Atonomu Robotics Pursues IPO on Hong Kong Stock Exchange Amidst Fierce Competition in Diverse Markets

Tianjin Atom Robot Co., Ltd. has officially submitted its IPO (Initial Public Offering) application to the Hong Kong Stock Exchange on January 28, 2026, with Huatai International serving as its exclusive sponsor. The prospectus indicates that the company plans to use the raised funds for ongoing research and development, the construction of a multifunctional headquarters, capacity enhancement, overseas business expansion, brand development, as well as for general corporate purposes.

As a leading enterprise in China’s parallel robot market, Atom Robot has experienced rapid revenue growth and has turned a profit in the first three quarters of 2025. However, it is noteworthy that during this period, the company’s operational cash flow has consistently been negative, accounts receivable have surged, and the fierce competition faced in diversifying its product categories presents significant risks highlighted in its prospectus.

Atom Robot specializes in high-speed robotics, offering a product matrix that includes parallel robots, high-speed SCARA (Selective Compliance Assembly Robot Arm) robots, heavy-duty collaborative robots, and embodied intelligent robots. The company focuses on automation and intelligent needs in core application scenarios such as high-speed sorting, precision assembly, and accurate handling, serving a broad range of downstream industries including food and beverage, daily chemicals, pharmaceuticals, new energy, 3C electronics, and automotive.

According to a Frost & Sullivan report cited in the prospectus, Atom Robot has ranked first in the domestic market share of self-owned brands in the parallel robot sector for five consecutive years since 2020. Since 2023, it has surpassed foreign brands and has maintained the top position in overall market share in China for two consecutive years. In terms of shipment volume of robot bodies in 2024, Atom Robot ranks first among all parallel robot companies in China, with a market share of approximately 12.3%, and ranks second globally, with a market share of about 4.8%. However, there remains a notable gap between Atom Robot and the leading company in the global market, referred to as “Company B,” which holds a market share of 15.2%.

Despite its leading position in parallel robots, the overall scale of this niche market is relatively limited. The prospectus cites a Frost & Sullivan report estimating that the global parallel robot market will reach 7.8 billion yuan by 2029, with the Chinese market accounting for around 1.9 billion yuan. Due to the constraints of a single market segment, Atom Robot has recently sought to diversify its business by expanding into the high-speed SCARA and heavy-duty collaborative robot sectors, aiming to create growth opportunities through cross-category expansion. However, the competitive landscape in the SCARA and collaborative robot markets is drastically different from that of parallel robots. The SCARA robot market is highly competitive, with domestic giants like Huichuan Technology and Estun having established a strong foothold with expertise in core component research and development, while international brands like Epson and Yamaha continue to dominate the high-end market.

The prospectus reveals that Atom Robot’s high-speed SCARA robots had gross margins of -125.1% in 2024 and -83.8% in the first three quarters of 2025. Additionally, the primary markets for SCARA and collaborative robots are concentrated in renewable energy, 3C electronics, and automotive parts manufacturing, which differ significantly from Atom Robot’s original strengths in the food and pharmaceutical sectors. This indicates that the company will need to rebuild its sales channels and customer resources when expanding into new product lines.

Data in the prospectus shows that while the new business contributed to revenue growth, parallel robots remain Atom Robot’s primary source of income. In the reporting periods of 2023, 2024, and the first three quarters of 2025, the company’s revenue from robot bodies (including parallel robots, high-speed SCARA robots, heavy-duty collaborative robots, and components) accounted for 69.5%, 66.1%, and 68.2% respectively. Notably, the revenue proportion from parallel robots in each respective period was 64.2%, 52.1%, and 52%.

Furthermore, the prospectus states that Atom Robot’s products have been sold to over 30 countries and regions worldwide, with overseas revenue increasing from 3.6% in 2023 to 7.8% in the first three quarters of 2025. However, Atom Robot’s rapid revenue expansion is accompanied by ongoing cash flow challenges. The company reported revenues of 93.49 million yuan, 135 million yuan, and 157 million yuan for the respective reporting periods, while the net profits were -39.25 million yuan, -47.07 million yuan, and 0.938 million yuan. Despite achieving profitability in the first three quarters of 2025, it is worth noting that the government subsidies accounted for 5.3 million yuan, 5 million yuan, and 4.8 million yuan during the reporting periods. Excluding the 4.8 million yuan government subsidy, Atom Robot’s profit would still remain negative.

It is important to highlight that Atom Robot’s return to profitability has not led to a corresponding recovery in operational cash flow. Throughout the reporting periods, the company’s cash flow from operating activities has consistently been negative, with net cash flows from operating activities at -14.86 million yuan and -6.59 million yuan for 2023 and 2024 respectively. In the first three quarters of 2025, although the company achieved a net profit on paper, the net cash flow from operating activities still stood at -18.66 million yuan, representing an expansion in outflow compared to the previous year.

In light of these circumstances, Atom Robot’s balance sheet is under pressure. The prospectus indicates that the company’s accounts receivable and inventory levels are both high, with substantial funds tied up in upstream and downstream operations. During the reporting periods, Atom Robot’s accounts receivable were 12.31 million yuan, 13.38 million yuan, and 34.31 million yuan, signifying that part of the revenue generated has not yet been converted into cash inflow but remains recorded as accounts receivable on the books. Atom Robot has acknowledged in its prospectus that, “Our customer credit periods are determined on a case-by-case basis. We may offer longer credit periods to strategically significant customers to expand our business…”

As of the end of each reporting period, Atom Robot’s inventory levels were 58.38 million yuan, 70.81 million yuan, and 39.75 million yuan. Although there was a reduction in inventory during the first three quarters of 2025, the provision for inventory impairment losses increased to 3.175 million yuan during the same period.

Founded by Executive Directors Liu Songtao and Song Tao, Atom Robot originated as Chenxing (Tianjin) Automation Equipment Co., Ltd., established in January 2013. The company completed its share restructuring and name change on September 30, 2025. Since its inception, Atom Robot has raised funds through seven rounds of financing, reaching an implied valuation of 2.5 billion yuan after completing a 100 million yuan Series D financing round on October 24, 2025, which represents an increase of approximately 207.33 times compared to its implied valuation of 12 million yuan following its angel round financing on August 9, 2017. Among the investors in these financing rounds are institutions such as Shenzhen Capital Group, Guozhong Private Equity, Lenovo Capital, and Wuxi Huicui, which collectively hold approximately 24.48% of the company’s issued share capital prior to the IPO.

Before this planned IPO, Liu Songtao, Song Tao, Yang Junwen, and several partners held approximately 11.11%, 9.20%, 3.94%, 3.82%, 3.25%, and 2.66% of the issued share capital respectively. According to a concerted action agreement, Song Tao, along with partners and friends, has agreed to act in concert with Liu Songtao, giving him the right to exercise 33.99% of the voting rights in Atom Robot. Liu Songtao, aged 38, has been an external mentor at the School of Mechanical and Control Engineering at Shenzhen University since May 2024, and serves as Vice Chairman and Secretary-General of the Tianjin Robotics Society since January 2025, and as Vice Chairman of the Tianjin Robotics Industry Association since June 2025.

On January 31, 2026, inquiries were sent to Atom Robot regarding the negative gross margin of its high-speed SCARA robots, the quality of its profits, and the “cash flow mismatch” issues. However, no response was received by the time of publication.