36 Krypton has learned that the industrial code reading and sensor manufacturer “XinSuan Technology” has recently received tens of millions of yuan in angel round financing, this round of financing investors for Sequoia China seed fund, financing funds will be used for factory construction, product quality control management and supply chain system construction.

“Founded in 2019, XinSuan Technology mainly focuses on the research and development of image processing algorithms and the design of code-reading products, providing general-purpose DPM industrial code reader, high-speed high-performance industrial code reader and cost-effective code-reading module for 3C, new energy, automotive, warehousing, intelligent logistics, robotics, superstores, payment and digital ID industries.

According to data reported by Grand View Research, the global market size of code reader was about $7 billion in 2021, and is expected to reach $11 billion in 2028, with a compound annual growth rate of 6.7%, and Asia-Pacific dominated the market in 2020, accounting for 40% of the global code reader market share.

However, the global industrial code reader market has been dominated by major manufacturers, including Keyence, Cognex, Datalogic and other foreign brands, to enhance the technical barriers to code readers is also the core task of each leading visual sensing companies.

In the view of Zhang Suning, founder of “XinSuan Technology”, the current domestic industrial code reader used solely in the manufacturing industry is still dominated by imported brands, XinSuan Technology to code reader as an entry point, and continue to expand the product line, relying on the vision algorithm and hardware design capabilities, coupled with the speed of service of the local enterprises to surpass the advantages of foreign brands, there is still an opportunity to become a local vision sensor company to compete with foreign leaders, to provide better solutions for the factory of the information technology. Provide better solutions for the informationization of factories.

At present, “XinSuan Technology” has constructed a number of product lines such as general DPM code reader, code reader module, industrial handheld code reader, payment module and code reader chip, etc. The two products that have been landed are R270 and R275 series code readers, both of which have reached the international leading level in terms of performance, and have been successfully landed in the production line of battery of Company A.

The core advantage of “XinSuan Technology” code reader is the combination of neural network and traditional algorithms. After a large amount of data training, the neural network can abstract the texture characteristics of QR code or barcode, and in various complex scenarios, it can roughly locate the code in the area of QR code or barcode by using AI first, and then use the traditional algorithms to conduct high-speed screening for fine localization to greatly improve the decoding efficiency.

Secondly, the algorithm of “XinSuan Technology” is able to disregard the contrast change and interference of the image and locate the boundary of the QR code or barcode at the sub-pixel level, and the positioning accuracy can be up to 0.02 pixel points.

Overall, the algorithm of “XinSuan Technology” in ID positioning or decoding has three major advantages: high accuracy, anti-interference, and strong adaptability.

In addition, “XinSuan Technology” will also research and develop a special chip for image processing with code reading function to replace the external chip of the existing products, reduce power consumption and cost, so that the visual sensor products can realize the supply of stable and at the same time, the product power will also be greatly improved.

After the completion of this financing, “XinSuan Technology” will set up factories in Nanjing and Ningbo, two flexible production lines at the same time to take care of the production of a variety of products. At present, the company is interested in cooperating with more than a dozen agents and sellers, mainly distributed in East China, South China and the western region.

As for the team, the founder Zhang Suning was responsible for the AGV inertial navigation sensors and visual guidance sensors project of Shinsei Electronics, and at the end of 2017, he founded Changzhou Deep Image Technology Co., Ltd. and was responsible for the design of industrial image processing algorithms and the design of algorithms for image-based code readers; Zhou Yan, the CTO, is an expert in the field of chips and has worked for Synopsys, Microchip, Microelectronics, and New Shoreline, etc., and has led the design team responsible for a number of well-known chips and has led the design team responsible for the design of a number of products. He has worked for Synopsys, Xiaomi, Zhongxingmicro, and NovaShoreline, and has led the design team responsible for the development of a number of cell phone chips and SOC chips for large-scale application processors. The core members of the team were all first prize winners in the camera category of the NXP Cup Intelligent Vehicle Competition, and have been specializing in image processing algorithms for seven years.

Investment Opinion
Zhang Han, a partner of Sequoia China, said: The new generation of manufacturing revolution is the process of reshaping the value of the industrial chain, which means that every link of the industrial chain needs to be upgraded with intelligence and digitalization, and every product needs to be identifiable and traceable. Industrial readers and vision sensors play a vital role in the process of industrial digitalization and upgrading. We believe that XinSuan Technology, under the leadership of Mr. Zhang, will rely on its own strong R&D and engineering capabilities to build a state-owned high-end independent brand, and quickly realize the scale of code reading and sensing equipment in the field of warehousing, logistics, and industrial automation, and continue to create value for customers and partners.