Analysis of the Strategic Significance of UBTECH's Acquisition of Fenglong Shares for Robot Industry Chain Integration

UBTECH (9880.HK) announced on December 24, 2024, its plan to acquire a

in Fenglong Shares (002931.SZ) for a total consideration of , gaining control and consolidating it into its consolidated financial statements [1]. The transaction uses a combination of “agreement transfer + tender offer”:

• First Phase
  : Acquire 29.99% of Fenglong Shares at 17.72 yuan per share, with a consideration of approximately 1.161 billion yuan
• Second Phase
  : Launch a tender offer for 13.02% of shares at the same price, with a consideration of approximately 504 million yuan

After the acquisition is completed, Zhou Jian, the actual controller of UBTECH, will become the new actual controller of Fenglong Shares, and Fenglong Shares will become UBTECH’s first A-share listed subsidiary [2].

As the “first HK-listed humanoid robot stock”, UBTECH focuses on the R&D, design, manufacturing and commercialization of intelligent robots, especially humanoid robots, while Fenglong Shares has

[1]. Their combination forms significant complementary advantages:

| Dimension | UBTECH’s Advantages | Fenglong’s Advantages | Synergy Effect |
|-----------|---------------------|-----------------------|----------------|----------------|
| Business Positioning | Humanoid robot R&D & design | Precision component manufacturing | Integration of design and manufacturing |
| Technical Capability | AI algorithms, motion control | Precision processing, hydraulic technology | Horizontal expansion of technical capabilities |
| Supply Chain | Core robot components | Mature supplier network | Supply chain integration and optimization |
| Production Capacity Scale | Walker S2 monthly capacity over 300 units | Existing production bases | Support for large-scale mass production |

: Through the acquisition of Fenglong Shares, UBTECH gains manufacturing capabilities in garden machinery engines, hydraulic control systems and auto parts, which can be widely applied to core modules of humanoid robots such as joint drives and hydraulic actuators [2].

: Fenglong Shares has mature processes in precision aluminum die-casting and iron parts processing, which can effectively reduce the production cost of UBTECH’s humanoid robots. According to UBTECH’s plan, the production capacity of industrial humanoid robots will increase to by 2026, and Fenglong Shares’ manufacturing capabilities will provide solid support for this goal [1].

This acquisition marks an important strategic layout for UBTECH to extend from

:

• Technology Migration
  : Fenglong Shares’ technical accumulation in new energy vehicles, construction machinery and semiconductor equipment can provide technical support for the application of humanoid robots in industrial scenarios
• Customer Resource Sharing
  : Cross-selling of customer resources between the two parties can expand market coverage
• Production Capacity Synergy
  : UBTECH’s Walker S2 monthly capacity has exceeded 300 units; after the acquisition, rapid capacity ramp-up can be achieved with Fenglong Shares’ existing production capacity

UBTECH’s acquisition of Fenglong Shares is not an isolated case but a microcosm of accelerated capital operations in the embodied robot industry:

Enterprise	Capital Action	Time
Zhiyuan Robot	Acquired control of an A-share listed company	2025
Qiteng Robot	Acquired control of an A-share listed company	2025
Unitree Robotics	Completed listing counseling	November 2025
Yunshenchu	Started listing counseling	December 2025

This trend reflects that

[1].

With breakthroughs in AI technology, humanoid robots are moving from laboratories to commercial mass production. UBTECH’s industry chain integration initiative at this time has a first-mover significance:

• Mass Production Preparation
  : Obtaining ready-made precision manufacturing capabilities through acquisition avoids the time cost of building production lines from scratch
• Cost Advantage
  : Large-scale manufacturing will significantly reduce the cost per robot and promote commercialization
• Technical Closed Loop
  : Achieve full-chain autonomy and controllability from core components to complete machines

After the acquisition news was announced, Fenglong Shares resumed trading with a

(a Chinese stock market term meaning the stock price hit the daily limit at opening), closing at 21.65 yuan with a total market value of approximately 4.7 billion yuan [1]. The market responded positively to this acquisition, reflecting investors’ recognition of the synergy between the two parties.

Fenglong Shares achieved revenue of 373 million yuan in the first three quarters of 2024, a year-on-year increase of 9.47%; net profit attributable to the parent company was 22 million yuan, a year-on-year increase of 1714.99%, indicating that the company has successfully turned around losses [1]. After being incorporated into the UBTECH system, Fenglong Shares is expected to gain greater development space with the growth potential of the humanoid robot track.

UBTECH raised over HK$3.1 billion through a placement in November 2024, and the acquisition funds mainly come from this [1]. After the acquisition is completed:

• Revenue Consolidation
  : Fenglong Shares’ revenue will be incorporated into UBTECH’s financial statements,增厚 (boosting) the listed company’s performance
• Valuation Restructuring
  : Obtaining an A-share listing platform will further open up UBTECH’s capital operation space
• Strategic Synergy
  : The integration of humanoid robot business and precision manufacturing business will produce a 1+1>2 synergy effect

UBTECH’s acquisition of Fenglong Shares has

for robot industry chain integration:

1. Vertical Integration of Industry Chain
   : Realize the extension from robot design and R&D to precision manufacturing capabilities, and build full-chain autonomy and controllability
2. Cost and Scale Advantages
   : Use existing manufacturing capabilities to support the mass production of humanoid robots, reduce unit costs and accelerate the commercialization process
3. Industry Demonstration Effect
   : As the first A-share acquisition case of a leading embodied robot enterprise, it provides a model for industry capital integration

Looking ahead, with the acceleration of the industrialization process of humanoid robots, similar industry chain integration cases may continue to emerge. By seizing the precision manufacturing link through this acquisition, UBTECH is expected to occupy a first-mover advantage in fierce competition and lay a solid foundation for the large-scale development of its humanoid robot business.

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[1] 36Kr - “1.6 Billion Yuan to Take Control of Fenglong Shares: ‘Robot’ Leader UBTECH Sounds the Capital Horn” (https://eu.36kr.com/zh/p/3611053045105925)

[2] Yahoo Finance - “Brief News: UBTECH Acquires 43% Stake in A-share Listed Company Fenglong Electric” (https://hk.finance.yahoo.com/news/簡訊-優必選收購a股上市公司鋒龍電氣43-股權-025904496.html)

[3] OSChina - “‘First Humanoid Robot Stock’ UBTECH Plans to Acquire 43% Stake in Fenglong Shares for 1.665 Billion Yuan” (https://www.oschina.net/news/392064)