Laifu Harmonic Drive Co., Ltd. (Laifu Harmonic) has submitted an application for listing on the Main Board of the Hong Kong Stock Exchange, with CMBI acting as the sole sponsor. The draft prospectus notes that a confidential filing was made on January 2, 2026.
According to a CIC report, based on 2025 shipment volume, the company ranks second among Chinese providers of robotic harmonic reducers, holding a market share of 21.4%. It also holds the second position by revenue. As of December 31, 2025, the company is identified as one of only two domestic manufacturers in China that have achieved delivery and entered mass production for harmonic reducers used in humanoid robots.
Established in 2013, Laifu Harmonic is a provider of core precision transmission components for robots in China and was among the first wave of domestic enterprises to develop harmonic reducers. After over a decade of focused development in this field, the company has become a key player in China's robotic harmonic reducer industry and one of the few domestic companies capable of competing with international leaders.
The company's product portfolio encompasses harmonic reducers, joint modules, robotic arms, and automated workstations, primarily serving the humanoid and industrial robot sectors. Its strengths are rooted in its expertise in harmonic reducers—a critical technical component in precision transmission solutions—and its independent R&D capabilities. In 2025, the company's harmonic reducers achieved a positioning accuracy of ±15 arcseconds and a service life exceeding 10,000 hours, placing them in the top tier both in China and globally.
Laifu Harmonic has developed core competencies in product design, electric actuation and drive, and production technology, enabling it to serve various precision transmission applications such as welding, handling, spraying, assembly, and sorting. Its products have gained broad industry recognition for their performance. While primarily delivered to domestic customers, a portion is also exported to markets including Europe, the United States, Japan, and South Korea. The company is progressively evolving from a leading provider of harmonic reducers into a comprehensive provider of precision transmission solutions, extending its technological applications to broader markets.
Harmonic reducers are core components in robots, widely used in multi-jointed humanoid and industrial robots. The company commenced its harmonic reducer business in 2015. The CIC report indicates that currently, no established humanoid robot company possesses the capability for independent design and scaled production of harmonic reducers. Leveraging its proven product performance, Laifu Harmonic is deeply embedding itself in the humanoid robot supply chain, effectively meeting customer demand for power transmission in core components like joints and robotic arms, and precisely capturing industry development opportunities.
The company's harmonic reducers excel in precision, reliability, and longevity. Through its self-designed tooth profile structures and material processes, it has achieved low-cost, high-efficiency production. Key production processes such as heat treatment, precision machining, and gear processing are conducted in-house to ensure consistent quality and stable delivery timelines.
Building on years of experience in R&D and production of harmonic reducers, Laifu Harmonic expanded its R&D focus in 2022 to include joint modules, robotic arms, and automated workstations, representing a strategic extension of its core harmonic reducer business. This expansion stemmed from customer demand for integrating robotic precision transmission components with various other robot parts. Accordingly, the company combined harmonic reducers with motors and encoders to develop joint modules, which then serve as building blocks for its robotic arms. Similarly, to enhance the efficiency and cost-effectiveness of its own production lines, the company developed automated workstations, a product that also aligns with customer needs for improving manufacturing capacity. This evolution from components to systems allows the company to create higher value across the entire manufacturing chain of the robotics industry.
**Financial Information** *Revenue*: For the years 2023, 2024, and 2025, the company generated revenue of approximately RMB 94.545 million, RMB 108 million, and RMB 261 million, respectively. *Gross Profit and Gross Margin*: Gross profit for the same periods was approximately RMB 27.857 million, RMB 25.927 million, and RMB 66.863 million, corresponding to gross margins of 29.5%, 24.1%, and 25.6%, respectively. *Annual Loss*: The company recorded annual losses of approximately RMB 169 million, RMB 169 million, and RMB 171 million for 2023, 2024, and 2025, respectively.
**Industry Overview** China has become the world's largest robotics market and is expected to maintain robust growth momentum. Robot shipments in China are projected to grow from approximately 800,000 units in 2025 to about 4.7 million units in 2030, representing a compound annual growth rate (CAGR) of 42.5%. By revenue, the global and Chinese robotics markets are expected to expand from approximately RMB 547.2 billion and RMB 200.3 billion in 2025 to about RMB 1.2892 trillion and RMB 491.4 billion in 2030, respectively.
*Humanoid Robots*: As a new generation of general-purpose robots, the humanoid robot market is at an inflection point for explosive growth, with a growth rate significantly higher than other robot segments. Leveraging human-like form and mobility, core advantages in versatility and task generalization enable humanoid robots to perform complex tasks in unstructured environments, breaking the limitations of traditional robot applications. With the continuous maturation of embodied intelligence technology and gradual optimization of supply chain costs, humanoid robots are progressively achieving commercial scale. Their market shipments are expected to surge from approximately 15,200 units in 2025 to about 1.1 million units in 2030, a CAGR of 133.8%.
