Wolong Electric Group Co.,Ltd. (600580.SH) recently disclosed its announcement regarding the submission of H-share issuance and listing application to the Hong Kong Stock Exchange and the publication of application materials. The company submitted its application for issuing overseas-listed shares (H-shares) and listing on the main board of The Stock Exchange of Hong Kong Limited on August 13, 2025, with application materials published on the Hong Kong Stock Exchange website on the same day.
Wolong Electric Group stated that the issuance and listing still requires approval, authorization, or filing from relevant government agencies, regulatory bodies, and securities exchanges including the China Securities Regulatory Commission, Securities and Futures Commission of Hong Kong, and the Hong Kong Stock Exchange. The matter remains uncertain. CICC, Huatai International, and GF Securities (Hong Kong) serve as joint sponsors for this issuance.
According to reports, Wolong Electric Group's top five customers and top five suppliers show overlapping relationships. Application documents indicate that during the reporting period, Wolong Electric Group provided HVAC electric drive system solutions to Customer A and Customer B, who are simultaneously major clients and suppliers. Customer A supplies silicon steel, while Customer B supplies electromagnetic wire. Additionally, Wolong Electric Group procures silicon steel from Supplier C and Supplier D, who are also clients, while providing them with explosion-proof and industrial electric drive system solutions.
Regarding Customers A and B, Wolong Electric Group explained: "This situation stems from long-term business relationships and complementary needs formed in our supply chain. Both Customer A and Customer B are leading enterprises in the home appliance sector. On one hand, they have substantial demand for HVAC electric drive system solutions; on the other hand, they possess rich industry experience and resources in silicon steel and electromagnetic materials, enabling them to supply high-quality raw materials to us."
As of June 30, 2025, Wolong Electric Group's goodwill reached 1.468 billion yuan. Currently, the Chen Jiancheng family controls Wolong Electric Group, Wolong New Energy (formerly Wolong Real Estate, Wolong Resources) (600173.SH), and Singapore-listed company Brook Crompton.
In recent years, Wolong Electric Group has been active in capital operations. Through investment and cooperation, the company has actively expanded into cutting-edge sectors such as humanoid robots and low-altitude economy. Despite robot business accounting for less than 3% of operations, it has become a "robot concept stock" with rising market capitalization.
After two failed attempts to spin off subsidiaries for separate listings, the company "bundled" four new energy business subsidiaries for sale to a sister company before heading to the Hong Kong stock market for fundraising. Behind Chen Jiancheng's capital maneuvering lies the company's sluggish core business growth and transitional challenges in new businesses. Facing high goodwill and debt pressure, Wolong Electric Group, which has embraced capital-intensive fields like low-altitude economy and embodied intelligence, must seek new financing channels.
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