On August 13, 2025, Wolong Electric Group Co.,Ltd. submitted its initial public offering application to the Hong Kong Stock Exchange, seeking a listing on the Main Board. The joint sponsors are China International Capital Corporation, Huatai International, and GF Securities. The company is the world's largest explosion-proof electric drive system solution provider, with H1 2025 revenue of 8.03 billion yuan and net profit of 548 million yuan, representing a 34% year-over-year increase.
Wolong Electric Group Co.,Ltd. (referred to as "Wolong Electric Group") filed its listing application with the Hong Kong Stock Exchange on August 13, 2025, aiming for a Main Board listing. This marks the company's first submission for Hong Kong listing. The company was originally listed on the Shanghai Stock Exchange in 2002, with a market capitalization of approximately 43.15 billion yuan as of August 14's close.
Founded in 1984, Wolong Electric Group is an electric drive system solution provider primarily engaged in the research, development, production, sales, and service of electric drive system products and solutions. The company continuously provides global customers with: (i) explosion-proof electric drive system solutions, (ii) industrial electric drive system solutions, (iii) HVAC electric drive system solutions, (iv) new energy transportation electric drive system solutions, and (v) robot components and system applications.
As of June 30, 2025, the company operates 45 factories globally, including 14 overseas facilities located in Germany, Poland, Italy, Vietnam, Mexico, and other countries and regions, enabling localized manufacturing support and services for regional customers. The company's products and solutions span Asia, America, Europe, Oceania, and Africa, covering over 100 countries and regions. The company has established three overseas regional headquarters in Asia-Pacific, Europe, and America to support localized marketing, customer engagement, and technical services.
**Financial Performance**
The company's key financial data for 2022-2024, H1 2024, and H1 2025 are as follows:
Revenue reached approximately 14.266 billion yuan, 15.567 billion yuan, 16.247 billion yuan, 7.978 billion yuan, and 8.031 billion yuan respectively, with H1 2025 showing a 0.66% year-over-year increase.
Gross profit amounted to approximately 3.404 billion yuan, 3.725 billion yuan, 3.771 billion yuan, 1.961 billion yuan, and 1.978 billion yuan respectively, with H1 2025 up 0.87% year-over-year.
Net profit totaled approximately 839 million yuan, 553 million yuan, 832 million yuan, 409 million yuan, and 548 million yuan respectively, with H1 2025 surging 33.96% year-over-year.
Gross profit margins were approximately 23.86%, 23.93%, 23.21%, 24.58%, and 24.64% respectively.
Net profit margins stood at approximately 5.88%, 3.55%, 5.12%, 5.13%, and 6.82% respectively.
**Industry Outlook**
According to Frost & Sullivan, the global electric drive system solution market is expected to continue growing, from 674 billion yuan in 2020 to 1.338 trillion yuan in 2029, with compound annual growth rates of 7.7% (2020-2024) and an estimated 8.1% (2024-2029).
According to Frost & Sullivan, in 2024, the company ranked first in the global explosion-proof electric drive system solution market with a 4.5% market share; fourth in the global industrial electric drive system solution market with a 2.8% market share; and fifth in the global HVAC electric drive system solution market with a 2.0% market share.
**Comparable Companies**
Industry IPO comparable companies include: Broad-Ocean Motor, Founder Motor, and Johnson Electric.
**Major Shareholders**
Prior to the IPO, the company's shareholder structure shows: controlling shareholders (Wolong Holdings, Wolong Shunyu, Mr. Chen Jiancheng, and Ms. Chen Yanni) collectively hold 38.84%; other A-share shareholders collectively hold 61.16%.
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