As a leader in the field of domestic new energy transmission gear, double-ring transmission has actively expanded its business to the field of new energy vehicle transmission on the basis of traditional fuel vehicle transmission gear in recent years, and its performance has achieved steady growth.

On the evening of September 25, the company announced that according to the overall strategic layout and combined with the needs of business development, it intends to plan to spin off and list Zhejiang Ring Motion Robot Joint Technology Co., LTD. (hereinafter referred to as “Ring Motion Technology”), the holding subsidiary of its main robot precision reducer business, to play the role of standardizing the governance and operation of the capital market and broadening financing channels to optimize the allocation of resources. In order to fully mobilize the enthusiasm and creativity of the team, effectively attract and stabilize outstanding talents, and promote the common development of listed companies and environmental technology.

The announcement shows that on the 25th, the board of directors of Double Ring Transmission has reviewed and passed the proposal on planning the spin-off and listing of the holding subsidiary, and the board of directors agreed to plan the spin-off and listing of the holding subsidiary, and authorized the company and the management of the Ring Drive technology to carry out relevant preparatory work.

Ring Drive Technology department is a national high-tech enterprise mainly engaged in the research and development, design, production and sales of robot joint high-precision reducer, providing customers with the overall solution of high-precision reducer covering 3-1000KG load robot, the products mainly include RV reducer, harmonic reducer, etc. Products are widely used in industrial robots, collaborative robots, multi-legged robots, industrial automation and other high-end manufacturing fields.

In the first half of 2023, the robot precision reducer business is an important contribution to the performance of double-ring drive.

During the period, the double ring transmission achieved a total revenue of 3.686 billion yuan, an increase of 18.99% over the same period last year; The main business income was 3.162 billion yuan, an increase of 23.35% over the same period of last year; In the first half of 2023, the net profit was 369 million yuan, an increase of 46.89% over the same period last year.

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For the reasons for the year-on-year growth in performance, double ring transmission was mentioned in the announcement, with the acceleration of the localization of robot reducer, the company’s robot precision reducer business has achieved rapid development, and sales have increased significantly compared with the same period last year.

In the first half of 2023, Ring Power Technology continued to make efforts in the robot precision reducer business, closely coordinated with the core strategic customers of robots, and accelerated the expansion of the robot reducer pedigree. In particular, with the support of major national research projects and provincial key research and development programs, RV reducer products for heavy-duty industrial robots are constantly replenished, product performance is rapidly iterated and optimized, and domestic robot head enterprises are helped to enhance market competitiveness.

With the increase in demand for photovoltaic, lithium battery and new energy vehicles and other industries, driving the domestic robot host manufacturers continued to increase, the production and sales volume of Circular motor Technology robot RV reducer business increased significantly year-on-year and sequentially, and the market share further increased. Thanks to the deepening of the strategic coordination of the industrial chain, the harmonic reducer business has achieved multi-model stable supply, and the production capacity has been released and rapidly improved. In addition, after obtaining investment from the National Manufacturing Fund, Advanced Manufacturing Fund and Temasek, the company carried out capacity expansion to further promote the healthy and steady development of its subsidiaries in the field of robotics business.

For the purpose of this proposed spin-off ring drive technology listing, double ring drive said that in recent years, benefiting from downstream demand release and application field expansion, as well as the promulgation and implementation of a series of industrial encouragement policies, in the precision reducer market, domestic manufacturers continue to overcome the technical problems of core components such as retarders, technical strength and core competitiveness continue to improve. The gap between product performance and the leading level of foreign countries is narrowing, and the localization trend of reducer is gradually emerging.

The spin-off of Huandou Technology is listed independently, which is in line with the overall strategic layout of the company and is beneficial to the company’s business units to concentrate resources and focus on the development of core business; It is conducive to improving the corporate governance structure and management level of Huanmotech, improving the incentive mechanism, fully mobilizing the enthusiasm and creativity of the team, effectively attracting and stabilizing outstanding talents, and promoting the high-quality and sustainable development of Huanmotech. It is beneficial to consolidate and enhance the market position and brand influence of ring drive technology in the field of high precision reducer; It is conducive to the active grasp of development opportunities for China’s industrial robot key parts import substitution, the rise of independent brands, industrial chain independent control and other aspects of contribution.