The Hong Kong stock market may soon welcome another leader from a niche smart equipment sector. According to a filing on April 24, Tianjin Wangyuan Intelligent Technology Co., Ltd. has formally submitted an application to list on the main board of the Hong Kong Exchange, with CSCI Capital Management as the sole sponsor. The company had previously filed on September 28, 2025.
The prospectus reveals that Wangyuan Technology is a growing global enterprise focused on the research, development, design, production, and marketing of pool cleaning robots. According to a CIC report, based on both shipment volume and GMV of self-manufactured products in 2024, the company ranks among the top three globally and is the leading supplier in China for pool cleaning robots, boasting a comprehensive product portfolio equipped with advanced cleaning technologies. Per the same source, by 2024 shipment volume of self-made products, Wangyuan is also the pioneer and the world's largest supplier of cordless pool cleaning robots, holding a 19.7% market share.
The company plans to allocate IPO proceeds primarily towards four areas: expanding its Tianjin production base and storage facilities; broadening global online and offline sales channels; increasing R&D investment, with a focus on core technologies like AI vision, wireless charging, and underwater 3D modeling; and supplementing working capital.
Founded in 2005, Wangyuan Technology has nearly two decades of experience specializing in pool cleaning robots, establishing a complete industrial chain from R&D and manufacturing to global sales. Prior to 2023, the company's business was primarily based on an ODM model. Starting in 2023, it shifted comprehensively towards a direct-to-consumer (DTC) model for its own brands, proactively scaling back ODM operations to concentrate resources on building its WYBOT and Winny Pool Cleaner brands. Prospectus data shows that from 2023 to 2025, the proportion of revenue from its own brands increased from 67.1% to 83.5%, while ODM revenue decreased from 31.1% to 15.6%.
The company pioneered the launch of a lightweight product in 2009, introduced the first cordless product in 2014, and launched its first AI-driven product in 2023. Its current product line covers three main types: cordless, corded, and handheld, comprising 48 main models. Cordless products contributed over 97% of revenue in 2025. In 2023, 2024, and 2025, the company sold approximately 370,500, 431,000, and 501,100 pool cleaning robots, respectively. As of April 15, 2026, its products have entered 60 countries and regions worldwide, forming a channel network that integrates online and offline sales with comprehensive domestic and international coverage, making it one of the few Chinese intelligent cleaning enterprises capable of competing directly with international giants.
Financially, from 2023 to 2025, Wangyuan Technology demonstrated rapid revenue growth, steadily increasing gross profit margins, but faced pressure on its net profit margin. During this period, revenue was RMB 378 million, RMB 544 million, and RMB 812 million, respectively, representing a compound annual growth rate of 46.6%, with a 49.4% year-on-year increase in 2025. Growth was primarily driven by its own brands; revenue from branded products reached RMB 678 million in 2025, surging 72.4% year-on-year, significantly outpacing overall growth. Geographically, overseas revenue accounted for over 90% in 2025, with North America and Europe as core markets, contributing approximately 44% and 41% of sales revenue, respectively.
Benefiting from the increased proportion of own-brand sales and product portfolio upgrades, the company's gross profit margin rose from 57.5% in 2023 to 58.0% in 2024, and further improved to 62.9% in 2025. Net profit for the three years was RMB 60.849 million, RMB 70.51 million, and RMB 100 million, respectively. However, the net profit margin declined from 16.1% in 2023 to 13.0% in 2024, and fell further to 12.4% in 2025, marking a consecutive three-year decrease.
The primary reason for the declining net profit margin was a significant increase in sales and distribution expenses. To promote its brand internationally and capture overseas market share, the company substantially increased investments in Amazon advertising, brand promotion, and channel development, leading to a continuously rising sales expense ratio. From 2023 to 2025, sales and distribution expenses surged from RMB 97.186 million to RMB 303 million. In 2025 alone, the sales expense ratio reached 37.2%. Wangyuan Technology noted in its prospectus that it plans to continue increasing sales and marketing investments to further expand its omni-channel sales efforts. The company acknowledges that it cannot guarantee these investments will generate customer acquisition and product sales sufficient to cover the associated costs. If these sales and marketing initiatives do not achieve the expected results, the company's business, operational performance, and financial condition could be adversely affected.
The global pool cleaning robot industry is currently experiencing a period of overlapping growth drivers: increasing penetration rates, the transition from corded to cordless models, and intelligent upgrades. This presents broad growth opportunities for Wangyuan Technology, while industry competition and external risks also pose challenges for long-term development.
According to the CIC report, pools are a core component of the growing outdoor living space trend. With the increasing adoption of smart home IoT devices and the rise of AI technology, pools are becoming more interconnected and intelligent. AI technology is expected to lead the next generation of premium backyard experiences, including features like obstacle avoidance and smart pool cleaning and maintenance. Manual pool cleaning is a laborious task for pool owners and operators. As pool cleaning robots significantly enhance maintenance convenience, promote water conservation, and reduce the use of harsh chemicals, demand for robots replacing manual cleaning is increasingly seen as a necessary and recurring requirement for ongoing pool operation.
The global installed base of pools is steadily expanding, projected to grow from approximately 34.1 million in 2025 to 41.1 million by 2030, representing a CAGR of 3.8%. The global market size for pool cleaning robots is also expanding continuously, reaching USD 2.8 billion in 2025 and expected to grow to USD 4.568 billion by 2030, a CAGR of 10.3%. Regarding penetration rates, the global rate was 27.8% in 2025 and is forecast to increase to 34.7% by 2030. In China, the penetration rate for pool cleaning robots is expected to rise from 8.7% in 2025 to 16.2% by 2030, showing significant growth potential in pools at sports centers, luxury hotels, apartments, spas, as well as other underwater environments like aquariums and aquaculture ponds.
Against this backdrop, Wangyuan Technology has a relatively clear medium to long-term growth strategy. On one hand, it aims to achieve sales growth through capacity expansion, deeper channel penetration, and an increasing share of premium products. On the other hand, it plans to extend its applications from residential pools to commercial pools, marine vessels, landscape pools, and aquaculture, thereby broadening its market. On the R&D front, the company is focused on developing a platform based on AI and underwater robotics technology to explore more underwater applications.
It is important to note that in its global operations, Wangyuan Technology faces four major risks. First, there is the risk of overseas patent litigation; the company is involved in patent infringement disputes with Zodiac in the US and France. Although legal counsel assesses a high probability of success, the outcome remains uncertain. Second, there is platform dependency risk, as the Amazon channel contributes nearly 50% of revenue, making the business susceptible to changes in the platform's policies. Third, there are overseas market and exchange rate risks, given the high reliance on international markets; fluctuations in trade policies, tariffs, and exchange rates could significantly impact operations. Fourth, there is the risk of sustained pressure on profitability; if sales expenses remain high, the net profit margin may continue to decline.
Overall, Wangyuan Technology operates in a pool cleaning robot market that is in a phase of steady expansion. Leveraging its technological积累, product advantages, and global distribution channels, the company has established a leading position in its niche segment. With the increasing contribution from its own brands and the gradual release of new production capacity, the company possesses the fundamental conditions to further expand its market share. However, challenges such as overseas patent disputes, channel concentration, profitability pressure from marketing investments, and changes in the international market environment will continue to test its long-term operational resilience. The success of its Hong Kong IPO application and its ability to convert industry tailwinds into sustainable operational results will require ongoing validation from future market performance and financial results.
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