NTS Insights | A 1.7 Billion RMB Acquisition for an“A-Share Entry”: Can Ubtech Robotics (09880.HK) Reverse Its Financial Slump via Robotics?

Through a strategic maneuver involving "agreement-based transfer + tender offer," a Hong Kong-listed company has successfully executed an "H-to-A" (Hong Kong to A-share) market expansion.

On the evening of December 24, 2025, Fenglong(002931.SZ) disclosed that its controlling shareholder would change from Chengfeng Investment to Ubtech Robotics (09880.HK). Following the announcement, the company’s stock resumed trading on December 25.

Since the resumption, Fenglong’s shares have hit the daily upper limit ("limit-up") for two consecutive sessions. As of December 26, the stock was priced at 23.82 RMB per share, with buy orders at the limit price once exceeding 5 billion RMB.

Securing Control for 1.7 Billion RMB with Profit Guarantees

According to the filing, Ubtech entered into a share transfer agreement with Fenglong’s shareholders (Chengfeng Investment, Dong Jiangang, Fengchi Investment, and Li Caixia).Ubtech will acquire 65.53 million unrestricted tradable shares—representing 29.99% of the total share capital—at a price of 17.72 RMB per share, totaling 1.161 billion RMB.

Furthermore, upon the registration of this transfer, Ubtech (or its designated entity) will launch a partial tender offer to all other shareholders for an additional 28.45 million shares (13.02% of the total capital) at the same price of 17.72 RMB per share.

In total, the acquisition will cost Ubtech 1.665 billion RMB for a 43.01% stake, effectively granting it control over Fenglong Shares.

As part of the deal, Ubtech provided a three-year performance commitment for Fenglong. For the years 2026, 2027, and 2028, the projected net profit (and non-GAAP net profit) attributable to the parent company must not fall below 10 million, 15 million, and 20 million RMB, respectively.

This move mirrors a similar transaction in July 2025, where Agibot (Zhiyuan Robot) spent 2.1 billion RMB to acquire a 63.62% stake in Swancor New Materials. Following that deal, Swancor recorded ten consecutive 20% limit-up days, becoming a "ten-bagger" (10x stock) in just 14 trading days and a "fifteen-bagger" in 17 days.

As of the market close on December 26, Fenglongremained locked at the daily limit of 23.82 RMB, with a market capitalization of 5.205 billion RMB. Meanwhile, Ubtech’s Hong Kong-listed shares (which were closed on the 24th due to the holiday) stood at 109.5 HKD per share, with a total market cap of 55.12 billion HKD.

Ubtech’s Persistent Losses vs. Fenglong’s Turnaround

Founded in 2012 and listed on the Hong Kong Stock Exchange (HKEX) in December 2023, Ubtech is a leader in the domesticRobotics sector, focusing on humanoid robot innovation and smart service solutions.

Financial data for the first half of 2025 shows that Ubtech recorded revenue of 621 million RMB (up 27.5% YoY), while losses narrowed by 17.2% to 439 million RMB. Gross profit stood at 217 million RMB with a margin of 35%. The company remains in a capital-intensive phase, with R&D expenses accounting for 35.1% of its total revenue.

However, NewTimeSpace Research notes significant operational progress for Ubtech. The company recently announced that as of November 2025, cumulative orders for its Walker series have exceeded 800 million RMB. The first batch of Walker S2 robots entered mass production in November, with monthly capacity exceeding 300 units. The company expects its industrial humanoid robot capacity to reach 10,000 units by 2026.

In contrast, the acquisition target, Fenglong Shares, is a manufacturer of components for garden machinery, automobiles, and hydraulics. In 2023, Fenglong entered the lawn-mowing robot sector by investing in Ningbo Delin Machinery to provide control systems.

Fenglong’s financial reports show revenues of 433 million, 479 million, and 373 million RMB for 2023, 2024, and the first three quarters of 2025, respectively. After a net loss of 7.04 million RMB in 2023, the company turned a profit of 4.59 million RMB in 2024. In the first nine months of 2025, net profit surged to 21.52 million RMB, driven largely by new growth in the lawn-mowing robot segment.

Active Capital Maneuvers in theRobotics Industry

Ubtech stated that the 1.665 billion RMB required for the acquisition will come from internal resources, including proceeds from previous share placements.

According to NewTimeSpace Research, Ubtech announced a plan on November 25, 2025, to place 31.47 million H-shares to raise approximately 3.056 billion HKD for industry integration and debt repayment. Including this latest round,Ubtech has conducted five placements in the past year, raising a total of 4.368 billion HKD for business operations, engineering construction, and loan repayments.

Regarding the acquisition, Ubtech emphasized that this is a strategic move to improve its industrial chain and strengthen core competitiveness. By combining its technological lead in humanoid robots with Fenglong’s manufacturing and supply chain capabilities, the company aims to accelerate the commercialization of robotic technologies.

The Robotics industry has seen a flurry of capital activity in December. Several companies are accelerating consolidation through M&A and changes in control. For instance, Qiteng Robot’s entry intoSenton Energy (001331.SZ),OME (300486.SZ) acquiring control of AuboRobotics, and the founder of Dreame Technology seeking control of Jiamei Packaging (002969.SZ) all signal a trend of capital-driven expansion.

Furthermore, companies like Unitree (Unitree Robotics) and Deep Robotics have recently initiated IPO guidance for A-share listings. Overall, the industry is entering a wave of listings and consolidation, reflecting heightened investor interest and increasing competitive intensity in theRobotics and embodied AI sectors.

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