Temasek, Hillhouse buy into Global Motion Technology

Market views on the split are divided. The split of Zhongtian Technology (600522.SZ) is still in the storm, and the market is worried about whether the double-ring transmission will follow its footsteps.

LO120AL-L0117AJF The main products of Ring motion technology are RV reducer. RV reducer is the core part of industrial robots, mainly used in industrial robots, industrial automation and other high-end manufacturing fields. In 2020, the company set up a subsidiary company specializing in robot RV reducer.

The company was profitable in its first year of independent operation. From 2020 to 2022, its operating income will be 29 million yuan, 91 million yuan and 169 million yuan respectively, while the net profit to the mother will be 6.2056 million yuan, 2.21,400 million yuan and 50.1783 million yuan respectively. The business is doubling.

In the first three quarters of 2023, Huanda Technology’s operating income was 247 million yuan, and its net profit was 58.5096 million yuan. All have exceeded the full year 2022.

Recent financial data of Ring Motion Technology

Based on its performance, Double Ring Transmission has been LO120AL-L0117AJF moving forward with the spin-off since last year. In January last year, the global movement technology introduced capital expansion, the introduction of 7 investors, the amount of capital increase of 290 million yuan. At that time, it was valued at about 2.3 billion yuan.

These investors have a lot of money.
• The National Manufacturing Transformation and Upgrading Fund Co., Ltd. and the Advanced Manufacturing Industry Investment Fund Phase II (Limited partnership) have 2.62% each;
• Springleaf and True Light, which are indirectly owned by Temasek Holdings (PTE) Limited, with a contribution ratio of 2.62%;
• Yuhuan State-owned Assets Investment and Management Group Co., LTD., holding 1.75%;
• In addition, there are Hangzhou Chun ‘an Zhehuan Enterprise Management Consulting Partnership (limited partnership) and Jiaxing Huansu Equity Investment Partnership (limited partnership).

The equity structure before and after the capital increase in February 2023

Later, there are new capital leaders to join. As of the announcement date of the spin-off plan, Hillhouse Capital’s Hillhouse Chenjun and Hillhouse Yurun each hold 0.50% of the shares, and collectively hold 1% of the equity of Ring Motion Technology. Also added is Hangzhou Xingcheng Lianxin Venture Capital Partnership.

The interface news LO120AL-L0117AJF query APP found that the entry time of three new shareholders including Hillhouse Capital was May 22, 2023.

Only four months later, double-ring transmission announced for the first time that it intends to plan the spin-off and listing of Ring Motion technology.

Different from the high performance ratio of Zhongtian Technology’s proposed spin-off target, the proportion of ring motion technology in double-ring transmission is not high. The proportion of double-ring transmission rights and interests in ring technology is 70.18%. According to the data in 2022, the double-ring transmission rights and interests in ring technology are 165 million yuan, accounting for 2.24%; Enjoyed a net profit of 35,212,900 yuan, accounting for 6.05%.

The announcement stressed that after the completion of the LO120AL-L0117AJF spin-off, the ownership structure of double-ring transmission will not change, and it will still maintain a controlling stake in Ring Power Technology.

There are some differences in the main business between double ring drive and ring drive technology.

The main business of Double ring drive is the research and development, design and manufacturing of mechanical transmission gear and its related parts, while Ring Drive Technology is a subsidiary specializing in the research and development, design, production and sales of high-precision reducer for robot joints, providing the overall solution of high-precision reducer for robots with a load of 3-1000KG.