Wolong Electric Group Co., Ltd. (600580) has delivered mixed financial results for the first three quarters of 2025, with total revenue declining 1.86% year-on-year to 11.967 billion yuan. Notably, Q3 revenue alone saw a 6.64% drop. This performance stands in contrast to peers in the humanoid robotics components sector, such as Leader Harmonious Drive Systems and Inovance Technology, which reported robust growth of 47.36% and 24.67% respectively during the same period.
The company's revenue fluctuation stems from strategic adjustments across its three core business segments. Industrial and consumer motors, which contributed 80% of 2024 revenue, faced temporary pressure due to slowing demand in home appliances and consumer electronics. Additionally, Wolong streamlined its operations by divesting four new energy subsidiaries for 720 million yuan in January 2025, which impacted short-term revenue consolidation.
However, the company demonstrates resilience through several strategic initiatives: 1. Automotive electrification: Its joint venture with ZF, Wolong ZF, has secured projects with automakers including Geely and XPeng. 2. Robotics expansion: Leveraging its global leadership in explosion-proof drive systems (ranked #1) and industrial drive systems (ranked #4), Wolong is developing frameless motors, joint modules, and servo systems for humanoid robots. Strategic investments in Unitree Robotics and Agile Robots have created an ecosystem for rapid industrialization. 3. Aviation electrification: The company has partnered with COMAC and WoFly Aviation to develop electric propulsion systems for aircraft weighing 750kg-5,700kg.
Financial metrics show improved quality despite revenue contraction: - Operating cash flow surged 37.08% to 1.137 billion yuan - Net profit grew 28.26% to 819 million yuan
While robotics-related revenue remains modest at 218 million yuan (2.71% of total), the potential is significant. Assuming each humanoid robot requires 26 frameless motors at 400 yuan each, this segment alone could generate hundreds of millions in revenue.
To fuel growth, Wolong filed for a Hong Kong IPO on August 13, 2025, with proceeds earmarked for robotics and electric aviation. The company's strategic repositioning—shedding non-core assets while investing in high-potential sectors—suggests its current revenue dip may represent transitional pains rather than fundamental weakness.
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