"China's micro-drive leader" Motic Electric (2692.HK) debuts on the Hong Kong stock exchange! Futu acts as underwriter to support the company’s IPO

On March 9, Shenzhen Mega Watt Electromechanical Co., Ltd. (referred to as "Mega Watt", stock code: $ZHAOWEI (02692.HK)$ ), the largest provider of integrated miniature transmission and drive system products in China and the fourth largest globally, officially listed on the Main Board of the Hong Kong Stock Exchange, marking the company’s entry into a new development phase driven by dual 'A+H' capital platforms.

In this global offering, Futu Securities International (Hong Kong) Co., Ltd. served as joint bookrunners and co-lead managers, fully leveraging its technological trading platform advantages to help introduce diverse investors and lay a solid foundation for subsequent market liquidity.

According to the prospectus, this IPO attracted up to 21 cornerstone investors, with participation from top-tier global investment institutions and Chinese asset management firms. Notable international institutions such as HHLR Advisors under Hillhouse Capital, Mirae Asset Securities, Gaoyi Asset Management, Jump Trading, Factorial Master Fund, and Chinese asset managers including Dacheng International, GF Fund Management Hong Kong, and Minsheng International, actively participated in the subscription. Calculating at the upper limit of the offer price of HKD 73.68, the cornerstone investors collectively subscribed for approximately 8.8429 million shares, accounting for over 33% of the total global offering.

The Frost & Sullivan report shows that, based on 2024 revenue, Microdrive Electromechanical holds a leading position in China's integrated micro transmission and drive system industry with a 3.9% market share and ranks fourth globally with a 1.4% market share. The company has established significant advantages in high-growth sectors such as smart vehicles, consumer technology, medical technology, and embodied robotics. With more than two decades of industry experience, the company has built a "1+1+1" collaborative innovation strategy consisting of "transmission systems + micro motor systems + electronic control systems." As of September 30, 2025, it owns a cumulative total of 405 related patents, ranking first among peers in China.

Financial data reveals continuous steady growth in the company’s performance. From 2022 to 2024, revenues reached RMB 1.152 billion, RMB 1.206 billion, and RMB 1.525 billion respectively; net profits were RMB 150 million, RMB 180 million, and RMB 225 million, showing a steady increase in profitability. In the first three quarters of 2025, the company achieved revenue of RMB 1.255 billion and net profit of RMB 182 million, with adjusted net profit reaching RMB 193 million.

In terms of industry prospects, China’s integrated micro transmission and drive system market size is expected to grow from RMB 38.4 billion in 2025 to RMB 72.6 billion by 2029, with a compound annual growth rate (CAGR) of 17.3%. Globally, the market size is projected to expand from RMB 124.3 billion to RMB 204.9 billion during the same period, reflecting a CAGR of 13.3%. The downstream sectors where the company focuses — smart vehicles, medical technology, advanced industrial manufacturing, and embodied robotics — are all in rapid development phases. Notably, the global embodied robotics market is anticipated to grow at a remarkable CAGR of 77.0% over the same timeframe.

Regarding the use of proceeds, Microdrive Electromechanical plans to strategically allocate the net proceeds from this IPO as follows:

– 35%: For global research and development and product portfolio expansion;

– 30%: For global capacity expansion and production efficiency enhancement;

– 15%: For global strategic partnerships, investments, and mergers and acquisitions;

– 10%: For expanding global services, sales networks, and intensifying global marketing efforts;

– 10%: For working capital and general corporate purposes.

As a leading digital financial technology company, Futu, with an investor ecosystem of over 28 million and a comprehensive enterprise service system, is able to provide companies with end-to-end services throughout the pre-, mid-, and post-IPO process. These include a one-stop ESOP option management solution, Hong Kong and US IPO distribution, investor relations (IR) and public relations (PR), financial public relations services, international placement, secondary trading services, and other core offerings.

As of Q3 2025, six out of the top ten Hong Kong IPOs by fundraising amount were in collaboration with Futu. Nearly half of the Hong Kong listings in Q3 involved cooperation with Futu. On the Futubull platform during Q3, a total of 12 new stocks had subscription amounts exceeding HKD 100 billion. Futu's capabilities in US IPOs have drawn attention, with all US subscribing clients successfully allocated shares in several popular new stocks like Bullish, Figure, and Gemini.

As of Q3 2025, Futu's corporate service clientele reached 1,112 companies, providing IPO distribution and IR services to 561 enterprises. It has successfully assisted 358 companies such as Meituan, Kuaishou, Xiaomi, Baidu, KE Holdings, JD Health, and Bilibili in going public in Hong Kong and the US. A total of 804 ESOP clients have signed up cumulatively, and 1,300 listed companies are now hosted on the Futu platform.

In the future, Futu will fully leverage its resources and market influence to provide more professional and efficient services to a wider range of clients!

*Securities-related businesses such as IPO distribution are provided by licensed subsidiaries under Futu.

*Data source: Market value calculated based on the first day of listing.

*Data source: Futu's Q3 2025 earnings report.

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