Shenzhen Zhaowei Machinery & Electronics Co., Ltd. (02692.HK) officially launched its H‑share global offering on February 27, 2026. The offer price is capped at HK$73.68 per share, with 100 shares per board lot and an entry cost of HK$7,442.31. The company is expected to list on the Main Board of the Hong Kong Stock Exchange on March 9, 2026.

As China’s largest provider of integrated micro‑transmission and drive systems, Zhaowei has built strong barriers in high‑end manufacturing sectors such as smart vehicles, consumer tech, and medical technology through its“1+1+1”collaborative innovation system integrating transmission, micro‑motor, and electronic control systems.

Core Highlights: Invisible Champion in Micro‑Drives, Robotics Business Emerges

Zhaowei’s core narrative lies in its global competitiveness in the micro‑transmission and drive niche. According to Frost & Sullivan, by 2024 revenue, the company is China’s largest and the world’s fourth‑largest provider of integrated micro‑transmission and drive systems, with market shares of 3.9% and 1.4% respectively. In a highly fragmented global market, Zhaowei has established a clear leadership position through technological accumulation and customer resources.

The company’s unique“transmission system + micro‑motor system + electronic control system”collaborative innovation strategy differs fundamentally from traditional decentralized R&D models. By deeply integrating the three systems, Zhaowei achieves precise drive control in extremely small volumes, meeting the market’s stringent demands for miniaturization, intelligence, and integration. As of September 30, 2025, the company holds 405 relevant patents, ranking first in China’s industry. Its core technological capabilities are reflected in multiple“world‑leading”breakthroughs: successfully developing China’s smallestΦ3.4mm micro‑transmission system; being the world’s first enterprise to achieve high‑quality, high‑efficiency mass production of micro‑transmission systems belowΦ6mm; and making breakthroughs inΦ4mm brushless coreless motor technology with mass production capabilities.

Zhaowei’s growth logic is clear and robust. On one hand, it continues to deeply bind with industry‑leading customers to jointly develop customized products—having established a decade‑long partnership with the world’s largest auto parts supplier and deep cooperation with China’s leading automakers. On the other hand, leveraging its technological accumulation, it promotes the standardization and large‑scale development of platform‑based proprietary brand products, having launched three platform products: high‑performance servo motor series, drum motors, and dexterous hands. Among them, the dexterous hand, as China’s first commercialized high‑degree‑of‑freedom product, has initiated global commercialization, ranking among the world’s leaders in commercialization progress according to Frost & Sullivan.

Financial Performance: Steady Growth, Excellent Profit Quality

Zhaowei’s revenue has grown steadily, with the automotive business becoming the core engine. Revenue rose from RMB 1.152 billion (2022) to RMB 1.206 billion (2023), reaching RMB 1.525 billion in 2024, a year‑on‑year increase of 26.4%. In the first nine months of 2025, revenue reached RMB 1.255 billion, up 18.7% year‑on‑year, showing a steady growth momentum.

In terms of business structure, automotive products have become the absolute core, with revenue share rising continuously from 42.7% (2022) to 62.9% in the first nine months of 2025. The share of consumer and medical technology products has declined, accounting for 40.9%, 32.3%, and 32% from 2022 to 2024 respectively. Although the embodied robotics business currently has a small base, it has grown significantly, with revenue reaching RMB 15.53 million in the first nine months of 2025, a 280.9% increase from RMB 4.076 million in the same period of 2024, demonstrating strong growth momentum.

Profitability has risen steadily: the company’s gross margin increased from 29.1% (2022) to 32.7% in the first nine months of 2025, mainly due to product structure optimization and scale effects. Net profit grew steadily from RMB 150 million (2022) to RMB 225 million (2024), reaching RMB 182 million in the first nine months of 2025, up 14.4% year‑on‑year. The net profit margin has remained stable at a high level of 13%–15%, indicating excellent profit quality.

Notably, the company’s financial robustness has continued to strengthen. Net current assets grew steadily from RMB 1.845 billion (2022) to RMB 2.244 billion in the first nine months of 2025, mainly due to increases in cash and cash equivalents, trade receivables from business expansion, and reasonable allocation of financial assets such as wealth management products and negotiable certificates of deposit. During the same period, net assets increased from RMB 2.947 billion to RMB 3.407 billion, mainly from profit accumulation in each period, partially offset by dividend distributions, reflecting a balanced strategy of maintaining growth while considering shareholder returns. Overall, the company’s asset‑liability structure is healthy, providing sufficient financial space for subsequent capacity expansion, technological R&D, and potential acquisitions.

IPO Details: Star‑Studded Cornerstone Lineup, Fundraising Focused on Tech Upgrades and Capacity Expansion

Zhaowei’s IPO has an offer price capped at HK$73.68 per share, 100 shares per board lot, and an entry cost of HK$7,442.31. The offering started on February 27, 2026, and will close on March 4, 2026, with listing expected on March 9, 2026. The company plans to issue 26.74 million shares globally, with a maximum fundraising of approximately HK$1.97 billion.

The offering has successfully introduced 21 cornerstone investors, who have subscribed for a total of approximately 8.8429 million shares, accounting for 33.06% of the global offering shares. The cornerstone list covers top international investment institutions and industrial capital, including HHLR, Mirae Asset Securities HK, Perseverance Asset Management, Dacheng International, GF Fund Hong Kong, Oakwise Growth Fund, Jump Trading, and other well‑known institutions, as well as investors with diverse backgrounds such as Topstar Global, Twin City Capital, Construction (Overseas) Investment, Wenyi Investment, Cunran Capital, and Minsheng Bank International.

Key Risks

Customer Concentration Risk: Revenue from the top five customers reached 50.7% in 2023 and remained at 44.2% in the first nine months of 2025, with the largest customer accounting for 16.6%. Although the company has established long‑term stable cooperation with leading customers, fluctuations in orders or changes in cooperation relationships with major customers may still significantly impact performance.

Downstream Industry Cyclical Volatility Risk: The company’s products are widely used in automotive, consumer electronics, medical technology, and other industries, which are affected by macroeconomics, technological changes, and consumer preferences. In particular, the automotive business accounts for over 60% of revenue, and factors such as automotive industry prosperity, new energy vehicle policy changes, and chip supply may affect the company’s performance.

Raw Material Price Volatility Risk: Material costs account for over 70% of total cost of sales, with main raw materials including standard motors, plastics, and metal parts. Fluctuations in commodity prices and supply chain disruptions may increase procurement costs; if costs cannot be effectively passed on to downstream customers, profit margins will be squeezed.

Conclusion

Overall, as the“invisible champion”in China’s micro‑transmission and drive field, Zhaowei’s Hong Kong IPO has attracted significant market attention. For investors, its core value lies in its leading global position in the niche market, unique“1+1+1”collaborative innovation technology system, stable financial performance, and layout potential in cutting‑edge tracks such as embodied robotics. However, attention should be paid to risks such as high customer concentration, downstream industry cyclical volatility, and raw material costs. After listing, the market will continue to focus on how the company consolidates its advantages in the automotive sector while accelerating the commercialization of platform products such as dexterous hands and effectively managing customer and supply chain risks.

NewTimeSpace Disclaimer: All content herein is the original work of NewTimeSpace. Any reproduction, reprinting, or use of this content in any other manner must clearly indicate the source as "NewTimeSpace". NewTimeSpace and its authorized third-party information providers strive to ensure the accuracy and reliability of the data, but do not guarantee the absolute correctness thereof. This content is for reference only and does not constitute any investment advice. All transaction risks shall be borne by the user.