Zhaowei Machinery & Electronics Co., Ltd.

Date of Prospectus: February 27, 2026

Investor Deep Dive: Zhaowei Machinery & Electronics IPO – Financials, Structure, Risks, and Listing Outlook

IPO Snapshot: Offer Details, Price, and Structure

Zhaowei Machinery & Electronics launches its Hong Kong IPO, offering investors access to a leading integrated micro transmission and drive systems manufacturer.

• IPO Symbol: Not disclosed
• Offer Price: Maximum HK\$73.68 per H Share
• Total Offer Size: 26,748,300 H Shares (representing approximately 10% of post-IPO issued shares)
• Number of Shares Offered: 26,748,300 H Shares (2,674,900 for Hong Kong Public Offering; 24,073,400 for International Offering)
• Post-IPO Outstanding Shares: 267,482,700 Shares (inferred from prospectus)
• Offer Period: 9:00 a.m. February 27, 2026 – 12:00 noon March 4, 2026
• Listing Date: Expected March 9, 2026

Use of Proceeds: The company expects to raise proceeds primarily for growth-driven purposes. Listing expenses are forecast at approximately RMB69.7 million (HK\$78.5 million), representing about 4.0% of proceeds (assuming maximum offer price), with sponsor fees and underwriting commissions totaling RMB49.4 million (HK\$55.7 million), and legal/accountant fees at RMB20.3 million (HK\$22.8 million). Concrete allocations to R&D, expansion, or working capital are not individually detailed in the summary, but the structure suggests a focus on expansion and growth [[22]].

Placement Breakdown: Public, International, Cornerstone, and Shareholder Allocation

• Hong Kong Public Offering: 2,674,900 H Shares (10% of total offer)
• International Offering: 24,073,400 H Shares (90% of total offer)
• Cornerstone Investors: HHLR Advisors, Ltd. and Mirae Asset Securities (HK) Limited, with US\$15 million and US\$10 million commitments respectively. Cornerstone allocations may be affected by reallocation in the event of Hong Kong oversubscription [[276]].
• Employee Allocation: 2024 Share Incentive Scheme; outstanding share options could dilute post-IPO holding by up to 0.27% [[76]]. Full list of grantees available for inspection as required by Hong Kong regulations [[462]].

Investor Participation and Book Quality

• Anchor/Institutional Investors: HHLR Advisors, Ltd. and Mirae Asset Securities (HK) Limited are named as cornerstone investors with significant allocations [[442], [276]].
• Subscription Levels: Not specified in terms of times subscribed for retail or institutional tranches.
• Pre-Listing Disposals: No material pre-listing disposals or sales by investors or early shareholders disclosed [[456]].
• Book Quality Implications: The presence of reputable cornerstone investors and the detailed allocation process suggest strong institutional support and the likelihood of robust first-day performance [[276]].

Deal Parties and Structure: Sponsors, Underwriters, and Stabilization

• Joint Sponsors: China Merchants Securities (HK) Co., Limited, Deutsche Securities Asia Limited [[29]]
• Overall Coordinators: Named in prospectus (not specified here)
• Joint Global Coordinators: Named in prospectus (not specified here)
• Joint Bookrunners: Named in prospectus (not specified here)
• Underwriters: Hong Kong Underwriters and International Underwriters [[33]]
• Stabilization/Greenshoe: No mention of greenshoe or over-allotment option; international offering does not have a delayed delivery or deferred settlement [[276]].
• Listing-Day Support: The deal is managed by top-tier sponsors and bookrunners, with robust institutional participation, supporting the likelihood of strong listing-day performance [[83]].

Company Overview: Business Model, Products, Revenue Streams

Zhaowei Machinery & Electronics is a leading provider of integrated micro transmission and drive system products. The company offers a portfolio of micro-drive products and solutions for diverse industry verticals, including automotive, consumer electronics, industrial, and medical applications. Products include precision gearboxes, micro motors, and components for smart devices, automotive electronics, and industrial automation [[16], [124]].

Revenue Streams: Derived from sales of micro transmission and drive system products, with a customer base ranging from OEMs in automotive, industrial, and consumer electronics sectors. The company has a growing overseas footprint and evolving business portfolio [[16]].

Geographies: Headquarters and manufacturing in Shenzhen, China; overseas expansion is part of growth strategy.

Industry/Sector Definition: Micro transmission and drive systems sector, with addressable market and customer demand described as growing but subject to uncertainties [[16], [96]].

Market Position: Market share and ranking not numerically specified, but the company emphasizes its brand strength, diversified customer base, and competitive advantages [[16]].

