New Stock News | Yihong Intelligent Delivers Hong Kong Stock Exchange Ranking Second in the domestic lithium battery machine vision detection solution market.

According to disclosure by the Hong Kong Stock Exchange on May 29th, Guangzhou Yihong Intelligent Equipment Co., Ltd. (referred to as Yihong Intelligent) has submitted its listing application to the main board of the Hong Kong Stock Exchange, with GUOTAI JUNAN I and Orient International as its joint sponsors. According to Frost & Sullivan's data, based on 2025 revenue, Yihong Intelligent ranks second in the Chinese domestic lithium battery machine vision inspection solution market, and ranks first in the global large-width roll-to-roll cutting machine market. Company Profile The prospectus shows that Yihong Intelligent is a leading provider of intelligent equipment and solutions for lithium battery manufacturing powered by its own machine vision and AI algorithm technology in China. The company's history can be traced back to 2014, and since its establishment, Yihong Intelligent has been accumulating capabilities in underlying visual algorithms and precision transmission control technology. After years of development, the company has become one of the few in the industry that can deeply embed machine vision technology into integrated intelligent equipment solutions in the manufacturing process. The company integrates AI algorithms with core process equipment to achieve real-time closed-loop control of "perception-judgment-execution-traceability" in all aspects of the lithium battery manufacturing process, gradually forming a process control system that integrates optical, mechanical, electrical, and software capabilities. According to Frost & Sullivan's data, Yihong Intelligent is the only solution provider in China that simultaneously has the deployment capabilities for machine vision inspection in all processes of lithium battery manufacturing, machine vision embedding in core process equipment, and cross-process data closed-loop management capabilities, and is gradually upgrading to an AI-driven process control platform. The company believes that it will become increasingly important in the lean manufacturing system of lithium batteries. The company closely cooperates with top customers, providing machine vision functions throughout the entire lithium battery manufacturing process through a wide range of customized solutions and intelligent equipment products, including single-process inspection systems, standalone machines, and fully integrated intelligent equipment. According to Frost & Sullivan's data, as of December 31, 2025, the company is the only machine vision company in China that covers the entire process of lithium battery production with machine vision inspection solutions. Yihong Intelligent has developed two flagship product lines: intelligent integrated equipment for lithium batteries; and machine vision inspection solutions for lithium batteries, including machine vision inspection systems and Automated Optical Inspection (AOI) equipment. The company focuses on the core processes of lithium battery manufacturing, aims to integrate the functions of lithium battery intelligent equipment, and aims to create integrated intelligent equipment that can complete multiple core processes simultaneously, replacing traditional equipment limited to a single process. Through this, the company can help customers improve the efficiency of lithium battery manufacturing. The company's integrated intelligent equipment includes (i) roll-to-roll cutting machines and (ii) laser cutting and winding machines. In addition, the company completed the sale and delivery of the first high-speed automatic assembly line for full prismatic cylindrical battery cells in 2025. The company's vision inspection solutions include two major categories: (i) lithium battery machine vision inspection systems; and (ii) lithium battery AOI equipment. The former is intended to be integrated into lithium battery intelligent equipment, while the latter is standalone equipment that can be integrated into lithium battery production lines or designed as offline units for sampling or re-inspection. Since 2015, Yihong Intelligent has been focusing on visual algorithm research and development, and according to Frost & Sullivan's data, it has gained a first-mover advantage in data accumulation ahead of most of its peers, while also building exclusive defect databases and algorithm model training systems. Unlike general-purpose visual algorithms, the company's AI algorithm models are highly adapted to complex scenes in lithium battery production such as high reflectivity of materials, flexible films, and high-speed motion, maintaining stable recognition accuracy at high production speeds. The algorithm models have the ability to quickly transfer and deploy between different customer production lines, effectively shortening the debugging period for new production lines. Financial Information Revenue In the financial years of 2023, 2024, and 2025, the company achieved revenues of approximately RMB 294 million, RMB 394 million, and RMB 552 million, respectively. Gross Profit and Gross Profit Margin In the financial years of 2023, 2024, and 2025, the company recorded gross profits of approximately RMB 57.609 million, RMB 122 million, and RMB 145 million, with corresponding gross profit margins of 19.6%, 30.9%, and 26.2%, respectively. Net Profit for the Year In the financial years of 2023, 2024, and 2025, the company recorded net profits of approximately RMB 709,000, RMB 51.275 million, and RMB 69.666 million, respectively. Industry Overview In the context of the accelerated transformation of industry towards automation and digitization, machine vision, as a key technology for achieving high-precision and