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IPO Update | “Provider of integrated micro transmission and drive system products” Zhaowei Machinery & Electronics launches its IPO, scheduled to list on March 9, with a minimum subscription amount of HKD 7,442.31

Futu News reported on February 27 that$ZHAOWEI (02692.HK)$An announcement was made regarding the offering from February 27 to March 4. The company plans to globally offer approximately 26.75 million shares and is expected to be listed on March 9.
Futu News reported on February 27 that$ZHAOWEI (02692.HK)$An announcement was made regarding the offering from February 27 to March 4. The company plans to globally offer approximately 26.75 million shares and is expected to be listed on March 9. Company Overview Zhao Wei Electromechanical is the largest provider of integrated micro transmission and drive system products in China and the fourth largest globally (according to a Frost & Sullivan report), with market shares of 3.9% and 1.4%, respectively. According to the Frost & Sullivan report, the global integrated micro transmission and drive system market is highly fragmented. The company designs and manufactures micro transmission and drive system products as well as complementary components for these systems, primarily selling them to customers located in China, followed by overseas clients. Zhao Wei Electromechanical's products are enabling breakthroughs in precision, efficiency, and control within these industries. In terms of product types, the company offers micro transmission and drive systems, precision components, and custom molds tailored to specific customer needs. Micro transmission and drive systems are highly integrated systems provided to customers, typically including: (1) a transmission system, which is the functional core of every product offered; and (2) micro motor systems and/or (3) electronic control systems, which are additional functional modules required by customers for each product. These three functional systems are combined into one unified system...
Company Overview
Zhao Wei Electromechanical is the largest provider of integrated micro transmission and drive system products in China and the fourth largest globally (according to a Frost & Sullivan report), with market shares of 3.9% and 1.4%, respectively. According to the Frost & Sullivan report, the global integrated micro transmission and drive system market is highly fragmented. The company designs and manufactures micro transmission and drive system products as well as complementary components for these systems, primarily selling them to customers located in China, followed by overseas clients.
Zhao Wei Electromechanical's products are enabling breakthroughs in precision, efficiency, and control within these industries. In terms of product types, the company offers micro transmission and drive systems, precision components, and custom molds tailored to specific customer needs. Micro transmission and drive systems are highly integrated systems provided to customers, typically including: (1) a transmission system, which is the functional core of every product offered; and (2) micro motor systems and/or (3) electronic control systems, which are additional functional modules required by customers for each product. These three functional systems are combined into one unified system that converts and transmits power from the source to the actuator, enabling key functions such as power transmission, control, speed change, and steering.
Financial Overview
In 2022, 2023, and 2024, Zhao Wei Electromechanical’s revenue amounted to RMB 1,152.5 million, RMB 1,205.9 million, and RMB 1,524.6 million, respectively. For the nine months ended September 30, 2025, Zhao Wei Electromechanical’s revenue increased from RMB 1,057.5 million in the same period in 2024 to RMB 1,255.2 million. Additionally, Zhao Wei Electromechanical's net profits for 2022, 2023, 2024, the nine months ended September 30, 2024, and the nine months ended September 30, 2025 were RMB 150.5 million, RMB 179.9 million, RMB 225.4 million, RMB 159.2 million, and RMB 182.1 million, respectively.
Futu News reported on February 27 that$ZHAOWEI (02692.HK)$An announcement was made regarding the offering from February 27 to March 4. The company plans to globally offer approximately 26.75 million shares and is expected to be listed on March 9. Company Overview Zhao Wei Electromechanical is the largest provider of integrated micro transmission and drive system products in China and the fourth largest globally (according to a Frost & Sullivan report), with market shares of 3.9% and 1.4%, respectively. According to the Frost & Sullivan report, the global integrated micro transmission and drive system market is highly fragmented. The company designs and manufactures micro transmission and drive system products as well as complementary components for these systems, primarily selling them to customers located in China, followed by overseas clients. Zhao Wei Electromechanical's products are enabling breakthroughs in precision, efficiency, and control within these industries. In terms of product types, the company offers micro transmission and drive systems, precision components, and custom molds tailored to specific customer needs. Micro transmission and drive systems are highly integrated systems provided to customers, typically including: (1) a transmission system, which is the functional core of every product offered; and (2) micro motor systems and/or (3) electronic control systems, which are additional functional modules required by customers for each product. These three functional systems are combined into one unified system...
