On the evening of March 17, the leading precision metal components company on the STAR Market, Fuliwang (688678), officially disclosed its private placement plan. The company intends to issue shares to specific investors to raise no more than 1.022 billion yuan. The funds will be used for key metal component industrialization projects in high-end manufacturing, research and development of key metal components for embodied intelligent robots, and working capital supplementation.

Seizing the Opportunity

The private placement will issue no more than 30% of the total share capital, with an issue price not lower than 80% of the average trading price of the 20 trading days prior to the pricing reference date. The number of targeted investors will not exceed 35.

From a long-term strategic perspective, this financing is not only a practical solution to overcome capacity bottlenecks but also a crucial move to capture the high-end manufacturing and robotics industry opportunities. It marks the official launch of the company’s second growth curve as a precision manufacturer in the Apple supply chain.

The funds raised are allocated with clear focus and reasonable structure, closely aligned with the company’s core capabilities and industry trends.

Among them, 667 million yuan will be invested in the industrialization of key metal components for high-end manufacturing, representing the largest expenditure. This will be used mainly for building new production bases, introducing advanced equipment, expanding MIM (Metal Injection Molding) precision metal component capacity, and addressing current capacity saturation and delivery pressure, while also meeting the demands of high-growth sectors such as new energy vehicles, photovoltaics, and energy storage.

54 million yuan will be used for R&D of key metal components for embodied intelligent robots, focusing on core parts such as miniature planetary roller screws, dexterous robotic joints, and reducers, leveraging the company’s existing precision processing technology to secure a foothold in cutting-edge sectors.

The remaining 300 million yuan will be allocated for working capital, optimizing the asset-liability structure, reducing financial costs, and providing stable cash flow support for business expansion.

Triple Balance

Overall, the invested projects leverage the company’s strengths in consumer electronics and automotive parts, while proactively exploring embodied intelligence as a future industry. This achieves a threefold balance of capacity expansion, technological upgrading, and financial security.

This private placement will have a profound impact on Fuliwang’s business structure, growth potential, and valuation logic.

In terms of capacity, the implementation of high-end manufacturing projects will directly enhance the company’s large-scale delivery ability, strengthen its supply position within the Apple supply chain and among major clients, and alleviate capacity constraints that limit revenue growth without corresponding profit increases.

From a technological perspective, R&D of core robot components will drive the company’s transition from traditional precision parts manufacturing to the development of key components for humanoid robots. Products like miniature planetary roller screws have already been sample-delivered, promising rapid integration into domestic substitution supply chains.

In terms of industry trajectory, embodied intelligence is moving from concept to industrialization, driven by policy support and market demand. The high barriers and large gross profit margins of core components suggest this could become a new profit pillar for the company, following its 3C (computers, communications, consumer electronics) business.

On the capital front, supplementing working capital will improve debt repayment ability, reduce interest expenses, and enhance overall profitability. It will also facilitate the shift in valuation from a traditional parts manufacturer to a dual-focus on “high-end manufacturing + embodied intelligence.”

Dual-Drive Strategy

In the medium to long term, leveraging its precision manufacturing, process accumulation, and customer resources, the company has a natural advantage in extending into robot components. If projects proceed smoothly, a dual-drive pattern of “steady core business and growth in emerging sectors” could form, unlocking growth potential.

However, R&D cycles for robot components are long and validation is challenging. Short-term risks include slower-than-expected technological breakthroughs, underutilized capacity, and dilution of performance due to equity issuance. Additionally, the photovoltaic subsidiary remains in loss, adding short-term pressure on performance.

Overall, Fuliwang’s 1.022 billion yuan private placement exemplifies a typical transformation and upgrade of a precision manufacturing enterprise. Success hinges on technological breakthroughs in core robot components and securing orders.

Readers are advised: This article is based on publicly available information or data provided by interviewees. Neither “No Panic Lab” nor the author guarantees the completeness or accuracy of the information. Under no circumstances does this content constitute investment advice. Market risks are inherent; invest cautiously! Unauthorized reproduction or plagiarism is prohibited!