HK ROBOTICS (00370.HK): Three core objectives of Danta cooperation basically achieved; robotics and computing power revenue of HKD 169.6 million

NewTimeSpace News: On 27 August 2026, Hong Kong Robotics Group Holding Limited (stock code: 00370) voluntarily announced the latest progress of its cooperation with Danta Robotics Co., Ltd. The Group cooperates with Danta to jointly develop the civil application market for humanoid robots (including robot caregivers) and to engage in the R&D, manufacturing, sales and maintenance of humanoid robot products.

According to the announcement, cooperation has progressed well since the cooperation agreement was entered into in March 2025. Of the four main objectives contemplated by the cooperation agreement, three have been basically achieved: the establishment of a joint venture as a subsidiary of the Group, the licensing of Danta's proprietary intellectual property to the Group, and the setting up of a dedicated robotics operation team in the joint venture. Danta has granted the joint venture (through its China subsidiary) an exclusive license to use the Danta Cloud Brain platform and related proprietary intellectual property for a term of three years, expiring in September 2028; patent license fees are payable to Danta at 1% of the revenue attributable to products involving the application of Danta's licensed intellectual property.

In terms of financials, for the year ended 31 March 2026, revenue generated from the robotics and computing power business was approximately HKD 169.6 million, of which approximately HKD 141.0 million (about 83%) was attributable to products involving the application of Danta's licensed intellectual property; most of the revenue was generated through the joint venture's wholly-owned China subsidiary, with the remaining approximately HKD 28.6 million from Shenzhen-based Gangzi Huikang, which is responsible for the physical examination robot business. During the period, the Company advanced approximately HKD 16 million to the joint venture to fund its operations. As at 31 March 2026, the Group held finished goods inventory of approximately HKD 57.5 million, all of which were mobile charging robots.

In respect of the performance targets committed by Danta (audited revenue of the joint venture of not less than RMB 500 million and RMB 1 billion for 2025 and 2026 respectively), the 2025 revenue target has not been fully achieved due to the longer-than-expected time required for finalizing product specifications and deploying actual application scenarios; the parties are negotiating solutions including adjustments to cash compensation and/or their respective equity interests, and the Group intends to seek Danta's consent to reduce its shareholding in the joint venture from the current 49%. In addition, the Directors believe that Danta's current business restructuring will not have a material adverse impact on the Group: the cooperation is structured at the joint venture subsidiary level, isolating Danta's parent-level assets and liabilities from the Group; the exclusive license has been confirmed valid and enforceable under a Chinese legal opinion; and the joint venture's core operation team is largely in place, with several key members formerly of Danta now employed full-time by the Group. The Group is also independently developing the "Hong Kong Robotics Cloud Brain", having entered into a cooperation agreement with a state-level high-tech enterprise, with development proceeding in phases (core platform capabilities by end-2026, capability expansion and business deepening by end-September 2027, and continued iteration by end-March 2028), expected to reach commercial maturity and deployability before the exclusive license expires in September 2028, after which products will migrate to the Group's own platform and no further license fees will be payable to Danta.

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