efficient quality inspection, is continuously penetrating various advanced manufacturing scenarios. Driven by this trend, the global market for advanced manufacturing machine vision inspection solutions has rapidly grown from RMB 29 billion in 2015 to RMB 259 billion in 2025, with a compound annual growth rate of 24.7% during the period. As manufacturing intelligentization continues to advance, it is expected that the market size will further expand to RMB 539 billion by 2030, with a compound annual growth rate of 15.8% from 2025 to 2030. In downstream applications, the importance of machine vision inspection in the lithium battery manufacturing field is rapidly increasing, with its application in advanced manufacturing machine vision inspection solutions expected to increase from 5.4% in 2025 to 8.2% in 2030, with a compound annual growth rate exceeding 25%, making it one of the fastest-growing segments in various application areas. From 2015 to 2025, the global market for intelligent equipment for lithium batteries has surged from RMB 64 billion in 2015 to RMB 583 billion in 2025, with a compound annual growth rate of 24.7%. In 2024, the market size experienced a slight fluctuation due to a temporary destocking phase in the battery industry chain and a slowdown in some capacity investments. With the continuous growth in global demand for lithium batteries, the industry capacity utilization rate significantly rebounded in 2025, with the capacity utilization rate of the top three lithium battery manufacturers in China reaching nearly 90%, and the largest lithium battery manufacturer in China facing a situation of supply shortages. Equipment investment demand is expected to recover, and the market is expected to continue to grow in the future. China remains the largest market for lithium battery intelligent equipment globally, with the market size expected to grow from RMB 340 billion in 2025 to RMB 800 billion in 2030. Meanwhile, the European and North American markets are growing more significantly, with compound annual growth rates of approximately 28.3% and 25.9% from 2025 to 2030, driven mainly by the localization of the battery industry chain and the expansion of demand for new energy vehicles, energy storage, etc., providing important market space for Chinese lithium battery intelligent equipment companies to support overseas production lines and projects. In terms of equipment types, in the global market for intelligent equipment for lithium batteries in 2025, the sizes of front-end equipment, mid-end equipment, and back-end equipment are RMB 244 billion, RMB 225 billion, and RMB 114 billion, respectively, with the combined front and mid-stage equipment accounting for over 80%, with a strong reliance on high-precision and highly automated equipment for battery production in the front and mid-stage processes. Front-end equipment plays a crucial role in controlling the uniformity of coating thickness, roll pressing precision, ensuring process consistency, and improving cell performance and yield. It is expected that by 2030, the global front-end equipment market will grow to RMB 693 billion, with a compound annual growth rate of 23.2% from 2025 to 2030. Front-end equipment covers key processes such as roll pressing and cutting, with the trend towards integration and optimization of production lines increasing. Roll-to-roll cutting machines have become a key trend in the industry, with roll-to-roll cutting machines serving as core processing equipment for controlling the consistency of electrode thickness and density, playing a crucial role in ensuring cell performance and safety. With the shift towards large-scale production of battery cells for electric vehicles and energy storage, the wider the roll, the larger the area for roll pressing and cutting per unit of time, increasing efficiency proportionally. Therefore, the evolution towards large-width has become an inevitable trend for roll-to-roll cutting machine technology upgrades and increasing single-line output. Based on the new order amounts for roll-to-roll cutting machines in 2025, over 70% of orders are for large-width roll-to-roll cutting machines, covering product shipments for the coming years. The global market for large-width roll-to-roll cutting machines for lithium batteries (based on shipment revenue) is expected to rapidly grow from RMB 700 million in 2025 to RMB 9.8 billion in 2030, with a compound annual growth rate of 71.5%. In the future, large-width roll-to-roll cutting machines will be the mainstream application for lithium battery roll pressing processes. Board of Directors Information The board of directors is composed of nine directors, including five executive directors, one non-executive director, and three independent non-executive directors. Equity Structure Mr. Wang Gang holds a 20.47% stake, and Mr. Zhang Quan holds an 11.96% stake; according to a unanimous action agreement signed by Mr. Wang Gang and Mr. Zhang Quan on May 18, 2022, in accordance with the Securities and Futures Ordinance, Mr. Wang Gang and Mr. Zhang Quan are each deemed to jointly own the shares held by each other. Mr. Xiao Shengduan holds a 2.44% stake, Mr. Zhao Zhe holds a 2.44% stake, and other pre-listing investors collectively hold a 62.68% stake. Advisory Team Joint Sponsors: Guotai Junan Finance Limited; Oriental Finance (Hong Kong) Limited Company's Legal Counsel: Hong Kong Legal Matters: Morgan Lewis & Bockius LLP; China Legal Matters: Jia Yuan Law Firm Legal Counsel for Joint Sponsors: Hong Kong Legal Matters: JunHe LLP; China Legal Matters: JunHe LLP Independent Auditors and Reporting Accountants: Ernst & Young Certified Public Accountants Independent Industry Advisor: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance Advisor: Howden Capital Limited