The former CFO of Tuya Smart joins xTool, a star hardware company with revenues exceeding 2 billion yuan | Exclusive from Yingke

Author | Lin Qingqing

Editors | Yuan Silai, Yang Xuan

Yingke has exclusively learned from multiple independent sources that Liu Yao, the former CFO of Tuya Smart, has joined xTool, a Shenzhen-based startup specializing in laser engraving machines, to be responsible for finance and part of the business operations.

The xTool brand was established in 2021, and its parent company is Makeblock. xTool's main products include laser engraving machines and laser cutters, which are used in fields such as personal creation, education, and industry. The founder, Wang Jianjun, is a post - 1985 generation. He graduated from the Aircraft Design major of Northwestern Polytechnical University in 2010 and moved south to Shenzhen. He rarely appears in the public eye.

EqualOcean once reported that xTool's revenue exceeded 1 billion yuan in 2023. According to multiple sources, Yingke has learned that in 2024, xTool's revenue was between 2 billion and 3 billion yuan.

As of press time, xTool has not responded to this news.

Liu Yao once served as an executive director in the investment banking department of UBS and completed investment and financing projects worth over 10 billion US dollars. According to the announcement of Tuya Smart, Liu Yao served as the senior vice - president and chief financial officer of Tuya Smart from May 2019, being responsible for capital markets, investment, finance, legal affairs, internal control, strategic analysis, and planning. In 2021, Tuya Smart was listed on the New York Stock Exchange, becoming the "first listed stock of the IoT cloud platform". In July 2022, Tuya Smart completed a dual - listing on the main board of the Hong Kong Stock Exchange. In August 2024, Liu Yao left Tuya Smart for personal reasons.

 An investor told Yingke: "One of Liu Yao's strong points is strategy and fundraising. After all, he has worked at UBS, so he has a broad vision."

Consistent with the style of its founder, xTool has always kept a low profile and is a typical "cash - rich" hardware company in Shenzhen.

However, it has also experienced some setbacks. In 2013, Wang Jianjun founded Makeblock, focusing on STEAM education and mainly launching educational robots and maker tools. From 2015 to 2018, it received a total of over 1 billion yuan in financing from institutions such as Sequoia Capital China and Shenzhen Capital Group. In 2021, due to the slowdown of the education business, the company established the xTool brand and began to transform into consumer - grade laser engraving machines and 3D printing.

xTool initially focused on industrial - grade laser equipment and later transformed to the consumer end. Thanks to the supply - chain and overseas marketing - channel accumulation of Makeblock, xTool quickly became a leading brand in the niche category. The monthly traffic of its independent website exceeds 2 million visits. The crowdfunding amount of its popular product, xTool M1, exceeded 2.6 million US dollars in 2021, ranking first in the laser - category crowdfunding amount on the platform that year. As of April 1st, the latest clothing printer of xTool has raised nearly 5 million US dollars on Kickstarter.

Laser engraving machines are relatively niche in China, but they have been popular in overseas markets for several years. With the rise of the global DIY trend and the increasing demand for household CNC equipment, this market expanded rapidly during the pandemic. According to the QYR report, the global laser engraving machine market reached 658 million US dollars in 2023 and is expected to reach 1.88 billion US dollars by 2030, with a compound annual growth rate (CAGR) of 14.67%.

Behind xTool's rapid growth is the broad demand in the overseas DIY market. However, the industry is now becoming crowded. Currently, xTool is the absolute leader, but there are also new brands such as Flux and Snapmaker.

xTool is also exploring product paths beyond laser printers. According to Tianyancha information, xTool participated in the Series B financing of Shenzhen Kuaizao Technology Co., Ltd. (Snapmaker) as an investor. The latter mainly focuses on 3D printers. Spy photos of their collaborative products have been exposed, but they have not been officially confirmed.

For xTool, it has reached a critical point and must go public to obtain more resources. In the field of laser engraving machines, in terms of scale, xTool currently has no competitors that can match it. It can be said that this is the best time for it to go public.

The experienced Liu Yao may enable xTool to achieve its most important advancement. As Liu Yao said in an interview with Barron's, "Even in the worst year, there is an opportunity, but it is fleeting."

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Chart by 36Kr