UBTECH ROBOTICS (09880.HK) spent over RMB 1.66 billion to acquire equity in Fenglong (002931.SZ). This morning (29th), UBTECH ROBOTICS opened up 7.2% and the morning session's gains expanded, reaching a high of HKD 122. It is currently reported at HKD 121.5, up 10.96%, with trading volume surging to 9.4437 million shares, involving HKD 1.13 billion. Competitor Yujiang (02432.HK) is currently reported at HKD 34.16, up 8.03%, with a trading volume of HKD 166 million.

Guangqi (02238.HK), which is involved in the humanoid robot business, is currently reported at HKD 4.14, up 3.5%, with a trading volume of HKD 59.0214 million. XPeng-W (09868.HK) is currently reported at HKD 80.2, up 5.39%, with a trading volume of HKD 791 million. Robot parts supplier Sanhua Intelligent Control (02050.HK) also rose 5.2%, with a trading volume of HKD 386 million.

UBTECH ROBOTICS announced on Christmas Eve (24th) that it would acquire a total of 65.5299 million shares of Fenglong from four independent third parties and proposed to partially offer to acquire 28.45 million shares at a price of RMB 17.72 per share, with a total cash consideration of RMB 1.665 billion, to be paid using internal resources.

Upon completion, the company expects to hold no less than 93.9575 million shares of Fenglong, accounting for 43% of its total share capital. The latter is mainly engaged in the research, development, production, and sales of gardening machinery engines, electric complete machines, hydraulic control systems, and automotive parts. The acquisition will help accelerate the development and commercialization of the group's humanoid robots