(Yicai Global) March 29 -- The Shanghai Stock Exchange has named optical lensmaker RICOM Group, a Huawei supplier, in the third batch of companies accepted to list on the bourse's upcoming board for innovative science and technology firms.
Fujian province-based RICOM, whose products include 4K ultra-high-definition surveillance cameras, fisheye lenses and thermal imaging lenses, was one of two companies whose prospectus was published by the SSE yesterday. The second was Hangzhou Hongquan Internet of Things Technology, which makes intelligent driving systems and equipment.
RICOM plans to raise CNY651 million (USD97 million) through its offering to build new manufacturing and research facilities, according to the prospectus. It pocketed pocketed more than CNY91 million (USD13.5 million) in each of the past two years, and enhanced margins in 2018 to earn slightly higher profit on 5 percent less revenue.
"The market share of domestic security surveillance lens brands has gradually surpassed that of Japanese brands in recent years," an industry source told Yicai Global. "The industry is highly concentrated though. Industry mainstays hold large market shares, with the top five commanding nearly 80 percent."
RICOM also has a strong list of clients, including telecoms equipment giant Huawei Technologies, Bosch, Honeywell and military customers. Its sales of security surveillance cameras by volume made up 11.8 percent of the global market in 2017, ranking it third worldwide.
The company has also developed space observation lenses used in major national defense missions and the Chang'e lunar probes, as well as weapons technology like drones, helicopter gunships and missiles, though did not disclose in the prospectus how much its revenue comes from these sectors.
Editor: James Boynton