Since August, multiple A-share companies have announced plans to list in Hong Kong, including Shunhao Co., Meijin Energy, Luxshare-ICT, Wondershare Technology, RIGOL Technologies, R&F Properties, and XGIMI Technology. Additionally, Junxin Co. and Wolong Electric Group Co.,Ltd. submitted their applications to the Hong Kong Stock Exchange on the same day.
Wolong Electric Group Co.,Ltd. (Wolong Electric) submitted its prospectus to the Hong Kong Stock Exchange on August 13, seeking A+H dual listing, with China International Capital Corporation, Huatai International, and GF Securities (Hong Kong) serving as joint sponsors.
Following the submission, Wolong Electric's A-shares recorded two consecutive 10% daily limit-ups over the next two trading days, with gains exceeding 40% over five trading days. As of August 19 closing, Wolong Electric's A-share market value reached approximately 53 billion yuan.
The trend of A-share companies pursuing Hong Kong IPOs continues unabated, with nearly 100 companies currently at various stages of Hong Kong listing processes.
**Father-Daughter Control Structure with Son-in-Law at the Helm, Expanding from Motors to Robotics and Low-Altitude Economy**
The group's business traces back to 1984 when the motor business was initiated by Wolong Holdings' predecessor company. In 1995, Wolong Holdings established the company's predecessor, Zhejiang Wolong Limited, to operate electric drive system solutions business, headquartered in Shaoxing, Zhejiang Province.
In October 1998, Wolong Electric completed its shareholding reform and listed on the Shanghai Stock Exchange in June 2002 under stock code 600580.SH.
Currently, Wolong Electric's controlling shareholders (Wolong Holdings, Wolong Shunyu, Mr. Chen Jiancheng, and Ms. Chen Yanni) collectively control approximately 38.84% of the company's total issued share capital.
Founder Chen Jiancheng and Chen Yanni are father and daughter. Besides Wolong Electric, they also control another listed company, Wolong New Energy (600173), through their Wolong Holdings.
In March 2025, the Hurun Research Institute released the "2025 Hurun Global Rich List," ranking Chen Jiancheng and Chen Yanni at 2,295th place with a wealth of 11.5 billion yuan.
According to public information, Chen Jiancheng was born in 1959 in Caoe, Shangyu District, Shaoxing. He is a graduate student from Zhejiang University's Economics Department and holds an MBA from Hong Kong Open University. Chen Yanni was born in 1982 and graduated from Imperial College London, playing a crucial role in the group's multiple overseas acquisition deals.
Currently, neither father nor daughter appears on Wolong Electric's board of directors or senior management list. Instead, Chen Yanni's husband, Pang Xinyuan, serves as Executive Director and Chairman.
Pang Xinyuan, 46, is primarily responsible for the group's overall strategic planning and business development. He joined Wolong Electric in September 2014 and has served as a company director since then. Previously, Pang worked at Vishay China Investment Limited. He holds a bachelor's degree from Shanghai Jiao Tong University, a master's degree from the University of Leeds in the UK, an Executive MBA from China Europe International Business School, and a DBA from Arizona State University.
Wolong Electric is an electric drive system solutions provider, focusing on research, production, and sales of electric drive system products and solutions. The company structures its business around five major segments: 1) Explosion-proof electric drive system solutions, 2) Industrial electric drive system solutions, 3) HVAC electric drive system solutions, 4) New energy transportation electric drive system solutions, and 5) Robotics components and system applications.
Through multiple acquisitions, the company has formed a comprehensive layout covering household micro-special motors, industrial motors, new energy vehicle motors, and more. Simultaneously, the company is investing in future industries, accelerating its layout in low-altitude economy and robotics sectors.
On March 24, Wolong Electric announced on its official platform that the company completed a strategic investment agreement with Zhiyuan Robotics, officially becoming a strategic shareholder. Both parties will focus on advancing core technology R&D and industrial application ecosystem construction for embodied intelligent robots.
In June, the company established a joint venture with EHang Holdings, Zhejiang Longfei Electric Drive, focusing on providing electric propulsion power systems and related products for airworthy aircraft with maximum takeoff weights between 750 kg and 5,700 kg.
**Significant Net Profit Decline in 2023, Extended Accounts Receivable Collection Cycles**
Over the past few years, through expanding and upgrading its product portfolio, Wolong Electric has achieved revenue growth. Financially, during the reporting periods of 2022, 2023, 2024, and the first half of 2025, the company recorded revenues of 14.266 billion yuan, 15.567 billion yuan, 16.247 billion yuan, and 8.031 billion yuan respectively, with corresponding net profits of 839 million yuan, 553 million yuan, 832 million yuan, and 548 million yuan, and gross margins of 23.9%, 23.9%, 23.2%, and 24.6% respectively.
