YESMRO Holdings Limited (YESMRO) has submitted a listing application to the Main Board of the Hong Kong Stock Exchange, with ABCI acting as the sole sponsor. According to CIC, based on 2024 revenue, YESMRO holds the leading position among domestic suppliers focused on the FA (factory automation) sector in China's digital FA parts procurement services market, with a market share of 8.5%.
The prospectus indicates that YESMRO is a leading digital FA factory automation parts provider in China, possessing strong capabilities in supply chain integration, R&D, and inventory management. Through data-driven insights and continuous R&D, the company enables automation equipment manufacturers to procure FA parts with shorter lead times and higher efficiency.
Established in 2016, YESMRO is dedicated to the digital transformation of an industry long reliant on fragmented offline transactions. Initially focusing on serving small clients, it built an instant inventory supply chain for FA parts. The company achieved rapid growth and gradually established itself as the preferred partner for FA equipment manufacturers in China, providing direct service through a dedicated sales team.
During the track record period, the company has served over 24,000 automation equipment manufacturers across various industries. Leveraging its comprehensive service capabilities, the company's customers exhibit high stickiness and repeat purchase rates. Customer retention rates for 2023, 2024, the nine months ended September 30, 2024, and the nine months ended September 30, 2025, were 67.3%, 70.9%, 68.6%, and 73.3%, respectively.
Recognizing that the ability to deliver parts in real-time is critical in an industry where equipment manufacturers often face strict deadlines, YESMRO has been technology-driven since its inception. All core systems are developed in-house to enable process automation and data-driven decision-making.
With deep insights into customer needs, the company dynamically manages inventory, ensuring a complete SKU range covered by same-day and next-day delivery services. It achieved an in-stock rate exceeding 81.3% and an on-time delivery rate of 96.5% during the track record period, both representing industry-leading benchmarks according to CIC.
The company's inventory turnover days remained below 20 days throughout the track record period. Its cash conversion cycle was 1 day, -7 days, and -1 day for 2023, 2024, and the nine months ended September 30, 2025, respectively, demonstrating effective working capital management while maintaining high inventory availability.
The company's business model is built on two interconnected flywheels: (i) customer scale and stickiness, and (ii) profitability enhancement through its own brand. These engines are powered by a central core, including its proprietary IT system and a dedicated sales team serving end-users of its products.
Customers primarily access the company's products via the YESMRO.cn website and WeChat mini-program, achieving end-to-end digitization of the entire FA product procurement process while ensuring a consistent cross-device user experience. The platform interface is intuitive and rich in graphics, designed to engage customers and facilitate their purchasing decisions.
The overall procurement experience is designed to be intuitive and easy to use, referencing mainstream e-commerce platforms. Core features include comprehensive product search and filtering across multiple categories, intelligent product recommendations and price comparisons, and an AI-driven product selection system.
Customers can upload their parts list for automatic matching against the company's extensive database, achieving an automatic matching rate of approximately 65% during the track record period. This feature significantly saves customers' procurement time and labor costs compared to traditional models.
For the years 2023 and 2024, and the nine months ended September 30, 2024, and September 30, 2025, the company generated revenue of approximately RMB 534 million, RMB 637 million, RMB 453 million, and RMB 554 million, respectively.
Gross profit for the same periods was approximately RMB 40.68 million, RMB 46.398 million, RMB 33.92 million, and RMB 40.04 million, corresponding to gross margins of 7.6%, 7.3%, 7.5%, and 7.2%, respectively.
The company recorded annual/period losses of approximately RMB 402 million, RMB 680 million, RMB 450 million, and RMB 294 million for 2023, 2024, the nine months ended September 30, 2024, and the nine months ended September 30, 2025, respectively.
There are over 200,000 automation equipment manufacturers in China, primarily concentrated in manufacturing-intensive regions like the Yangtze River Delta and Pearl River Delta. Within the smart manufacturing system, these enterprises are the core force supporting production line construction and process implementation.
