Robotic gear producer Shuanghuan to divest unit for listing on STAR Market
- Fine-Motion Tech is in fast ascent partly thanks to an ongoing campaign within China to raise the percentage of independent technologies across a spectrum of industries.
Shuanghuan Company (双环传动, 002472,SZ), a robotic gear maker, announced yesterday that it plans to siphon off its subsidiary Fine-Motion Tech (环动科技) to list separately on the Shanghai Stock Exchange’s STAR Market.
In an exchange filing, the Hangzhou-based firm indicated that the divestment is already underway.
The news came roughly four months after Shuanghuan applied for a pre-listing tutoring with the China Securities Exchange Commission in November 2023.
Shuanghuan currently holds a 61.29% stake in Fine-Motion Tech, meaning that the divestment will not dilute its control of the subsidiary.
Fine-Motion Tech was founded in May 2020, with a focus on the high-precision reducers tailored to robotics. It supplies its clients with primarily RV reducers — a major type of reducers used on industrial robot — with payloads ranging between three and 1,000 kg.
The company claimed to have broken through in the payload range of 50 to 210kg, allowing it to substitute imports in areas such as lithium battery, solar panel and automaking.
These sectors put high requirements on the reliability, consistency and accuracy of robotic operation.
Fine-Motion Tech is in fast ascent partly thanks to an ongoing campaign within China to raise the percentage of independent technologies across a spectrum of industries.
Branching out into harmonic drive
The firm’s revenue has been growing with each passing year since its inception.
It posted a net profit attributable to the parent company of 6.21 million yuan (US$862,600), 20.21 million yuan, 50.18 million yuan and 58.51 million yuan on revenue of 28.70 million yuan, 91.41 million yuan, 169.24 million yuan and 246.67 million yuan between 2020 and the first nine months of 2023.
Notably, the firm is setting its sights on branching out into harmonic drive, another type of reducers commonly used in robotics.
Fine-Motion Tech revealed that the firm’s new harmonic drives have been shipped out at scale.
According to GGII, an industry and robotics information portal, in 2023 China’s demand for RV reducer and harmonic drive stood at 554,900 and 759,200 units, respectively.
The aggregate demand for these types of reducers is projected to surge to more than 10 million units during the period between 2023 and 2027, GGII suggeests.
As of 11am today, Shuanghuan, the parent of Fine-Motion Tech, was trading at 23.85 yuan per share, down 2.46% from the opening price, on China’s A-Share stock market, with a market cap of 20.79 billion yuan.
