Core Viewpoint - The company Zhongjian Technology is facing significant growth challenges as it transitions into the smart robotics sector, with a sharp decline in revenue growth and profitability in 2025, despite aggressive R&D investments [1][2][3]. Group 1: Financial Performance - In the first half of 2025, Zhongjian Technology's revenue growth slowed to 5.3% year-on-year, and net profit for the third quarter showed a loss of 28.55 million yuan, a staggering decline of 482.99% [2]. - The company's R&D expenses surged by 127.3% in the first half of 2025, reaching 39 million yuan, resulting in an R&D expense ratio of 9.96% [2]. - Operating cash flow deteriorated significantly, with net cash flow from operating activities dropping to 5.997 million yuan in 2024, a 94% decrease from 102 million yuan in 2022 [2]. Group 2: Business Transformation - Zhongjian Technology is heavily investing in the smart robotics sector to reduce reliance on traditional OEM/ODM business models, which account for over 92% of its operations [3]. - The company has formed partnerships with industry leaders, including investments in the Norwegian humanoid robot company 1X Holding AS and collaborations with Nvidia and Huawei [3]. - Despite these efforts, the transition faces challenges, including reliance on external suppliers for key components, with over 50% of costs attributed to these parts, and a low production capacity utilization rate of 32% for smart lawn mowers in 2024 [3]. Group 3: IPO Motivation and Market Position - The IPO on the Hong Kong Stock Exchange is seen as a crucial step for Zhongjian Technology to raise funds for the industrialization of its quadruped robots and expansion of production bases in Thailand and China [4]. - The company aims to enhance its international brand influence and expand into high-end robot markets in Europe and North America [4]. - However, the company faces risks such as concentrated ownership, with the Wu Minggen family holding 46.01% of shares, and potential compliance issues stemming from past incidents [4]. Group 4: Industry Context - Zhongjian Technology's struggles reflect broader challenges faced by traditional manufacturers transitioning to smart technologies, as the market shifts towards lithium battery and intelligent equipment [5]. - Competitors like Quan Feng Holdings reported revenues of 24.7 billion yuan in 2024, significantly outpacing Zhongjian Technology's 971 million yuan [5]. - The company is attempting a "technology for market" strategy, but the return on investment in its robotics business is currently unbalanced, with 72.7 million yuan spent on R&D against only 4.65 million yuan in revenue from this segment in 2024 [5].