Xiaxia Precision Plans Up to RMB 800 Million Private Placement to Boost Robotics and Smart Drive Components

Xiaxia Precision Plans Up to RMB 800 Million Private Placement to Boost Robotics and Smart Drive Components

Xiaxia Precision, a leading small-module gear manufacturer, announced a private placement to raise up to RMB 800 million to expand its robotics and intelligent transmission capabilities.

Funding and strategic use

The company proposes issuing up to 18.8552 million shares, allocating net proceeds to an intelligent transmission core components industrialization project, equipment development, an R&D and application center, and working capital and debt reduction.

Key planned investments include a RMB 540 million project for precision gears, lead screws, and robot joint modules; RMB 80 million for advanced CNC equipment; and RMB 60 million for technology and application center development.

Financial backdrop and market pressure

Despite 24.7% revenue growth to RMB 575 million in the first three quarters of 2025, net profit fell 47% year-on-year to RMB 25.29 million, and margins compressed due to intensified competition and rising fixed costs from recent projects.

IPO proceeds from 2023 funded multiple production upgrades, but scale effects are still ramping up. Cash on hand stood at RMB 190 million and the asset-liability ratio rose to 41.81% at end-September 2025.

The proposed RMB 120 million allocation to repay debt and replenish working capital aims to optimize the balance sheet and improve financial resilience.

Why this matters for robotics and AI supply chains

As robotics and AI-driven automation accelerate, domestic localization of precision components becomes strategic. Xiaxia’s shift from precision manufacturing to high-value smart-drive parts positions it to capture growing demand from robot makers and EV suppliers.

• Keywords: Xiaxia Precision, private placement, RMB 800 million, robotics, smart drive systems, precision gears, CNC, domestic localization, IPO, margin pressure.

Investors should watch project implementation timelines and early production yields, which will determine when scale benefits alleviate current margin pressure.

For industry observers, Xiaxia’s moves reflect a broader trend: gearmakers upgrading into mechatronic subassemblies to secure higher margins and strategic OEM partnerships.

CTA: Follow Xiaxia’s progress and review quarterly reports to track capital deployment and margin recovery.