Core Viewpoint - The company Zhongjian Technology is facing significant performance pressure as it prepares for an IPO on the Hong Kong Stock Exchange, with plans to raise funds for key areas including the industrialization of quadruped robots and the expansion of production bases in Thailand and China [1][2][34]. Group 1: Financial Performance - The company's revenue growth has noticeably slowed since 2025, with core profit indicators experiencing a substantial decline [3][12]. - In 2022, the company reported revenue of 512.4 million RMB, which surged to 971 million RMB in 2024 [6][8]. - Net profit increased from 27.4 million RMB in 2022 to 61.5 million RMB in the first half of 2024, but growth momentum halted in the second quarter of 2025 [7][9][10]. - The first quarter of 2025 saw revenue of 286 million RMB, a year-on-year increase of 4.96%, while the second quarter's revenue slightly increased to 217 million RMB, but net profit plummeted by 35.81% [9][10]. - By the third quarter of 2025, revenue dropped to 146 million RMB, with a significant net loss of 28.6 million RMB, marking a year-on-year decline of 482.99% [11]. Group 2: Product Sales and Pricing - The company's core product sales have declined, with lawn mower sales dropping from 46,400 units to 42,100 units and chainsaw sales falling from 225,500 units to 152,200 units in the first half of 2025 [13][14]. - Despite the decline in sales volume, revenue growth has been maintained primarily through price increases, with the average price of lawn mowers rising from 4,006.6 RMB in 2022 to 6,713.6 RMB in the first half of 2025 [15][16]. Group 3: Market Dependency and Challenges - The company heavily relies on overseas markets, with 88.5% of its revenue in the first half of 2025 coming from Europe and North America [17]. - However, signs of weakening demand in these markets are becoming evident, as export values for electric tools and lawn mowers have shown negative growth [18]. - The company is also facing challenges in its transition to smart robotics, with significant R&D investments not yet yielding expected results [19][28]. Group 4: Corporate Governance and Compliance Issues - The company has been expanding its related party transactions, with sales to entities controlled by executives increasing from 746,000 RMB in 2024 to 1.18 million RMB in the first half of 2025 [25][26]. - Compliance issues have arisen, including a workplace accident resulting in a fatality and failure to pay adequate social security and housing funds for some employees [31][33]. Group 5: Strategic Direction and Future Outlook - The IPO on the Hong Kong Stock Exchange is seen as a critical step for the company to break through performance pressures and invest in the smart robotics sector [34]. - The outdoor power equipment industry is undergoing significant changes, with new product categories like smart lawn mowers still in the early stages of market penetration, but competition is intensifying [34].

Core Viewpoint - Zhongjian Technology has submitted its prospectus to the Hong Kong Stock Exchange, aiming to raise funds primarily for expanding its robotics business and increasing production capacity domestically and internationally to capitalize on the artificial intelligence robotics market [2]. Group 1: Company Overview - Zhongjian Technology, established in 1997, specializes in outdoor power equipment, including a full range of gasoline and lithium battery products such as chainsaws and lawn mowers [3]. - The company has achieved significant overseas sales, with products sold in over 50 countries and regions, and only 5% of its revenue coming from mainland China as of mid-2025 [5]. Group 2: Financial Performance - In 2024, Zhongjian Technology's total revenue increased from 512 million yuan in 2022 to 971 million yuan, with a compound annual growth rate (CAGR) of 37.6%, while net profit rose from 27.4 million yuan to 61.5 million yuan, with a CAGR of 49.8% [5]. - However, in 2025, the company experienced a slowdown in revenue growth, with a 4.45% year-on-year increase in the first three quarters, and a significant 43.6% drop in net profit [6][7]. Group 3: Market Challenges - The company faced challenges due to global tariff disruptions, leading to a decline in sales of its core products, particularly chainsaws, which saw a drop from 225,500 units to 152,200 units year-on-year [8]. - The overall export environment is tough, with a decline in export amounts for electric tools and lawn mowers to North America [8]. Group 4: Strategic Initiatives - To mitigate international trade friction, Zhongjian Technology has established a production base in Thailand to optimize its supply chain [8]. - The company is diversifying into the robotics sector, having developed capabilities in smart lawn mowers and quadruped robots, with initial orders for its Lingrui P1 quadruped robot targeting enterprise and government markets [9][11]. Group 5: Future Outlook - The global smart lawn mower market is projected to grow from $1.2 billion in 2024 to $9.9 billion by 2029, with a CAGR of 51.8%, indicating a promising opportunity for Zhongjian Technology [9]. - The company has partnered with major tech firms like OpenAI and NVIDIA to enhance its robotics capabilities, although it faces short-term profit pressures and increased R&D expenditures [11].