This LED company invests 17.5 million to cross over into the robotics sector

Recently, Songsheng Co., Ltd. released a major announcement, declaring a deep cooperation with Chongqing Jinggang Transmission Technology Co., Ltd. Both parties jointly invested to establish the joint venture "Shenzhen Songsheng Robot Transmission Technology Co., Ltd.", with Songsheng Co., Ltd. contributing5.5 million(55% share), and Chongqing Jinggang Transmission contributing4.5 million(45% share).

The core business of the joint venture will focus onHarmonics / THDreducers, transmission and drive components, and other core robot parts for R&D and production, aiming to integrate the full chain technology of "precision manufacturing + drive control" and promote the application of domestic high-end components in the industrial and service robot fields.

At the same time, both parties also signed a "Project Technology Development Contract for 'Robot Harmonics / THD Reducer and Intelligent Joint Technology Development and Application'". Among them, Songsheng Co., Ltd. invested12 million yuanin R&D funds, with Chongqing Jinggang Transmission forming a technical team to jointly tackle the industrialization challenges of high-precision Harmonics / THD reducers, intelligent joint modules, and key components.

This collaboration combines Songsheng's scaled advantages in power control and system integration with Chongqing Jinggang Transmission's material processes and precision machining technology in the field of harmonic reducers. It is expected to break the long-standing monopoly of Japanese companies in the high-end reducer market and fill a key gap in the domestic robot supply chain.

The image is unrelated to the content and is for reference only

Strategic Transformation:

Hedging core business risks and seizing opportunities in the robotics industry

Songsheng's strategic transformation into the robotics sector reflects the company's path to breakthrough amid sluggish growth in its traditional business.

The current LED lighting industry has entered a mature technological phase with intense competition. To seek new performance growth points, Songsheng Co., Ltd. entered the energy storage inverter market in 2022, attempting to cultivate a new business pillar. However, financial data shows that its energy storage business only started sales in the second half of 2024 and is currently still operating at a loss.

Specifically, the company's revenue for 2024 reached 884 million yuan, a year-on-year increase of 15.78%, but it reported a net profit loss of 13.8929 million yuan. Although the LED driver business maintained growth, with sales volume and revenue increasing by 29.14% and 14.66% respectively, the energy storage inverter business achieved only 8.2903 million yuan in revenue, with losses reaching as high as 46.7371 million yuan.

The operating environment in the energy storage industry is also not optimistic. Since 2023, overcapacity coupled with destocking in the European market has plunged the residential energy storage sector into a price war, with serious product homogenization, significantly compressing the profit margins of late-entering companies.

In contrast, the robotics industry is experiencing explosive growth. Driven by breakthroughs in AI technology and tech giants such as Tesla and NVIDIA, this field has become a new blue ocean for global capital competition. TrendForce predicts that the robotics market will remain highly active in 2025.

This strategic adjustment means that Songsheng Co., Ltd. is tilting resources towards more promising tracks. Of particular note is the market for high-precision harmonic reducers, a core component of robots, which has extremely high technical barriers. The current competitive landscape is undecided, and there is broad space for domestic substitution. If key technologies can be broken through, Songsheng Co., Ltd. is expected to establish differentiated competitive advantages in this niche field, thereby opening up a new pole of profit growth.

Images are unrelated to the content and for reference only

Industry resonance:

LED supply chain collectively “crosses over” into robotics

The entry of the LED supply chain into the robotics field has become a new industry trend. Against the backdrop of plateauing growth in core businesses, Songsheng’s transformation decision is not an isolated case but a typical example of the LED Industry collectively seeking new growth curves.

Currently, multiple leading LED companies, including Everlight Electronics and NationStar Optoelectronics, are actively laying out their presence in the robotics track, with each company leveraging its own technical advantages to choose different entry points.

Industry insiders point out that Songsheng's choice of harmonic reducers, a core robot component, as a breakthrough point aligns with industry development trends and reflects a differentiated competitive strategy. In the future, the technological conversion capabilities and market expansion effectiveness of these cross-industry enterprises will become key indicators for measuring the success of their transformation.