Atonomous Robotics Goes Public in Hong Kong: Navigating Opportunities and Challenges in the Parallel Robot Industry

Atomo Robotics Goes Public in Hong Kong: Breakthroughs and Concerns for the Leading Parallel Robot Manufacturer

In January 2026, Atomo Robotics officially submitted its application for listing on the Hong Kong Stock Exchange, joining the wave of public offerings among industrial robotics companies. Leveraging the specialized technology company listing regulations of Chapter 18C of the Hong Kong Stock Exchange, Atomo aims to solidify its advantages in this niche market and overcome growth bottlenecks through capital support.

As a top player in the domestic parallel robot sector, Atomo has attracted investor attention through its clear product positioning and gradually expanding market share. However, the company faces significant challenges on its path to going public, including ongoing negative cash flows, profitability issues with emerging products, and fierce industry competition.

Core Strengths: Parallel Robots Establish a Solid Foundation with Dual Capacity and Application Deployment

Atomo’s core competitive advantage lies in the parallel robot segment, which distinguishes it from competitors and supports revenue growth. Compared to serial robots, parallel robots utilize a multi-chain closed-loop drive structure, providing higher positioning accuracy and operational efficiency in high-speed sorting and precise handling. These features are particularly suited for industries such as food and beverage, daily chemicals, and pharmaceuticals, which demand high automation efficiency. Atomo has built significant market barriers in this field.

According to data from Frost & Sullivan, which Atomo commissioned, the company surpassed foreign brands starting in 2023 and has ranked first in the domestic market share of parallel robots for two consecutive years. In 2024, Atomo held a 12.3% share of the domestic market, making it the leader, while it ranked second globally with a 4.8% market share, only behind Switzerland’s ABB Group (ASEA Brown Boveri). In terms of China’s shipment volume, Atomo is the second-largest supplier of high-speed industrial robots, following Switzerland’s Stäubli Group, and outpacing international giants like ABB and domestic competitors such as Boken and Yifei Intelligent.

From a technological standpoint, the company has achieved 100% self-research and development of core technologies for parallel robots, establishing a comprehensive technological system that spans from underlying algorithms to core components and complete 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 between capacity deployment and application scenarios further solidifies its industry advantage.

As of September 30, 2025, Atomo has established five production bases in Tianjin, Wuxi, Suzhou, and Xinxiang, each focusing on specialized product lines: the Tianjin base concentrates on parallel robot production; the Suzhou Kunshan base specializes in high-speed SCARA robots; the Wuxi base handles heavy-duty collaborative robots; the Suzhou Wujiang base focuses on solution assembly; and the Xinxiang base supports mechanical processing. Data on production capacity utilization shows that all core manufacturing bases are operating at high levels. For instance, capacity utilization rates for the Tianjin plant were 92.3% and 87.6% in 2024 and the first three quarters of 2025, respectively, while the Suzhou Kunshan plant recorded rates of 86.3% and 80.5%. The newly established Wuxi plant achieved an impressive 89.0% utilization rate in its first three quarters of operation in 2025.

The company’s market coverage and global expansion continue to widen, serving as important contributors to its growth. Its downstream applications have penetrated various high-demand industries such as food and beverage, new energy, 3C (computer, communication, consumer electronics), and automotive sectors, with a low customer concentration. In the first three quarters of 2025, the revenue share of its top five customers was just 18.5%, indicating strong resilience against market fluctuations. The rapid breakthrough in overseas business has also been notable, with revenue from international markets increasing by 251.55% in 2024 and 435.62% in the first three quarters of 2025. This growth raised its share of total revenue from 3.59% in 2023 to 7.85% in the first three quarters of 2025, covering over 30 countries and regions worldwide, including East Asia, Southeast Asia, Europe, and North America.

Financial Overview: Rapid Revenue Growth with Signs of Profitability, but Quality Needs Improvement

According to the financial data disclosed in its submitted documents, Atomo turned a profit in the first three quarters of 2025. The company achieved a 72.21% year-on-year revenue growth, reaching 157 million RMB, with parallel robots contributing 81.74 million RMB, up 84.26%. The gross margin for this segment improved significantly, rising from 28.79% in the same period last year to 31.93%. The robust growth of heavy-duty collaborative robots and high-speed SCARA robots, combined with effective cost control measures, resulted in an adjusted net profit of 3.60 million RMB, compared to a net loss of 26.13 million RMB in the previous year. However, it is essential to note that the stability of this profitability remains uncertain, as several indicators reveal that operational efficiency requires enhancement.

First, emerging products continue to struggle with losses: the high-speed SCARA robots have incurred ongoing losses since their launch in 2024, with a gross loss rate of -83.83% in the first three quarters of 2025. While the heavy-duty collaborative robots have achieved a positive gross margin of 5.80%, their sustainability is yet to be determined. Secondly, although there has been effective expense control, caution is warranted regarding capitalized expenditures. In the first three quarters of 2025, R&D expenses fell by 21.98% year-on-year to 14.43 million RMB, with their share of total revenue decreasing from 20.30% in the previous year to 9.19%, which is atypical for growth companies. This decline may suggest an increase in capitalized R&D expenditures, which could later impact future profitability through amortization. Thirdly, the company’s operating cash flow remains negative. Despite turning a profit in the first three quarters of 2025, its net cash outflow for operating activities still reached 18.66 million RMB, indicating a continued reliance on external funding for operational investments. As a Chapter 18C specialized technology company, Atomo may leverage its technological advantages to overcome profitability thresholds for its public listing, but in the long run, enhancing profitability quality will be crucial to supporting its valuation.

