At the end of 2021, Dongguan Potec Electric Industry Co., Ltd. (“Potec Electric”) completed a Pre-IPO financing round of tens of millions of RMB, with Glory Fund participating. Proceeds from this round will be used primarily for capacity expansion and R&D investment.

Glory Fund’s comment

Glory Fund believes: “The importance of high-end equipment manufacturing to the national economy is becoming increasingly prominent. As an upstream supporting industry, the outlook for the wire and cable sector remains positive and product upgrading is clearly underway. The industrial automation development of emerging industries — including new energy, new rail transit equipment, aerospace, shipbuilding, and smart machine tools — brings new opportunities and growth space for industrial control cabling, while at the same time raising requirements for manufacturers’ R&D capability and product performance. Glory Fund is optimistic about Potec Electric’s prospects in fields such as flexible robotic cables and lithium-battery equipment cables, and highly values the company’s management, business model and channel advantages. This investment represents an important strategic layout for Glory in the specialty cable manufacturing industry.”

Company overview

Founded in December 2009, Potec Electric is a modern high-tech enterprise integrating the design, development and production of wires & cables, cable assemblies, electronic components and power strip products, together with the design, installation and commissioning of control cabinets and OEM product services. It is also a listed company candidate in Dongguan. The company’s main business covers R&D, manufacture and sales of high-end special wires for equipment as well as power strips and consumer electronic cables, and it provides related integrated solutions.

Since its inception the company has emphasized quality as its core development principle, aiming to develop and produce various high-end wires, cables, electrical accessories and control cabinets in accordance with Japanese and German electrical manufacturing and installation standards, enabling its products to quickly enter high-end domestic and international markets.

Main products

• Wires and cables (computer/peripheral cables, household appliance peripheral cables, mobile phone peripheral cables)
• Cable assemblies
• Supermarket hanging card products; cable assemblies for mobile gaming, household appliances and computer peripherals; high-end machine tool and robot connection cable assemblies; various servo motor cable assemblies
• Electrical control cabinets and distribution cabinets for equipment
• Japanese-spec power strips and extension cords

Product quality and customer praise

Potec Electric’s products and services have earned consistent praise from many domestic and international customers, including Panasonic (Japan), Nojima, Citizen Machinery, GECKO, China Vanke and Han’s Laser. In 2017 the company’s products successfully obtained Japan PSE certification and Potec signed a cooperation contract with Samsung Japan, marking successful overseas exports.

Future direction

Looking ahead, Potec Electric aims to become a specialist provider of high-end electrical connection and installation solutions. For the domestic market it will offer complete power distribution solutions for high-end robots and CNC machine tools, contributing to China Manufacturing 2025 and Industry 4.0; it will also supply proprietary patented products for new prefabricated construction to prepare for the construction industry’s next era. For overseas markets, beyond consolidating its existing product lines for Japanese retail chains, the company will continue to develop innovative products to meet diverse customer needs.

Regulatory filing

Potec Electric completed IPO counseling/filing registration with the Guangdong Securities Regulatory Bureau on June 23, 2021; the counseling institution was Caixin Securities.