TH Capital portfolio company Focuslight successfully completes their IPO, confirming once again our hard-tech investment strategy
Hard-tech investment strategy empowers Focuslight Technology to grow into the world's leading integrated laser solution provider
TH Capital lead Focuslight Technology’s funding round in 2017. To this day, our company has invested a total of three funding rounds, all together making TH Capital the third largest shareholder of the company.
Earlier this year, TH Capital portfolio company Allgens Medical, the global leader in artificial bone grafts, successfully went public on the Science and Technology Board in Shanghai. With this investment, TH Capital adopted an active post-investment model approach, working closely with the company’s leadership backed by a larger than usual shareholding. With this, TH Capital leadership pioneered the our active value creation through Post Investment Management of hard tech investments.
Our investment in Focuslight follows the successful example of Allgens Medical, combining investment and value add program: We do not interfere with business operations, but fully support the company to thrive, building on their own strength, and support strategic planning, business development and market expansion, industry consolidation, and corporate culture, while providing assistance with capital market strategy, coordinating closely with other major shareholders.
It was with the support of TH Capital’s international business team that Focuslight Technology expanded into the automotive application business and successfully signed an RMB 400m strategic cooperation agreement with Continental in 2019. The revenues of Focuslight's automotive application business (LIDAR) has contributed substantially to the company’s growth. Earlier this year, its BeamRazor™ series LE02 lidar transmitter module won the annual Laser and Optoelectronics Industry Innovator Award by Laser Focus World.
Persist in continuous innovation, improve domestic and overseas business adjustments, and help performance improve all the way
The Shanghai Stock Exchange’s establishment of the Science and Technology Innovation Board with its pilot registration program is a major institutional innovation to improve China’s capital markets and continue China’s opening up. Focuslight Technology is the first company to secure approval from the China Securities Regulatory Commission since the Science and Technology Innovation Board registration system was implemented, accelerating the IPO process to less than 100 days from application to listing.
Focuslight Technology’s public offering of 22.49m new shares, raised nearly RMB 1.77b in additional capital. Proceeds will mainly be used for the company’s Dongguan micro-optics and application innovation project, the industrialization of the firm’s LIDAR transmitter module, the construction of a new R&D centre as well as other projects.
Since its establishment, Focuslight has built their competitiveness on innovation, far exceeding the R&D investment benchmarks of other high-tech enterprises in their industry. Thanks to this continuous innovation, Focuslight's performance has shown a strong growth in recent years with their 2021Q3 revenues exceeded RMB 300m, an increase of nearly 30% over the previous year.
At the same time, Focuslight has grown the optics business. The company integrated the solution capabilities of the German acquisition LIMO, strengthening technical support for domestic customers and expanding market share while significantly increasing their gross profit margins.
Building on the core capabilities of high-power lasers and optical components, Focuslight became a key supplier of Shanghai Microelectronics. The company’s self-developed indium-free packaging technology, as well as their gold-tin film interface material preparation technologies have also made them a key supplier of global semiconductor champion TSMC.
Following the successful listing of Focuslight Technology, TH Capital will continue to support the company to lead lead technological development, create value for customers with high-reliability products, and actively participate in international technological competition in the field of cutting- edge lasers.
Founded in 2007 by Dr. Victor Liu and headquartered in Xi’an, Focuslight Technologies is a fast- growing company that develops and manufactures high power diode lasers and laser optics for photon generation and control. The company’s products are used in various applications in advanced manufacturing, healthcare, automotive, consumer electronics and R&D. Currently, Focuslight is expanding the firm’s business scope into the development and manufacturing of photonic application modules and systems, including LiDAR transmitter modules and UV-L optical systems. With the firm’s extensive engineering expertise and know-how, Focuslight provides customers with the most comprehensive solutions in the industry.
About TH Capital
TH Capital is a Beijing based private equity fund investing in Advanced Manufacturing, Next Generation Technologies, and Healthcare. Since 2007, The company has been actively investing in small and medium sized companies (SMEs) in high-growth markets in China and beyond. With more than RMB 10 billion raised and a track record of over 70 successful investments, we are one of the leading growth capital funds in China. As a recognized expert in our focus industries, we are the preferred fund manager for international investors to participate in the coming decade of hard-tech growth in China.