The harmonic refinancing plan of the domestic harmonic reducer leader Green has recently been formally submitted for registration, which means that the expansion plan of up to 2 billion yuan will be passed.

Green Harmonic’s investment project focuses on a new generation of harmonic reducer, which can expand its product application scenarios and further meet the expected demand for humanoid robots.

So, what is the expected expansion plan for green Harmonics?

Demand for industrial robots is sluggish

The reducer is the core component of industrial robot. In the cost composition of industrial robots, the reducer, controller and servo motor account for about 70% of the total cost, of which the reducer accounts for 35%, which shows the importance of the reducer in the robot industry.

Green Harmonics is China’s largest harmonic reducer production supplier, products are mainly used in the field of industrial and service robots. According to the company’s 2022 annual report, the revenue of the above two areas totaled 360.9 million yuan, accounting for 81% of the total revenue. Other areas include CNC machine tools, semiconductors, photovoltaics, and medical equipment production.

It should be noted that green harmonic main business revenue is relatively single at the same time, but also encountered weak downstream demand.

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In recent years, with the weak performance of 3C, semiconductor and other industries, the demand for downstream industrial robots is also weak. From January to October 2023, the cumulative output of industrial robots decreased by 3.7% year-on-year, of which the output in October decreased by 17.7% year-on-year, and the industry entered the bottom of the cycle.

The performance of green Harmonic after listing has also been criticized by the market, the company was listed on the science and technology innovation board in August 2020, and after the sharp growth of revenue and profit in 2021, it began to show signs of relative “stagnation” in 2022.

In terms of a single quarter, from the third quarter of 2022 to the third quarter of 2023, the year-on-year revenue growth of Green Harmonic company was divided into -25.39%, -18.25%, -5.68%, -44.48%, -18.42%; In the same period, the increase of net profit attributable to the mother was -37.88%, -42.21%, -32.47%, -52.86% and -39.88% respectively.

“Science and Technology Board Daily” reporter noted that industrial robots belong to the general machinery industry, with a typical cyclical cycle of about 3-4 years. In addition to green harmonics, other similar enterprises such as: China Great Power De, Haozhi Electromechanical, Guomao shares, Zhongji Kemi and other reducer enterprises performance is also declining.