Amid the Hong Kong listing wave, robot concept stock Wolong Electric Group Co.,Ltd. has launched its sprint toward a Hong Kong Stock Exchange listing.
Recently, Wolong Electric Group Co.,Ltd. officially submitted its prospectus to the Hong Kong Stock Exchange, seeking to achieve "A+H" dual listing. The prospectus shows that Wolong Electric's revenue growth has been slowing in recent years, with growth rates of 9.12%, 4.37%, and 0.66% in 2023, 2024, and the first half of 2025, respectively.
Regarding this, a relevant executive from Wolong Electric stated: "In the first half of 2025, the company's sale of subsidiaries led to changes in the consolidated reporting scope. After excluding this impact, the revenue growth was 3.78%."
Notably, influenced by the robot concept hype, Wolong Electric's stock price experienced abnormal volatility over three consecutive trading days from September 16-18, with cumulative deviation exceeding 20%. On September 19, Wolong Electric reminded investors that in the first half of 2025, the company's robot-related products and applications (including industrial robot system solutions, industrial robots, and bionic robot components) accounted for approximately 2.71% of total operating revenue, representing a relatively low proportion that would not significantly impact the company's current operating performance.
**Annual Operating Targets Frequently Missed**
According to publicly available information, in 1984, Chen Jiancheng, who previously worked as a carpenter and technician, invested over 100,000 yuan with partners to establish Shangyu County Multi-speed Micro Motor Factory at the foot of Wolong Mountain in Haoer Village, Haoba Township, Shangyu County (now changed to "Shangyu District"), Shaoxing City, Zhejiang Province. This factory was the predecessor of Wolong Electric.
The prospectus shows that Wolong Electric holds an important position in the global electric drive system field. According to Frost & Sullivan data, based on 2024 revenue, Wolong Electric ranks first globally in the explosion-proof electric drive system solutions market and fourth globally in the industrial electric drive system solutions market.
In terms of performance, according to Wind data, from 2022 to 2024 and the first half of 2025, Wolong Electric's operating revenue was 14.266 billion yuan, 15.567 billion yuan, 16.247 billion yuan, and 8.031 billion yuan respectively, with revenue growth rates of 4.15%, 9.12%, 4.37%, and 0.66% respectively, showing a more pronounced slowdown trend in recent years.
Moreover, Wolong Electric has frequently failed to meet its annual operating targets. According to annual report data, from 2022 to 2024, the company failed to achieve the planned core indicators including annual revenue and net profit attributable to parent company.
For example, in its 2021 annual report, Wolong Electric stated it planned to achieve revenue of 16.078 billion yuan and net profit attributable to parent company of 1.205 billion yuan in 2022. Wind data shows that in 2022, Wolong Electric's revenue and net profit attributable to parent company were 14.266 billion yuan and 800 million yuan respectively.
Additionally, in its 2022 annual report, Wolong Electric proposed plans to achieve revenue of 17.92 billion yuan and net profit attributable to parent company of 1.401 billion yuan in 2023. However, Wind data shows that Wolong Electric's revenue and net profit attributable to parent company for that year were 15.567 billion yuan and 530 million yuan respectively.
Regarding inventory management, relevant data shows that from 2022 to 2024 and the first half of 2025, Wolong Electric's inventory was 3.268 billion yuan, 3.405 billion yuan, 3.617 billion yuan, and 3.478 billion yuan respectively, with inventory turnover days of 105, 103, 103, and 105 days respectively.
"From 2022 to 2024 and the first half of 2025, the company's inventory turnover days remained relatively stable," a Wolong Electric executive responded. "In the future, the company will continue to optimize global supply chain coordination and deepen digital management based on the core attributes of customized solutions, continuously improving inventory management efficiency while ensuring customer delivery quality."
**Two Major Business Segments Show Slowing Revenue Growth**
According to public information, Wolong Electric's main business involves research and development, production, sales, and services of motors and controls, applicable to explosion-proof, HVAC, industrial, and new energy transportation sectors.
The explosion-proof electric drive system solutions, industrial electric drive system solutions, and HVAC electric drive system solutions are Wolong Electric's fundamental business segments and core operations. In the first half of 2025, these three major business segments accounted for 30.6%, 26.4%, and 32.1% of revenue respectively, totaling 89.1%.
However, among Wolong Electric's three core business segments, two have shown signs of slowing revenue growth.
Relevant data shows that in 2023 and 2024, Wolong Electric's explosion-proof electric drive system solutions revenue growth rates were 13.2% and 0.19% respectively, while industrial electric drive system solutions revenue growth rates were 11.8% and 0.08% respectively, both showing significant declines. HVAC electric drive system solutions revenue growth rates were -6.2% and 5.3% respectively.
