On August 13, 2025, Wolong Electric Group Co.,Ltd. submitted its prospectus to the Hong Kong Stock Exchange for the first time, seeking to list on the main board of the Hong Kong Stock Exchange. The joint sponsors are CICC, Huatai International, and GF Securities. The company is the world's largest provider of explosion-proof electric drive system solutions, with revenue of RMB 8.03 billion and net profit of RMB 548 million in the first half of 2025, representing a year-on-year growth of 34%.
Wolong Electric Group Co.,Ltd. submitted its listing application to the Hong Kong Stock Exchange on August 13, 2025, seeking to list on the main board of the Hong Kong Stock Exchange. This marks the company's first submission. The company was listed on the Shanghai Stock Exchange in 2002, and as of the close on August 14, its market capitalization was approximately RMB 43.15 billion.
The company is an electric drive system solution provider established in 1984, primarily engaged in the research and development, production, sales and service of electric drive system products and solutions. The company continuously provides global customers with: (i) explosion-proof electric drive system solutions, (ii) industrial electric drive system solutions, (iii) HVAC electric drive system solutions, (iv) new energy transportation electric drive system solutions, and (v) robot components and system applications.
As of June 30, 2025, the company operates 45 factories worldwide, including 14 overseas factories located in Germany, Poland, Italy, Vietnam, Mexico and other countries and regions, enabling the company to provide localized manufacturing support and services to customers in their respective regions. The company's products and solutions span across Asia, the Americas, Europe, Oceania and Africa, covering more than 100 countries and regions. The company has established three overseas regional headquarters in Asia-Pacific, Europe and the Americas to support localized marketing, customer engagement and technical services.
Financial Performance
The company's key financial data for 2022-2024 and the first half of 2024 and 2025 are as follows:
Revenue was approximately RMB 14.266 billion, 15.567 billion, 16.247 billion, 7.978 billion, and 8.031 billion respectively, with a year-on-year growth of +0.66% in the first six months of 2025;
Gross profit was approximately RMB 3.404 billion, 3.725 billion, 3.771 billion, 1.961 billion, and 1.978 billion respectively, with a year-on-year growth of +0.87% in the first six months of 2025;
Net profit was approximately RMB 839 million, 553 million, 832 million, 409 million, and 548 million respectively, with a year-on-year growth of +33.96% in the first six months of 2025;
Gross profit margins were approximately 23.86%, 23.93%, 23.21%, 24.58%, and 24.64% respectively;
Net profit margins were approximately 5.88%, 3.55%, 5.12%, 5.13%, and 6.82% respectively.
Industry Overview
According to a Frost & Sullivan report, the global electric drive system solutions market is expected to continue growing, increasing from RMB 674.0 billion in 2020 to RMB 1,338.1 billion in 2029, representing a compound annual growth rate of 7.7% (2020 to 2024) and an estimated 8.1% (2024 to 2029).
According to the Frost & Sullivan report, in 2024, the company ranked first in the global explosion-proof electric drive system solutions market with a market share of 4.5%; ranked fourth in the global industrial electric drive system solutions market with a market share of 2.8%; and ranked fifth in the global HVAC electric drive system solutions market with a market share of 2.0%.
Comparable Companies
Comparable IPO companies in the same industry include: Broad-Ocean Motor, Founder Motor, and Johnson Electric.
Directors, Executives and Major Shareholders
Prior to the IPO, the company's shareholding structure includes: controlling shareholders (namely Wolong Holdings, Wolong Shunyu, Mr. Chen Jiancheng and Ms. Chen Yanni) collectively holding 38.84%; other A-share shareholders collectively holding 61.16%.
Intermediary Team
According to statistics, Wolong Electric Group Co.,Ltd.'s intermediary team consists of 8 institutions, including 3 sponsors with average project performance; 1 legal firm with acceptable overall project performance. Overall, the intermediary team's historical performance is average.
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