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BEIJING - Cheetah Mobile Inc. (NYSE:CMCM), whose stock has gained over 68% in the past year according to InvestingPro data, announced Monday it will acquire a 60.8% equity interest in Shenzhen UFACTORY Technology Co., Ltd., a lightweight robotic arms provider, for approximately RMB99.5 million ($14 million).
The acquisition will increase Cheetah Mobile’s total ownership in UFACTORY to about 80%, as one of its wholly-owned subsidiaries already holds a 19.2% stake in the company. This represents an ultimate beneficial ownership of approximately 75.8% for Cheetah Mobile.
The transaction has received approval from Cheetah Mobile’s board of directors and audit committee, with closing expected in the third quarter of 2025, subject to customary conditions.
UFACTORY develops collaborative robotic arms designed to work alongside humans in shared environments. The company markets its products under the "UFACTORY xArm" brand and offers five-, six-, and seven-axis robotic arms and accessories.
According to the press release statement, UFACTORY is generating net profits and substantial revenue from overseas markets, with a growing global customer base.
Cheetah Mobile plans to fund the acquisition using its cash reserves, which stood at over $230 million in net cash as of March 31, 2025. InvestingPro data shows the company maintains strong gross profit margins of 71%, though it’s currently experiencing negative free cash flow. With a market capitalization of approximately $170 million, InvestingPro’s Fair Value analysis indicates the stock is currently undervalued.
Cheetah Mobile, listed on the New York Stock Exchange since May 2014, describes itself as a China-based IT company focused on AI innovation. The company provides advertising services, value-added services through premium memberships, multi-cloud management platforms, and service robots to international clients. Revenue grew 27% in the last twelve months, though profitability remains a challenge. Discover more insights about CMCM and access comprehensive analysis of 1,400+ stocks with InvestingPro’s detailed research reports.
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