Introduction Shenzhen Zhaowei Machinery & Electronics Co., Ltd. (the “Company”) is conducting a Global Offering comprising a Hong Kong Public Offering and an International Offering. A total of 26.75 million H Shares are initially available (subject to reallocation), with 2.67 million H Shares under the Hong Kong Public Offering and 24.07 million H Shares under the International Offering. The Offer Price may reach up to HK$73.68 per H Share, and the listing is subject to the underwriting agreements becoming unconditional.
Company Overview The Company is a leading provider of integrated micro transmission and drive system products. It ranked fourth globally in 2024 by revenue (1.40% market share) and first in China (3.90% market share), focusing on miniature, high-precision motion control solutions for industries such as intelligent automotive, consumer and healthcare technology, industrial automation, and embodied robotics. Products include micro transmission, micro motor, and electronic control systems, plus specialized applications (e.g., miniaturized servo motors, automotive electronics modules, and dexterous-hand robotics solutions).
Industry Overview According to available disclosures, the global integrated micro transmission and drive system industry expanded from RMB78.20 billion in 2020 to RMB111.30 billion in 2024, with growth largely driven by demand for compact, customized solutions. China’s market grew from RMB20.30 billion in 2020 to RMB33.20 billion in 2024, reflecting an emphasis on miniaturized drive systems, automation technologies, and advanced robotics.
Financial Overview • Revenue: – RMB1.15 billion in 2022 – RMB1.21 billion in 2023 – RMB1.52 billion in 2024 – RMB1.26 billion for the nine months ended September 30, 2025
• Net profit: – RMB150.50 million in 2022 – RMB179.90 million in 2023 – RMB225.40 million in 2024 – RMB182.10 million for the nine months ended September 30, 2025
Before the offering, the Company had 240.73 million A Shares outstanding; after completion, assuming no other changes, total shares are expected to be 267.48 million. Controlling shareholders will collectively hold approximately 56.16% of the enlarged share capital.
Cornerstone Investors Cornerstone investors have agreed to subscribe for approximately 8.84 million H Shares in total, representing around 33.06% of the Offer Shares and 3.31% of the enlarged share capital. Each investor enters a six-month lock-up period from the listing date, with no additional special rights beyond the guaranteed allocation at the final Offer Price.
Use of Proceeds The Company anticipates net proceeds of about HK$1.89 billion after deducting fees and expenses. Allocations include: • 35.00% (HK$662.30 million) for global R&D projects and product development. • 30.00% (HK$567.70 million) for expanding and upgrading global production capacity. • 15.00% (HK$283.90 million) for strategic alliances, investments, and acquisitions. • 10.00% (HK$189.20 million) for expanding global sales channels and marketing. • 10.00% (HK$189.20 million) for general corporate and working-capital needs.
Key Risk Factors Disclosed risks include fluctuations in market demand, competitive pressures from both domestic and international players, potential supply-chain disruptions, regulatory compliance obligations, and challenges in overseas expansion. The Company employs strict quality controls, invests in research and development, and monitors changing regulations to mitigate these uncertainties.