Atonmo’s Hong Kong IPO: Breakthrough and Challenges for China’s Leading Parallel Robot Manufacturer

Atongmu Goes Public in Hong Kong: Breakthroughs and Concerns for a Leading Parallel Robot Manufacturer

In January 2026, Atongmu Robotics officially submitted its listing application to the Hong Kong Stock Exchange, joining the rising trend of industrial robot companies going public. Utilizing the special technology company listing rules under Chapter 18C of the Hong Kong Stock Exchange, Atongmu aims to leverage capital to strengthen its competitive advantage in niche markets and overcome growth bottlenecks. As a leading player in the domestic parallel robot sector, Atongmu has attracted investor interest due to its clear product positioning and gradually expanding market share. However, challenges such as ongoing negative cash flow, profitability issues with emerging products, and intense industry competition pose significant tests for its listing journey and long-term development.

Core Competitive Advantages: Strengthening the Foundation with Parallel Robots and Capacity Deployment

Atongmu’s core competitiveness lies in the parallel robot segment, which distinguishes it from its peers and serves as a pillar for revenue growth. Compared to serial robots, parallel robots, with their multi-chain closed-loop drive structure, offer higher positioning accuracy and operational efficiency in high-speed sorting and precise handling scenarios. They are well-suited for industries that demand high automation efficiency, such as food and beverage, daily chemicals, and pharmaceuticals, where Atongmu has established significant market barriers.

According to data from Frost & Sullivan, Atongmu surpassed foreign brands in 2023, securing the top position in the domestic parallel robot market share for two consecutive years. By 2024, it achieved a 12.3% share in the domestic market, ranking first, while capturing 4.8% of the global market, placing it second only to Switzerland’s ABB Group (ASEA Brown Boveri). In terms of shipment volumes in China, Atongmu ranks second in high-speed industrial robot shipments, trailing only Switzerland’s Stäubli Group and outpacing international giants like ABB and domestic counterparts such as Borkent and Yifei Intelligent.

On the technology front, the company has achieved 100% self-research and development of its core parallel robot technology, establishing a comprehensive technological system that spans from foundational algorithms to core components and entire machine integration. Its self-developed motion control platform and high-precision algorithms can achieve micron-level repeatability and over 99.9% grasping success rates, outperforming industry averages. The synergy of capacity deployment and scenario implementation further solidifies its industry advantage.

As of September 30, 2025, Atongmu has established five production bases in Tianjin, Wuxi, Suzhou, and Xinxiang, enabling specialized production across different product lines. The Tianjin base focuses on parallel robot production, the Suzhou Kunshan base specializes in high-speed SCARA robots, Wuxi handles heavy collaborative robots, Suzhou Wujiang focuses on solution assembly, and Xinxiang is responsible for mechanical processing support. Capacity utilization rates remain high across core production bases, with the Tianjin factory recording utilization rates of 92.3% and 87.6% for 2024 and the first three quarters of 2025, respectively. The Suzhou Kunshan factory maintained rates of 86.3% and 80.5%, while the newly operational Wuxi factory achieved a utilization rate of 89.0% in its first three quarters of 2025.

The company’s downstream coverage continues to expand globally, becoming an important supplement to its growth. Atongmu has penetrated several thriving sectors, including food and beverage, new energy, 3C, and automotive industries, with a low customer concentration. In the first three quarters of 2025, its top five customers accounted for only 18.5% of revenue, indicating strong resilience against risks. The rapid expansion of overseas business is noteworthy, with revenue growth rates of 251.55% and 435.62% in 2024 and the first three quarters of 2025, respectively. The proportion of overseas revenue increased from 3.59% in 2023 to 7.85% in the first three quarters of 2025, with operations spanning over 30 countries and regions, including East Asia, Southeast Asia, Europe, and the Americas.

Financial Overview: High Revenue Growth and Signs of Profitability Amid Quality Concerns

Based on the financial data disclosed in its filing, Atongmu reported a turnaround to profitability in the first three quarters of 2025, with revenue rising by 72.21% year-on-year to 157 million yuan (RMB). The primary revenue source, parallel robots, contributed 81.74 million yuan, marking an 84.26% increase. The gross margin for this segment also improved significantly, rising from 28.79% in the same period last year to 31.93%. This indicates the potential for economies of scale, alongside strong growth in heavy collaborative and high-speed SCARA robots, coupled with effective control over operating expenses. Adjusted net profit for the period reached 3.602 million yuan, a substantial improvement from a net loss of 26.126 million yuan in the previous year.

However, caution is warranted regarding the stability of its profitability, as multiple indicators suggest that operational efficiency needs enhancement. First, emerging products remain in a loss-making position: the high-speed SCARA robot has sustained losses since its launch in 2024, with a gross loss margin of -83.83% in the first three quarters of 2025. While the heavy collaborative robot has achieved a positive gross margin of 5.80%, its sustainability is still uncertain. Second, while cost control measures have been effective, there is a risk of capitalizing expenses: in the first three quarters of 2025, research and development expenses fell by 21.98% year-on-year to 14.432 million yuan, decreasing from 20.30% to 9.19% of total revenue compared to the same period last year. This is unusual for a growing company, leading to speculation that an increase in capitalized R&D expenditures may be a significant factor, which could subsequently impact future profitability through amortization. Third, operational cash flow remains negative; despite achieving profitability in the first three quarters of 2025, net cash outflows for operating activities amounted to 18.664 million yuan, indicating a reliance on external funding for operational investments. As a special technology company under Chapter 18C, Atongmu can leverage its technological advantages to break through profitability barriers for its listing. However, long-term improvements in profit quality will be crucial to support its valuation.

