[IPO Tracker] Lai Fu Harmonic (03952.HK) Opens Subscription Today, Aims to Raise Over HK$1 Billion Net, Backed by 10 Cornerstone Investors

In recent years, the humanoid robotics industry chain has continued to heat up, and the core precision components segment is now entering an accelerated phase of capitalization.

On June 22, Lai Fu Harmonic, China’s leading harmonic reducer manufacturer for robots,$LAIFUAL (03952.HK)$officially launched its H-share subscription, seeking a listing under Chapter 18C of the Hong Kong Stock Exchange as a specialized technology company, poised to become the first harmonic reducer maker listed on the Hong Kong exchange.

The company plans to globally offer 13.4419 million H-shares,of which approximately 5% (672,100 shares) are allocated to the Hong Kong public offering and approximately 95% (12.7698 million shares) to the international offering. These allocations may be reallocated based on subscription demand, with an over-allotment option of up to 15%.

The indicative offer price range is HK$77.00 to HK$85.50 per share, implying an expected market capitalization of HK$7.962 billion to HK$8.841 billion. The board lot size is 100 shares, with an estimated minimum application fee of approximately HK$8,636.22. China Merchants Bank International serves as the sole sponsor. The subscription period runs from June 22 to June 25, with listing on the Stock Exchange of Hong Kong expected on June 30.

Assuming the mid-point offer price of HK$81.25 per share and that the over-allotment option is not exercised,the net proceeds from this global offering are expected to amount to approximately HK$1.003 billion.

The proceeds will be allocated as follows: approximately 55.0% will be used over the next three years for expanding production facilities, including procurement of related equipment and hiring of production staff; approximately 20.0% will be used to enhance R&D capabilities, broaden product application scenarios, and iterate core harmonic reducer technologies; approximately 5.0% will be used to expand overseas sales networks and advance global expansion; approximately 10.0% will be allocated to strategic investments and acquisitions along the industrial chain to enhance comprehensive competitiveness; and the remaining 10.0% will be used for working capital and general corporate purposes to bolster cash flow.

This offering has attracted 10 cornerstone investors, including global asset managers, industrial capital, and leading public fund managers such as Oaktree, Ming Shan Capital, Harvest International, CDH Global, and E Fund, providing strong market confidence for the offering. Based on the midpoint of the offering price range at HK$81.25,the cornerstone investors have committed to subscribe for approximately RMB 375 million(RMB, hereinafter the same)., equivalent to approximately 5.3036 million shares,representing approximately 39.44% of the total number of shares offered (assuming the over-allotment option is not exercised).

On the business front, Lai Fu Harmonic was founded in 2013 and is a core domestic manufacturer specializing in precision transmission solutions. Its product portfolio spans four categories: harmonic drives, joint modules, robotic arms, and automation workstations, primarily serving two high-growth segments—industrial robots and humanoid robots.

According to data from CIC Consulting, based on 2025 shipment volume, Lai Fu Harmonic ranks second in China’s robot harmonic drive market with a market share of 21.4%; it also ranks second by revenue, with a market share of 12.9%. Critically, the company is one of only two domestic firms that have achieved mass production and delivery of harmonic drives for humanoid robots, securing a strategic position in a core segment of the humanoid robot supply chain. Technologically, its harmonic drives achieve positioning accuracy of ±15 arcseconds and a service life exceeding 10,000 hours, placing them among the industry leaders, with differentiated advantages in niche applications such as high-speed joints and medical robots.

Financially, Lai Fu Harmonic exhibits the classic profile of a high-growth hard-tech company: rapid revenue expansion but still unprofitable.

From 2023 to 2025, the company’s revenue amounted to RMB 95 million, RMB 108 million, and RMB 261 million, respectively, demonstrating robust growth momentum. However, losses have persisted, totaling RMB 169 million, RMB 169 million, and RMB 171 million over the same period, with cumulative losses exceeding RMB 5 billion, primarily driven by intensive R&D investment, depreciation from capacity expansion, and mark-to-market adjustments of convertible liabilities.

Notably, the company’s core product—harmonic drives—has experienced rising volumes but falling average selling prices, with sales doubling over three years while prices declined significantly, reflecting intensifying price competition in the industry. In contrast, higher-end new products like joint modules have seen simultaneous growth in both volume and price, emerging as a second growth curve. On the cash flow front, the company continues to report negative operating cash flows, and its accounts receivable turnover days exceed 200, indicating some liquidity pressure.

Overall, harmonic drives—as critical 'joints' in robots—are poised to benefit long-term from the anticipated boom in the humanoid robot industry, offering substantial growth potential. However, investors should remain vigilant about multiple risks: the company has yet to achieve profitability and relies on external financing for working capital; industry-wide price wars are escalating, which could continue to compress margins through further price declines in core products; and any delays in technological iteration or slower-than-expected commercialization of humanoid robots could disrupt the company’s growth trajectory.

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