Financial Health: Revenue, Profitability, Cash Flow

Recent Financial Developments: No material adverse change in financial or trading position since September 30, 2025 [[274], [457]]. The company presents a profit estimate for 2025, audited by Ernst & Young [[411]].

Management Team: Leadership and Experience

• Chairman: Mr. Li Haizhou
• Vice Chairwoman: Ms. Xie Yanling
• Senior Management: Names and details provided in prospectus [[198]]
• Relevant Experience: Not specifically detailed

Market Trends, Timing, and Economic Environment

Sector and Global Trends: Micro transmission and drive systems sector is characterized by growth in automotive, consumer electronics, and industrial automation, but faces uncertainties in market size and customer demand [[16]]. Demand drivers include increasing automation, smart devices, and vehicle electrification.

Timing of the IPO: Offer period from February 27, 2026 to March 4, 2026. Listing expected on March 9, 2026 [[5]]. Recent developments indicate no material adverse changes, and macro conditions are described as favorable for expansion and listing [[274], [457]].

Risk Factors: Quantified Exposures and Key Concerns

Major risks highlighted:

• Uncertainties in market growth rate and customer demand [[16]]
• Potential slowdown in downstream sectors
• Limited operating history and evolving business portfolio
• Failure to timely introduce new products and adapt to technological advances
• Risks associated with overseas expansion
• Competitive pressures and brand enhancement challenges
• Execution risks for growth strategies
• Potential impact from regulatory changes, FX, and macroeconomic conditions

Quantified exposures: Dilution from ESOPs capped at 0.27% post-IPO [[76]]. Listing expenses represent 4.0% of proceeds [[22]].

Growth Strategy: Expansion, Product Innovation, Market Entry

Growth strategy is centered on:

• Expanding into new industry verticals and application scenarios
• Increasing overseas presence
• Timely introduction of new products and solutions
• Enhancing brand recognition and sales/marketing capabilities
• Execution of strategic plans for capacity expansion and market penetration

Timelines and numbers: Not explicitly disclosed for capex pipeline or M&A.

Ownership and Lock-ups: Shareholding, Promoters, ESOPs

• Pre-IPO Shareholding: Not explicitly detailed in summary. Promoters are disclosed as the five shareholders prior to conversion in December 2017 [[458]].
• Post-IPO Shareholding: 267,482,700 Shares outstanding [[316]].
• Lock-in Periods: Controlling shareholders are subject to a six-month lock-up from listing date; company cannot issue new shares for six months except as permitted by Listing Rules [[296]].
• ESOPs: 2024 Share Incentive Scheme, with maximum dilution of 0.27% upon full exercise [[76]].

Valuation and Peer Comparison

Valuation multiples: Not disclosed in the prospectus for issuer or peers. No peer symbols or sector performance tables provided.

Research and Analyst Opinions

Analysts/covering institutions: Frost & Sullivan commissioned for the industry report; Ernst & Young for financials and profit estimate [[96], [409]]. No price targets or explicit opinions included.

IPO Allotment Result and Listing Outlook

Final subscription outcomes: Not disclosed. Allotment results will be announced on or around March 6, 2026 [[276]]. Implications: The presence of cornerstone investors and strong institutional involvement imply robust demand and potential for strong listing-day performance.

Listing Outlook: Based on institutional support, sponsor/underwriter quality, and absence of material adverse changes, Zhaowei Machinery & Electronics IPO appears well-positioned for a successful debut. Estimated first-day trading range is likely to be strong relative to the offer price, especially if priced at or below the maximum HK\$73.68 per share. The allocation process and book quality suggest high likelihood of listing-day strength.

Prospectus Access

The prospectus can be obtained at the following websites: www.hkexnews.hk and http://www.szzhaowei.net

How to Apply for Zhaowei IPO Shares

Application Channels:

• HK eIPO White Form service: www.hkeipo.hk – for investors wishing to receive physical H Share certificates
• HKSCC EIPO channel: Through brokers or custodians who are HKSCC Participants

Application Window: 9:00 a.m. February 27, 2026 – 12:00 noon March 4, 2026

Eligibility: Applicants must be 18 years or older, with a Hong Kong address for HK eIPO White Form channel. Restrictions apply to existing shareholders, directors, and close associates unless permitted by Listing Rules or Stock Exchange waiver [[311]].

Conclusion: Zhaowei IPO – Investor Opportunity in a Growth Sector

Zhaowei Machinery & Electronics offers investors exposure to a growth-driven sector, strong management, and robust institutional support. With a clear focus on expansion and innovation, an attractive offer structure, and minimal dilution from employee incentives, this IPO appears poised for success, with favorable listing-day prospects based on disclosed facts and figures.