By Shi Zifu, Harbour Business Insight

Recently, the Hong Kong Stock Exchange greenlit the IPO application of Zhejiang Kaler Technology Group Co., Ltd. (hereinafter referred to as Kaler), with Guotai Junan International and CITIC Securities acting as co-sponsors.

In addition, Kaler has also received feedback from the China Securities Regulatory Commission regarding its overseas listing plans.

For this IPO, Kaler intends to utilize the proceeds mainly to propel its core robot product lines; develop underlying technologies and software systems; expand production capacity and bolster manufacturing capabilities; implement a global expansion strategy; and for working capital and other general corporate needs.

1. Revenue Volatility

As per Tianeyancha, Kaler, established in 2014, specializes in comprehensive intelligent in-house logistics robots. It is dedicated to transforming supply chain operations through cutting-edge embodied intelligent robot technology. The company offers a comprehensive suite of robot product combinations that cover key in-house logistics functions such as storage, sorting, and handling. These products are centered around three core product lines: the multi-directional shuttle robot (MSR), the autonomous mobile robot (AMR), and the conveyor sorting robot (CSR).

Based on its 2024 revenue, Kaler has emerged as one of China's top five comprehensive intelligent in-house logistics robot companies. In 2024, it also led in shipments of advanced intelligent robots in major categories, such as four-way shuttles and very narrow aisle autonomous mobile robots (VNA AMR).

During the tracking record period, Kaler's revenue was derived from the sales of robots and systems, which encompass:

• Robot deployment, primarily for projects involving the delivery and deployment of the company's expanding proprietary robot product portfolio, often used for further system integration.
• Integrated systems, for projects deploying a variety of proprietary and non-proprietary robots and components, typically utilized for comprehensive turnkey systems.
• After-sales service and others, mainly referring to a range of post-warranty service packages Kaler provides to customers, complementing its robot and system sales.

From 2022 to 2024 (hereinafter referred to as the reporting period), robots and systems contributed revenues of RMB 629 million, RMB 540 million, and RMB 703 million, respectively, accounting for 95.7%, 98.0%, and 97.4% of the revenue for each period, serving as Kaler's primary revenue stream.

During the reporting period, after-sales service and others generated revenues of RMB 28.093 million, RMB 11.019 million, and RMB 18.665 million, respectively, accounting for 4.3%, 2.0%, and 2.6% of the revenue for each period. This business revenue typically fluctuates in tandem with robot and system sales. Kaler stated that the decrease in this business revenue during the period was related to the gradual phasing out of certain ancillary businesses in 2022. The subsequent increase in 2024 was primarily due to an uptick in the proportion of after-sales services provided, as the growing number of projects continued to generate new after-sales service opportunities.

The robot and system business is further divided into robot deployment and integrated systems. During the reporting period, robot deployment accounted for 17.3%, 14.3%, and 18.4% of the robot and system business; integrated systems accounted for 78.4%, 83.7%, and 79.0% of the robot and system business.

Compared to integrated systems, Kaler's robot deployment business typically achieves higher gross profit margins, primarily because robot deployment mainly involves proprietary robots with independently developed technologies. These not only provide unique customer value but also allow for better cost control through in-house production. In contrast, integrated systems face higher procurement costs for third-party equipment and components required for system integration, as well as higher implementation costs due to more complex system design and execution.

During the reporting period, Kaler's robot deployment business achieved gross profit margins of 24.8%, 31.2%, and 30.3%, while the integrated systems business had gross profit margins of 13.7%, 14.0%, and 10.8%. The company's overall gross profit margins for the respective periods were 15.7%, 16.6%, and 15.7%.

In terms of overall revenue, during the reporting period, Kaler achieved revenues of RMB 657 million, RMB 551 million, and RMB 721 million. In 2023 and 2024, the company's revenue increased by -16.2% and 31.0% year-on-year, respectively.

Kaler attributed the year-on-year revenue decline in 2023 primarily to a decrease in its robot deployment and integrated systems businesses, as the company's customers made conservative capital expenditure decisions due to macroeconomic and industry conditions. These circumstances led to extended project deployment and acceptance times both domestically and overseas, affecting the company's revenue recognition for the year.

2. Asset-Liability Ratio at 150%

On the flip side, due to the high expenses typically associated with its industry, Kaler also faces persistent losses. During the reporting period, the company's net losses were RMB 210 million, RMB 242 million, and RMB 178 million, with adjusted net losses of RMB 117 million, RMB 123 million, and RMB 50.451 million, respectively.

Kaler stated that as the company is in the process of expanding its business and operations in the rapidly growing intelligent in-house logistics robot market and is continuously investing in research and development, it may continue to incur net losses in the future. The company believes that future revenue growth will hinge on, among other things, its ability to develop new technologies, enhance customer experience, establish effective commercialization strategies, compete successfully and effectively, and develop new products and services.

During the reporting period, the company's research and development expenses were RMB 94.6 million, RMB 85.4 million, and RMB 62 million, accounting for 14.4%, 15.5%, and 8.6% of the total annual revenue, respectively.

