Analysis of Jindaotech (301279)'s Layout of Intelligent Logistics Robot Reducers and the Impact of Convertible Bond Issuance

Based on the collected information, I will provide you with a systematic and comprehensive analysis.

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Zhejiang Jindaotech Co., Ltd. has been focusing on the industrial vehicle transmission device industry since its establishment in 2003, mainly engaging in the R&D, production and sales of transmissions for forklifts and other industrial vehicles [1]. The company was successfully listed on the ChiNext Board of the Shenzhen Stock Exchange in April 2022, with stock code 301279. It is one of the few domestic enterprises that have entered the supply chain of internationally renowned forklift brands, and has established long-term and stable cooperative relationships with well-known domestic and foreign forklift brands such as Hangcha Group, LiuGong, Mitsubishi Heavy Industries, Doosan Forklift, KION Baoli, etc. [2].

The company masters the core technologies of various forklift transmissions, wet drive axles and other products, and has more than 100 independent technical patents, including a number of invention patents. As a national high-tech enterprise, relying on multiple provincial and municipal technological innovation platforms such as provincial enterprise research and development centers, enterprise research institutes, and enterprise technology centers, the company has developed and launched industry-leading high-voltage lithium-ion transmissions, intelligent suspension transmissions, and electrified integrated products [2].

According to the latest financial data, Jindaotech achieved operating revenue of RMB 526 million in the first three quarters of 2025, a year-on-year increase of 11.41%; the net profit attributable to shareholders of listed companies was RMB 50.94 million, a year-on-year increase of 56.26% [3]. The company’s earnings per share reached RMB 0.40, a year-on-year increase of 21.21%, showing a good growth trend in profitability.

Financial Indicators	2025 Q3	YoY Change
Earnings per Share (RMB)	0.40	+21.21%
Net Assets per Share (RMB)	10.38	-20.90%
Net Profit Margin	9.69%	+40.25%
Asset-Liability Ratio	23.18%	+7.65%
Current Ratio	2.35	+1.69%

The company’s current ratio and quick ratio are both maintained at reasonable levels, the asset-liability ratio is low, and the overall financial structure is sound [3].

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With the continuous maturity of humanoid robot technology and the gradual expansion of application fields, the global humanoid robot precision reducer market has shown a rapid development trend. According to industry statistics, the global humanoid robot precision reducer market sales reached USD 175 million in 2024, and the market size is expected to soar to USD 15.24 billion by 2031, with a compound annual growth rate (CAGR) of 88.3% from 2025 to 2031 [4].

From the perspective of the domestic market, the output of industrial robots in China was about 303,000 units in 2022, and each industrial robot usually requires 4-6 reducers. Based on the forecast of a 20% growth rate in domestic industrial robot sales and a 5% annual decline in the average price of RV reducers and harmonic reducers, the market size of industrial robot reducers in China is expected to reach RMB 13 billion in 2027, breaking the RMB 10 billion mark [5].

Year	Industrial Robot Sales (10,000 Units)	Harmonic Reducer Demand (10,000 Units)	RV Reducer Demand (10,000 Units)	Market Size (RMB 100 Million)
2024E	43.63	130.90	87.26	87.7
2025E	52.36	157.08	104.72	100.0
2026E	62.83	188.49	125.66	114.0
2027E	75.40	226.19	150.79	129.9

Data Source: Green Harmonic Prospectus, GGII, China Business Industry Research Institute, Caitong Securities Institute Estimation [5]

As an important part of intelligent manufacturing, intelligent logistics robots are widely used in e-commerce, manufacturing, pharmaceutical logistics and other fields. According to market research, the demand for precision reducers, a core component of intelligent logistics systems, continues to grow. Jindaotech’s layout of intelligent logistics robot reducers is in line with this market development trend [4][5].

Jindaotech has been deeply engaged in the industrial vehicle transmission system field for more than 20 years, accumulating rich experience in transmission system design and manufacturing. The company has developed and produced electric drive products such as reduction boxes for storage/stacker/reach trucks and drive units for electric pallet trucks [2]. Intelligent logistics robot reducers have high similarity and synergy with the company’s existing products in terms of technical principles, manufacturing processes, material selection, etc. This technology migration can effectively reduce R&D risks and costs.

• Similar transmission principles: All involve core technologies such as speed reduction, torque increase, and transmission efficiency optimization
• Shared manufacturing processes: Processes such as gear processing, heat treatment, and assembly can be mutually referenced
• Shared material technologies: High-strength alloy materials, lubrication technologies, etc. can be cross-applied
• Consistent testing standards: Testing methods for precision, service life, reliability, etc. are interlinked

Jindaotech has established good cooperative relationships with major domestic forklift manufacturers such as Hangcha Group, LiuGong, JAC Yilian, and has supply chain relationships with the world’s top 10 forklift manufacturers including Toyota Motor Corporation, Mitsubishi Logisnext, KION Group, Jungheinrich, Doosan, Clark, Hyundai, and Hyster [2]. There is a high degree of overlap in the industrial chain between intelligent logistics robot complete machine manufacturers and industrial vehicle main engine plants, so the company is expected to quickly enter the intelligent logistics robot market by leveraging its existing customer resources.