*Industrial Robots*: Industrial robots represent the most mature and commercially advanced segment of the robotics industry, with clear application scenarios (primarily in structured environments like factories) and a clear return on investment. Currently, industrial robots constitute the largest category by shipment volume in China's robotics market, forming the largest and most stable foundation of the industry. Against the backdrop of persistently rising labor costs and ongoing carbon neutrality transitions, manufacturers face multiple challenges. Shifting employment preferences exacerbate labor shortages, particularly as younger generations increasingly avoid repetitive and physically demanding work, leading to structural shortages of production line operators and further accelerating the process of replacing human labor with robots. The rapid expansion of strategic emerging industries such as new energy vehicles, lithium batteries, and photovoltaics is further driving demand for industrial robot applications. Industrial robot shipments are projected to grow from approximately 400,000 units in 2025 to about 1.2 million units in 2030, a CAGR of approximately 20.7%.
*Other Robots*: Driven by demographic changes and labor shortages, service robots are accelerating their penetration into commercial and household settings, improving operational efficiency and quality of life. Conversely, high-risk environments (such as emergency rescue and scientific exploration) impose higher requirements for personnel safety, continuously fueling demand for specialized robot solutions. Consequently, total shipments in this category are expected to grow from approximately 400,000 units in 2025 to about 2.5 million units in 2030, a CAGR of 48.1%.
The market size for precision transmission solutions in China's robotics sector is projected to grow from approximately RMB 26.8 billion in 2025 to about RMB 197.5 billion in 2030, a CAGR of 49.2%. The precision reducer market is expected to expand from about RMB 3.5 billion to RMB 26.1 billion over the same period; the joint module market from approximately RMB 7.8 billion to RMB 57.9 billion; and the robotic arm market from about RMB 12.4 billion to RMB 96.4 billion.
Precision reducers face high technical barriers stemming from their reliance on advanced design and materials, sophisticated manufacturing processes, and stringent requirements for reliability and service life. These factors ultimately determine the performance ceiling of joint modules and robotic arms. Benefiting from the explosive growth of the downstream robotics industry, the market size for precision reducers in China's robotics field continues to expand. It is projected to grow from RMB 3.5 billion in 2025 to approximately RMB 23.1 billion in 2030, a CAGR of 45.9%. Among these, harmonic reducers, with their unique structural characteristics, significantly reduce the weight and volume of robot joints, thereby lowering power requirements for motors, making them an inevitable choice as robot design evolves towards lighter weight, more compact size, and higher precision.
**Board Composition** The Board will consist of 11 directors, including four executive directors, three non-executive directors, and four independent non-executive directors. The Board is responsible for the company's management and operations and possesses general powers. Directors serve three-year terms and are eligible for re-election upon expiry.
**Shareholding Structure** As of the latest practicable date, Mr. Zhang controls an aggregate of 32.67% of the voting rights at the company's general meetings through: (i) a direct beneficial interest of 4.13%; (ii) a 23.45% interest held through Laifu Investment (whose general partner, Shengzhou Shunhe Information Consulting Co., Ltd., is controlled by Mr. Zhang); and (iii) a 5.09% interest held through Jieyang Information (where Mr. Zhang serves as the general partner).
Laifu Investment was established as a limited partnership under Chinese law in October 2015. Its general partner is Shengzhou Shunhe Information Consulting Co., Ltd., in which Mr. Zhang holds a 99% interest and former group employee Ms. Qian Songyu holds a 1% interest. The limited partners of Laifu Investment include Mr. Zhang and 12 independent third parties.
Jieyang Information was established as a limited partnership under Chinese law in December 2017. Its general partner is Mr. Zhang. The limited partners of Jieyang Information include three executive directors (namely Mr. Zhang Han, Mr. Wu Di, and Ms. Wang Haiying), two senior management members (namely Mr. Zhou Wenjun and Ms. Xue Wei), and 14 employees of the company.
**Professional Team** *Sole Sponsor*: CMBI *Company's Legal Advisors*: For Hong Kong and U.S. law: Baker McKenzie; For Chinese law and data compliance: Haiwen & Partners; For international sanctions law: Commerce & Finance Law Offices LLP *Sole Sponsor's Legal Advisor*: For Hong Kong law: Jingtian & Gongcheng Attorneys-at-Law LLP; For Chinese law: Jingtian & Gongcheng *Reporting Accountant and Independent Auditor*: KPMG *Industry Consultant*: CIC *Compliance Advisor*: New Bounty Limited
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