UBTech Robotics Corp. Ltd. agreed to acquire a controlling stake in Shenzhen-listed Zhejiang Fenglong Electric Co. Ltd. for 1.665 billion yuan ($237 million), a strategic move to secure a listing platform on the Chinese mainland for the Hong Kong-traded humanoid robot manufacturer.
UBTech announced the deal late Wednesday, saying it would purchase 43% of Fenglong Electric’s shares at 17.72 yuan per share, a 10% discount to Fenglong’s closing price before its trading halt on Dec. 17. Fenglong’s stock jumped by the daily limit to 21.65 yuan when trading resumed on Thursday, valuing the company at 4.73 billion yuan.
Upon completion, Fenglong Electric will become UBTech’s first subsidiary listed on the A-share market. UBTech said the acquisition would bolster its position in the intelligent service robot sector by enhancing product competitiveness, optimising its cost structure and expanding mass production capabilities. Fenglong, established in 2003, manufactures garden machinery, electrical components and automotive parts.
The acquisition will be executed in two stages. UBTech signed a share transfer agreement on Wednesday to initially purchase a 29.99% stake, followed by a tender offer for an additional 13.02%, totalling approximately 94 million shares. Once finalised, UBTech will hold no less than 43% of Fenglong, making it the controlling shareholder. UBTech founder Zhou Jian will become the actual controller, and the board will be restructured with six of the seven directors appointed by the potential parent company.
Fenglong recently returned to profitability after reporting a net loss of 7 million yuan in 2023. The company posted a net profit of 4.6 million yuan for 2024 and 21.5 million yuan for the first nine months of 2025.
UBTech, founded in 2012, listed in Hong Kong in December 2023 and is widely considered the Chinese mainland’s first humanoid robot stock. Its industrial humanoid robot, the Walker S series, has been deployed for training in factories operated by major automakers including FAW-Volkswagen Automotive Co. Ltd., Geely Automobile Holdings Ltd. and Audi FAW NEV Co. Ltd. The company has aggressively raised capital since its IPO, securing over HK$4 billion ($514 million) through placements and other means.
Company insiders told Caixin in November that UBTech had plans to return to the A-share market, though the method was undisclosed at the time. The move mirrors a broader industry trend where competitors also seek entry into the Chinese mainland’s secondary market through acquisitions or IPOs. On July 8, AgiBot announced it would acquire 60% of Swancor Advanced Materials Co. Ltd., a deal that sent Swancor’s stock soaring from 7.7 yuan to a high of 132.1 yuan.
Other players are pursuing direct listings. Unitree Robotics completed its listing counseling on Nov. 15, while Hangzhou-based Deep Robotics initiated its IPO counseling filing on Tuesday and completed a Pre-IPO funding round worth hundreds of millions of yuan on Thursday, led by a national AI industry fund.
This article first appeared in Caixin Global.
