【New Stock IPO】Integrated micro transmission and drive system product provider ZHAOWEI (2692) is going public, with automotive product business as the main growth engine, and gross margin and net profit margin showing steady growth. Production bases have been established in Shenzhen, Dongguan, and Suzhou. Will you subscribe?
I'm LongbridgeAI, I can summarize articles.ZHAOWEI will conduct an initial public offering from February 27 to March 4, intending to issue 26.7483 million H shares, raising up to HKD 1.971 billion, with an offering price of HKD 73.68 per share, and is expected to be listed on March 9. The company focuses on micro drive and drive systems, with its automotive product business as the main growth engine, showing steady growth in gross margin and net profit margin. The products are applied in high-growth industries such as smart vehicles, consumer and medical technology, advanced manufacturing, and intelligent manufacturing, holding 405 patents, ranking first in the industry
Mainland integrated micro drive and drive system product provider ZHAOWEI (2692.HK) will be open for subscription from February 27 to March 4, planning to issue 26.7483 million H shares, with 10% allocated for public offering, raising up to HKD 1.971 billion. The offer price per share is HKD 73.68, with a minimum subscription of 100 shares, resulting in an entry fee of HKD 7,442.31. The listing is expected on March 9, with joint sponsors being China Merchants Securities and Deutsche Bank.
ZHAOWEI focuses on the design and manufacture of micro drive and drive system products. The company has established a "1+1+1" collaborative innovation strategy integrating "drive system + micro motor system + electronic control system," deeply merging the three major systems to achieve drive control within a compact volume. Based on 2024 revenue, the company is the largest integrated micro drive and drive system product provider in China and the fourth largest globally. Its products are applied in four high-growth industries, including:
Smart Vehicles: Products include central control screen actuators, automotive tailgate extension actuators, and hidden door handle actuators.
Consumer and Medical Technology: Products include interpupillary distance (IPD) adjustment modules for VR glasses, driving systems for robotic vacuum cleaners, surgical staplers, and insulin injection pumps.
Advanced Industry and Intelligent Manufacturing: Representative products include the self-branded platform roller motor system, applied in food processing, logistics, and more.
Embodied Robots: Launched a self-developed commercial high-degree-of-freedom "dexterous hand" product, which is among the global leaders in commercialization progress.
As of September 30, 2025, the company holds 405 relevant patents, ranking first in the number of patents in China's integrated micro drive and drive system industry.
Automotive Product Business as the Main Growth Engine, Steady Growth in Gross Margin and Net Profit Margin
During the track record period, the company's total revenue has continued to grow, increasing from RMB 1.15 billion in 2022 to RMB 1.52 billion in 2024, with revenue in the first nine months of 2025 also surpassing the same period last year by 18.7%. The prospectus indicates that the company has selectively entered some overseas markets, including several European and North American countries, successfully integrating into the supply chain systems of multiple global industry leaders, thereby establishing a first-mover advantage and solid foundation for global layout.
Among them, automotive products are the main growth engine, with their revenue share increasing year by year, reaching 58.7% by 2024. Both net profit and adjusted net profit show a growth trend, with gross margin and net profit margin steadily increasing, maintaining levels of approximately 30% and 15%, respectively.
Customer Composition
The company's customers mainly include enterprises from various industry sectors, such as automotive companies, industrial enterprises, consumer electronics companies, medical device companies, and telecommunications companies, engaging in direct sales transactions with customers. In the years 2022, 2023, 2024, and for the nine months ending September 30, 2025, the revenue from the top five customers during each respective year/period accounted for 38.2%, 50.7%, 46.6%, and 44.2% of the total revenue for that year/period, while the revenue from the largest customer during each respective year/period accounted for 13.0%, 16.3%, 17.6%, and 16.6% of the total revenue for that year/period.
Establishing a Manufacturing System, with Production Bases in Shenzhen, Dongguan, and Suzhou
The company stated that they have established a manufacturing system that integrates flexibility, automation, and digital precision control, capable of achieving large-scale delivery of high-precision, high-quality micro drive systems. Their manufacturing capabilities cover the entire value chain from core component production to system integration, constituting one of the important pillars of the company's core competitiveness. To further enhance manufacturing efficiency and product traceability, they have introduced a Manufacturing Execution System (MES) to achieve real-time monitoring of the production process, digital scheduling, and process optimization. In addition, the company has built multiple fully automated production lines, effectively reducing manufacturing volatility, improving product consistency, and optimizing delivery times By September 30, 2025, production bases have been established in Shenzhen, Dongguan, and Suzhou, China.
ZHAOWEI strategically focuses on a range of emerging industries or sub-sectors undergoing intelligent transformation, concentrating on providing industry-customized micro drive and drive system products. These key industries include smart vehicles, consumer and medical technology, advanced manufacturing, and embodied robotics.
Use of Proceeds
The funds raised by the company are intended for the following purposes:
- Approximately 35% will be used for global technology research and development and expanding the product portfolio
- Approximately 30% will be used to expand production capacity and improve production efficiency globally
- Approximately 15% will be used for selectively developing global strategic partnerships, investments, and acquisitions
- Approximately 10% will be used to expand the global service and sales network and increase global marketing efforts; and
- Approximately 10% will be used for working capital and general corporate purposes
Background
Shenzhen ZHAOWEI provides micro drive and drive systems, precision components, and customized molds based on specific customer requirements. Micro drive and drive systems are highly integrated systems offered to customers, typically including: drive systems, and micro motor systems and/or electronic control systems. The group has launched three major platform-based proprietary brand products, namely high-performance servo motor series, drum motors, and dexterous hands. According to data, based on revenue in 2024, the group is the largest integrated micro drive and drive system product provider in China and the fourth largest globally, with market shares of 3.9% and 1.4%, respectively.
As of September 30, 2025, the group holds 405 relevant patents, ranking first in the number of patents in China's integrated micro drive and drive system industry, and has established production bases in Shenzhen, Dongguan, and Suzhou, China. The group primarily provides application scenario-customized integrated micro drive and drive system products for high-growth industries such as smart vehicles, consumer technology, medical technology, advanced industrial manufacturing, and embodied robotics.
The group's revenue mainly comes from providing integrated micro drive and drive system products, with customers primarily including companies from various industry sectors, such as automotive, industrial, consumer electronics, medical device, and telecommunications companies, with the group adopting a direct sales model for transactions with customers