Lianhe Sowell International Group Ltd (Nasdaq: LHSW), a key player in China’s industrial robotics sector, has received a letter of intent (LOI) for a funding offer of up to RMB 200 million from Hangzhou Yuhang Economic Development Equity Investment Fund. This non-binding agreement aims to support the company’s research and development (R&D) of next-generation industrial robots and expand its manufacturing capacity in Hangzhou, Zhejiang province.
R&D Focus: Paving the Way for New Robotics Innovations
Lianhe Sowell plans to invest 50% of the funding into the development of new products, including robotics tailored for industries like automotive, pharmaceuticals, and construction. This initiative will also focus on enhancing the intelligence and adaptability of existing solutions.
As part of its growth strategy, the company has established a partnership with Zhejiang University’s High-End Equipment Institute in September 2024. This collaboration will provide Lianhe Sowell with strong technical support and access to skilled talent, which will further enhance its capabilities in robotics innovation.
Boosting Manufacturing Capacity
In addition to R&D, Lianhe Sowell intends to use part of the funding to build a 40,000-square-meter manufacturing facility. The new plant will focus on standardized products like intelligent painting robots and specialized industrial robots, with the goal of increasing production capacity to 10,000 units annually. This expansion is aimed at enabling quicker delivery of customized solutions to meet market demand.
About Lianhe Sowell International Group Ltd
Lianhe Sowell International Group Ltd specializes in machine vision and industrial robotics solutions, offering intelligent equipment for industries such as smart transportation, automation, AI, and machine vision. The company is committed to driving the intelligent transformation of industries through continuous technological innovation.
Forward-Looking Statements
This press release contains forward-looking statements related to the anticipated funding, investment use, and manufacturing plans. These statements involve risks and uncertainties, and actual results may differ significantly. The company does not guarantee the completion of the proposed investment or manufacturing facility, and investors are encouraged to review the company’s SEC filings for more details.
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