Good News on Listing | Frost & Sullivan Assists Yilifu Co., Ltd. in Successful US Listing (NASDAQ:INLF)

Yinlv Co., Ltd. (hereinafter referred to as 'Yinlv') successfully listed on January 2, 2025. The company plans to issue 2,000,000 shares at an ultimately determined IPO price of $4 per share, raising a total of $8 million.

During the process of listing in the US, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the writing of relevant parts of the prospectus (such as the overview, competitive advantages and strategy, industry overview, business, and other important sections), helping the issuer communicate with the SEC and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback from regulatory authorities on various industry issues.

• The company has strong R&D capabilities;

• The company has a comprehensive quality control system;

• The company has an experienced management team;

• The company has a broad customer base.

According to the Frost & Sullivan report, in terms of revenue in 2022, Ivat Robotics Equipment Manufacturing Co., Ltd.:

• Ranked tenth in the Chinese robotic arm market, and at the same time, IvaTEC Robotics Equipment Manufacturing Co., Ltd. is one of the largest robotic arm manufacturers in Fujian Province;

   

• In the Chinese robotic arm market, it ranks eighth in terms of revenue from the injection molding industry.

Robots, also known as Cartesian robots, are one of the most commonly used types of robots in industrial applications, often found in injection molding machines and computer numerical control machine tools. A robotic arm is a type of industrial robot characterized by having two or three main axes that perform linear motion rather than rotational motion. The axes operate perpendicular to each other and are used for grasping or manipulating objects. With their rigid structure, robotic arms can carry heavy loads. Robotic arms can be divided into three main types: three-axis robotic arms, five-axis robotic arms, and scissor-type robotic arms.

In 2016, the Chinese government issued the 'Robot Industry Development Plan', aiming to promote the application of industrial robots in various industries by 2020, especially in manufacturing. From 2017 to 2022, the sales volume of robotic arms in China experienced rapid growth, increasing from about 35,700 units to 93,800 units, with an annual compound growth rate of about 21.3% during this period. During the COVID-19 pandemic, difficulties in recruitment forced the application of automated production, especially in manufacturing, which further stimulated the demand for robotic arms. Therefore, from 2020 to 2021, the Chinese robotic arm market maintained rapid growth. In the future, it is expected that the sales volume of robotic arms in China will continue to grow rapidly and reach about 230,300 units by 2027, with a compound annual growth rate of 19.7% from 2022 to 2027.

From 2017 to 2022, the sales revenue of robotic arms in China increased from RMB 14.726 billion to RMB 33.067 billion, with an annual compound growth rate of about 17.6% during this period. The Chinese robotic arm market maintained rapid growth between 2020 and 2021, mainly due to the impact of the COVID-19 pandemic, which stimulated the demand for robotic arms in downstream industries such as injection molding. In the future, driven by supportive policies and growing demand from downstream industries such as the automotive industry, electronics industry, and healthcare industry, it is expected that the sales revenue of robotic arms in China will reach approximately RMB 71.058 billion by 2027, with an annual compound growth rate of about 16.5%.

From 2017 to 2022, the sales volume of Chinese robotic arms used in the injection molding industry increased from approximately 27,200 units to 68,400 units, with an annual compound growth rate of about 20.3% during this period. In the future, benefiting from the increased application of robotic arms in injection molding machines, it is expected that the sales volume of robotic arms used in the injection molding industry in China will continue to grow rapidly, reaching approximately 162,200 units by 2027, with an annual compound growth rate of 18.8% from 2022 to 2027.

The competitive landscape of the Chinese robotic arm market is relatively fragmented, with approximately a thousand market participants. Nearly a decade ago, the Chinese robotic arm market was almost monopolized by a few foreign manufacturers. However, with the growth of the Chinese robotic arm market and technological progress, a large number of Chinese manufacturers, mainly small and medium-sized ones, have entered this market, gradually dispersing the market. Currently, the market share of Chinese robotic arm manufacturers has surpassed that of foreign manufacturers, mainly due to the improvement in the quality of domestic robotic arms and their relatively lower prices. In 2022, the top ten manufacturers by revenue in the Chinese robotic arm market accounted for about 28.0% of the market share. In 2022, Iva Robot Equipment Manufacturing Co., Ltd. ranked 10th among all market participants, with a market share of about 1.4%. At the same time, Iva Robot Equipment Manufacturing Co., Ltd. is one of the largest robotic arm manufacturers in Fujian Province.

