Kofon (科峰智能传动), a company specializing in the manufacturing of planetary gear reducer, a key robotic component, has filed a prospectus with the Shanghai Stock Exchange for an IPO on its main board.
The exchange has accepted the application pending review, with the firm looking to raise 895 million yuan (US$125 million) from its share sale.
Kofon, headquartered in central China’s Hubei Province and founded in 2010, derives a significant portion of its revenue from the sale of planetary reducers.
According to the prospectus, it reported net profits of 61.12 million, 99.46 million and 82.19 million yuan on revenue of 265 million, 368 million and 283 million yuan, in 2020, 2021 and 2022, respectively.
During the same reporting period, its net profits after deducting non-recurring items stood at 56.37 million, 83.17 million and 71.79 million yuan.
A sales number breakdown indicates that the income from planetary reducers amounted to 195 million, 283 million and 295 million yuan, representing 74.01%, 77.30% and 77.70% of the total from 2020 to 2022.
Data from QY Research, a business intelligence provider, shows that Kofon ranked fifth globally in the sales of planetary reducers and second domestically. It is the largest homegrown manufacturer of this key robotic part by market share.
Its products have become a cheaper substitute of imports in areas like high-end machine tool, pipe jacking, semiconductor, pharmaceutical equipment and packaging equipment.
As China’s robotic industry grows briskly, a series of upper and lower industrial players are likely to benefit, in particular suppliers of essential robotic parts such as harmonic drive, RV reducer and planetary gearbox.
Amid recent hype around humanoid robot and in light of Tesla’s aim to bring the price of its Optimus to US$20,000, many market watchers predicted an opportunity for the Chinese supply chain.
A study by a leading brokerage firm forecasts the market for robotic components to hit trillions of yuan, since they account for some 61% of a humanoid robot’s cost.