They provide products and services such as automated assembly lines, testing equipment, jigs and fixtures, customized workstations, and control system upgrades to large manufacturing enterprises, directly serving the production line layout and capacity expansion of end factories, and are a vital engineering force driving manufacturing process upgrades.
Automation equipment manufacturers generally operate on a project-based model, characterized by highly customized orders, short delivery cycles, and small production batches. Their production plans are closely tied to downstream customers' capacity planning and new product iteration cycles, which is particularly prominent in advanced manufacturing sectors.
The industry's characteristics of fast technological updates and tight delivery schedules impose high demands on enterprises' capabilities for rapid design, debugging, and delivery. SMEs, with their high technology intensity, high product value-added, and quick response capabilities, have become a major driver promoting professional specialization and manufacturing automation upgrades.
FA factory automation parts procurement services refer to the comprehensive supply service system formed around the needs arising during the design, assembly, debugging, and delivery processes of automation equipment manufacturers. This service covers multiple categories of automation parts and involves various participants.
The market size for China's FA factory automation parts procurement services increased from RMB 66.4 billion in 2021 to RMB 84.0 billion in 2024, representing a CAGR of 8.2%. The market is expected to reach RMB 118.1 billion by 2029, with a CAGR of 7.1%.
The market size for China's digital FA factory automation parts procurement services grew from RMB 4.6 billion in 2021 to RMB 7.6 billion in 2024, with a CAGR of approximately 18.2%. The digital penetration rate of China's FA parts procurement services reached 9.0% in 2024.
Driven by continued investment in smart manufacturing, the expanding number of automation equipment manufacturers, and the rapid penetration of digital procurement models in the industry, this market is expected to reach RMB 16.8 billion by 2029, with a CAGR of 17.2% from 2024 to 2029.
In the long term, as the demand for FA parts continues to grow throughout the equipment production and operational lifecycle, the penetration rate of digital procurement services is expected to increase further. The market size is anticipated to maintain stable growth.
Post-IPO, the company's board will consist of seven directors, including four executive directors and three independent non-executive directors. The board is fully responsible for the company's business management and operations.
Mr. Zhu Hongtao holds a 15.50% stake through Better Man Holdings Limited, and Mr. Zhu Yonggui holds a 2.41% stake through GFA Holdings Limited. MPC investors hold 15.19%, other pre-IPO investors hold 61.72%, and other shareholders hold 5.18%.
Better Man Holdings Limited is a company incorporated in the British Virgin Islands and is wholly owned by Mr. Zhu Hongtao. Under the Securities and Futures Ordinance, Mr. Zhu Hongtao is deemed to have an interest in all shares directly held by Better Man Holdings Limited.
The general partners of MPC V L.P. and MPC V-A L.P. are both MPC Management V L.P., whose general partner is MPC GPGP V Ltd. Consequently, MPC Management V L.P. and MPC GPGP V Ltd. are deemed to have an interest in the shares held by MPC V L.P. and MPC V-A L.P.
The general partner of QIMING VENTURE PARTNERS VII, L.P. and QIMING VII STRATEGIC INVESTORS FUND, L.P. is Qiming GP VII, LLC. Therefore, Qiming GP VII, LLC is deemed to have an interest in the shares held by QIMING VENTURE PARTNERS VII, L.P. and QIMING VII STRATEGIC INVESTORS FUND, L.P.
Sole Sponsor and Sole Sponsor & Overall Coordinator: ABCI Capital Limited. Sole Financial Advisor:岭峰资本有限公司. Overall Coordinator: ABCI Capital Limited. Company Legal Advisors: For Hong Kong law: Han Kun Law Offices (Limited Liability Partnership); For PRC law: Han Kun Law Firm; For Cayman Islands law: Maples and Calder (Hong Kong) LLP. Sole Sponsor's Legal Advisors: For Hong Kong law: CHOW, CHUN HIN & CO. in association with COMMERCIAL LAW FIRM; For PRC law: Tian Yuan Law Firm. Auditor and Reporting Accountant: Ernst & Young. Industry Consultant: CIC. Compliance Advisor:浤博资本有限公司.
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