In 2022, in the Chinese robotic arm market, the top ten Chinese robotic arm manufacturers, based on revenue from the injection molding industry, accounted for approximately 29.6% of the market share. In 2022, IvaTech Robotics Equipment Manufacturing Co., Ltd. ranked eighth among all market participants, with a market share of about 1.8%.

Supportive policies. The Chinese government has introduced supportive policies to promote the development of industrial robots in China. For example, the Ministry of Industry and Information Technology, together with 17 other departments, jointly issued the '14th Five-Year Plan' for the development of the robotics industry, which proposes that by 2025, the density of industrial robots needs to double compared to 2020. The plan focuses on ten key application areas and actively encourages enterprises to develop innovative solutions, concentrating on downstream niche markets such as the injection molding industry. With the launch of this plan, the industrial robot industry is expected to enter a period of accelerated development.

Technical upgrade. Currently, most robotic arm manufacturers are still in the assembly phase. These manufacturers purchase key components from servo motor manufacturers, reducers, and control system manufacturers. At the same time, a few leading robotic arm manufacturers have mastered key manufacturing technologies and possess the capability to independently produce and assemble key components. For example, IvaRobot Equipment Manufacturing Co., Ltd. is currently in the stage of independent product research and development. The company has successfully produced the main body of the robotic arm and developed the control system, and it has obtained 28 invention patents, which makes its products more competitive in the market. Therefore, in the next few years, in order to strengthen their market position and gain more market share, robotic arm manufacturers plan to focus on upgrading production technology and achieve independent research and development and production.

Application scenarios are expanding. Compared to mature markets, the usage density and application scope of robotic arms in the Chinese robotic arm market are at a lower development level. With the rapid development of emerging manufacturing industries, robotic arms are expected to be widely used in fields such as '3D printing' and intelligent electronics. For example, in the '3D printing' industry, robotic arms can quickly and efficiently complete tasks, reducing the difficulty of manual operations and improving efficiency. Technological innovation in robotic arms is driving the development of manufacturing. In the future, the downstream industries covered by robotic arms and their application scenarios will continue to expand.

Talent shortage. Robotic arms are highly technical products that involve multiple technical fields such as electrical automation and numerical control technology. The robotic arm industry has a huge demand for interdisciplinary talents with multiple professional backgrounds. In addition, the industry also requires a large number of managers and marketers who have a deep understanding of product characteristics and customer needs. Currently, there are limited professional talents with the above backgrounds in China, and it takes time to cultivate these talents. If robotic arm companies fail to establish a platform suitable for the career development of outstanding talents, they may face the challenge of talent shortage, which could have an adverse impact on the production and operation of the enterprise.

Technical capabilities. The robotic arm industry is a typical high-tech-intensive industry, involving multiple disciplines such as precision machinery, control technology, motor technology, and sensor technology. To enter this industry, one needs to possess specialized knowledge and rich practical experience in the aforementioned fields. At the same time, a large number of developers are required for technological research and development, as well as technicians to continuously improve product quality. Technological breakthroughs also require substantial investment in research and development. Currently, only leading enterprises within the industry possess independent innovation capabilities. They can quickly develop automated equipment and overall solutions that meet the needs of downstream manufacturing enterprises and occupy the market, which constitutes a high technical barrier for new entrants.

Industry experience. Leading robotic arm manufacturers have developed products through long-term independent research and development, and have established customized production equipment through long-term cooperation with suppliers. However, even new entrants find it difficult to immediately acquire similar industry experience and production equipment, even after investing a large amount of capital.

Customer Base and Relationships. Downstream enterprises in the robotic arm industry typically have high requirements for the quality, functionality, technical support, and after-sales service of robotic arms. Therefore, when purchasing automation equipment, they generally prefer well-known brands within the industry. Excellent manufacturers, due to their high cost-effectiveness and reliability of products, help them establish a brand image within the industry and accumulate a stable customer base. Leading enterprises in the industry have formed brand barriers through long-term operations. Subsequent enterprises entering the industry find it difficult to gain customer trust in a short time due to their low brand awareness.