Regarding this, a relevant Wolong Electric executive explained: "In 2024, the company's explosion-proof electric drive system solutions revenue increased slightly compared to 2023, mainly due to rising market demand for explosion-proof electric drive system solutions in the Americas and Asia-Pacific regions; industrial electric drive system solutions revenue remained basically stable."
"In the first half of 2025, the company deeply advanced its 'going global strategy' and vigorously expanded overseas markets. To comprehensively support strategic implementation, the company systematically established a professional organizational structure with product line directors and overseas SR teams," the executive stated. While expanding the domestic market, the company actively promotes market diversification, anchors business growth targets, and deeply implements the "three one-thirds" strategy. On one hand, it continues to deepen OEM business, improving service depth and stickiness; on the other hand, it accelerates distribution pace and actively layouts emerging industries.
Notably, besides the slowing revenue growth of two main businesses, Wolong Electric also "divested" its highly anticipated new energy business at the beginning of this year.
In its 2023 annual report, Wolong Electric stated that the company firmly builds "three curves": electric drive body business as the first "stable growth curve," new energy business as the second "enhanced growth curve," and various system solution businesses as the third "breakthrough growth curve."
In the "enhanced growth curve," new energy business specifically includes photovoltaic, wind power, energy storage, hydrogen energy, and electric transportation businesses. In January this year, Wolong Electric announced plans to sell its 43.21% stake in Longneng Power, 80% stake in Wolong Energy Storage, 51% stake in Wolong Innerde, and 70% stake in Shunfeng Power to Wolong New Energy.
According to public information, as of the first three quarters of 2024, Wolong Energy Storage, Wolong Innerde, and Shunfeng Power were all in loss-making positions. Notably, the "acquirer" Wolong New Energy is also controlled by Chen Jiancheng.
"At the beginning of 2025, to further focus on motor and drive control main businesses, concentrate resources for optimization and strengthening, promote comprehensive business upgrades, optimize financial structure, improve asset operation efficiency, enhance listed company quality and long-term development, the company divested photovoltaic and energy storage assets," the Wolong Electric executive stated.
**Robot Business Accounts for Less Than 3%**
In recent years, as robot popularity continues to rise, Wolong Electric has been continuously increasing investment in this field.
The prospectus shows that as early as 2010, Wolong Electric began laying out in the robot component field and entered the embodied intelligent robot component development and industrial application field in 2023. In 2025, Wolong Electric established the Hangzhou Bay Embodied Intelligence Innovation Center, laying out in the humanoid robot field and releasing the industrial scenario embodied intelligence vertical large model - Shunzao GRP01.
"In robot components, we leverage our deep R&D and manufacturing foundation in electric drive system solutions to provide high-precision, fast-response, high-efficiency joint modules, dexterous hands, and exoskeletons for industrial and embodied intelligent robots," Wolong Electric stated.
Wolong Electric has also formed strategic alliances in the robot field. In March this year, Wolong Electric completed strategic investment signing with Zhiyuan Robotics, becoming its strategic shareholder. Wolong Electric stated that leveraging this capital connection, both parties will strengthen the "technology-scenario-ecosystem" collaborative paradigm: by integrating leading industrial chain resources, connecting the full-chain innovation loop of "key technology breakthrough-industry scenario adaptation-industrial cluster cultivation," creating an industrial community in the embodied intelligence field.
Financial data shows that Wolong Electric's robot business still needs further development and expansion. According to prospectus data, Wolong Electric's robot component and system application revenue increased from 406 million yuan in 2023 to 452 million yuan in 2024, a year-on-year growth of 11.3%.
Despite Wolong Electric's early layout in the robot component field, this business has maintained a consistently low revenue proportion. From 2022 to 2024 and the first half of 2025, Wolong Electric's robot component and system application revenue proportions were 2.5%, 2.6%, 2.8%, and 2.7% respectively.
"The company's robot components and system applications benefit from technological progress and continuously increasing global automation levels. As robots expand into industrial manufacturing, medical care, retail, home services, and other industries, demand continues to grow. However, competition in this field is intensifying. Factors such as slow technological progress, reduced end-user capital expenditure, or intensified competition may limit market expansion," the Wolong Electric executive responded.
"We will continue to actively invest in future industries and accelerate layout in embodied intelligence to break through the next trillion-yuan market with leading technology," the executive further stated. "In the embodied intelligence industrial application field, we leverage manufacturing scenario advantages, continuously iterate and train industrial embodied intelligence vertical domain models, achieving industry-leading deep applications in flexible manufacturing."
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