In the first half of this year, A+H listed Shenzhen Zhaowei Machinery & Electronics Co., Ltd. (003021.SZ) found itself in a predicament of rising revenue without corresponding profit growth. While revenue growth slowed markedly from the same period last year, net profit attributable to shareholders fell 34.1% year-on-year, and non-GAAP net profit plunged 43.97%. The profit pressure stems from rising expenses and shrinking gross margins, with the company's core product margins all coming under pressure. Meanwhile, its accounts receivable balance has already surpassed the full-year level for 2025, hinting at underlying collection risks.

Data shows that the growth momentum of Zhaowei's main business has weakened, while the much-anticipated second growth engine — the dexterous hand for humanoid robots — has yet to make a substantial contribution. The gap between market expectations and fundamentals is directly reflected in the stock price, with both A-share and H-share listings under pressure. As of August 21, the A-share price hit a yearly low during intraday trading, down approximately 45% year-to-date, while the H-shares, listed in March this year, have fallen around 39% since listing.

First-Half Revenue Up but Profit Down; Receivables Exceed Full-Year 2025 Level

According to public information, Zhaowei specializes in the R&D, production, and sales of micro transmission and drive systems, offering one-stop micro drive system solutions to a wide range of customers. Its products are widely applied in terminal products across four high-growth sectors: smart vehicles, consumer and medical technology, advanced industry and intelligent manufacturing, and robotics.

In the first half of this year, Zhaowei achieved revenue of RMB 816 million, up 3.8% year-on-year, maintaining a modest growth on the revenue side, compared to a growth rate of 21.93% in the same period of 2025. Net profit attributable to shareholders reached RMB 74.6457 million, down 34.1% year-on-year; non-GAAP net profit was RMB 54.1839 million, a sharp decline of 43.97%, presenting a clear case of increased revenue without increased profit.

The performance pressure stems from multiple factors. First, rising expenses eroded profits. In the first half, Zhaowei's financial expenses stood at RMB 12.5969 million, which the company attributes to the depreciation of the US dollar. In contrast, the financial expenses for the same period in 2025 were negative RMB 17.4822 million — a swing of about RMB 30 million, equivalent to roughly 40% of this period's net profit attributable to shareholders. Notably, overseas revenue accounts for only 12.57% of total revenue, meaning the overseas business scale is not particularly large, yet exchange rate fluctuations have still dealt a blow to profits.

Additionally, the growth rate of administrative expenses was more than four times that of revenue, increasing 15.04% year-on-year to RMB 54.0921 million. This rise was mainly driven by consulting and professional service fees, which surged from RMB 2.7475 million in the same period of 2025 to RMB 8.0484 million. On the R&D front, Zhaowei's R&D expenses rose 5.21% year-on-year to RMB 85.6455 million.

On the other hand, declining gross margins further compressed profit space. In the first half, Zhaowei's overall gross margin was 30.76%, down 1.21 percentage points year-on-year. Breaking it down by product, core product margins all weakened: the micro transmission system gross margin fell to 25.4%, down 2.21 percentage points; precision parts gross margin declined to 41.38%, down 2.41 percentage points. Both major products were dragged down by the declining prosperity of the downstream automotive industry. As a core downstream sector, the ongoing price war among automakers has been transferring cost pressures upstream to parts suppliers, directly squeezing Zhaowei's product pricing power and profit margins.

There are also hidden concerns on the operating asset side. In the first half, Zhaowei's accounts receivable reached RMB 524 million, up 4.74% year-on-year, accounting for approximately 64% of revenue during the period. Looking at historical data, from 2022 to 2025, accounts receivable climbed from RMB 369 million to RMB 520 million, and the first-half receivables alone have already surpassed the full-year 2025 level.

Main Business Growth Lacks Momentum; Dexterous Hand Cannot Quench Immediate Thirst

The growth momentum of Zhaowei's main business has clearly shown signs of fatigue. In the first half, the micro transmission system generated revenue of RMB 506 million, a slight year-on-year increase of 1.69%, accounting for 61.97% of total revenue. However, this product's growth rate has fallen significantly compared to previous periods — in the first half of 2024 and 2025, its revenue growth was 24.17% and 20.51%, respectively.

Meanwhile, precision parts achieved revenue of RMB 276 million, up 15.45% year-on-year, representing 33.85% of total revenue. Its growth rate also decelerated further from 34.33% in the first half of 2024 and 16.25% in the first half of 2025. Additionally, precision molds and other products faced pressure, with revenue declining 31.31% year-on-year to RMB 34.0962 million, shrinking to 4.18% of total revenue.

While the main business is under pressure, Zhaowei's second growth engine has yet to take shape. Among its various business layouts, the dexterous hand for humanoid robots is undoubtedly the most watched focus by the capital market. In terms of product positioning, Zhaowei covers both fully actuated and underactuated technical routes, building a multi-tier product matrix with A17, B21, B06, and C06 series. In its 2025 annual report, the company even regarded the dexterous hand as its second growth engine.

Resource investment has also been ramping up. In March this year, the company completed its H-share listing, with approximately HKD 160 million earmarked for dexterous hand product development, accounting for 8.4% of total fundraising. In April, it proposed to participate in the bidding for state-owned land use rights in Bao'an District, Shenzhen, and invest in the construction of a dexterous hand and micro drive system industrial park project, with a total investment of approximately RMB 800 million.

2026 is widely recognized by the industry as the year for mass production realization and scenario implementation of humanoid robots. Zhaowei mentioned in its semi-annual report that the commercialization process of its dexterous hand and core drive module products is steadily advancing, forming a relatively strong market competitiveness in related niche segments. However, the commercialization of the dexterous hand remains at an early stage, and the company did not disclose specific operating data in the semi-annual report. Looking back at 2025 operations, the embodied robotics segment generated annual revenue of RMB 24 million, a significant year-on-year increase of 297%, but accounting for only about 1% of total revenue. It is worth noting that this segment includes not only dexterous hand products but also robot core components such as planetary gearboxes and right-angle motor gearboxes.

On the secondary market, Zhaowei's stock price has been on a downward trend this year. On January 19, the A-share price peaked at RMB 136.7 per share, a yearly high, before pulling back amid fluctuations. During intraday trading on August 21, the stock fell to RMB 66.17 per share, a yearly low, down approximately 45% from the beginning of the year. The H-share market performance has also been disappointing, with the stock weakening after a brief surge following its listing on March 9, falling approximately 39% from its listing price to date.