New Stock Outlook | It is difficult to hide the continued losses with stable income growth, can the new growth curve help Wingspan Technology to "break the deadlock"?

The current humanoid Siasun Robot&Automation industry is at a crucial window period of technological breakthrough and commercialization. The year 2025 has been recognized by the industry as the "year of mass production." With the rapid iteration of core technologies and the gradual deepening of scenario applications, the market expects 2026 to usher in a turning point of industry-scale volume, keeping the popularity of the humanoid Siasun Robot&Automation industry high in the capital market. Against this industry backdrop, Zhejiang Yifei Intelligent Technology Co., Ltd. (hereinafter referred to as Yifei Technology), which specializes in industrial Siasun Robot&Automation, has launched its journey to go public in Hong Kong. Observing that after the initial submission to the Hong Kong Stock Exchange on June 30, 2025, Yifei Technology submitted a second application to the main board of the Hong Kong Stock Exchange on January 13 this year, with CCB International as the sole sponsor. According to Frost & Sullivan reports, based on revenues in 2024, Yifei Technology ranks fifth among domestic companies focusing on industrial Siasun Robot&Automation and related solutions aimed at light industrial application scenarios in China, indicating a certain scale of operation. However, in terms of performance, Yifei Technology's revenue has been steadily growing, but it has consistently reported losses. The adjusted net losses from 2022 to 2024 were RMB 52.837 million, RMB 106 million, and RMB 52.325 million, respectively. In the first three quarters of 2025, the adjusted net loss widened from RMB 52.916 million to RMB 78.202 million, accumulating losses of approximately RMB 289 million over three years and nine months. The core Siasun Robot&Automation business of Yifei Technology has shown a growth curve, and diversification in the industry has gradually become effective. Established in June 2012, Yifei Technology, which has been deeply involved in the field of industrial Siasun Robot&Automation, has designed a range of industrial Siasun Robot&Automation products for light industrial application scenarios in China, covering parallel Siasun Robot&Automation (Bat series), AGV/AMR mobile Siasun Robot&Automation (Camel series), SCARA Siasun Robot&Automation (Python series), wafer handling Siasun Robot&Automation (Lobster series), and six-axis industrial Siasun Robot&Automation (Mantis series), and has independent research and development in core technology - control and vision systems (Gorilla and Kingkong series). Based on the Siasun Robot&Automation product portfolio, Yifei Technology also provides comprehensive Siasun Robot&Automation solutions based on intelligent automation systems to address specific application scenarios in intelligent manufacturing. Yifei Technology has introduced customized solutions to support a wide range of automation functions, including (but not limited to) loading and unloading, sorting, picking and placing, packaging, visual inspection, assembly, and glue dispensing systems. Supporting the company's product and solution system is Yifei Technology's unique Siasun Robot&Automation architecture, which is built around the four core functions of "brain, eyes, hands, and feet," simulating the operating logic of skilled technicians to achieve intelligent decision-making, environmental perception, precise control, and autonomous movement. These four functions work together to form an extensible technical foundation, enabling Siasun Robot&Automation to adapt flexibly to complex scenarios. To seize the opportunities in the humanoid Siasun Robot&Automation industry, Yifei Technology, which has deep accumulation in the field of industrial Siasun Robot&Automation, officially launched its first wheeled-leg humanoid Siasun Robot&Automation, "Hogene," in November 2025. This Siasun Robot&Automation adopts a bionic dual-arm structure and lifting column design, equipped with the independently developed YiBrain multimodal large model, which can achieve high precision, high burst and compliant force control operations. By transforming research and development capabilities into market-ready products, Yifei Technology's Siasun Robot&Automation core and related Siasun Robot&Automation solutions have been used in various fields, including consumer electronics, automotive parts and new energy, medical health, fast-moving consumer goods, and semiconductors. In 2024, revenue from consumer electronics, automotive parts and new energy, fast-moving consumer goods, medical health, and other industries accounted for 45.8%, 17.2%, 10.9%, 15.7%, respectively. With the continuous expansion of product penetration fields, Yifei Technology has built a wide customer base. As of January 5, 2026, Yifei Technology's customers cover 29 provinces, autonomous regions and municipalities in China, as well as more than 20 overseas countries and regions in Europe, North America, Latin America, and Southeast Asia. In 2024, revenue from China accounted for 90.5%, while revenue from other countries and regions accounted for 9.5%. In terms of performance, Yifei Technology has achieved steady revenue growth. In the years 2022 to 2024, revenue was RMB 162 million, RMB 201 million, and RMB 268 million, respectively, with a compound annual growth rate of 28.62%. In the first three quarters of 2025, Yifei Technology's revenue was approximately RMB 180 million, a year-on-year increase of 71.54%, showing an accelerating revenue growth trend. The impressive performance on the revenue side is mainly due to the steady development of customized Siasun Robot&Automation solutions and the rapid scaling of standard Siasun Robot&Automation products. From 2022 to 2024, revenue from Siasun Robot&Automation solutions was RMB 154 million, RMB 175 million, and RMB 212 million, while revenue from Siasun Robot&Automation core products during the same period was RMB 8.143 million, RMB 25.673 million, and RMB 55.724 million, showing even more