Cornerstone Investor
The cornerstone investors have agreed to subscribe for, or cause their designated entities to subscribe for, a total of approximately 579 million RMB (or about 652 million HKD) worth of the relevant number of offered shares at the issue price, subject to certain conditions. Assuming the issue price is 73.68 HKD per H-share (i.e., the indicative maximum issue price stated in this prospectus), the total number of offered shares subscribed by the cornerstone investors will be 8.8429 million shares. The cornerstone investors include: HHLRA, Mirae Asset Securities HK, Perseverance Asset Management, Dacheng International, GF Fund Hong Kong, Oakwise Growth Fund, Jump Trading, and others.
Futu News reported on February 27 that$ZHAOWEI (02692.HK)$An announcement was made regarding the offering from February 27 to March 4. The company plans to globally offer approximately 26.75 million shares and is expected to be listed on March 9. Company Overview Zhao Wei Electromechanical is the largest provider of integrated micro transmission and drive system products in China and the fourth largest globally (according to a Frost & Sullivan report), with market shares of 3.9% and 1.4%, respectively. According to the Frost & Sullivan report, the global integrated micro transmission and drive system market is highly fragmented. The company designs and manufactures micro transmission and drive system products as well as complementary components for these systems, primarily selling them to customers located in China, followed by overseas clients. Zhao Wei Electromechanical's products are enabling breakthroughs in precision, efficiency, and control within these industries. In terms of product types, the company offers micro transmission and drive systems, precision components, and custom molds tailored to specific customer needs. Micro transmission and drive systems are highly integrated systems provided to customers, typically including: (1) a transmission system, which is the functional core of every product offered; and (2) micro motor systems and/or (3) electronic control systems, which are additional functional modules required by customers for each product. These three functional systems are combined into one unified system...
Use of Proceeds
In terms of fundraising purposes, Zhao Wei Electromechanical estimates that the net proceeds from the global offering will be approximately HKD 1.892 billion (assuming the over-allotment option is not exercised, calculated at the maximum offer price of HKD 73.68). According to the prospectus, Zhao Wei Electromechanical intends to use the proceeds from the global offering for the following purposes:
Approximately 35% will be used for global technology research, development, and expansion of the product portfolio; approximately 30% will be allocated to expand production capacity and improve production efficiency worldwide; approximately 15% will be dedicated to pursuing global strategic cooperation, investments, andM&A; approximately 10.0% will be used to expand the global service and sales network and increase global marketing efforts: approximately 10.0% will be reserved for working capital and general corporate purposes.
More reading:Zhaowei Electromechanical Prospectus
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Futu News reported on February 27 that$ZHAOWEI (02692.HK)$An announcement was made regarding the offering from February 27 to March 4. The company plans to globally offer approximately 26.75 million shares and is expected to be listed on March 9. Company Overview Zhao Wei Electromechanical is the largest provider of integrated micro transmission and drive system products in China and the fourth largest globally (according to a Frost & Sullivan report), with market shares of 3.9% and 1.4%, respectively. According to the Frost & Sullivan report, the global integrated micro transmission and drive system market is highly fragmented. The company designs and manufactures micro transmission and drive system products as well as complementary components for these systems, primarily selling them to customers located in China, followed by overseas clients. Zhao Wei Electromechanical's products are enabling breakthroughs in precision, efficiency, and control within these industries. In terms of product types, the company offers micro transmission and drive systems, precision components, and custom molds tailored to specific customer needs. Micro transmission and drive systems are highly integrated systems provided to customers, typically including: (1) a transmission system, which is the functional core of every product offered; and (2) micro motor systems and/or (3) electronic control systems, which are additional functional modules required by customers for each product. These three functional systems are combined into one unified system...
Editor/Joe Liang
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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