UBTech lifts its stake in Shenzhen-listed Fenglong to 43% as its RMB1.67 billion move into manufacturing closes

UBTech Robotics, the Hong Kong-listed humanoid robot maker, has completed the second and final step of its takeover of Shenzhen-listed Zhejiang Fenglong Electric, giving it about 43.01% of a company that makes garden machinery engines, hydraulic controls and car parts, according to an announcement filed with the Hong Kong exchange on April 24, 2026.

UBTech said the transfer procedures for its partial offer were completed that day. It acquired 28,450,000 A shares, about 13.02% of Fenglong, at RMB17.72 each, which takes its total holding to 93,979,906 A shares. At the offer price that tranche is worth RMB504.1 million.

The partial offer followed a share purchase agreed on December 24, 2025. In that first step UBTech bought 65,529,906 A shares, or 29.99%, from Zhejiang Chengfeng Investment, Dong Jiangang, Li Caixia and Ningbo Fengchi Investment for RMB1,161,189,934.32, also at RMB17.72 a share. The Shenzhen Stock Exchange confirmed the transfer on March 10, 2026, it was registered with China Securities Depository and Clearing on March 11, and UBTech said on March 12 that it had become Fenglong's controlling shareholder. Combined consideration for both steps was set at RMB1,665,323,934.32.

The sellers agreed to give up voting rights over 28,427,612 shares they pre-committed to the offer until it closed, and promised that Fenglong would earn at least RMB10 million in net profit in 2026, RMB15 million in 2027 and RMB20 million in 2028, with compensation for any shortfall. UBTech said it funded the deal from internal resources, including proceeds of a general-mandate share placing completed on December 2, 2025.

Governance terms were tightened after closing. In a filing on May 27, UBTech said a supplemental agreement expands Fenglong's board to eight directors, of whom UBTech may nominate seven. The original agreement had set a seven-member board with six UBTech nominees.

Fenglong is small next to its new parent. According to UBTech's December announcement, it reported revenue of RMB478.7 million and net profit of RMB4.6 million in 2024, after a loss of RMB7.0 million on RMB433.3 million revenue in 2023, and earned RMB21.5 million on RMB373.1 million in the first nine months of 2025. Its total assets were RMB1,130.1 million at the end of September 2025.

UBTech's own scale has grown fast. Its 2025 annual results, published on March 31, showed revenue of RMB2,001.0 million, up 53.3%, and a net loss attributable to shareholders of RMB703.2 million, narrower than RMB1,123.6 million a year earlier. Revenue from full-size humanoid robots rose to RMB820.6 million on sales of 1,079 units, making humanoids its largest revenue source, and the company said capacity exceeded 6,000 full-size units by year-end. Cash and equivalents stood at RMB4,887.9 million.

The rationale UBTech gave is industrial. It said combining its humanoid capabilities with Fenglong's manufacturing strength, supply-chain relationships and customer base would create synergies. Fenglong's hydraulic control and automotive component lines sit close to the precision machining, motor and assembly work that humanoid joints require, and the deal gives UBTech an A-share listed vehicle in Zhejiang alongside its Hong Kong listing.

Rivals have chosen different routes to capital and manufacturing. Unitree is pursuing a listing on Shanghai's STAR Market. AgiBot remains privately funded and said in April that its revenue exceeded RMB1 billion in 2025. UBTech's route, taking control of a listed manufacturer, gives it factories rather than only cash.

Open questions remain. UBTech has not said what humanoid parts, if any, Fenglong will make, whether Fenglong's plants will host humanoid assembly, or whether further assets will be injected into the listed company. The profit guarantees are small relative to the price paid, which suggests the value UBTech sees lies in capability and the listing platform rather than current earnings.