Chinese humanoid robot manufacturer UBTech Robotics is moving to secure key production capacity, agreeing to acquire Zhejiang Fenglong, a Shenzhen-listed mechanical components manufacturer, for nearly 1.7 billion RMB (approximately $237 million) in cash. The acquisition aims to expand UBTech's production scale for humanoid robots.
According to documents submitted to the Hong Kong Stock Exchange (HKEX) on Wednesday, the two-phase transaction will first see UBTech acquire 29.99% of Fenglong's shares from existing shareholders for 1.16 billion RMB. This will be followed by a voluntary partial offer to purchase the remaining 13.02% stake for approximately 504 million RMB.
The acquisition price for Fenglong's shares is set at 17.72 RMB per share, representing a 10% discount to the company's closing price of 19.68 RMB per share before its trading suspension on December 17.
Upon completion of the first phase, UBTech Robotics will gain the right to nominate six out of seven directors on Fenglong's board. Once both phases are finalized, the Hong Kong-listed robotics firm is expected to hold at least 43% of the company's shares.
Fenglong primarily manufactures garden tool engines, automotive components, and mechanical pressure control systems. Its shares resumed trading on Thursday, opening at the 10% daily limit at 21.65 RMB per share.
UBTech Robotics was listed on the HKEX in December 2023. In half-day trading on Wednesday, its shares closed at 109.5 HKD, giving the company a market capitalization of 47.38 billion HKD.
UBTech stated that the acquisition is intended to leverage Fenglong's manufacturing expertise and supply chain to accelerate the research and development of its humanoid robots. Additionally, the deal will grant UBTech its first A-share listed subsidiary.
This move comes amid a growing trend among Chinese robotics companies to deepen their industrial capabilities and secure access to domestic capital markets through acquisitions of mainland-listed firms.
Unitree Robotics completed its pre-IPO counseling process last month and is expected to submit a domestic listing application soon.
Meanwhile, AgiBot, backed by Tencent Holdings, acquired a controlling stake in Swancor Advanced Materials, a Shanghai-listed company, earlier this year. Reports suggest AgiBot is preparing for a Hong Kong IPO in 2026.
Sevnce Robotics, a Chongqing-based firm specializing in emergency and safety robots, also plans to acquire at least 44.84% of the shares of Senton Energy, a Shenzhen-listed LNG logistics provider, according to recent exchange filings.
