technology can solidify its market position and achieve profitability moving forward.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/yuejiang-technology-pursues-a-share-ipo-amidst-280-million-yuan-losses-in-robotics-sector/