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

The industrial robotics sector is witnessing a surge in domestic replacements and is supported by smart manufacturing policies, leading to an expanding market. However, this growth has also attracted numerous domestic and foreign companies to enter, intensifying the competitive landscape in the high-speed robotics niche where Atomo operates. The dual pressure from both domestic and foreign firms tests Atomo’s capacity to maintain its lead. In terms of the market structure, the global industrial robotics market remains dominated by foreign giants such as Stäubli, ABB, Seiko Epson, and Omron, which leverage their technological expertise, brand strength, and global distribution channels to maintain a leading position in the mid-to-high-end market. Stäubli is the largest supplier of high-speed industrial robots globally, with ABB following closely in second place, presenting significant competition for Atomo.

In the domestic market, besides Atomo, companies such as Boken, Yifei Intelligent (which plans to go public in 2025), Huasheng Control, and Xinshida (002527.SZ) are also active in the industrial robotics field. Notably, Yifei Intelligent also focuses on the parallel robot segment, creating direct competition with Atomo, while firms like Xinshida benefit from a full product line to expand into downstream applications synergistically. Atomo’s strengths lie in its localization and cost control capabilities in the parallel robot market. Compared to foreign brands, its products are often better suited to the needs of domestic small and medium-sized enterprises, offering higher cost-performance ratios and faster local service response times to meet diverse industry requirements.

However, Atomo’s weaknesses are also evident. First, there is a significant gap in brand influence compared to foreign giants, making it challenging to compete with Stäubli and ABB in high-end and mainstream overseas markets. Secondly, its product matrix remains relatively weak; although it has established four major product lines, SCARA robots and heavy-duty collaborative robots have yet to achieve scale, and the newly added line of embodied intelligent robots has not yet generated revenue. In contrast, competitors have often achieved scaled product lines. Thirdly, the scale of R&D investment is notably lower than that of foreign giants, hindering continued breakthroughs in core technologies and the iteration of high-end products. Furthermore, increasing homogenization of industry competition and risks associated with technological iteration further complicate Atomo’s ability to break through.

In the niche markets of parallel and SCARA robots, the technological barriers are relatively manageable. As more companies enter, competition in the mid-to-low-end market is intensifying, potentially leading to price wars that could compress industry gross margins. Simultaneously, the acceleration of industrial robotics towards intelligent, flexible, and miniaturized iterations demands greater R&D capabilities from companies. If Atomo fails to continuously increase its R&D investments and keep pace with technological iterations, it risks gradually losing its current competitive edge.

Listing Aspirations and Future Outlook: Funding to Address Shortcomings Amid Growth Uncertainty

Atomo’s decision to pursue an IPO at this time likely stems from a desire to leverage capital to address shortcomings in production capacity, research and development, and global expansion while overcoming profitability challenges and solidifying its industry position. According to the prospectus, the funds raised will primarily be directed towards four key areas: R&D investment, multi-functional headquarters construction and capacity enhancement, overseas business and brand expansion, and supplementing working capital for general purposes. The intended use of funds directly addresses the company’s current development pain points: enhancing capacity can relieve pressure on core facilities and support continued revenue growth; increased R&D investment can accelerate new product iterations and break through high-end technical bottlenecks; overseas expansion can boost brand influence and market share; and supplementing working capital can improve cash flow and mitigate operational risks.

In the short term, Atomo has a clear growth narrative: its market share in parallel robots continues to rise, capacity utilization remains high, and revenue is expected to grow rapidly. Heavy-duty collaborative robots and SCARA robots are already contributing to revenue and may become a second growth curve. The overseas business is growing at a remarkable pace, and with increased capital investment, global expansion is likely to accelerate. As the leading domestic parallel robot manufacturer, Atomo stands to benefit from the trend of domestic replacements, coupled with the supportive measures of the 18C chapter for specialized technology companies in Hong Kong. If the IPO is successfully completed and capital support is secured, the company should be able to alleviate cash flow pressures.

However, in the long term, there are multiple uncertainties surrounding the company’s growth. First, the stability of profitability remains to be validated; while Atomo turned a profit in the first three quarters of 2025, issues such as losses from emerging products and high expenses have not been fully resolved. If revenue growth slows, the company may face losses again. Second, the intensifying competition in the industry from foreign giants and domestic counterparts may shrink the company’s profit margins and hinder breakthroughs in high-end markets. Third, there are risks associated with R&D and product iteration; the rapid pace of technological updates in industrial robotics means that insufficient R&D investment or misjudgments in technical direction could result in a loss of core competitiveness. Lastly, challenges in global expansion, including trade barriers and insufficient brand recognition in overseas markets, may hinder the anticipated progress.