New Stock News | Shenzhen Zhaowei Machinery & Electronics (003021.SZ) has submitted a secondary application to the Hong Kong Stock Exchange, becoming China's largest integrated provider of miniature transmission and drive system products.

According to the disclosure of the Hong Kong Stock Exchange on December 19, Shenzhen Zhaowei Machinery & Electronics Co., Ltd. (referred to as Shenzhen Zhaowei Machinery & Electronics (003021.SZ)) has submitted a listing application to the main board of the Hong Kong Stock Exchange, with CMSC International and Deutsche Bank as its joint sponsors. It is worth noting that the Hong Kong stock prospectus submitted by Shenzhen Zhaowei Machinery & Electronics on June 18 has expired after 6 months on December 18. The prospectus shows that based on the 2024 revenue, Shenzhen Zhaowei Machinery & Electronics is China's largest provider of integrated micro transmission and driving system products, and the fourth largest globally (according to the Frost & Sullivan report), with market shares of 3.9% and 1.4% respectively. Company Profile: According to the Frost & Sullivan report, the global market for integrated micro transmission and driving systems is highly fragmented. The company designs, manufactures micro transmission and driving system products as well as their matching components, and mainly sells these products to customers in China, followed by overseas customers. The company's products empower these industries to achieve breakthroughs in precision, efficiency, and control. In terms of product types, the company offers micro transmission and driving systems, precision components, and customized molds based on specific customer requirements. Micro transmission and driving systems are highly integrated systems provided to customers, typically including: (1) transmission systems, which are the core functionality provided to customers for each product; and (2) micro motor systems and/or (3) electronic control systems, which are additional functional modules required by customers for each product. These three functional systems combined form a unified system that converts and transmits power provided by a power source to actuators, enabling key functions such as power transmission, control, speed regulation, and steering. Precision components are the key support injection-molded parts of micro transmission and driving systems. These precision components have extremely diverse product forms in terms of size, shape, complexity, and application scenarios, and are non-standardized. The company's "1+1+1" collaborative innovation system, innovative advantages, and profound technological and process capabilities have nurtured the company's "dual-engine" growth model: on one hand, the company continues to empower various industries, collaborates with top customers in various industries to develop customized products, meet complex application requirements, and capture diversified growth opportunities; on the other hand, relying on industry accumulation and technological capabilities, the company continues to promote standardized, large-scale development of proprietary brand products, enhance market awareness, and build multiple growth drivers. As of now, the company has launched three major platform-based proprietary brand products, namely high-performance servo motor series, drum motors, and dexterous hands. The company's high-performance servo motor series has strong output capability, dynamic performance, and efficiency performance, and can be widely used in various application scenarios, including high-end consumer technology products. The company's drum motor drive system is a highly integrated electric drum that combines the motor, gearbox, and electronic control system in one unit, with a compact structure and high efficiency. It has power output to meet customer peak operation requirements; modular design for easy assembly and maintenance; gearbox made of high-strength materials for increased lifespan and stability; and supports standardized product lines for versatile applications. Furthermore, the company has developed a highly integrated miniature drive module, which has been successfully applied to dexterous hand products, capable of precisely simulating human grip and fine motion control. As the first enterprise in China to launch a commercial high-degree-of-freedom dexterous hand product, the company has established partnerships with the upstream and downstream of the industry chain and officially embarked on a global commercialization process. According to the Frost & Sullivan report, the company's commercialization process for dexterous hands is at the forefront globally. Financial Information: Revenue During the historical period, the company achieved significant business growth. The company's main source of revenue comes from providing integrated micro transmission and driving system products. In 2022, 2023, and 2024, the company's revenue was approximately RMB 1.152 billion, RMB 1.206 billion, and RMB 1.525 billion respectively. As of the nine months ending on September 30, 2025, the company's revenue increased from RMB 1.057 billion in the same period of 2024 to RMB 1.255 billion. In particular, the company has selectively entered some overseas markets, including several countries in Europe and North America, and successfully entered the supply chain system of many global industry-leading companies, thereby establishing an advantageous and solid global layout. Annual/Period Profit In the fiscal years of 2022, 2023, 2024, and the nine months ending on September 30, 2025, the company recorded annual profits of approximately RMB 150 million, RMB 180 million, RMB 225 million, and RMB 182 million respectively. Gross Profit In the fiscal years of 2022, 2023, 2024, and the nine months ending on September 30, 2025, the company recorded gross profits of approximately RMB 335 million, RMB 349 million, RMB 476 million, and RMB 410 million respectively. Industry Overview: Integrated micro transmission and driving systems are core components of the industrial "four fundamentals" (referring to core basic components, key basic materials, advanced basic processes, and industrial technology foundations), and their industry chain is generally divided into upstream, midstream, and downstream. The upstream includes raw material supply, including plastic pellets, hardware components, and metal powders. The midstream involves the manufacturing and integration of micro transmission and driving systems, covering research and development, production, and system integration stages. It integrates two functional modules of micro transmission and driving systems into a product with higher technical barriers. The downstream applications are diverse, including smart cars, consumer technology, medical devices, advanced industries, intelligent manufacturing, Siasun Robot & Automation, and others. Driven by broader application scenarios and increasing demand for scenario-based design, the global industry scale of integrated micro transmission and driving systems has grown from RMB 78.2 billion in 2020 to RMB 111.3 billion in 2024, with a compound annual growth rate of 9.2%. In the future, with the promotion of industrial upgrading and technological progress, this industry is expected to grow from RMB 124.3 billion in 2025 to RMB 204.9 billion in 2029, with a compound annual growth rate of 13.3%. Due to increased downstream demand and the addition of high-growth industry applications, the Chinese integrated micro transmission and driving system industry has grown from RMB 20.3 billion in 2020 to RMB 33.2 billion in 2024, with a compound annual growth rate of 13.0%. In the future, as industrial transformation accelerates and shifts to high-performance, miniaturized systems, this industry is expected to grow from RMB 38.4 billion in 2025 to RMB 72.6 billion in 2029, with a compound annual growth rate of 17.3%. Board of Directors and Management Information: The company's board of directors consists of eight directors, including four executive directors, one employee representative director, and three independent non-executive directors. The board is responsible for the management and operation of the company and holds general authority over this. Equity Structure: The company is controlled by a group of controlling shareholders, including: (i) Mr. Li, an executive director and chairman of the company, together with his controlled entity Zhaowei Holdings; and (ii) Ms. Xie, an executive director and vice chairman of the company, and Mr. Li's spouse, through their joint venture entity, Qingmo Partnership, collectively holding 62.40% of the voting rights of the company. Mr. Li, Ms. Xie, Zhaowei Holdings, and Qingmo Partnership (as a group of controlling shareholders) are the controlling shareholders of the company. Intermediary Team: Joint Sponsors: CMSC (Hong Kong) Limited, Deutsche Securities Asia Limited Industry Advisors: Frost & Sullivan Company Legal Advisors: Regarding Hong Kong and U.S. laws: Baker McKenzie; regarding Chinese laws: Jin Tiancheng (Shenzhen) Law Firm; regarding international sanction laws: Hawkins Wright Auditors and Reporting Accountants: Ernst & Young Accounting Firm