The IPO of Jieka Robot was accepted: with a three-year loss of over 25 million yuan and a valuation of 3.5 billion yuan

On May 9th, the IPO of Jieka Robotics Co., Ltd. (hereinafter referred to as "Jieka Robotics") on the Science and Technology Innovation Board was accepted, with Guotai Jun'an as the recommendation institution. Jieka Robotics is a leading enterprise in domestic collaborative robots, with the highest shipment volume last year. If successfully listed this time, it will become the undisputed first share of domestic collaborative robots.

The prospectus shows that Jieka Robot plans to issue no more than approximately 20.6186 million shares to the public, all of which are newly issued shares and no less than 25% of the company's total share capital after issuance; The funds raised this time are used for the project and the planned fundraising amount is: an annual production of 50000 sets of intelligent robots project, with a planned fundraising amount of 420 million yuan; The R&D center construction project plans to invest 306 million yuan in fundraising; Supplementary working capital, with a planned fundraising amount of 24 million yuan.

It is understood that in recent years, collaborative robots have developed at the forefront of the robot race. Data shows that in 2022, the shipment volume of China's collaborative robot market exceeded 19000 units, a year-on-year increase of 24%. Despite the rampant epidemic, it still maintains rapid growth, and a number of collaborative robot enterprises have also made significant progress. Nowadays, not only Jieka robots, but also Yuejiang Technology, Aibo Intelligence, and Alite Robotics have embarked on the path of IPO, A battle between dragons and tigers is inevitable.

Loss exceeding 25 million in three years

According to data, the main business of Jieka Robot is the research and development, production, and sales of collaborative robot products, as well as the integration of robot systems, including integrated equipment and automation production lines. Currently, Jieka Robot products have been widely used in industrial fields such as automotive parts, 3C electronics, precision machining, new energy, and cover service fields such as commerce, medical treatment, and education.

In terms of business, Jieka Robotics mainly focuses on the sales revenue of collaborative robot machines, with machine revenue accounting for over 75%. However, in recent years, the proportion of robot system integration business has shown an increasing trend year by year. Its robot system integration business focuses on the functional application of collaborative robots, developing device level product forms such as collaborative robot workstations and composite robots, and deeply cultivating sub industries, Provide automated production line level solution services for major clients in industries such as chemical fiber and food.

From the perspective of performance, although the revenue of card saving robots has grown rapidly in the past three years, they have been in a state of loss for a long time until last year. From 2020 to 2022, the revenue of card saving robots was 48.27 million, 170 million, and 280 million, respectively. During the same period, the net profit attributable to the parent company was -23.9578 million yuan, -7.2331 million yuan, and 5.7357 million yuan, respectively. The three-year loss exceeded 25 million yuan.

From 2020 to 2022, the comprehensive gross profit margin of card saving robots was 50.31%, 49.39%, and 50.23%, respectively. In the robotics industry, the gross profit margin is at a relatively high level, among which the gross profit margin of the collaborative robot machine business is 52.49%, 57.32%, and 56.72%, respectively; The gross profit margin of the robot system integration business revenue is 39.35%, 14.43%, and 26.49%, respectively, with significant fluctuations due to different projects.

For the situation of performance losses, Jieka Robot stated that on the one hand, the company is in the early stage of market and customer introduction, and the sales scale is relatively small; On the other hand, the collaborative robot industry in which the company operates belongs to a technology intensive emerging industry. The company has invested heavily in technology and product research and development, market promotion, and other aspects, resulting in low overall profits.

In terms of expenses, the total expenses during the card saving robot period were 49.04 million, 95.93 million, and 131 million, respectively, accounting for 101%, 54%, and 47% of the current operating revenue. Among them, sales expenses accounted for a relatively high proportion, reaching over 86 million in 2022, accounting for 30% of the revenue.

From 2020 to 2022, the research and development expenses of Jieka Robots were 18.01 million, 26.85 million, and 47.51 million, respectively, accounting for 37.31%, 15.27%, and 16.92% of operating revenue. According to the prospectus, Jieka Robots has obtained 39 authorized invention patents, 107 utility model patents, and 39 software copyrights. Jieka Robots stated that the company needs to accurately grasp the development trends and trends of new technologies, and continue to invest in research and development, Effectively integrate cutting-edge technology with the company's existing core technologies and products.

It is worth noting that from 2020 to 2022, the book values of inventory for card saving robots were 72.95 million, 109 million, and 145 million, respectively, with the inventory scale increasing year by year. In addition, the balance of inventory depreciation reserves was 12.78 million, 21.23 million, and 30.71 million, accounting for 14.91%, 16.28%, and 17.48% of the ending inventory book balances, respectively.

Jieka Robot stated that inventory mainly consists of raw materials, inventory goods, and contract performance costs. If adverse factors such as future product updates, market environment deterioration, and changes in customer demand occur, resulting in a decrease in order demand, resulting in certain raw materials or products no longer meeting further processing needs, or inventory goods becoming overstocked, it may lead to inventory depreciation risk and affect the company's operational efficiency.

Financing amount reaches 1.4 billion yuan

Since its establishment, Jieka Robot has completed six rounds of financing and has accumulated over 1.4 billion yuan in financing, making it the largest enterprise in the field of collaborative robots with the most rounds of financing and the largest scale of financing. Last July, Jieka Robot announced the completion of a round D financing of approximately 1 billion RMB, jointly led by institutions such as Temasek and Softbank Vision Fund Phase II, with a valuation of 3.5 billion RMB.

In recent years, the performance growth of card saving robots has been strong, especially in the automotive and 3C industries, achieving significant breakthroughs. With years of technical experience accumulated in the automotive industry, we provide high standard industry solutions for multiple Japanese automotive enterprises.

In April 2021, Jieka Robot announced that it would become the only global supplier in the field of collaborative robots for Toyota. Its product performance and corporate strength have been fully verified. At the same time, news shows that Jieka Robot has also become a collaborative robot supplier for automotive giants such as Honda, Volkswagen, and SAIC, with overall actual delivery volume rapidly increasing.

In August last year, according to Japanese media reports, Jieka Robotics will build a new factory in Nagoya. Although the scale of the factory and when it will be put into operation were not disclosed at the moment, relevant preparations had already been promoted through consulting companies, and construction will begin as soon as possible. Obviously, Japan and overseas will be important markets for the future development of Jieka Robotics.
In recent years, Jieka Robotics has established multiple offices and branches in China, creating a comprehensive service guarantee system for JAKA S3 (Speed Rapid Response, Solutions, Skill-up Customer Empowerment). At the same time, driven by globalization strategy, Jieka Robotics has also established technical centers in Asia Pacific, Europe, North America, and other regions, and is committed to providing localized services to global customers by collaborating with excellent global partners.

The prospectus shows that due to the fact that the collaborative robot market and customers are still in the cultivation period, the main customers of Jieka Robot's complete machine include Xinxiang Chemical Fiber, Jinhe, Dongshan Precision, CRRC, Xingyu Co., Ltd., Lixun Precision, Schneider, etc. The high-quality customer base effectively enhances the company's profitability and risk resistance, and expands the incremental market from point to area through the demonstration effect formed by benchmark customers.