Industry Competition: Leading in a Niche Market but Facing Increased Challenges

The industrial robot industry is experiencing a surge in domestic alternatives, coupled with supportive smart manufacturing policies, leading to expanding market opportunities. However, this also attracts numerous domestic and international companies to enter the field, intensifying competition in the high-speed robot niche that Atongmu occupies. The competitive landscape is increasingly challenging, with pressures from both domestic and foreign entities testing its ability to maintain its leading position.

In terms of industry dynamics, the global industrial robot market remains dominated by foreign giants. Companies like Stäubli, ABB, Seiko Epson, and Omron leverage their technological expertise, brand strength, and global distribution channels to secure a leading position in the mid-to-high-end market. Stäubli is the world’s largest supplier of high-speed industrial robots, followed by ABB, which ranks second globally and third in China. Both companies possess significant advantages in core technology, product reliability, and major customer resources, positioning them as Atongmu’s primary competitors in the global market.

In the domestic market, besides Atongmu, companies such as Borkent, Yifei Intelligent (which is set to go public in 2025), Huasheng Control, and New Times (002527.SZ) are also active in the industrial robot sector. Yifei Intelligent is focusing on the parallel robot segment, creating direct competition with Atongmu, while companies like New Times benefit from a full product line layout, offering synergistic advantages in downstream scenario expansion. Atongmu’s core advantage lies in its localized adaptation and cost control of parallel robots. Compared to foreign brands, its products may better meet the needs of domestic small and medium-sized enterprises, offering higher cost performance and faster localized service responses to adapt quickly to the diverse requirements of various industries.

Nevertheless, its shortcomings are apparent: first, there is a significant gap in brand influence compared to foreign giants, making it difficult to compete with Stäubli and ABB in high-end markets and mainstream overseas markets. Second, its product matrix remains weak; although it has established four major product series, the SCARA and heavy collaborative robots have not yet reached scale, and its newly added product line for embodied intelligent robots has yet to generate revenue, while competitors have already achieved scaled-up offerings across their product lines. Third, there is a notable difference in the scale of R&D investments compared to foreign giants, which may hinder its ability to support continuous breakthroughs in core technologies and the iteration of high-end products. Additionally, the intensifying homogenization of competition within the industry and the risks associated with technological iteration further complicate the challenges ahead.

As technology thresholds in niche segments like parallel and SCARA robots are relatively manageable, increasing competition in the mid-to-low-end market may lead to price wars, squeezing industry profit margins. Furthermore, the accelerated evolution of industrial robots towards greater intelligence, flexibility, and compactness, alongside the integration of new technologies like embodied intelligence and AI vision, places higher demands on companies’ R&D capabilities. If Atongmu fails to maintain adequate R&D investments and keep pace with technological advancements, it risks gradually losing its existing competitive edge.

Listing Aspirations and Future Outlook: Fundraising to Address Shortcomings Amid Uncertainties

Atongmu’s decision to pursue a public listing at this time may reflect its desire to leverage capital to address gaps in capacity, R&D, and global expansion, as well as to resolve profitability challenges and strengthen its industry position. The prospectus indicates that the funds raised will primarily be allocated to four key areas: R&D investment, multifunctional headquarters development and capacity enhancement, overseas business and brand expansion, and operational capital supplementation for general purposes. Each of these funding uses aligns precisely with the company’s current development pain points: capacity enhancements can alleviate pressure on core production bases, supporting sustained revenue growth; R&D investments can accelerate new product iterations and overcome high-end technological bottlenecks; international expansion can enhance brand influence and increase market share; and operational capital supplementation can improve cash flow and reduce operational risks.

In the short term, Atongmu demonstrates a clear growth trajectory: its market share in parallel robots is steadily increasing, capacity utilization remains high, and revenue is expected to continue growing at a rapid pace. Heavy collaborative robots and SCARA robots are already contributing to revenue, potentially forming a second growth curve, while overseas business is expanding rapidly. With increased funding from the listing, the pace of global expansion is likely to accelerate further. As the domestic leader in parallel robots, Atongmu stands to benefit from the trend of domestic substitutes, and with support from the Hong Kong Stock Exchange’s Chapter 18C for specialized technology firms, successful completion of the listing could alleviate cash flow pressures.

However, in the long term, the company faces multiple uncertainties. First, the stability of profitability remains to be validated; although it achieved profitability in the first three quarters of 2025, issues such as losses from emerging products and high expenses have yet to be fully resolved, raising the risk of falling back into losses if revenue growth slows. Second, ongoing intensification of industry competition, including pressure from foreign giants and homogenized domestic competitors, may compress profitability and hinder breakthroughs in high-end markets. Third, risks related to R&D and product iteration persist; with rapid technological updates in industrial robotics, insufficient R&D investment or misjudgment in technological direction could lead to a loss of core competitiveness. Fourth, challenges in global expansion may arise due to trade barriers and insufficient brand recognition in overseas markets, potentially hindering progress.