HUAYAN ROBOTICS (01021) has announced its initial public offering will take place from March 20, 2026, to March 25, 2026. The company intends to globally issue 80.785 million H shares, with approximately 5% of the offering allocated to the Hong Kong public offering and approximately 95% to the international offering. An additional 15% over-allotment option is also granted.
The offer price is set at HKD 17 per share, with a board lot size of 200 shares. Trading of the H shares on the Stock Exchange is expected to commence at 9:00 a.m. on Monday, March 30, 2026.
The Group is a collaborative robotics company engaged in the research and development, production, and sales of collaborative robots and core motion components for industrial automation applications. Within the broader robotics industry, robots are typically categorized into three main types: traditional industrial robots, collaborative robots, and service robots. Collaborative robots form a distinct category, specifically designed for precise automation in environments requiring safe, close-proximity collaboration with humans.
According to Frost & Sullivan, the global collaborative robot market generated revenue of RMB 7.5 billion in 2024, accounting for approximately 1.7% of the total global robotics market revenue of RMB 431.6 billion.
The Group has entered into cornerstone investment agreements with HHLRA, GF Fund Management, MSIP, Shengxin Group, Haojun Investment and Huatai Capital (related to Haojun Investment's OTC swap transactions), Eternal Summer, Shrewd Pioneer, Quanshun, and VVC Technology. These entities, collectively referred to as the Cornerstone Investors, have agreed, subject to certain conditions, to subscribe for, or procure their designated entities to subscribe for, sale shares amounting to a total of approximately USD 98.40 million (based on an exchange rate of USD 1.00 to HKD 7.82). This amount corresponds to the number of offer shares purchasable (rounded down to the nearest full board lot of 200 H shares), excluding brokerage commissions, SFC transaction levy, FSTB transaction levy, and SEHK trading fee. This arrangement constitutes the cornerstone placement.
Based on the offer price of HKD 17.00 per share, the total number of offer shares to be subscribed for by the Cornerstone Investors will be 45.2658 million shares.
Assuming neither the share issuance adjustment right nor the over-allotment option is exercised, and after deducting underwriting commissions and other estimated offering expenses payable by the Group for the global offering, the Group estimates it will receive net proceeds of approximately HKD 1.28 billion, based on an offer price of HKD 17.00 per share.
The Group intends to use the net proceeds from the global offering for the following purposes: approximately 55.0% will be used to enhance the Group's R&D capabilities over the next five years; approximately 20.0% will be allocated to overseas business development over the next five years; approximately 15.0% will be used to upgrade and expand production capacity over the next five years; and approximately 10.0% will be allocated for working capital and general corporate purposes.
During the track record period, the Group's revenue increased by 60.2% from RMB 109 million in 2022 to RMB 175 million in 2023, and further increased by 77.0% to RMB 310 million in 2024, representing a compound annual growth rate of 68.4% from 2022 to 2024. Revenue further increased by 36.2% from RMB 206 million for the nine months ended September 30, 2024, to RMB 281 million for the nine months ended September 30, 2025.
Concurrently, according to Frost & Sullivan, the Group transitioned from a net loss of RMB 83.4 million in 2022 to a net profit of RMB 17.9 million in 2024, achieving a turnaround to profitability. This makes it one of the few globally renowned collaborative robotics companies that have achieved profitability. For the nine months ended September 30, 2024, the Group recorded a net profit of RMB 9.0 million, whereas for the nine months ended September 30, 2025, the Group incurred a net loss of RMB 15.6 million.
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