On July 15, 2020, Sensegain’s portfolio company, Efort Intelligent Equipment Co., Ltd. (688165.SH) went public on the SSE STAR Market, with a closing price of ￥30.98 RMB (up 387.87% from its opening price) with a total market capitalization of ￥161.65 billion RMB on the first day of listing. The company's percentage gain in price is already ranked 7th out of the 126 public listings on the STAR board.
Efort is among the vanguards of the China industrial robotics industry. Since its establishment, the company has achieved comprehensive layout in three major business segments: industrial robotics machine, core components, and system integration, through independent R&D and incorporation of overseas advanced technology and innovation. Over the past three years, the company's revenue had a compounded growth rate of 27.34%, far exceeding the industry average. At the same time, with the support of overseas technology and the increase in the rate of localization of core components, the company's gross profit margin has increased rapidly as a result --- 10.51%, 12.63%, and 16.38%, respectively.
In this IPO, the Company is offering 130 million shares to the public, which accounts for 25% of its total stake. The fund will be used to support its current business and carried out into three extensional directions: the R&D and industrialization of the robotics cloud platform, R&D of next-gen intelligent high-performance industrial robots, and performance enhancement of robotics core components and capacity building.
Based on the common problems China's industrial production is facing at present, the cloud platform shared-factory model is one of the effective ways to solve the industry's pain points. Smart robots and robotics cloud platforms are expected to become incremental markets for the industrial robotics industry. In the future, the company will follow the patterns of industrial development to further promote the shared-factory technology innovation and pragmatic business model innovation and replication. These endeavors will solve the pain points of many corporate production lines in high investment thresholds and expensive operations & maintenance.
It is believed that, after the completion of the next-generation intelligent high-performance industrial robot R&D and industrialization project, the annual production capacity of 8,000 high-performance industrial robots can be realized. The performance improvement of the core components of the robot and the completion of production capacity of construction project, 15,000 sets of systems, 15,000 sets of industrial robot drive systems and 40,000 axes of industrial robot precision reducer systems can be achieved. The hybrid cloud architecture of the industrial robot cloud platform "public cloud + private cloud + edge computing" can achieve real-time access to 10,000 industrial robots per year. Based on the cloud platform robot intelligent algorithm, it can substantially improve the efficiency of shared factory operations, and realize the mass sales of consumables through the sharing model and cloud platform.
Sensegain has been focusing on high-end equipment and advanced manufacturing for a long time and has invested in a number of leading companies in related segments, which has brought significant returns to investors. Subsequent Sensegain will continue to dig deeper into the tracks and to discover more high-growth and high-quality enterprises. We will continue to provide more enabling services for invested companies like Efort Intelligent Equipment Co. Ltd.
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