New Stock Preview | Canuo: Siasun Robot&Automation is a hot track, but the leading position in welding Siasun Robot&Automation is stuck in the "money issue"?

On November 17th, Chengdu Canop Siasun Robot & Automation Technology Co., Ltd. (referred to as "Canop") officially submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Guotai Junan Financing Limited as its exclusive sponsor. As a key player in the field of industrial robot and automation in China, this company, which specializes in the welding robot and automation sector, has rapidly risen in the wave of domestic substitution with its full-stack independent core technology and global layout. The largest welding robot and automation manufacturer in China According to the prospectus, Canop was established in 2012, initially focusing on the industrial robot and automation core components controller business. In 2018, it completed a strategic upgrade and launched industrial robot and automation complete machine products. The company has successfully built a matrix of three major categories of independently developed products, covering industrial robot and automation, collaborative robot and automation, and imitative intelligent robot and automation. Canop's robot and automation products execute repetitive and high-precision tasks in fields such as metal and mechanical processing, automotive and parts, electronic products, new energy, consumer goods, and healthcare. For example, cutting, grinding, precision processing, stamping, handling and stacking, and assembly. According to Frost & Sullivan data, Canop has established a leading advantage in the welding robot and automation field and is ranked first among domestic welding robot and automation manufacturers in terms of revenue by 2024. In terms of business structure, industrial robot and automation is the core business, contributing 86.7% of revenue in the first half of 2025, with six-axis welding robot and six-axis multi-functional robot accounting for 55% and 25.9% respectively. The revenue share of collaborative robot and imitating intelligent robot was 6.3% and 4.3%, respectively. Global layout is another highlight of Canop's business. According to the prospectus, as of 2024, the company's products have been exported to 40 countries and regions around the world, mainly covering Europe, Southeast Asia, Latin America, South Asia, and North America. Based on annual revenue, it has become the largest exporter of welding robot and automation in China. From 2022 to 2024, the company's overseas revenue accounted for 15.6%, 19%, and 10.5% respectively. In the first half of 2025, revenue from overseas markets accounted for 9.1%. Canop's full-stack independent research and development capabilities constitute its core competitiveness in the global market. According to the prospectus, the company is one of the few in the industry with full-stack independent core technology, covering the complete layout from underlying control software, core hardware architecture to welding power supply system. As of November 9, 2025, the company has 297 patents in China, including 62 invention patents. From 2022 to 2024, the company's research and development expenses were 33.9 million yuan, 36 million yuan, and 36 million yuan, accounting for 15%-17% of revenue. In the first half of 2025, research and development expenses were 18.1 million yuan, accounting for 11.6% of revenue. Business scale expansion, unstable profitability It is worth noting that while Canop's business scale is expanding, it still faces multiple operational challenges, with insufficient profitability stability being a key concern. According to the prospectus, the company achieved revenues of 197 million yuan, 222 million yuan, and 234 million yuan in 2022, 2023, and 2024, respectively, showing a stable growth trend. In the first half of 2025, the company achieved revenue of 156 million yuan, a year-on-year increase of 36.4%. However, due to factors such as increased research and development investment, rising selling expenses, and impairment of financial assets, Canop incurred a net loss of 12.94 million yuan in 2024 and a net loss of 9.68 million yuan in the first half of 2024. At the same time, cash flows from operating activities were negative in 2023 and 2024, amounting to -30.88 million yuan and -17.56 million yuan, respectively, reflecting that the company is still in the investment period, and the profitability model needs further validation. Although operating cash flow turned positive in the first half of 2025 at 8.884 million yuan, the net cash flow from investing activities reached 30.166 million yuan, indicating that operating cash flow is still insufficient to cover the capital needs of investment activities. Industrial robot and automation market to accelerate growth From the perspective of industry opportunities, the industrial robot and automation sector are in a period of accelerated growth, which can help Canop continuously improve its profitability. According to Frost & Sullivan data, the Chinese industrial robot and automation market is showing a high-speed growth trend, with the market size expanding from 31.5 billion yuan in 2020 to 46.7 billion yuan in 2024, with a compound annual growth rate of 10.4%. With the continuous expansion of downstream application scenarios and market demand, the market size is expected to further accelerate, growing from 52.7 billion yuan in 2025 to 93.1 billion yuan in 2029, with a compound annual growth rate of 15.3%. It is important to note that the intensification of competition and the risk of technological iteration in the industrial robot and automation industry cannot be ignored. In the early stages, the Chinese industrial robot and automation market was dominated by foreign companies, with international brands such as Fanuc and ABB having a competitive advantage in the high-end market (such as automotive precision manufacturing, semiconductor equipment, etc.) due to long-term technical accumulation, brand recognition, and mature supply chain systems. In recent years, domestic manufacturers have rapidly risen, demonstrating strong pricing competitiveness, agility in responding to customer demands, and localized service capabilities. Therefore, the market share of domestic enterprises has steadily increased, and domestic substitution has become a significant trend in the industry. The domestic industrial robot and automation market has formed a competitive landscape of "struggle among powers," and Canop has not yet opened a significant gap with its main competitors in the welding robot and automation market. The prospectus points out that if Canop fails to keep pace with technological changes or control costs effectively, it may face the risk of losing market share. In addition, new emerging areas such as imitating intelligent robot and automation have high technological barriers, large research and development investment, and strong commercial uncertainties. If they cannot be scaled and implemented, they may drag down the overall growth pace. Overall, as a leading domestic welding robot and automation company, Canop has a clear growth logic in the wave of industrial automation, based on its technological independence and global layout. However, issues such as insufficient profitability stability and intensified industry competition also require investors' attention. If this Hong Kong listing is successful, it will provide financial support for the company's research and development investment and overseas expansion, accelerating its transformation from a "welding expert" to a provider of comprehensive intelligent robot and automation solutions. For investors, it is important to continue tracking the company's technological and commercial progress, the effectiveness of its overseas market expansion, and the improvement in profitability, and evaluate its long-term investment value rationally.