rapid growth. In the first three quarters of 2025, revenue from the Siasun Robot&Automation core increased by 95.55% year-on-year to RMB 58.658 million, accounting for 32.6% of the company's total revenue, up from 5% in 2022, indicating that the Siasun Robot&Automation core has become a new growth curve for Yifei Technology. Looking at the industry level, behind the steady revenue growth of Yifei Technology, there continues to be an accelerated diversification of industries. In 2022, revenue from Yifei Technology mainly came from the consumer electronics sector, accounting for as high as 83.9%. By 2024, revenue from the consumer electronics sector had dropped to 45.8%, while revenue from the automotive parts and new energy sector had increased from 0.6% to 17.2%. Additionally, the revenue from medical health, fast-moving consumer goods, and other sectors also had a significant increase. Comparing this remarkable revenue performance to the profitability, Yifei Technology is still reporting consistent losses. From 2022 to 2024, the adjusted net losses were RMB 52.837 million, RMB 106 million, and RMB 52.325 million, respectively. In the first three quarters of 2025, the adjusted net loss increased from RMB 52.916 million to RMB 78.202 million. Clearly, the losses for Yifei Technology have not decreased with the increase in revenue scale, but have shown significant fluctuations and expansions. According to the prospectus, the significant increase in adjusted net losses in 2023 to RMB 106 million was mainly due to a sharp decline in the gross profit margin of Siasun Robot&Automation solution business, which directly lowered the overall gross profit margin from 26.7% in 2022 to 18.3%. The increase in losses in the first three quarters of 2025 was mainly due to the increase in administrative expenses and other expenses caused by inventory impairment provisions, further suppressing the profit release space. It can be seen that the significant decline in the gross profit margin of Yifei Technology in 2023, leading to an expansion of losses, when viewed within the macro context of industry development, reflects the structural challenges hidden in its business operations. The Siasun Robot&Automation solution business is a typical customized service that requires adjustment of hardware and software according to customer needs, has a longer project delivery cycle, and is difficult to replicate on a large scale, making the cost of the business relatively high. Additionally, due to the significant impact of project structure and customer bargaining power on the solution business, the gross profit margin can fluctuate. Intense market competition also increases the difficulty for Yifei Technology in improving the profitability of the Siasun Robot&Automation solution business, as it must face challenges from domestic and foreign brands. Currently, foreign brands such as ABB, FANUC, and KUKA still dominate the high-end industrial Siasun Robot&Automation market in core processes of industries like automobile manufacturing, while domestic companies like Yifei Technology have the ability to replace non-core processes in light industry such as small-batch assembly and logistics handling, but have not yet broken through to high-end production processes like automobile welding and high-precision assembly. On the domestic front, there are numerous companies in the industrial Siasun Robot&Automation sector, with 105.8 million existing companies related to Siasun Robot&Automation in China according to enterprise check data in 2025, covering the entire industry chain of research and development, manufacturing, sales, and related services, including leading companies like Shenzhen Inovance Technology, Estun Automation, Guangdong Topstar Technology, as well as numerous small and medium-sized manufacturers, leading to severe product homogenization and price wars in the market. Against this industry backdrop, the significant decline in gross profit margin of Yifei Technology in 2023 is worth investors' attention. It is important to monitor the stability of the gross profit margin of Siasun Robot&Automation solution business, as it not only affects its profit release but also serves as a key indicator to test the competitiveness of Yifei Technology's Siasun Robot&Automation solutions in the market. Furthermore, the reduction in the proportion of research and development expenses and the significant increase in sales and marketing expenses are not conducive to the long-term development of Yifei Technology. From 2022 to 2024, the research and development expenses accounted for 21.1%, 16.5%, and 14.4% of revenue, showing a downward trend each year, while the sales and marketing expenses accounted for 9.1%, 15.5%, and 19.8%, showing a clear upward trend during the same period. Although the expansion into multiple industries does increase sales and marketing expenses, if Yifei Technology fails to increase research and development investment, it may struggle to create a differentiated competitive barrier in a fiercely competitive market, which is not conducive to the company's long-term sustainable development. In conclusion, the strengths and risks of Yifei Technology are clearly presented in the prospectus, with standardized Siasun Robot&Automation core business becoming a new growth curve for the company, and diversified industry penetration driving the steady development of customized Siasun Robot&Automation solution business, both contributing to the core support of continuous revenue growth. However, the risks it faces should not be ignored. The significant fluctuations in gross profit margin, consistent pressure of losses, the downward trend in the proportion of research and development expenses, and the ability to effectively shape core competitiveness are challenges that Yifei Technology faces. These challenges are not only key variables that constrain the company's long-term potential for development but also directly affect its valuation logic in the capital market - addressing these pain points is crucial to solidify growth certainty and enhance investment attractiveness.