Core Viewpoint - The company, Zhaowei Electromechanical (02692.HK), is planning a global offering of 26.7483 million H-shares, with a maximum offer price of HKD 73.68 per share, aiming to raise approximately HKD 1.8923 billion in net proceeds from the offering [1][4]. Group 1: Company Overview - The company is the largest integrated micro-drive and drive system product provider in China and the fourth largest globally, with market shares of 3.9% and 1.4% respectively [2]. - The company designs and manufactures micro-drive and drive system products, primarily selling to customers in China and then to overseas clients [2]. - The product offerings include micro-drive and drive systems, precision components, and custom molds tailored to specific customer needs [2]. Group 2: Offering Details - The global offering consists of 26.7483 million H-shares, with 2.6749 million shares available for sale in Hong Kong and 24.0734 million shares for international sale [1]. - The subscription period for the offering is from February 27 to March 4, 2026, with the expected pricing date on March 5, 2026, and trading on the Hong Kong Stock Exchange expected to commence on March 9, 2026 [1]. Group 3: Use of Proceeds - Approximately 35% of the net proceeds will be allocated for global technology research and development and expanding the product portfolio [4]. - About 30% will be used to expand production capacity and improve efficiency [4]. - 15% is earmarked for selective global strategic partnerships, investments, and acquisitions [4]. - 10% will be used to enhance the global service and sales network and increase marketing efforts [4]. - The remaining 10% will be allocated for working capital and general corporate purposes [4]. Group 4: Cornerstone Investment - The company has entered into cornerstone investment agreements, with cornerstone investors agreeing to subscribe for shares totaling approximately RMB 578.6 million, equating to 8.8429 million shares at the maximum offer price [3]. - Notable cornerstone investors include HHLRA, Mirae Asset Securities HK, and several other investment firms and funds [3].

Company Overview - Zhaowei Electric (003021) has submitted a listing application to the Hong Kong Stock Exchange, with joint sponsors being China Merchants Securities International and Deutsche Bank [1] - The company is the largest provider of integrated micro drive and drive system products in China and the fourth largest globally, with market shares of 3.9% and 1.4% respectively based on 2024 revenue [1] Product and Innovation - The company designs and manufactures micro drive and drive system products along with their supporting components, including micro drive systems, precision parts, and custom molds [1] - Zhaowei Electric employs a "1+1+1" collaborative innovation system to create a "dual-engine" growth model, focusing on customized product development with leading clients and promoting standardized, large-scale development of platform-based self-owned brand products [1] - The company has launched three major platform-based self-owned brand products: high-performance servo motors, drum motors, and dexterous hands [1][2] Market Potential - The global integrated micro drive and drive system market is projected to grow from RMB 124.3 billion in 2025 to RMB 204.9 billion by 2029, with a compound annual growth rate (CAGR) of 13.3% [2] - The Chinese market is expected to increase from RMB 38.4 billion in 2025 to RMB 72.6 billion by 2029, with a CAGR of 17.3% [2]