Core Viewpoint - Shenzhen Zhaowei Electromechanical Co., Ltd. is planning to issue up to 69,058,450 overseas listed ordinary shares and list on the Hong Kong Stock Exchange, with joint sponsors being CMB International and Deutsche Bank [1][2]. Company Overview - Zhaowei Electromechanical is an integrated provider of micro transmission and drive system solutions, targeting high-growth industries such as smart vehicles, embodied robotics, consumer technology, medical technology, and advanced industrial manufacturing [4]. - The company has developed a "1+1+1" collaborative innovation system comprising transmission systems, micro motor systems, and electronic control systems to meet the high demands for system integration, response speed, and space utilization efficiency in the era of digital intelligence [4]. - By deeply integrating these three systems, the company achieves high-performance drive control in a compact size, catering to the increasingly stringent market demands for precision, miniaturization, and intelligence [4]. - Zhaowei Electromechanical has launched three major platform-based proprietary brand products: high-performance servo motor series, drum motors, and dexterous hands, covering high-potential industries such as high-end smart consumer products, advanced manufacturing, and humanoid robots [4]. - According to a Frost & Sullivan report, the company ranks first in China and fourth globally in terms of revenue [4].

Group 1 - The 2025 World Robot Conference was held in Beijing from August 8 to 12, attracting over 200 top domestic and international companies, showcasing more than 1,500 robot-related products, with over 100 new products launched [1] - Zhaowei Electromechanical, a leading company in the micro-drive field, showcased multiple innovative products, becoming a focal point of the conference and sparking a wave of technological innovation [1] Group 2 - The DM17 series dexterous hand, released in July, features 17 degrees of freedom and weighs approximately 900 grams, capable of performing over 95% of human hand movements with high precision [2] - The internal structure of the DM17 dexterous hand includes a micro-reducer, motor, and control unit, with an independent drive design for each finger joint, achieving a motion accuracy error of less than 0.3 degrees [2] - Zhaowei Electromechanical's dexterous hand has undergone five generations of optimization, reducing weight from 2.063 kilograms to approximately 900 grams, significantly improving flexibility and performance [2] Group 3 - During the conference, Zhaowei Electromechanical conducted a detailed disassembly display of the DM17 series, attracting significant interest from professional audiences and industry professionals [3] - Several robot manufacturers expressed strong interest in the DM17 series after in-depth product understanding [3] Group 4 - Since its establishment in 2001, Zhaowei Electromechanical has focused on the research, production, and sales of micro-drive systems, accumulating over 382 patents by March 31, 2025, ranking first in the domestic integrated micro-drive industry [4] - The company demonstrated exceptional manufacturing craftsmanship in micro-drive hardware, showcasing high-precision component processing and complex assembly [4] - Zhaowei Electromechanical has also achieved significant results in intelligent control algorithms, providing comprehensive technical support for robots to perform precise and complex actions [4]

Company Overview - Shenzhen Zhaowei Electromechanical Co., Ltd. (Zhaowei) has submitted a listing application to the Hong Kong Stock Exchange, with China Merchants Securities International and Deutsche Bank as joint sponsors [1] - Zhaowei is an integrated provider of micro drive and transmission system solutions, targeting high-growth sectors such as smart vehicles, robotics, consumer technology, medical technology, and advanced industrial manufacturing [3] Industry Insights - The integrated micro drive and transmission system market in China has grown from RMB 20.3 billion in 2020 to an estimated RMB 33.2 billion by 2024, reflecting a compound annual growth rate (CAGR) of 13.0% [4] - The market is projected to reach RMB 72.6 billion by 2029, with an increased CAGR of 17.3% from 2025 to 2029, driven by industrial upgrades and technological advancements [4] Financial Performance - For the fiscal years 2022, 2023, and 2024, Zhaowei reported revenues of approximately RMB 1.152 billion, RMB 1.206 billion, and RMB 1.525 billion, respectively [4] - The corresponding net profits for the same years were approximately RMB 150 million, RMB 180 million, and RMB 225 million [4] - The company has achieved a gross margin of 29.1% in 2022, which is expected to improve to 31.2% by 2024 [6]

Core Viewpoint - The company reported strong financial performance for 2024, driven by rapid growth in the automotive sector and product structure optimization, with revenue reaching 1.52 billion and a year-on-year increase of 26.4% [2] Group 1: 2024 Financial Performance - Revenue for 2024 was 1.52 billion, up 26.4% year-on-year - Net profit attributable to shareholders was 230 million, an increase of 25.1% year-on-year - Non-recurring net profit was 180 million, up 37.6% year-on-year - Gross margin improved to 31.4%, a rise of 2.4 percentage points year-on-year, while net margin was 14.8%, down 0.2 percentage points [2] Group 2: Business Highlights for 2024 - **Smart Automotive**: Collaborations with major automotive clients like Bosch, BYD, and Li Auto have progressed, with successful applications of products such as in-car screens and electronic parking brakes [3] - **Consumer and Medical Technology**: The company is actively involved in the automation and intelligence of medical devices, focusing on AR&VR, smart home products, and insulin pumps [3] - **Robotics**: The company launched a pioneering dexterous hand product at the Shenzhen High-Tech Fair, featuring advanced control and sensing capabilities [3] - **Advanced Industry and Manufacturing**: The company is developing lighter and more functional industrial drive systems for various applications [3] Group 3: Q1 2025 Performance - Q1 2025 revenue was 370 million, a year-on-year increase of 17.7% but a quarter-on-quarter decrease of 21.3% - Net profit attributable to shareholders was 55 million, down 1.2% year-on-year and 17.0% quarter-on-quarter - Non-recurring net profit was 47 million, up 6.9% year-on-year but down 14.8% quarter-on-quarter - Gross margin was 31.7%, down 1.1 percentage points year-on-year, while net margin was 14.9%, down 2.8 percentage points year-on-year [4] Group 4: Future Outlook - The automotive electronics business is expected to continue its high growth trajectory, supported by the company's innovative "1+1+1" collaborative innovation system [5] - The company is positioned as a hidden champion in the micro-drive sector, with significant growth potential in robotics and humanoid robots [5] - The company anticipates sustained revenue growth in the automotive sector due to increased production capacity and rising average selling prices per vehicle [5]