New Stock Preview: From large motor factories to Siasun Robot & Automation, Jinlong Motor bets on high-end intelligent manufacturing to break through in the Hong Kong stock market.

In the grand narrative intertwined with Industry 4.0 and the global "dual carbon" goals, Zhejiang Jinlong Motor Co., Ltd., a Zhejiang enterprise that has been deeply engaged in the field of small and medium power motors for nearly forty years, is attempting to open the door to the Hong Kong capital market. According to its prospectus, this enterprise, recognized as a national level specialized and new "small giant," is seeking to strengthen its layout in the high value-added fields of permanent magnet synchronous motors (PMSM) and industrial Siasun Robot & Automation joint modules through listing and fundraising. It is worth mentioning that this is not the first time that Jinlong Motor has ventured into the capital market. Looking back at its capital operation trajectory, the company had previously attempted to list on the Shanghai Stock Exchange in 2016, but ultimately withdrew its application due to the macroeconomic environment and industry downturn. Subsequently, the company successfully landed on the New Third Board in September 2022. Later, the company turned its attention to the Beijing Stock Exchange and initiated the listing guidance in December 2022 but chose to terminate midway. In September 2024, Jinlong Motor signed a new guidance agreement with a different securities firm to restart its listing plan on the Beijing Stock Exchange. However, in May 2026, the company once again terminated the listing guidance on the Beijing Stock Exchange in order to prepare for its application to the Hong Kong Stock Exchange, officially shifting to the Hong Kong Stock Exchange. So, what are the odds of success for Jinlong Motor in its attempt to enter the Hong Kong Stock Exchange? Using high-efficiency motors as a spear, targeting the new blue ocean of intelligent manufacturing It is understood that Jinlong Motor's core business focuses on the design, development, and sales of small and medium-sized high-efficiency industrial motors, with its main product lines covering permanent magnet synchronous motors (PMSM) and three-phase induction motors (3-PH IM). These two product categories comprise approximately 3000 models, with power ranging from 0.12kW to 1400kW, widely used in core industrial sectors such as fluid machinery, HVAC, compressors, and machine tools. From the perspective of market share and industry trends, the company is operating in a track that is currently benefiting from both policy and technological dividends. With the advancement of China's "dual carbon" goals and the proliferation of Industry 4.0, the substitution of high-efficiency motors for traditional low-efficiency products has become a rigid demand. According to Zhongshu Consulting's report, the market size of China's industrial AC motors is expected to increase from approximately 258.2 billion yuan in 2025 to 457.3 billion yuan in 2030, with a compound annual growth rate of about 12.1%. Especially in the field of Siasun Robot & Automation and intelligent manufacturing, the demand for permanent magnet synchronous motors is expected to grow faster than the industry average. As a national level specialized and new "small giant" enterprise, Jinlong Motor is in a favorable position in this structural upgrade, as its permanent magnet synchronous motor products have been awarded the "Star of Energy Efficiency" by the Ministry of Industry and Information Technology, reflecting its strong technological reserves. In terms of sales layout, the company exhibits a dual-drive feature of "domestic base + overseas increment." Although the proportion of domestic market revenue has been continuously decreasing, it still accounted for 61.6% of total revenue in the 2025 fiscal year; meanwhile, the proportion of overseas export revenue has steadily increased from 34.5% in the 2023 fiscal year to 38.4% in the 2025 fiscal year, mainly sold to European countries such as Germany, Italy, and Turkey. It is worth mentioning that the company is attempting to enter the more technologically advanced Siasun Robot & Automation track. In May 2026, the company successively signed two strategic cooperation agreements to supply industrial dual-arm Siasun Robot & Automation and joint modules to a pump manufacturer in Zhejiang and an electric vehicle manufacturer in Anhui, marking its transition from a simple motor component manufacturer to an intelligent drive solution provider. Challenges under the dilemma of increasing revenue without increasing profits Looking at the financial performance, Jinlong Motor has shown strong resilience in the past three years. According to the prospectus data, from 2023 to 2025, the company's revenue steadily increased from 685 million yuan to 734 million yuan, with a reasonable compound annual growth rate. However, upon disaggregating its revenue structure, it can be seen that the engine of growth is undergoing a subtle transformation. While three-phase induction motors, as the company's base, remain stable, the main growth driver comes from the higher gross margin and higher technological barriers of the PMSM product line. The revenue from this part of the business increased from approximately 137 million yuan in 2023 to approximately 164 million yuan in 2025, showing that the company's transformation in the high-efficiency, variable frequency, and precision performance motor fields is beginning to bear fruit. Despite the expansion of revenue, the company's profitability is showing signs of pressure. Although the gross profit remained at around 100 million yuan during the reporting period, the gross margin decreased from 14.9% in 2023 to 13.2% in 2025. As for net profit, although it rebounded to approximately 38.61 million yuan in 2025, the overall net profit margin was maintained at around 5%. Recognizing this trend of "increasing revenue without increasing profits," it is mainly attributed to the continuous rise in upstream raw material costs. The company openly admitted in the prospectus that the proportion of major raw material costs such as copper, aluminum, and silicon steel in sales costs had risen to 84.6%, with copper prices continuing to rise during the reporting period, directly eroding the company's profit margins. The company's asset-liability structure is also worth investors' attention. Although the net value of current assets improved by the end of 2025, the company still maintained a relatively high net debt-to-equity ratio, and the cash flow generated from operating activities fluctuated significantly, indicating that the company still faces challenges in working capital management. Furthermore, the company also faces challenges in compliance and geopolitical risks. As a company with nearly forty percent of its revenue coming from exports, Jinlong Motor's business spans Europe, Africa, and other regions. This necessitates the company to face a complex and evolving international framework of sanctions and export control laws. The prospectus specifically disclosed that the company had engaged in selling products to entities listed on the Office of Foreign Assets Control (OFAC) Special Designated Nationals List (SDN) during the performance period. Although the company claims to have ceased such sales since May 2025 and believes that the likelihood of being identified as facilitating prohibited transactions with U.S. persons is low, this undoubtedly sets up a potential "minefield" for the company in its international operations. Meanwhile, the proportion of revenue from the top five customers decreased from 51.5% to 39.3% between 2023 and 2025, indicating a diversification of the customer structure. While this reduces dependence on a single customer, it also implies that the company may be in a relatively weaker position in bargaining with large customers and faces high sales costs in maintaining and expanding new customers. In conclusion, Jinlong Motor's journey to the Hong Kong IPO is a decisive battle for an old-fashioned manufacturing enterprise to transform towards high-end intelligence. The company has a deep foundation in the traditional motor field and is actively embracing the incremental market brought by industrial Siasun Robot & Automation. However, investors must be cautious of its relatively low net profit margin, high raw material costs, and complex international compliance risks when looking at its "small giant" halo. For Jinlong Motor, this listing opportunity is not only a chance to raise funds and expand capacity but also a critical step in establishing a more complete corporate governance structure and responding to globalization challenges. Under the spotlight of capital, whether this long-established motor factory can successfully cross the cycle and achieve a magnificent transformation from "manufacturing" to "intelligent manufacturing" remains to be tested by the market.