Driven by the "dual carbon" goals, global motor efficiency standards continue to rise, with explosive growth in demand for high-efficiency electric drive systems in new energy vehicles, industrial automation and other fields. Wolong Electric Group Co.,Ltd., as China's largest industrial motor supplier, is officially taking a key step in its international capital layout. On August 13, the company submitted an IPO application to the Hong Kong Stock Exchange, seeking listing on the main board, with CICC, Huatai International, and GF Securities (Hong Kong) serving as joint sponsors. This IPO marks Wolong Electric Group's efforts to consolidate its leading domestic position while further broadening financing channels, accelerating global market expansion and technological upgrades, injecting new momentum into efficient motors and intelligent drive solutions for the new energy era.
Global Leader in Explosion-Proof Electric Drive System Solutions with Annual Revenue Exceeding 16.2 Billion Yuan
According to the prospectus, Wolong Electric Group Co.,Ltd. is a globally leading provider of electric drive system solutions. The company focuses on the R&D, production, sales and service of electric drive system products and solutions, continuously providing global customers with five core segments including explosion-proof electric drive system solutions, industrial electric drive system solutions, HVAC electric drive system solutions, new energy transportation electric drive system solutions, and robot components and system applications.
As of June 30, 2025, Wolong Electric Group Co.,Ltd. operates 45 factories globally, 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. As of June 30, 2025, the company's average cooperation period with its top five customers as of the year ended December 31, 2024, exceeded 21 years.
According to Frost & Sullivan data, by 2024 revenue, Wolong Electric Group Co.,Ltd. ranks first in the global explosion-proof electric drive system solutions market with approximately 4.5% market share; ranks fourth in the global industrial electric drive system solutions market with approximately 2.8% market share; and ranks fifth in the global HVAC electric drive system solutions market with approximately 2.0% market share.
Financially, for the years 2022, 2023, 2024 and the six months ended June 30, 2025 (hereinafter referred to as "reporting period"), Wolong Electric Group Co.,Ltd. achieved revenues of approximately 14.266 billion yuan, 15.567 billion yuan, 16.247 billion yuan, and 8.031 billion yuan respectively (amounts in RMB); over the same periods, annual/period profits were 839 million yuan, 553 million yuan, 832 million yuan, and 548 million yuan respectively. Over the same periods, gross profit margins were 23.9%, 23.9%, 23.2%, and 24.6% respectively, reflecting steady performance in business expansion and operational efficiency.
Notably, in the first half of 2025, besides rapid net profit growth, Wolong Electric's multiple operational indicators improved significantly. Net sales margin reached 6.87%, up 33% year-on-year, comparable to net profit growth; gross sales margin remained stable at 25.49%; return on equity reached 5.19%, up 28% year-on-year, showing significant improvement as a key market-watched indicator, with current ratio of 1.24 indicating strong debt servicing capability. Benefiting from improved cash collection ratio in the first half, operating cash flow amounted to 710 million yuan, exceeding net profit by 160 million yuan, a quite impressive performance.
By business segment, the company spans from HVAC and industrial environments to emerging fields like electric aviation and intelligent robots. Among these, explosion-proof, industrial and HVAC electric drive systems are its foundational business segments, while new energy transportation and robots are its emerging development businesses. During the reporting period, explosion-proof, industrial and HVAC contributed nearly 90% of revenue. Particularly, HVAC and explosion-proof electric drive system solutions performed outstandingly in the first half of 2025.
Notably, during the period, revenue and proportion from new energy transportation electric drive system solutions continued to decline, showing weakness; while robot components and system applications, though small in scale, showed steady growth trends. In summary, Wolong Electric Group Co.,Ltd. has a healthy business structure, with explosion-proof, industrial, and HVAC "cash cow" businesses providing stable fundamentals, while new energy transportation and robot "growth engine" businesses position for the future.
Concerningly, Wolong Electric Group Co.,Ltd.'s accounts receivable remain high, at 4.679 billion yuan, 5.028 billion yuan, 5.70 billion yuan, and 5.440 billion yuan respectively during the period, with trade receivables and notes receivable turnover days of 109, 114, 121, and 125 days respectively. With increasing receivables, the company's bank borrowings also show growth trends. During the period, bank borrowings were 5.952 billion yuan, 5.933 billion yuan, 6.776 billion yuan, and 6.685 billion yuan respectively. The company's liquidity concerns are evident.
Strategic Layout in Key Humanoid Robot Components
As capital shifts from "watching demos" to "watching mass production" and "watching implementation," humanoid robots are experiencing a historic inflection point toward industrialization. Data from Gaogong Robot Industry Research Institute shows that in the first half of 2025, China's embodied intelligence industry chain experienced 144 financing events totaling 19.5 billion yuan, with average single financing of 135 million yuan. This represents collective capital betting on accelerated commercialization of embodied intelligence.
Having deeply cultivated the motor industry for years, Wolong Electric Group Co.,Ltd. has strategically positioned itself in key humanoid robot components including high-explosive joint modules, servo drives, frameless torque motors, and dexterous hands to meet industry needs.
In March 2025, Wolong Electric Group Co.,Ltd. and Zhiyuan Robotics achieved mutual shareholding to jointly advance embodied intelligent robot technology R&D and ecosystem construction. The Hangzhou Bay Embodied Intelligence Innovation Center, jointly built by Wolong Electric Group Co.,Ltd. and Zhiyuan Robotics, released China's first vertical domain model "Shunzao GRP01" for industrial scenarios in July. Additionally, the company has engaged in deep cooperation with Zhejiang Humanoid Robot Innovation Center, Unitree, and others in humanoid and biomimetic robot fields.
In the view of Zhitong Finance APP, the company's layout in the humanoid robot track benefits from cash cow business support with strong risk resistance. Compared to pure robot startups (such as Unitree Robotics and CloudMinds), there's no short-term cash flow disruption risk. Moreover, the capital market story is compelling with significant valuation upside potential. Tesla Optimus supply chain companies (such as Sanhua Intelligent Controls and Moons' Electric) generally trade at 50+ PE ratios, making Wolong Electric Group Co.,Ltd.'s current stock price breakthrough logical.
However, potential disadvantages cannot be ignored. Leading manufacturers tend toward in-house development of core components (such as Optimus motors and dexterous hands), squeezing second-tier supplier space. Additionally, commercialization progress remains uncertain, with the company's robot business revenue still in single digits, requiring time for industry scaling.
Wolong Electric Group Co.,Ltd. represents a target with both "defensive" and "offensive" characteristics, though continued monitoring of accounts receivable improvements and robot order fulfillment is needed. In the wave of new energy and intelligentization, whether it can leap from "China's motor leader" to "global electric drive and robot core supplier" will be a key focus for the next three years.
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