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]