In addition to R&D investment, Kaler's other two major expense items during the period were also substantial. During the reporting period, the company's selling and marketing expenses were RMB 69.252 million, RMB 63.759 million, and RMB 40.853 million, accounting for 10.54%, 11.58%, and 5.66% of the revenue for each period; administrative expenses were RMB 66.619 million, RMB 78.046 million, and RMB 60.924 million, accounting for 10.14%, 14.17%, and 8.45% of the revenue for each period.

Meanwhile, Kaler's cash flow also continued to dwindle. At the end of each reporting period, the net cash flow generated from the company's operating activities was RMB -94.261 million, RMB -96.984 million, and RMB -10.811 million, respectively.

In addition to liquidity pressure, Kaler may also need to address its high inventory and accounts receivable issues.

Kaler's inventory primarily comprises raw materials, work-in-progress, and finished goods. At the end of each reporting period, the company's inventory was RMB 769 million, RMB 1.062 billion, and RMB 1.024 billion, respectively, with inventory turnover days of 434, 728, and 626 days, respectively.

During the same period, Kaler's trade receivables and other receivables were approximately RMB 366 million, RMB 314 million, and RMB 300 million, respectively, with prepayments of approximately RMB 37.7 million, RMB 85.2 million, and RMB 34.8 million, respectively. The turnover days for trade receivables and notes receivable were 162, 181, and 124 days, respectively. As of the same period, Kaler recognized impairment losses on trade receivables and contract assets of RMB 6.4 million, RMB 8.8 million, and RMB 22.3 million, respectively.

At the end of each reporting period, Kaler's net liabilities were RMB 645 million, RMB 894 million, and RMB 1.066 billion, respectively; net current liabilities were RMB 1.007 billion, RMB 1.134 billion, and RMB 1.18 billion, respectively; the company's current ratios for the respective periods were 0.6, 0.6, and 0.6, and quick ratios were 0.3, 0.3, and 0.3, all less than 1 during the period.

As of the same period, Kaler's total assets were RMB 1.932 billion, RMB 2.15 billion, and RMB 2.006 billion, respectively, with total liabilities of RMB 2.577 billion, RMB 3.043 billion, and RMB 3.072 billion, respectively. The calculated asset-liability ratios for each year were 133.4%, 141.57%, and 153.12%, respectively. The company's asset-liability ratio has exceeded 100% for three consecutive years and continues to climb, indicating a significant deterioration in the overall financial risks faced by the company.

Currently, Kaler's business model is heavily reliant on leverage. Wang Peng from the Beijing Academy of Social Sciences pointed out that when a company's asset-liability ratio surpasses 100%, its liabilities exceed its assets, indicating weak solvency. High debt inevitably leads to substantial financial expenses (interest payments), which can severely erode the company's profits.

In terms of book value, at the end of each reporting period, the company's cash and cash equivalents were RMB 194 million, RMB 105 million, and RMB 111 million, respectively.

3. Low-Price Equity Transfer Before IPO Submission

As of the last practicable date, according to the concert party agreement, Yang Yan, Shen Lu, Ma Lan, Jiaxing Jiumai, Jiaxing Huige, Jiaxing Rongming, Jiaxing Gaile, Jointown Pharmaceutical Group, and China Merchants Advanced Technologies jointly form a concert party, collectively holding 40.3% of Kaler's equity.

It was also noted that from 2022 to 2024, Kaler faced redemption liabilities of RMB 1.456 billion, RMB 1.573 billion, and RMB 1.699 billion, respectively. The company stated that as some redemption events may occur at any time, redemption liabilities are classified as current liabilities. Once the counterparty's redemption right terminates or expires, the book value of the redemption liability will be reclassified as equity.

Meanwhile, Kaler also mentioned that changes in the book value of redemption liabilities arise from changes in the book value of redeemable special rights granted by the company to certain former investors. This value change is non-cash in nature. The company expects all related redeemable special rights to terminate upon listing, and the relevant redemption liabilities will be reclassified to equity.

According to the prospectus, since its establishment in 2014, the company completed its Series A financing in the same year. From April 2017 to April 2020, the company completed Series B to Series D financings and two equity swaps.

In 2020, Kaler completed its first equity transfer, with a paid consideration of RMB 183 million. In October 2020, the company completed its Series D+ financing; in the same month, the company completed its second equity transfer, with a paid consideration of RMB 32.8835 million. In 2022, the company completed its Series E financing, after which its post-money valuation was RMB 3.5 billion.

On June 25, 2025, Kaler's application prospectus was accepted by the Hong Kong Stock Exchange. On June 11, Xingrui Yongying transferred 3.1418 million shares to Jiaxing Yukai for RMB 19.6822 million, equivalent to RMB 6.17 per share; on the same day, Foshan Datai transferred 1.2161 million shares to Shanghai Zhiyoumaite for RMB 7.5 million, equivalent to RMB 6.23 per share.

Prior to this, the most recent equity change in Kaler occurred in July 2023, when Xingrui Yongying transferred 4.9665 million shares to Nanhu Jiaxin for RMB 40 million, equivalent to RMB 8.05 per share, approximately 30% higher than the equity transfer price in June 2025. (Produced by Harbour Finance)