Ubtech Robotics Accelerates Growth with Key Manufacturing Acquisition

Ubtech Robotics accelerates its expansion by acquiring a controlling stake in motor manufacturer Zhejiang Fenglong Electric for 1.7B yuan, securing key components for its Walker humanoid robot series.

In a move underscoring its aggressive expansion strategy, Ubtech Robotics has convened a special general meeting today, March 10. The meeting, originally scheduled for March 26, was brought forward to approve a pivotal acquisition. Shareholders are set to vote on the purchase of a minimum 43% stake in Zhejiang Fenglong Electric for approximately 1.7 billion yuan (around $237 million). The rescheduling of the vote highlights the transaction's urgency and strategic importance to the humanoid robotics firm.

Securing Core Manufacturing Capabilities

The deal is structured in two distinct phases. Initially, Ubtech will acquire a 29.99% interest in Fenglong for 1.16 billion yuan. This will be followed by a voluntary partial tender offer for an additional 13.02% stake, valued at roughly 504 million yuan. The offer price is set at 17.72 yuan per share, representing a 10% discount to Fenglong’s closing price on December 17, prior to its trading halt.

Upon successful completion, Ubtech is poised to secure six out of seven seats on Fenglong’s board of supervisors. This would establish Fenglong as Ubtech’s first subsidiary listed on China’s A-share market.

The strategic rationale centers on vertical integration. Fenglong specializes in manufacturing motors, actuators, and hydraulic systems for major industrial clients including Husqvarna, Caterpillar, and Bosch Rexroth. These precision components are directly applicable to humanoid robotics. Rather than investing years to develop its own production lines, Ubtech is acquiring an established manufacturing base outright.

Fenglong’s financial profile reveals a focus on strategic capacity over current earnings. In 2024, the company generated revenue of 479 million yuan but reported a net profit of just 4.59 million yuan. The acquisition valuation reflects the strategic worth of its production capabilities. Fenglong has agreed to profit targets of 10 million yuan by 2026, rising to 20 million yuan by 2028, excluding any losses related to robotics initiatives.

Fueling Production for the Walker Series

This acquisition is designed to directly support the production ramp-up of Ubtech’s flagship Walker series humanoid robots. Since early 2025, the company has secured orders worth over 800 million yuan from partners such as BYD, Audi FAW, and Foxconn. Total firm orders now stand at 1.4 billion yuan. Monthly production of the Walker S2 model has already surpassed 300 units. Ubtech aims to achieve an annual production capacity of 5,000 units by 2026, scaling up to 10,000 units by 2027.

In a related technological development, the company released its self-developed "Thinker" vision-language model as open-source software in February.

Financing for the takeover is already secured. In November 2025, Ubtech raised over HK$3.1 billion in capital explicitly earmarked for investments and acquisitions.

Market Reaction and Upcoming Milestones

Ubtech’s share price declined by 7.6% last week, closing at HK$112.30. Market observers attribute the recent weakness to multiple delays and rescheduling in the acquisition process.

The corporate calendar remains busy. A second special general meeting is already scheduled for March 19, though the precise agenda is yet to be disclosed. Investors will gain a clearer view of the financial impact of this expansion strategy when Ubtech releases its quarterly report on March 31.