3.4.3 Precision planetary reducer: Japan Xinbao and Kefeng Intelligence occupy the leading position

According to the China Business Industry Research Institute data show that in 2022, the global sales of planetary reducer is 540.15 million units, the sales amount is 1.203 billion US dollars, and the market size is expected to increase to 1.255 billion US dollars in 2023. 2018-2022, China’s planetary reducer sales from $296 million to $500 million, a compound annual growth rate of 14.0%, is expected to reach $520 million in 2023. The market has broad space for development.

500BIO01 1MRB150005R1/J From the perspective of the global competitive landscape, the precision planetary reducer products of Germany, Japan and other countries are in a leading position in the industry in terms of materials, design level, quality control, accuracy, reliability and service life. The main foreign precision planetary reducer manufacturers are Japan’s new treasure, Newkat, Wittenstein and so on. In 2022, the market share of Japan’s new treasure, Neukat, Wittenstein, Elite Technology, and Kefeng intelligence will be 12.9%, 10.9%, 10.7%, 7.5%, and 5.4%, respectively. From the perspective of domestic competition pattern, the main participants in the market are foreign manufacturers and joint ventures, and the localization rate of high-end precision planetary reducer is very low. Japan’s Xinbao, Kefeng Intelligence and Newdart are the main suppliers of precision planetary reducer market in China, with a market share of 20.4%, 11.7% and 9.4% respectively in 2022.

We believe that the technical barriers to precision reducer are relatively high, overseas leading manufacturers have the first-mover advantage, the future with the gradual breakthrough of domestic technology, at the same time superposition China’s precision reducer market as a whole is in short supply, precision reducer national production replacement promising, the future domestic replacement process is expected to accelerate.

500BIO01 1MRB150005R1/J

4. Analysis of key companies

4.1 Green harmonics

500BIO01 1MRB150005R1/J The company’s products are widely used in industrial robots, service robots, CNC machine tools, medical devices, semiconductor production equipment, new energy equipment and other high-end manufacturing fields. After years of continuous research and development investment, the company has taken the lead in realizing the industrial production and large-scale application of harmonic reducers in China, breaking the monopoly of international brands in the field of domestic robot harmonic reducers. In order to further enhance the core competitiveness of the company’s products, accelerate the process of domestic substitution, and help the company’s strategic layout, the company through independent innovation, independent research and development, Developed and improved the new generation of harmonic meshing “P-shape” design theory system, a new generation of third harmonic technology, electromechanical coupling technology, bearing optimization, unique material modification technology, tooth profile modification optimization technology, collaborative high-efficiency lubrication technology and ultra-precision manufacturing processing technology and other core technologies. In 2023, the Company issued a fixed increase plan to issue shares to no more than 35 (including 35) specific objects, and the total amount of funds raised will not exceed 202,653,800 yuan (including this amount). The net funds raised after deducting relevant issuance expenses are intended to be used for the Company’s new generation of precision transmission device intelligent manufacturing project. This project intends to build an automated production line of precision transmission devices in the existing plant, including a new generation of precision harmonic reducer and mechatronics products. After the completion of the project, the company will add a new generation of harmonic reducer 1 million units, mechatronics products 200,000 units of annual capacity.