Googoltech (固高科技), a company specializing in robotics-related motion control technology, will list and begin trading tomorrow on Shenzhen Stock Exchange under the stock code of 301510.
The Shenzhen-headquartered firm looks to raise 450 million yuan (US$62 million) by issuing 40.01 million shares at 12 yuan apiece, with a price-to-earnings ratio of 110.8, compared to the industry average of 40.03 in recent month.
Founded in 1999, Googoltech has been among the most established companies dedicated to core technologies in robotics and motion control.
It reported a net profit attributable to shareholders of 28.25 million yuan, 65.29 million yuan and 53.29 million yuan on revenue of 283 million yuan, 338 million yuan and 348 million yuan from 2020 to 2022.
Notably, the gross margin of its main business, namely, motion control hardware and software, stood at 57.76%, 56.23% and 54.76% during the same reporting period.
The company is known for its three founders, including Li Zexiang, Ping K. KO and Wu Hong, who are world-leading experts on robotics, microelectronics and motion control.
They are concurrently professors teaching at Hong Kong University of Science and Technology (HKUST).
Li is best known for his mentorship offered to Frank Wang, founder and CEO of DJI, the world’s biggest drone maker by market share.
Li is widely credited for playing an instrumental role in the early days of DJI, providing guidance, funding and other forms of support to help the startup grow into a global titan.
But aside from DJI, now valued at 1,66 billion yuan, Li and a XBOT Park, a Y Combinator-like incubator he founded to serve “hard tech” startups, are also behind a host of other ventures that have become champions in their own fields.
They include motion control leader QKM (李群自动化), robotic vacuum scrubber maker Narwal (云鲸) and ePropulsion (逸动科技), a startup making electric outboards for boats.
As China pushes for independent innovation to substitute foreign imports in areas where it could face high-tech stranglehold like a chip embargo, the country’s entrepreneurial ecosystem is also shifting from an Internet-driven model to one powered by hard tech innovation.
Against this backdrop, university researchers who are at the forefront of cutting-edge technology will likely emerge as the driving force of the next round of tech entrepreneurship.
China’s capital markets have also cozied up to these new entrants, offering them a slew of policy incentives and higher valuation.