In 2023, the company's net profit declined significantly, primarily due to other losses of 269 million yuan, mainly including investment gains and asset impairment losses.
By business segment, explosion-proof, industrial, and HVAC electric drive system solutions represent core business segments, accounting for 30.6%, 26.4%, and 32.1% of revenue in the first half of 2025 respectively. New energy transportation electric drive system solutions and robotics components and systems are strategic priorities for the future, representing 2.6% and 2.7% of revenue in the first half of 2025 respectively.
During the reporting period, the company's R&D expenses (including capitalized amounts) were 817 million yuan, 858 million yuan, 872 million yuan, and 426 million yuan, representing 5.7%, 5.5%, 5.4%, 5.5%, and 5.3% of total revenue in respective periods. As of June 30, 2025, the company employed over 1,800 R&D personnel globally.
Currently, Wolong Electric operates in over 100 countries and regions worldwide. In the first half of 2025, overseas business accounted for 40.2% of the company's revenue.
In industrial and energy sectors, the company's clients include globally renowned OEMs such as Baker Hughes, Ingersoll Rand, and Kobelco. In HVAC sectors, clients include Haier, Gree, Hisense Hitachi, Johnson Controls, Carrier, Daikin, Grundfos, and Emerson. In new energy transportation, the company has established a joint venture with a renowned German company to provide core electric drive system solution components for premium automotive manufacturers and has established strategic partnerships with leading vehicle manufacturers like Golden Dragon.
However, Wolong Electric maintains a relatively high accounts receivable ratio, potentially indicating limited bargaining power in the supply chain. At the end of each reporting period, the company's trade receivables and bills receivable were 4.679 billion yuan, 5.028 billion yuan, 5.7 billion yuan, and 5.44 billion yuan, representing 32.8%, 32.3%, 35.08%, and 67.74% of operating revenue respectively.
The collection cycle for accounts receivable has also extended. The company's trade receivables and bills receivable turnover days increased from 109 days in 2022 to 114 days in 2023, further to 121 days in 2024, and to 125 days for the first half of 2025, primarily due to slower payments from some clients in the explosion-proof and industrial electric drive system solutions segments.
During the reporting period, the company distributed cash dividends of 196 million yuan, 196 million yuan, 130 million yuan, and 195 million yuan respectively. Since listing, the company has distributed approximately 2.1 billion yuan in total cash dividends.
**Varied Development Trends in Downstream Applications, Overall Competitive Landscape**
Electric drive system solutions combine motors, drivers, controllers, software, and related services. Motors convert electrical energy to mechanical energy and serve as core transmission units, enabling rotational or linear motion. Based on power source differences, motors can be classified as AC motors, DC motors, and others. Drivers adjust and output appropriate power according to signals to control motor operating parameters. Controllers generate control logic based on input signals, making operational decisions for the solutions.
The electric drive system solutions market supply chain involves: upstream raw material suppliers providing necessary materials and hardware for electric drive system solution design and manufacturing, primarily including magnetic materials, silicon steel, copper wire, electronic components, and bearings. Midstream electric drive system solution providers mainly develop, design, and manufacture electric drive system solutions based on their expertise and customer requirements. Wolong Electric operates in the midstream of the supply chain.
Downstream, electric drive system solutions serve as core power solutions for electrical equipment, widely applied across various aspects of residential life and industrial production.
Explosion-proof, industrial, and HVAC electric drive system solutions represent mature core market segments with leading scale and stable growth. New energy transportation and robotics electric drive system solutions are experiencing rapid growth. With continued rising demand for energy efficiency, intelligent motion control, and low-emission transportation, the global electric drive system solutions market is expected to achieve long-term steady development.
The global electric drive system solutions market is projected to continue growing from 674 billion yuan in 2020 to 1.34 trillion yuan in 2029, with a compound annual growth rate of 8.1% (estimated for 2024-2029).
Different application sectors within the global electric drive system solutions market show varied development trends but overall present a competitive landscape. Industry leaders are primarily concentrated in Europe, the United States, China, and Japan.
According to Frost & Sullivan data, by 2024 revenue: 1) Wolong Electric ranks first in the global explosion-proof electric drive system solutions market with approximately 4.5% market share; 2) The company ranks fourth in the global industrial electric drive system solutions market with approximately 2.8% market share; 3) The company ranks fifth in the global HVAC electric drive system solutions market with approximately 2.0% market share.
Major domestic competitors include Broad-Ocean Motor, Inovance Technology, Founder Motor, Jiangxi Special Electric Motor, and Jing-Jin Electric Technologies. International competitors include Siemens, ABB, Nidec, and Yaskawa Electric.
Overall, Wolong Electric operates in the electric drive system solutions sector, which encompasses numerous subdivisions with different downstream application areas at varying development stages.
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