At present, there is still a large space for import substitution in the domestic precision reducer market. Taking the harmonic reducer market as an example, Japan’s Harmonic Drive Systems held the largest market share of 38% in 2022, followed by Green Harmonic (26%) and Laifu Harmonic (8%) [5]. In the RV reducer market, Japan’s Nabtesco accounts for 52% of the market share, and Shuanghuan Transmission ranks second with 15% [5]. As an enterprise that has been deeply engaged in the transmission system field for many years, Jindaotech is expected to gain market share in the process of domestic substitution.

The implementation of the intelligent logistics robot reducer project will effectively broaden the company’s product line, extending from the single field of industrial vehicle transmissions to a broader field of intelligent manufacturing equipment. According to market estimates, the humanoid robot reducer market can reach a scale of RMB 14 billion under optimistic estimates (1 million units output) [5]. This new business segment will bring new revenue growth points for the company and reduce the risk of dependence on a single industry.

Through the “Medium and High Power Transmission Assembly and Intelligent Logistics Robot Reducer Unit Construction Project”, the company can extend from single components to assembly products, enhancing product added value and pricing power. At the same time, the implementation of the Digital Transformation and R&D Innovation Center Construction Project will further strengthen the company’s technological innovation capability and provide strong support for new product development [6].

Precision reducers are core components of intelligent manufacturing, with high technical barriers and long R&D cycles. The company’s early layout in this field is conducive to building a technological moat and forming a first-mover advantage. In the long run, with the continuous development of the intelligent manufacturing industry, the demand for reducers will continue to grow, and the company is expected to occupy a favorable position in this blue ocean market.

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According to the company’s announcement, Jindaotech plans to issue convertible corporate bonds to unspecified objects, with a total fundraising amount of no more than RMB 306 million [6]. The raised funds will be mainly used for the following projects:

• Medium and High Power Transmission Assembly and Intelligent Logistics Robot Reducer Unit Construction Project
• Digital Transformation and R&D Innovation Center Construction Project
• Supplementary Working Capital Project

When convertible bonds are converted into shares, the number of the company’s shares will increase, thus changing the original equity structure, which may lead to the dilution of earnings per share (EPS). According to academic research, the dilution effect and leverage effect of convertible bonds will have a comprehensive impact on stock prices [7].

Influencing Factor	Impact Direction on Shareholder Value	Investment Analysis Key Points
Scale of Share Conversion / Total Share Capital Ratio	The higher the ratio, the more severe the dilution	Focus on whether the share conversion ratio exceeds 10%
Gap between Conversion Price and Current Stock Price	The smaller the gap, the greater the bearish pressure	Conversion price usually has a premium
Share Conversion Schedule	The earlier the conversion, the faster the dilution	Focus on mandatory conversion clauses
Company’s Profit Growth Capability	Profit growth can offset dilution	Focus on the profit expectations of funded projects

According to financial research, it is generally believed that if the share conversion scale accounts for more than 10% of total share capital, it will obviously suppress the stock price [8]. Investors need to pay close attention to key clauses such as the conversion price and conversion ratio of convertible bonds.

Before conversion, convertible bonds are regarded as the company’s debt, which will increase the company’s financial leverage. Academic research shows that affected by factors such as debt leverage, the overall equity risk of the company will increase and stock volatility will rise after the issuance of convertible bonds [7]. However, Jindaotech’s current asset-liability ratio is only 23.18%, which is at a low level [3], so the company has a large space for debt financing.

• The interest rate of convertible bonds is usually lower than that of ordinary bonds, reducing financial costs
• If the project return rate is higher than the bond interest rate, it can enhance shareholder returns
• Retain the control of existing shareholders (unlike new share issuance which dilutes immediately)

• Increase the company’s asset-liability ratio before share conversion
• If the project returns are lower than expected, it will increase the financial burden
• Increased equity risk may lead to greater stock price volatility

From a positive perspective, the funds raised from convertible bonds will be invested in high-growth projects such as intelligent logistics robot reducers. If these projects can be successfully implemented and generate expected returns, they will create new profit growth points for the company and effectively offset the impact of the dilution effect. Historical experience shows that high-quality funded projects can often create excess returns for shareholders in the medium and long term.

