(Yicai) July 30 -- Haoneng Technology, a Chinese auto parts supplier expanding into robotics, plans to invest CNY1 billion (USD148 million) to build a factory producing key components for humanoid robots, sending its shares higher despite a broader market selloff.

Haoneng [SHA: 603809] rose as much as 3.9 percent intraday before closing up 2 percent at CNY9.09 (USD1.30) today, while the benchmark Shanghai Composite Index fell 0.6 percent as technology stocks extended their decline.

The Chengdu-based company announced yesterday that it will build the project in Luzhou, Sichuan province, with planned annual production capacity of five million robotic joint reducers. It said the investment is intended to capture new growth opportunities arising from the rapid development of the robotics sector. Haoneng did not disclose a construction timetable, saying only that the project will have a relatively long construction period.

A reducer is one of the core components in a robot's joints, enabling precise movement and reliable repeat positioning. It directly affects a robot's load capacity, motion accuracy, and service life. The component accounts for a relatively large share of a robot's manufacturing cost and is technically challenging to produce.

Haoneng's core business is manufacturing automotive transmission components. In September 2024, the company announced plans to invest CNY1 billion in Chongqing to build a factory producing components for new energy vehicles and robots, including robotic reducers. At the time, it said high-precision robotic reducers had become part of its long-term development strategy.

The company also said yesterday that its robotic joint reducer business remains at an early stage of development and has not yet had a material impact on its operating performance.

Editor: Emmi Laine