• Intelligent logistics robot reducers: Benefit from the rapid development of the intelligent manufacturing industry, with broad market space
• Digital transformation project: Improve operational efficiency and enhance enterprise competitiveness
• Supplementary working capital: Optimize capital structure and reduce financial risks

Convertible bonds have dual attributes of bonds and stock options, providing certain protection for existing shareholders:

• Guaranteed returns
  : Convertible bonds have a face value and coupon, providing protection when stock prices fall
• Unlimited upside potential
  : Share the company’s growth benefits after conversion
• Delayed dilution
  : Dilution only occurs when converted into shares, giving the company time for performance growth
• Motivation to promote conversion
  : The main purpose of listed companies issuing convertible bonds is equity financing, so there is strong motivation to promote conversion [9]

The funds raised from convertible bonds are used for supplementary working capital and project construction, which will help optimize the company’s financial structure. According to the company’s 2025 third quarterly report, the ending balance of monetary funds is about RMB 194 million [3]. The implementation of the funded projects will enhance the company’s capital strength and provide guarantee for future development.

To judge the impact of convertible bonds on existing shareholder value, investors should focus on three core factors [8]:

1. Company Fundamentals
   : Jindaotech has a stable main business, with good performance growth in 2025 (net profit increased by 56.26% year-on-year), belonging to the type of “high-quality enterprise optimizing structure”
2. Share Conversion Scale and Price
   : Need to wait for the company to announce specific clauses to judge the degree of equity dilution
3. Industry Trends
   : The intelligent logistics robot industry is in a period of rapid development, and the funded projects are in line with the industrial development direction

Evaluation Dimension	Analysis Conclusion	Impact on Shareholder Value
Company Fundamentals	Good performance growth, sound financial structure	Positive
Funded Project Prospects	Broad market space for intelligent logistics reducers	Positive
Share Conversion Dilution Risk	Need to focus on specific clauses	Neutral
Industry Trends	Continuous development of intelligent manufacturing industry	Positive

Jindaotech’s issuance of convertible bonds to invest in the intelligent logistics robot reducer project is an important measure for the company’s business expansion and industrial upgrading. In the long run, if the funded projects can be successfully implemented and generate expected returns, they will create considerable returns for the company’s shareholders. In the short term, the market may have concerns about the dilution effect of convertible bonds, but the company’s good fundamentals and the prospects of the funded projects provide support for the growth of shareholder value.

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1. Funded Project Risks
   : The intelligent logistics robot reducer project has uncertainties such as technology development and market expansion
2. Industry Competition Risks
   : The precision reducer market is highly competitive, with strong domestic and foreign competitors
3. Share Conversion Dilution Risk
   : The conversion of convertible bonds will dilute existing equity
4. Macroeconomic Risks
   : The downstream industrial vehicle and intelligent logistics industries are greatly affected by the macro economy

Jindaotech’s layout in the intelligent logistics robot reducer field is a strategic decision based on industrial development trends and its own technical advantages. In the long run, this layout will help the company expand its business boundaries and build a new growth engine. Although the issuance of convertible bonds will bring a certain dilution effect, the good prospects of the funded projects and the company’s sound financial condition provide a guarantee for the growth of shareholder value.

Investors should continue to pay attention to the specific clauses of the company’s convertible bond issuance, the implementation progress of the funded projects, and the market expansion of intelligent logistics robot reducer products, and make investment decisions on the basis of fully evaluating risks.

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[1] Zhejiang Jindaotech Co., Ltd. Prospectus for Initial Public Offering and Listing on ChiNext Board (http://pdf.dfcfw.com/pdf/H2_AN202108041508010267_1.pdf)

[2] Zhejiang Jindaotech Co., Ltd. Official Website - Company Profile (https://www.jindaotech.com/about/)

[3] Jindaotech (301279) - Key Financial Indicators - Sohu Securities (https://q.stock.sohu.com/cn/301279/cwzb.shtml)

[4] The Industrial Hidden Battle in the “Joints” of Humanoid Robots: Breakthrough and Rebirth of the Precision Reducer Industry - Caifuhao (https://caifuhao.eastmoney.com/news/20251128181614429518720)

[5] In-Depth Report on the Precision Reducer Industry - Hangxin Capital (https://www.hangxincap.com/wp-content/uploads/2023/11/20230904-高端制造-精密减速器行业深度报告：行业成长性较好，国产化替代空间巨大.pdf)

[6] Plans to Issue Convertible Bonds to Raise No More Than RMB 306 Million for Intelligent Logistics Robot Reducer Project - Securities Times (https://www.stcn.com/article/detail/3595513.html)

[7] Pricing of Convertible Bonds with Equity Dilution Effect and Debt Leverage - Liao Pingkang, Zhang Weiguo, Xie Baishuai, Zhang Xiaoli (http://www.nopss.gov.cn/NMediaFile/2013/0425/MAIN201304250856000307111192025.pdf)

[8] Is Convertible Bond Conversion Bearish or Bullish for Stock Prices? What Situations Need to Be Analyzed - Mars Finance (https://www.sengcheng.com/article/120964.html)

[9] A Complete Guide to the Differences Between Exchangeable Bonds and Convertible Bonds - Guojin Securities Research Institute (http://pdf.dfcfw.com/pdf/H3_AP201907241341109625_1.pdf)